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Dunkin’ Donuts Business Model

The Dunkin’ Donuts business model is a franchise-based business model, meaning that most Dunkin’ Donuts locations are owned and operated by independent franchisees rather than company-owned. The franchise model enables Dunkin’ Donuts to tap into the skills and resources of motivated individuals who are passionate about the brand, while sharing in the risks and rewards of business ownership.

Franchisees are responsible for day-to-day operations, including staffing, inventory management, customer service, and financial management. They benefit from the established Dunkin’ Donuts brand, proven systems, and ongoing support provided by the company.

Franchisees enter into a contractual agreement with Dunkin’ Donuts, which outlines the terms and conditions of the franchise relationship. As part of this agreement, franchisees typically pay an initial franchise fee to gain access to the Dunkin’ Donuts brand, trademarks, and operating systems. They also agree to pay ongoing royalty fees, usually calculated as a percentage of sales, as well as contribute to national and regional advertising funds.

A brief history of Dunkin’ Donuts

Dunkin’ Donuts was founded in 1950 by William Rosenberg in Quincy, Massachusetts. Originally called “Open Kettle,” the shop served donuts and coffee. In 1955, the name was changed to Dunkin’ Donuts to reflect the popular practice of Dunkin’ Donuts in coffee.

The brand quickly gained popularity, and in the 1950s, Dunkin’ Donuts began offering franchise opportunities, allowing entrepreneurs to open their own Dunkin’ Donuts locations. This led to rapid expansion, and by the end of the 1960s, there were over 100 Dunkin’ Donuts stores across the United States.

During the 1970s and 1980s, Dunkin’ Donuts continued to grow and diversify its menu. They introduced new items such as bagels, breakfast sandwiches, and other bakery products, expanding their offerings beyond donuts.

In the 1990s, Allied Domecq, a multinational food and beverage company, acquired Dunkin’ Donuts. This acquisition provided the resources and expertise to accelerate international expansion. Dunkin’ Donuts opened stores in various countries, including Canada, Japan, South Korea, and the United Kingdom.

In 2004, a significant event took place in the food service industry, as Dunkin’ Donuts and Baskin-Robbins merged to form Dunkin’ Brands. This merger was facilitated by a consortium of private equity firms, including Bain Capital Partners, the Carlyle Group, and Thomas H. Lee Partners.

Prior to the merger, Dunkin’ Donuts and Baskin-Robbins operated as separate entities, each renowned for their strong brand recognition and franchise operations. However, the decision to combine their strengths and resources led to the creation of Dunkin’ Brands.

Under the merger agreement, the private equity firms successfully acquired Dunkin’ Donuts and Baskin-Robbins, establishing Dunkin’ Brands as the parent company. This strategic consolidation allowed for the sharing of resources, operational efficiencies, and the exploitation of synergies between the two renowned brands.

In 2018, Dunkin’ Donuts underwent a rebranding effort and became known as Dunkin’, reflecting its focus on beverages beyond donuts. The company strongly emphasized technology, launching a mobile app for convenient ordering and introducing digital kiosks and drive-thru technology to enhance the customer experience.

In 2020, Dunkin Brands was acquired by Inspire Brands, a restaurant company that owns several other well-known brands. This acquisition positioned Dunkin’ within a larger organization and provided opportunities for further growth and expansion.

Who Owns Dunkin’ Donuts

Inspire Brands owns Dunkin’ Donuts through its acquisition of Dunkin’ Brands, which is the parent company of Dunkin’ Donuts. In December 2020, Inspire Brands completed the acquisition of Dunkin’ Brands, making it the new owner of Dunkin’ Donuts.

Dunkin’ Donuts Mission Statement

Dunkin’ Donuts’ mission statement is “to be the world’s leading baked goods and coffee chain, serving delicious, high-quality products that bring joy and fuel our customers’ day.”

How Dunkin’ Donuts works

Dunkin’ Donuts operates through a franchising system that allows qualified individuals or groups to own and operate Dunkin’ Donuts stores. Each franchise of Dunkin’ Donuts engages in various operations to run their individual stores effectively:

Store Management

Franchisees are responsible for managing the day-to-day operations of their Dunkin’ Donuts store. They oversee staffing, including hiring, training, and scheduling employees. Franchisees also manage inventory levels, ensuring they have an adequate supply of ingredients, packaging, and other necessary items.

Product Preparation

Franchisees are responsible for adhering to Dunkin’ Donuts’ standardized recipes and preparation methods to maintain consistency across the brand. They oversee the production of donuts, coffee, beverages, and other menu items, ensuring they meet Dunkin’ Donuts’ quality standards.

Financial Management

Franchisees handle financial aspects such as sales reporting, cash management, and financial record-keeping. They monitor costs, control expenses, and work towards achieving profitability while complying with Dunkin’ Donuts’ financial policies and reporting requirements.

Marketing and Promotions 

Dunkin’ Donuts franchisees actively participate in local marketing efforts. While the company conducts national marketing campaigns, franchisees engage in localized advertising, community outreach, and promotions to drive customer traffic and awareness in their specific market.

Dunkin’ Donuts also offers catering services for larger orders or events. Customers can place catering orders in advance, selecting from a range of menu options suitable for gatherings or meetings. The catering order can be picked up at the store or, in some cases, delivered to the specified location.

How Dunkin’ Donuts makes money

Here are the primary ways Dunkin’ Donuts generates its revenue:

• Franchise Fees

Dunkin’ Donuts operates on a franchise business model, where individuals or groups (franchisees) pay an initial franchise fee to obtain the rights to own and operate a Dunkin’ Donuts store. This fee provides franchisees access to the Dunkin’ Donuts brand, trademarks, operating systems, and ongoing support.

• Royalty Fees

Dunkin’ Donuts collects ongoing royalty fees from its franchisees as part of the franchise agreement. These fees are typically based on a percentage of the franchisees’ gross sales and are paid regularly, often weekly or monthly. The royalty fees allow franchisees to continue using the Dunkin’ Donuts brand and receive ongoing support and resources.

