Strategic Growth Plan / Vision for the Future
Dunkin’ Donuts Press Kit (2008)
Deep roots in New England serves as the basis for a steady and strategic national
expansion in both new and existing Dunkin’ Donuts markets.
2005: Dunkin’ Donuts unveiled new restaurant design for all shops.
o Retro design that draws from first Dunkin’ Donuts restaurant built in 1950 in Quincy
Massachusetts.
o Intention of new layout is to handle advanced equipment and technology to provide
customers with an enhanced in-shop experience.
2007: China expansion strategy and entry into Taiwan.
2008: opens first shops in Shanghai, with a total of 100 new shops planned over the next
10 years.
Corporate Social Responsibility
Dunkin’ Donuts Press Kit (2008)
local charitable programs and initiatives
o Range from sponsoring college scholarship programs to supporting local sports
teams.
o Jimmy Fund, Special Olympics, Make-A-Wish, Easter Seals, and Project Bread.
2008: Leadership in Energy and Environmental Design (LEED) certified restaurant in St.
Petersburg, Fla.
o LEED certification is widely recognized as the standard for "green" construction
in the United States.
The St. Petersburg LEED prototype restaurant is part of a greater Corporate Social
Responsibility (CSR) commitment that will provide the company with a central frame of
reference for organizational decisions, strategic goal setting, and behaviours that respect
all of our key stakeholders, including consumers, employees, franchisees, communities,
suppliers, government and the environment.
Coffee Leadership
Dunkin’ Donuts Press Kit (2008)
Dunkin’ Donuts coffee experts travel around the globe to ensure consistent quality at
each turn.
Dunkin' Donuts uses 100 percent Arabica coffee beans and has its own coffee
specifications based on Dunkin' Donuts Quality (DDQ) specifications, coffee is milled and
processed specifically for the company.
Dunkin' Donuts was the first national brand to sell espresso beverages that are made
exclusively with Fair Trade Certified coffee.
Beans for all Dunkin' Donuts espresso beverages, including cappuccino and latte, are
certified through TransFair USA, the only independent certifier of Fair Trade products in
the U.S. The Fair Trade model guarantees farmers a price of $1.31 per pound for coffee,
enabling them to make a sustainable living.
.
Financial Data/company structure
Dunkin’ Donuts Press Kit (2008)
Currently owned by private equity companies: Bain Capital, Carlyle Group, and Thomas H. Lee
Partners.
100% franchised
For year end 2008
o Total global system wide sales: 5.5 Billion
o Total worldwide locations: 6395 shops (USA) 2440 shops(international)
Article: Dunkin’ Donuts – the birth of a new distribution and franchising concept (1994)
Ruth A. Schmidt, Brenda M. Oldfield, (1998) "Dunkin’ Donuts - the birth of a new distribution and franchising concept", British Food
Journal, Vol. 100 Iss: 2, pp.119 - 124
o Dunkin’ Donuts was founded in the USA in 1950, making and selling coffee,
doughnuts, and other related bakery products.
o Wholly owned subsidiary of Allied Domecq plc (acquired in 1990)
o Mission statement: emphasis on growth and market leadership
To accomplish this Dunkin’ Donuts are committed to pursuing values of
trust, teamwork, joy and continuous improvement.
o Strive to be leaders in product categories measured by total sales.
o Ultimately the goal is to develop innovative products and strategies which prove
successful into new franchise opportunities.
o Dunkin’ Donuts chain is 99% franchised, 4.9% total sales revenue to Allied
Domecq plc.
o Value Chain/Supply Chain
Historically Dunkin’ Donuts concept has operated on the basis that
doughnuts are manufactured and sold on the franchised premises.
Prospective franchisees spend six weeks at Dunkin’ Donuts University.
Learn bakery/equipment handling skills; receive training in quality
control, health and safety, human resource management, and
basic accounting skills.