• Advertising Fees

Dunkin’ Donuts requires its franchisees to contribute to a national advertising fund. The advertising fees are used for regional and national marketing campaigns, promotional activities, and brand-building efforts. This collective advertising fund helps promote the Dunkin’ Donuts brand and benefits all franchisees by driving customer traffic to their stores.

• Product Sales

The primary source of revenue for Dunkin’ Donuts stores is the sale of its menu items, including donuts, breakfast sandwiches, coffee, beverages, and other baked goods. The company earns money from the sale of these products, and the revenue is shared between Dunkin’ Donuts corporate and the individual franchisees.

• Licensing and Merchandising

In addition to its traditional store-based operations, Dunkin’ Donuts may generate revenue through licensing agreements and merchandising. This can include selling Dunkin’ Donuts-branded merchandise, such as mugs, apparel, and accessories, in stores or online.

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Dunkin’ Donuts Customer Segments

Dunkin’ Donuts’s customer segments consist of:

• Morning Commuters : Morning commuters refer to individuals who travel to work or other destinations during the morning hours, typically on weekdays. They are usually on their way to their workplace or educational institution and use various modes of transportation, such as cars, buses, trains, or bicycles;
• Coffee Enthusiasts : Coffee enthusiasts are people who have a deep appreciation and love for coffee. They often seek out high-quality coffee and may be knowledgeable about different brewing methods, origins, and flavors. Coffee enthusiasts enjoy exploring the world of coffee;
• Snack Seekers : Snack seekers are individuals who actively search for and enjoy snacks. They may have a particular fondness for a wide range of snacks, including donuts, cookies, candies, and other portable food items. Snack seekers often look for quick and convenient options to satisfy their cravings, and may be inclined to try new and interesting flavors;
• Families and Children : Families and children refer to groups of parents or guardians with their young ones. They typically engage in activities together and often prioritize spending quality time as a family unit. They see Dunkin’ Donuts as a family-friendly destination where they can indulge in delicious treats, enjoy a relaxed atmosphere, and spend quality time together;
• Students and Study Groups : Students and study groups include individuals enrolled in educational institutions, such as schools, colleges, or universities. They may come together in groups to collaborate, share knowledge, and support each other in their learning endeavors. Students and study groups often engage in studying, conducting research, working on assignments, and preparing for exams.

Dunkin’ Donuts Value Propositions

Dunkin’ Donuts’s value propositions consist of:

• For Morning Commuters : Dunkin’ Donuts offers a convenient and quick breakfast option for morning commuters. With a wide selection of freshly brewed coffee, breakfast sandwiches, and grab-and-go snacks, Dunkin’ Donuts provides a hassle-free solution for commuters looking for a delicious and energizing start to their day. The fast service, easy accessibility of locations, and the availability of breakfast items make Dunkin’ Donuts a preferred choice for time-conscious morning commuters;
• For Coffee Enthusiasts : Dunkin’ Donuts understands the passion of coffee enthusiasts and offers a range of high-quality coffee options to satisfy their discerning tastes. From classic blends to specialty coffee drinks, Dunkin’ Donuts focuses on delivering a consistently delicious and customizable coffee experience. With a commitment to freshness and the ability to personalize the strength, sweetness, and flavors of their coffee, Dunkin’ Donuts caters to the preferences of coffee enthusiasts who value the art and science of brewing;
• For Snack Seekers : Dunkin’ Donuts is a go-to destination for snack seekers who crave tasty and satisfying treats throughout the day. From a wide assortment of donuts and pastries to savory snacks like bagels and muffins, Dunkin’ Donuts offers a variety of options to fulfill snack cravings. The convenience of quick service, the availability of both sweet and savory choices, and the occasional limited-time offerings make Dunkin’ Donuts an appealing choice for those seeking a quick and indulgent snack;
• For Families and Children : Dunkin’ Donuts provides a family-friendly environment and a menu that caters to the tastes and preferences of both parents and children. With a range of donut flavors, breakfast sandwiches, and kid-friendly options like munchkins and milkshakes, Dunkin’ Donuts offers something for everyone in the family. The welcoming atmosphere, availability of seating, and the ability to accommodate different dietary preferences make Dunkin’ Donuts an attractive choice for families looking to enjoy a treat together;
• Students and Study Groups : Dunkin’ Donuts provides a comfortable and relaxed setting for students and study groups to meet, work, and recharge. With free Wi-Fi, ample seating, and a variety of caffeinated and non-caffeinated beverage options, Dunkin’ Donuts offers an inviting space for studying, collaborating, or taking a break. The availability of snacks and the flexible menu choices make it convenient for students and study groups to fuel their productivity and enjoy a refreshing break during their study sessions.

Dunkin’ Donuts Channels

Dunkin’ Donuts’s channels consist of:

• Physical Stores
• Social Media

Dunkin’ Donuts Customer Relationships

Dunkin’ Donuts’s customer relationships consist of:

• Customer engagement
• Loyalty programs
• Social media interaction
• Feedback and surveys

Dunkin’ Donuts Revenue Streams

Dunkin’ Donuts’s revenue streams consist of:

Dunkin’ Donuts Key Resources

Dunkin’ Donuts’s key resources consist of:

• Physical stores
• Production facilities
• Equipment and machinery for food preparation
• Supply chain and distribution network
• Intellectual property
• Technology infrastructure
• Workforce 
• Suppliers and vendor relationships
• Financial resources and capital

Dunkin’ Donuts Key Activities

Dunkin’ Donuts’s key activities consist of:

• Store operations
• Product development
• Supply chain management
• Marketing and advertising
• Training and employee development
• Customer relationship management
• Franchise management

Dunkin’ Donuts Key Partners

Dunkin’ Donuts’s key partners consist of:

• Franchisees
• Distribution partners
• Delivery services
• Financial institutions
• Marketing and advertising agencies
• Technology providers

Dunkin’ Donuts Cost Structure

Dunkin’ Donuts’s cost structure consists of:

• Store operations costs
• Marketing and advertising expenses
• Supply chain and distribution costs
• Technology and digital infrastructure costs
• Administrative and overhead expenses
• Research and development (R&D) costs
• Cost of Goods Sold

Dunkin’ Donuts Competitors

• Starbucks : Starbucks was founded in 1971 in Seattle, Washington, by three partners – Jerry Baldwin, Zev Siegl, and Gordon Bowker. Initially, Starbucks focused on selling high-quality whole coffee beans and coffee-making equipment. However, in the 1980s, the company shifted its focus to the coffeehouse concept, offering a cozy and inviting space for customers to enjoy freshly brewed coffee. Starbucks competes with Dunkin’ Donuts by focusing on its premium coffee offerings and creating a unique coffeehouse experience. Starbucks is known for its high-quality Arabica coffee beans and a wide range of specialty beverages, including espresso-based drinks and seasonal favorites. The company emphasizes a cozy and inviting atmosphere in its stores, providing comfortable seating and creating a “third place” for customers to relax and socialize. Starbucks invests heavily in its brand image, promoting sustainability and ethical sourcing practices, which resonates with socially conscious consumers. The company also leads in digital innovation, offering a highly successful mobile app and rewards program to enhance customer engagement and convenience;
• McDonald’s : McDonald’s, founded in 1940 by Richard and Maurice McDonald, initially operated as a hamburger stand in San Bernardino, California. However, it was in the 1950s that McDonald’s transformed into a fast-food restaurant chain, emphasizing speed, affordability, and consistency. McDonald’s competes with Dunkin’ Donuts by leveraging its extensive global presence and drive-thru convenience. McDonald’s is renowned for its fast and efficient service, offering a wide range of breakfast options, including breakfast sandwiches, muffins, and coffee. The company emphasizes affordability and convenience, attracting customers looking for a quick and accessible breakfast on the go. McDonald’s also invests in menu innovations, introducing limited-time offerings and expanding its McCafé line of coffee beverages to compete in the coffee segment. The company’s vast network of locations and strong brand recognition give it a competitive edge in the QSR industry;
• Tim Hortons : Tim Hortons was founded in 1964 in Hamilton, Ontario, Canada, by Tim Horton, a professional ice hockey player, and Ron Joyce. The company started as a small donut and coffee shop and quickly gained popularity. Tim Hortons’ focus on quality coffee and baked goods resonated with Canadians, and the brand grew rapidly across the country. Tim Hortons competes with Dunkin’ Donuts, especially in the Northeastern United States, by offering a variety of coffee, baked goods, and breakfast options. It emphasizes affordability and convenience, catering to customers looking for a quick and satisfying meal or snack. Tim Hortons highlights its Canadian heritage, using it as a point of differentiation and appealing to customers who appreciate the brand’s origins. The company continually introduces new menu items and promotions to engage customers and compete in the highly competitive QSR market.

Dunkin’ Donuts SWOT Analysis

Below, there is a detailed SWOT analysis of Dunkin’ Donuts:

Dunkin’ Donuts Strengths

• Strong Brand Recognition : Dunkin’ Donuts is a well-known and respected brand with a long history in the industry. The company has established a strong presence and brand awareness, making it instantly recognizable to consumers. This recognition helps drive customer loyalty and attracts new customers who trust the brand for its quality products and services;
• Successful Franchise Model : Dunkin’ Donuts operates primarily through a franchise model, which has contributed to its rapid expansion and widespread presence. The franchise model allows local entrepreneurs to invest in the brand, ensuring consistency in product quality and customer experience across various locations. This scalability has fueled the company’s growth and market reach;
• Wide Menu Variety : Dunkin’ Donuts offers a diverse menu that appeals to a broad range of customer preferences. In addition to their famous donuts, they provide an extensive selection of breakfast items such as sandwiches, bagels, muffins, and croissants. They also offer a variety of beverages, including coffee, espresso drinks, iced coffee, teas, and frozen beverages. This wide menu variety allows customers to find something they enjoy and increases the likelihood of repeat visits;
• Convenient Accessibility : Dunkin’ Donuts has a widespread presence, with thousands of stores located in various regions globally. This accessibility makes it convenient for customers to find a Dunkin’ Donuts location nearby. Additionally, many stores have drive-thru service, allowing customers to quickly grab their favorite items on the go. The combination of accessible locations and drive-thru service enhances convenience for busy customers and contributes to the brand’s popularity.

Dunkin’ Donuts Weaknesses

• Dependency on Franchisees : Dunkin’ Donuts operates primarily through a franchise model, with franchisees responsible for individual store operations. While this model enables rapid expansion, it also poses challenges in terms of maintaining consistent brand standards and customer experiences across all locations. Variations in service quality or store management among different franchisees can impact the overall brand perception;
• Regional Concentration : Dunkin’ Donuts’ presence is heavily concentrated in specific regions, particularly the Northeastern United States. This regional concentration leaves the company more vulnerable to economic downturns or shifts in consumer preferences within those areas. Expanding and establishing a stronger presence in other regions or internationally may be crucial for long-term growth and diversification;
• Perception as Fast Food : Despite efforts to position itself as a quick-service restaurant focusing on beverages and breakfast, Dunkin’ Donuts is still often perceived as a fast-food chain. This perception may deter health-conscious customers or those seeking healthier food options, as fast-food chains are often associated with less healthy menu choices;
• Vulnerability to Commodity Price Fluctuations : As a coffee-focused brand, Dunkin’ Donuts is exposed to fluctuations in the price of coffee beans and other commodities used in its products. Changes in commodity prices, such as increases in coffee bean costs, can impact the company’s profitability and pricing strategies.

Dunkin’ Donuts Opportunities

• Menu Expansion and Innovation : Dunkin’ Donuts can explore opportunities to expand and diversify its menu further. By introducing new food items, snacks, and beverages, the company can attract new customers and cater to evolving consumer preferences. Innovations such as plant-based options, healthier menu choices, and trendy flavors can help differentiate Dunkin’ Donuts and stay relevant in a competitive market;
• International Expansion : While Dunkin’ Donuts has a global presence, there are still opportunities for further international expansion. The company can enter new markets and leverage its brand recognition to gain market share. Expanding into emerging markets with growing coffee consumption and demand for quick-service dining options can contribute to long-term growth;
• Delivery and Takeout Services : The growing demand for food delivery and takeout presents an opportunity for Dunkin’ Donuts to expand its services. By partnering with third-party delivery platforms or developing its own delivery infrastructure, the company can reach customers who prefer the convenience of having their favorite Dunkin’ Donuts products delivered to their doorstep or picked up on the go.

Dunkin’ Donuts Threats

• Intense Competition : The quick-service restaurant and coffee industry is highly competitive, with numerous established players and new entrants vying for market share. Competitors such as Starbucks, McDonald’s, Tim Hortons, and local/regional coffee shops pose a threat to Dunkin’ Donuts’ customer base, brand loyalty, and market positioning;
• Shifting Consumer Preferences : Consumer preferences and trends can change over time, posing a threat to Dunkin’ Donuts if the company fails to adapt. For example, the increased demand for healthier food options, organic ingredients, and sustainable practices may lead some customers to choose alternatives that better align with their preferences. Failure to meet changing consumer expectations can result in a loss of market share;
• Health and Wellness Concerns : Rising awareness of health and wellness issues can impact Dunkin’ Donuts’ sales, particularly with regard to sugary and high-calorie products. Consumers are increasingly mindful of their dietary choices and may opt for healthier alternatives or reduce their consumption of indulgent treats like donuts. Dunkin’ Donuts must address these concerns by offering healthier menu options and transparent nutritional information to retain health-conscious customers.

Dunkin’ Donuts’ franchise-based business model has been a crucial driver of its success and growth. Dunkin’ Donuts has created a mutually beneficial relationship through the contractual agreements with franchisees. Franchisees gain access to the Dunkin’ Donuts brand, trademarks, and operating systems, enabling them to leverage a recognized and trusted name in the industry.

However, like any business model, there are challenges that Dunkin’ Donuts must navigate. Maintaining consistent brand standards across a vast network of franchisees, addressing changing consumer preferences, and managing the complexities of franchisee relationships require ongoing efforts and strategic decision-making.

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Business Plan Template for Dunkin Donuts

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you dreaming of opening your very own Dunkin' Donuts franchise? Well, you're going to need a solid business plan to make it happen! ClickUp's Business Plan Template for Dunkin' Donuts is designed specifically for franchisees and entrepreneurs who want to create a roadmap to success.

With this template, you'll be able to:

• Outline your goals and objectives for your Dunkin' Donuts location
• Create financial projections and budgets to secure funding and attract investors
• Develop marketing strategies to build brand awareness and drive customer traffic
• Plan your operational processes to ensure a smooth and efficient business operation

Whether you're a seasoned entrepreneur or a first-time franchisee, our Business Plan Template for Dunkin' Donuts will help you create a comprehensive plan that sets you up for success. Get started today and turn your dreams into reality!

Business Plan Template for Dunkin Donuts Benefits

When using the Business Plan Template for Dunkin' Donuts, franchisees and entrepreneurs can enjoy the following benefits:

• Clear and comprehensive documentation of business goals, financial projections, marketing strategies, and operational plans
• Increased chances of securing funding from investors and lenders
• A roadmap for success, providing guidance and direction in running a profitable coffee and baked goods business
• Improved decision-making through careful analysis of market trends and competition
• Efficient resource allocation and budget management to maximize profitability and minimize risks.

Main Elements of Dunkin Donuts Business Plan Template

When creating your business plan for a Dunkin' Donuts franchise, ClickUp has got you covered with a comprehensive template that includes:

• Custom Statuses: Keep track of your progress with statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your business plan is accounted for and easily managed.
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to add important details and organize your plan effectively, making it easier to track and update specific sections and references.
• Custom Views: Switch between 5 different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to get a holistic view of your plan, track progress, and stay organized throughout the entire process.
• Collaboration Tools: Collaborate seamlessly with your team by assigning tasks, setting due dates, and leaving comments to ensure everyone stays on track and has visibility into the plan's development.
• Document Management: Store and manage all your business plan documents in ClickUp's Docs feature, making it easy to access, edit, and share your plan with stakeholders.

How To Use Business Plan Template for Dunkin Donuts

If you're looking to create a comprehensive business plan for your Dunkin Donuts franchise, follow these steps using ClickUp's Business Plan Template:

1. Executive Summary

Start your business plan with an executive summary that highlights the key aspects of your Dunkin Donuts franchise. Include information about your target market, competitive advantage, and financial projections. This section should provide a snapshot of your business and entice investors or lenders to read further.

Use the Docs feature in ClickUp to write a concise and compelling executive summary.

2. Company Description and Mission Statement

Provide a detailed overview of your Dunkin Donuts franchise, including its history, location, and unique selling proposition. Also, clearly define your mission statement, which reflects your brand's purpose and values. This will help potential investors or partners understand your business better.

Use the Docs feature in ClickUp to describe your company and craft a compelling mission statement.

3. Market Analysis

Conduct a thorough market analysis to understand the competitive landscape and target market for your Dunkin Donuts franchise. Identify your ideal customer profile, analyze your competitors, and determine market trends that can impact your business. This information will guide your marketing and sales strategies.

Use the Table view in ClickUp to organize and analyze market research data.

4. Operations Plan

Outline the day-to-day operations of your Dunkin Donuts franchise. Include details about staffing, inventory management, supply chain, and quality control processes. This section should demonstrate your understanding of the operational requirements to run a successful franchise.

Use the Gantt chart feature in ClickUp to create a timeline for launching and operating your Dunkin Donuts franchise.

5. Marketing and Sales Strategy

Develop a comprehensive marketing and sales strategy to attract customers and drive revenue. Identify your target audience, define your brand positioning, and outline your promotional activities. Additionally, include your pricing strategy and sales projections to demonstrate your revenue generation potential.

Use the Automations feature in ClickUp to automate marketing tasks and measure the effectiveness of your campaigns.

6. Financial Projections and Funding

Create financial projections to estimate the revenue, expenses, and profitability of your Dunkin Donuts franchise. Include a detailed budget, cash flow statement, and income statement. If you're seeking funding, clearly state your funding requirements and provide a plan for how you will use the investment.

Use the Dashboards feature in ClickUp to visualize and track your financial projections in real-time.

By following these steps and utilizing ClickUp's Business Plan Template, you can create a comprehensive and professional business plan for your Dunkin Donuts franchise. Remember to customize the template to align with your specific goals and objectives. Good luck!

Get Started with ClickUp’s Business Plan Template for Dunkin Donuts

Franchisees and entrepreneurs looking to start their own Dunkin' Donuts location can use the Business Plan Template in ClickUp to outline their goals, financial projections, marketing strategies, and operational plans to secure funding and maintain a successful coffee and baked goods business.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, and Marketing Strategy
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your plan's timeline, allowing you to set deadlines and milestones
• Use the Business Plan View to have an overview of your entire plan in one place, making it easy to navigate and make updates
• The Getting Started Guide View will provide you with step-by-step instructions on how to use the template effectively
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional information and track important details
• Collaborate with team members and stakeholders to gather input and feedback on your business plan
• Monitor and analyze your plan to ensure it aligns with your goals and objectives
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Dunkin Donut Marketing Strategy: A Recipe for Attracting Over 3 Million Customers Daily

Learn how dunkin donut marketing strategy helps the brand effectively serve millions of customers globally.

• overview#goto" data-overview-topic-param="title">Dunkin Donut Marketing Strategy
• overview#goto" data-overview-topic-param="what">What’s the Recipe?
• overview#goto" data-overview-topic-param="spice">A Spiced Up Marketing Mix
• overview#goto" data-overview-topic-param="beyond">Beyond the Marketing Mix
• overview#goto" data-overview-topic-param="analysis">Competitor analysis
• overview#goto" data-overview-topic-param="benefit">How Small Businesses can Benefit

Dunkin Donuts makes the world go round for a growing number of customers. The global quick-service restaurant serves tasty snacks and beverages in mouth-watering flavors, satisfying consumers’ appetites. With 11,300 outlets sprinkled across the globe, you can grab your favorite snacks in no time.

Next, you’re enjoying every bite with a perfectly caffeinated iced cup of macchiato to follow through. And for a moment, you might think, “how does this company make its products irresistible?”

No doubt Dunkin does wonders in its kitchen. But the unseen hands of Dunkin Donut marketing strategy take its magical flavors to the world. Like its delicacies, Dunkin Donut's marketing strategy turns out to be fantastic.

So, tag along as we dive deep into Dunkin Donut's marketing strategy and learn how to incorporate it into your business.

What’s Dunkin Donut Marketing Strategy?

Dunkin Donut marketing strategy uniquely merges the marketing mix, social media marketing, and influencer promotion. This serves as its marketing recipe to attract customers and impact business growth. In 2019, Dunkin Donuts had $9.23 billion in sales revenue in the US alone.

In its international stores, this figure came to $834.5 million. And it’s not just the donuts making the dough (pun intended :P). But Dunkin Donut beverages account for 60% of its revenue.

What’s more? The company sells 60 cups of coffee per second. Let’s press on to find out how this happens, starting with the marketing mix.

A Spiced Up Marketing Mix

Dunkin Donuts' marketing mix combines the 4Ps of marketing to deliver best-in-class customer service. This includes product, promotion, place, and pricing.

Here’s a detailed breakdown:

Price is significant to the marketing mix as it is the only aspect that generates revenue. Dunkin Donut marketing strategy doesn’t apply a fixed price globally. This allows it to offer pocket-friendly products, serving as a competitive advantage.

Dunkin Donuts' expanding chain of quick-service restaurants serves 42 countries. The company also has a notable online presence. Consumers can easily place orders online and pick up deliveries at their door.

This is possible thanks to its partnership with delivery companies like DoorDash, UberEat, and Grubhub.

Dunkin Donuts started with just donuts and coffee but has long passed the duo. The company has extended its product line to bagels, beverages, sandwiches, and a menu of other baked foods. Even donuts, its brand product, now roll in over 50 varieties.

Consumers’ favourite yummy snacks include cheese and egg, maple sugar bacon, hash browns, and sandwiches. While iced tea, coffee, and hot chocolate are popular on its tray of refreshing drinks.

Also, Dunkin Donut has 25,000 ways to serve coffee lovers. This shows you can sip different coffee flavours daily for 70 years, drinking for a lifetime. Its run menu allows busy employees to snack on the go for just $2.

Dunkin Donuts’ brand color, pink and purple, and bold fonts voicelessly improve its brand awareness. This leaves a memorable impression. Consumers can easily recall the company’s product when their appetite calls for it.

The fast-food giant also deploys traditional marketing like print media and TV ads for promotions. “America runs on Dunkin,” its greatest ad of all time and tagline, was explosive. The ad campaign was designed to refuel the consistent effort of hard-working Americans.

They keep the country running on innovation, and Dunkin Donuts keeps them re-energized and their appetite satisfied. And its customer loyalty program, DD Perks, plays a satisfying role here.

DD perks offer chilling rewards. Consumers can unlock them with a Dunkin or a credit/debit card. For instance, a free medium cup of Dunkin refresher is up for grabs by just signing up. Dunkin Donuts’ point reward system offers 5 points on $1 spent. And a free beverage is within reach when it raises to 200 points.

Beyond the Marketing Mix: 3 Dunkin Donut Brand Growth Ingredients

Dunkin Donut marketing strategy goes beyond the marketing mix. The fast-food giant has other ingredients that make it a delightful restaurant. This includes social media marketing, rebranding, and improved customer service.

With this, Dunkin Donut pastes its name in the young generation's hearts. A 2021 survey from Piper Sandler proves this true. The investment bank showed that teens ranked Dunkin Donut 4th on their list of top restaurant brands.

This is impressive, considering thousands of chain restaurants in the US alone. Dunkin Donuts knows where to get the teens, and that’s TikTok.

Dunkin Donut TikTok Marketing Strategy

Dunkin Donut deploys TikTok Marketing in three simple ways. This involves:

1. Partner with TikTok Stars and Superfans

The company was part of the early brand to join the platform and get talking with its audience. What’s more? Charlie D’Amelio, most followed TikToker with 140 million followers, joined the engagement, too. The icing on the cake for Dunkin Donut to push its brand forward.

They partnered with Charlie and had a time-limited sale of her signature drink. Customers could get Charli's cold brew drink. The next day, sales were up by 45% thanks to this initiative. And Dunkin Donut was chugging in hundreds of thousands of sales within days. Also, its Dunkin’ app downloads rose by 57%.

But even fans, precisely super fans, can come on onboard. Dunkin only follows top fans that share amazing content about its brand. All Dunkin Donut TikTok followers are super fans, including Charlie D'Amelio.

2. Employee Participation, Customized Merches, and TikTok Challenges

But it didn’t stop there. The food-fast giant got its employees delivering on TikTok. For instance, they dish out content about menu items–including drinks and snacks. So, consumers don’t have to be in-store to spot the new ice cream toppings.

Furthermore, the food business went the fashion route, selling custom-tailored merch. Customers don’t just eat donuts but have their imprints on hats, sweatpants, beddings, and wedding attire. This entirely different product was a cool cash stream for Dunkin Donuts.

The fast-food giant also loves Tiktok challenges, its hot source for inspiring innovations in consumers. The #DunkinMenuHackContest saw many food lovers improving their favorite menu items to taste irresistible. The best came up on the Dunkin menu for a short time, and winners got $100 gift cards.

Dunkin Donuts' highly-concentrated TikTok marketing effort yields a huge following. They have over 3 million TikTok followers. While Starbuck and McDonald’s, its major competitors, have 1.7 and 1.9 million followers, respectively.

3. Rebranding to Meet Consumers Needs

Rebranding focuses on improving business image, changing its logo, name, or other brand identifiers. Once a small coffee and donut shop, Dunkin Donuts rebranded to capture the expanding business course.

Dunkin’, the food giant’s new name, surely delivered desired changes. For instance, 32% of people surveyed were attracted to Dunkin’ new logo. Dunkin’ represents more than its 22 classic donut flavors, serving beverages and providing quick services.

Dunkin’ rebranding didn’t end on its announcement page. The company soaked up everything about it, from exterior signage to product packaging like coffee cups. But this Dunkin Donut marketing strategy gulped down some cash.

According to WSJ, Dunkin’ rebranding effort consumed $100 million from Dunkin’. The result? The rebranding also impacted Dunkin’ customer services, improving equipment and its on-the-go strategy.

For instance, the Dunkin’ digital kiosk on Beacon hill fills orders via mobile app or in its in-store kiosks. Customers can pick up orders at a designated Dunkin restaurant center without verbal interaction with salespersons.

Competitor analysis: Comparing Dunkin’ with Other Espresso Empires

Globally, the fast-food industry had a market value of $862.05 billion in 2020. Data predicts this value would rise as consumer demand increases and new products hit the market. Also, there’s steaming competition within the food industry as thousands of restaurants spread across the US.

However, only a few competitors stay at the apex of the industry. And just a handful of them dominate the espresso empire. Amongst them are Starbucks, Dunkin’, and McDonald’s.

Starbucks has 40% of the US coffee market share, but Dunkin’s is not brewing too far behind. The Donut maker has 26% of the market share. This result is impressive compared to competitors like McDonald’s, which holds 13%.

Furthermore, Dunkin ranks 6th amongst the top coffee brands in the US. Considering Dunkin Donut marketing strategy, you could see the company’s potential to come up the list.

How Small Businesses can Benefit from Dunkin Donut Marketing Strategy

Startup founders often do the homework for building great products. They identify consumers' pain points and create a solution for them. But one thing is left to deliver their fantastic result.

And that’s marketing. Here are some actionable tips from Dunkin Donut marketing strategy to boost your brand:

Design valuable products

Entrepreneurs often build products with no use case or market to bring in sales. Craft products that solve consumers’ problems and have an existing market or potential avenue for sales.

Dunkin’ started with donuts and coffee, providing fresh breakfast to employees. This way, it provided breakfast to the busy working class at an affordable price.

Explore the trend

Dunkin Donuts tapped into TikTok early, giving it a competitive advantage over other food brands. Your ability to utilize new platforms with your target audience can generate impressive results.

Expand your product line

Dunkin Donuts went beyond its initial product line of donuts and coffee. It added sandwiches, fruit juices, waffle breaded chicken tenders, and more. This initiative ensured they could meet growing consumer needs.

You should consider tapping into Dunkin Donut marketing strategy to improve brand awareness and drive sales. But there’s more you can do with marketing to improve your online presence.

Check out Netflix marketing strategy to make your brand go viral. Also, drive traffic to your website with our in-house technique for generating 1 million monthly traffic via SEO .

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• Marketing Mix Strategy
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Dunkin Donuts Marketing Mix (4Ps) & Marketing Strategy

Marketing strategy of Dunkin Donuts through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion) .

Dunkin Donuts Product Strategy:

Dunkin Donuts focused only on selling donuts of many varieties and its signature double brewed coffee. With time, they diversified their product portfolio in their marketing mix and started selling other baked confectionaries like, bagels, cookies, muffins etc. Out of the total sales only 8-9% of the sales revenue comes from Donuts. 64-65% comes from drinks and the rest comes from sale of other baked food items. Some of the al time favorites of customers of Dunkin Donuts are, egg and cheese, hash browns, maple sugar bacon sandwich. The drinks served at Dunkin Donuts include coffee, tea, iced tea, hot chocolate, coffee with cream, latte, fruit juices etc. They have more than 1000 food on their menu now. The healthy food menu is a hit among customers. The menu keeps on changing depending on the season. During winters, customers have the option to have peppermint hot chocolate. Dunkin Donuts has the tagline ‘Dunkin Donuts and more’. A food chain is expected to serve drinks, sandwiches and burgers as well. The company has revamped its menu according to the country it is serving in. Vegetarian options are also available to attract the vegetarian crowd. Juice and smoothies of various flavors like mango, litchi and hot chocolate are also available.

Image: Wikimedia

This concludes the product strategy in Dunkin Donuts marketing mix & strategy.

Dunkin Donuts Price/Pricing Strategy:

Below is the pricing strategy in Dunkin Donuts marketing mix strategy:

Dunkin Donuts products are moderately priced and kept close to competition, as the company wants to make things affordable and attract more crowd. Dunkin Donuts is targeting the urban crowd of age 35 years and below.

The pricing strategy in the marketing mix of the brand is also dependent on the country in which they are present. Global pricing is used by Dunkin Donuts to ensure high quality product offerings at affordable prices to customers.

Read more about Dunkin Donuts

• Dunkin Donuts SWOT Analysis
• Dunkin Donuts PESTLE Analysis
• Dunkin Donuts Porter Five Forces Analysis
• Dunkin Donuts Competitors

Dunkin Donuts Place & Distribution Strategy:

Following is the distribution strategy in the Dunkin Donuts marketing mix:

Dunkin Donuts have successfully established themselves more than 40 countries. Shops are set up in important places with high footfall to attract young urban crowd. Its market expansion has happened in Asian countries like India and China. Freshly produced eatables are sent to food chains directly within 24 hours.

From here, the food is sold directly to consumers. As a part of its delivery service, the brand has partnership with several delivery apps & partners to deliver food at home.

Dunkin Donuts Promotion & Advertising Strategy:

The promotional and advertising strategy in the Dunkin Donuts marketing mix is as follows:

Dunkin Donuts promotes its brand by using a brightly colored coffee cup logo. It makes the brand memorable and leaves a good impression in the minds of the people. Print media, online ads in websites, television ads are used to promote the brand. Long gone are the times when Dunkin Donuts were all about donuts. Today it has locked its horns with coffee brands like Starbucks, Barista etc. Now it has to stay relevant among calorie conscious, healthy yet tasty food seeking consumers. Its new tagline ‘Dunkin. Coffee and more’ was seen in a few storefronts of Pasadena, Calif. This trend was also seen in Dunkin shops in Delhi. People from India are not into the donut eating culture yet. The company wants to shed its Donut heavy image and be a coffee products leader. Catchy tagline like ‘Dunkin. Coffee and more’, ‘America runs on Dunkin’, ‘you ‘kin do it’, ‘get your mojo back’ have played well for the company in promoting the brand. The biggest way Dunkin Donuts stays relevant in any new market even after 67 years of operating in various countries, is by localizing the brand and making it suit the local market. Loyalty programs like, DD perks program, discount coupons, buy one get one free” promotions.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Dunkin Donuts

Dunkin Donuts knows the importance of serving its customers. Hence the company has a lot of focus on its people i.e. its customers as well as staff. The staff at the outlets are very well trained and are well equipped to serve to the customer needs. The company gives its employees intense training so that they are well verse in ensuring a great customer experience, which is a must for a service brand.

Dunkin Donuts has several business processes which help the business grow. The business processes can be procurement of raw materials, distributing them to different locations, preparation of food items etc. The processes at the outlets are also very well defined. World over streamlined processes have helped Dunkin Donuts establish a strong presence in the fast food segment.

Physical Evidence:

Dunkin Donuts has several outlets, which is the biggest physical evidence of the brand. The brand is present in more than 40 countries with more than 12000 outlets. Apart from the restaurants, many things like merchandize, indoor branding, boxes, mugs etc. show the physical presence of the brand. Hence this completes the marketing mix of Dunkin Donuts.

About Dunkin Donuts:

Dunkin Donuts is an American company based in Canton. William Rosenberg in Quincy founded it in the year 1950. The company since then has expanded and grown into an excellent coffee and food chain. In his early years, Rosenberg used to sell food in factories. There he noticed that the most sold foods were donuts and coffee. With this idea in mind, he started his food chain Dunkin Donuts and started selling franchises from the year 1955. In 1990, Allied Domecq purchased Dunkin Donuts.

The brands Baskin Robins and Togo’s were launched soon after. The company claims to be the largest coffee and baked food chain in the world. In 2020, the brand was acquired by Inspire Brands group for $11 billion.

This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team . The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to Dunkin Donuts. The Marketing Mix & Strategy section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Mix & Strategy section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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Detailed Marketing Strategy of Dunkin Donuts

By Aditya Shastri

Dunkin Donuts is a coffee and doughnut corporation based in the United States, as well as a quick-service restaurant. Dunkin Donuts and Baskin Robbins eventually became subsidiaries of the Dunkin brand. And later renamed Dunkin in 2019. It is one of the largest coffee shops and donut shop chains in the world. 

How did Dunkin Donuts raise its profits and achieve its reputation? The answer will be known from the process of the marketing strategy of a company. This case study will dig deeper into the marketing strategy of Dunkin Donuts.

But first, let us understand Dunkin Donuts as a company.

About Dunkin Donuts

It was established in Quincy in 1950 by William Rosenberg. It was acquired by Baskin Robin’s company in 1990. Then change the name to Dunkin!. In 2020 it was purchased by Inspire brands and led as a large beverage-led company. With the effect of its rebranding, the company rolled out into the international markets as well. The company launched its first branch in India in April 2012 and has been people’s favourite since then. Dunkin’ offers delivery and on-the-go pick-up service to satisfy everyone’s appetites and comfort while also serving as a wonderful hangout spot for family and friends.

As per the reports in 2020, Dunkin has over 12,900 locations and stores spread across 42 countries, Dunkin has become one largest coffee and donut stores-chains in the world. Throughout the Dunkin Donuts Company’s planning, the customer’s interests are constantly kept in mind. They regularly allude to their goal statement, which states that they would improve customer happiness and loyalty by providing the fastest and most accurate service, as well as the freshest products in the nicest and cleanest environment possible.

Now we have learned about the company DUNKIN DON UT(DUNKIN), let us learn about the company’s marketing mix.

Marketing Mix of Dunkin Donuts

The marketing mix refers to the mixture of the four components that make up a company’s marketing system: the product, price structure, promotional activities, and distribution system. In the following section, we’ll look at Dunkin’ Donuts’ marketing mix.

1. Product 

Being a fast-food joint, it mainly sells donuts, burgers, hot and cold beverages[like coffee, mocha, iced tea’s and fruit shakes], wraps, and snacks. The company decided to get coffee back in 2014 thinking it might be their most profitable product. And in 2018 it became a successful strategy. Since coming internationally in 2014, its menu now has been spread across the world. 

Dunkin has started giving combos with giving donuts, beverages, and burgers together.

2. Pricing 

The prices of the different products are not very high and quite affordable. The company has different prices in different countries, which is called Global Pricing. This strategy is used to ensure better quality products at an affordable price to customers.

3. Place and Distribution Strategy

With over 12,900 restaurants spread across 42 countries, it has been one of the world’s major fast-food food joints. Now it has started picking up its online way to order the products. Dunkin has partnered with Jubilant fast-good food for franchising in India, with a little less than 100 stores. It has opened in the form of online marketing also.

4. Promotion 

The company promotes its brand by having a bright logo on its cups and packaging material. This helps in recognizing and memorizing the logo easily. It has changed its tagline in India to ‘Dunkin Donuts and more’ because in India doughnut-eating culture was not present at that time. And also brought new flavors in India to attract customers like mango, litchi, and many more.  

Marketing Strategy of Dunkin Donuts

Marketing strategy is a method that allows a company to focus its resources on the most promising opportunities to grow sales and gain a competitive advantage that lasts. The marketing strategy of Dunkin Donuts is unique. It uses unique marketing techniques to get out to its customers rather than traditional marketing techniques. The brand maintains a low profile in the media due to its marketing strategies. Continue reading to learn how to do it.

Social media marketing

If you want to be a customer’s favourite and gain their loyalty, you must be social. Dunkin Donuts understands how to engage its customers through social media platforms . Dunkin Donuts’ Instagram page is a visual treat for customers . It adheres to strict branding requirements and displays its recipes on the page alongside appealing graphics and videos.

https://www.instagram.com/p/CSuPCERnb8w/?utm_medium=copy_link

Furthermore, because the company operates its franchise in a variety of worldwide places, it establishes different accounts for each location, as there is a different type of content to offer to audiences from various backgrounds. The brand uses the Twitter network to receive client questions and answer with the best possible response. Dunkin’s tweets are hilarious, such as this one: “Me @ my local Dunkin: I’ll have…   The crew: The usual?”

So the goal of their social media marketing approach is to engage clients by creating fascinating content that they can’t help but try out.

Event Marketing and Sponsorships

Dunkin Donuts is a big deal when it comes to event promotion. Event marketing is beneficial, but it is even better when a company sponsors major events. Madison Square Garden Company and Dunkin Donuts had a multi-year deal. It became a sponsor of the NBA basketball team, the National Women’s Hockey League, and several other clubs. Being a sponsor of the biggest sporting event increases brand awareness.

Dunkin Donuts is also a sponsor of America’s Got Talent, a prominent television reality show. Dunkin Donuts raises brand recognition on a large scale by partnering with a show with a large audience.

Target Audience

Age 18-25 years old, age 25 years old and above, and family are the three characteristics of Dunkin Donuts coffee’s target consumers. Table 3 displays the target consumer’s attributes.

The target consumer’s characteristics Targeted for the following reasons:

• Between the ages of 18 and 25, this entire group is made up of adolescent students and young professionals on a tight budget.
• Above the age of 25: Due to their hectic work schedules, they frequent restaurants frequently, and they have relatively high earnings and spending flexibility.
• Businessman: This group does not consider Dunkin Donuts coffee to be a high-end product, and it is simple to grab meals on their way to work.

SWOT Analysis of Dunkin Donut

• International Presence with stores across 42 countries has gained its power internationally.
• Customer service- the company has paid attention to its service. They have provided training and learning programs to their employees and thus result in the best service.
• Strong portfolio- after entering into the new markets, it has created huge success and thus has created a very strong brand portfolio.
• Competitors – being a fast food joint it has competitors like Starbucks. it has a low share in the coffee market in foreign markets. Starbucks has over 40% share while Dunkin has only a 14% share in the market.
• Franchising – there are not many franchises worldwide compared to our competitors and has a deficiency in control and management.

Opportunities-

• Healthy food- nowadays people have become very health conscious and thus Dunkin can start adding healthy and safe food into their menus.
• Expansion – compared to Starbucks which is in 65 countries this company has only been in 42 countries. It can expand and increase its sales volume.
• Research and development – Dunkin can invest more in research and development and know more about its target customers and competitors.
• Competitors – KFC , Starbucks , McDonald’s , and burger king are the main competitors which are growing rapidly. Thus it has also increased its pace.
• Healthy lifestyle- with rapid changes in lifestyle people or customers have adopted healthier lifestyles.
• Seasonal demand- some products are demanded based on seasons like cold beverages only in summer.

The purpose of Dunkin Donuts’ marketing strategy is to make customers aware of their brand in any manner feasible. Dunkin’s entire marketing strategy is aimed at attracting customers’ attention. Dunkin Donuts’ advertisement style evokes emotions in the audience, whether it’s surprise or laughter. The brand appeals to a vast customer base thanks to its unusual communication .

One of the most important lessons learned from