Power allocation between franchisor and franchisee
Buying of raw materials is controlled by the franchisee
Regional distribution centers provide goods to the franchisee
o Dunkin’ Donuts system organizes franchisees into 65 districts and six zone
advisory councils
o Operating standards, sales and profitability goals are agreed between corporate
management and the zone advisory councils and communicated to other
franchisees
Alignment of standards, sales, and profit.
Article: Sweet success: Dunkin' Brands security focuses on making dough; Aligning
corporate security with corporate priorities makes everyone's fortunes rise. A look behind
the counter at Dunkin' Donuts' parent company.
Senior Editor. (2010, November). Sweet success: Dunkin' Brands security focuses on making
dough :Aligning corporate security with corporate priorities makes everyone's fortunes rise. A
look behind the counter at Dunkin' Donuts' parent company.. CIO, 24(3). Retrieved November
21, 2010, from ABI/INFORM Global. (Document ID: 2177402081).
http://proquest.umi.com.ezproxy.lib.ucalgary.ca/pqdweb?
index=0&did=2177402081&SrchMode=1&sid=3&Fmt=3&VInst=PROD&VType=PQD&RQ
T=309&VName=PQD&TS=1290305191&clientId=12303
Article: Dunkin' Donuts; Dunkin' Donuts Number One in Customer Loyalty
Dunkin' Donuts; Dunkin' Donuts Number One in Customer Loyalty. (2009, March).
Marketing Weekly News,98. Retrieved November 18, 2010, from ABI/INFORM Global.
(Document ID: 1659733001).
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index=5&did=1659733001&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD
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Article: Dunkin' Donuts - the birth of a new distribution and franchising concept; [1]
Ruth A. Schmidt, & Brenda M. Oldfield. (1999). Dunkin' Donuts - the birth of a new
distribution and franchising concept :[1]. The Journal of Consumer
Marketing, 16(4), 376-385. Retrieved November 19, 2010, from ABI/INFORM Global.
(Document ID: 115717201).
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&RQT=309&VName=PQD&TS=1290392261&clientId=12303
Article: Value Added
Kate Leahy. (2008, July). Value Added. Restaurants & Institutions, 118(10), 101.
Retrieved November 21, 2010, from ABI/INFORM Global. (Document
ID: 1508157731).
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Article: 2005 GOLDEN CHAIN: Jon Luther
Erica Duecy. (2005, September). 2005 GOLDEN CHAIN: Jon Luther. Nation's
Restaurant News, 39(38), 96,98. Retrieved November 15, 2010, from ABI/INFORM
Global. (Document ID: 906669441).
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&RQT=309&VName=PQD&TS=1290393009&clientId=12303
Article: Dunkin' Donuts then and now
Molishever, Jay. (1996, November). Dunkin' Donuts then and now. Franchising
World, 28(6), 16-17. Retrieved November 16, 2010, from ABI/INFORM Global.
(Document ID: 10431586).
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Article: Event Brief of Q4 2009 J. M. Smucker Company Earnings Conference Call - Final
Event Brief of Q4 2009 J. M. Smucker Company Earnings Conference Call - Final. (18
June). Fair Disclosure Wire. Retrieved November 20, 2010, from ABI/INFORM Trade
& Industry. (Document ID: 1778666041).
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Competitive analysis
Summary of Financials 2009 ($ in Millions)
Tim Horton’s Dunkin’ Donuts Starbucks McDonald’s
Operating Profit
ROI
Contrasting Strategies
Tim Horton’s Dunkin’ Donuts Starbucks McDonald’s
Business Strategy: High volume / low Competitive Provide an authentic
price while keeping advantage for large high quality bean
queue times low. standard markets, house environment
growth through while maintaining
franchising. controlled growth.
Functional Strategy:
Marketing High value/low price
Controlled growth
Standard product
Manufacturing Delivery and quality
driven
Scale Economies
Distribution centers
R&D
Financial
Market Segmentation
Tim Horton’s Dunkin’ Donuts Starbucks McDonald’s
Market Focus
compare their relative positioning, mission, strategies, stakeholders, internal process
(supply chain/value chain) and maybe their distinctive characteristics.
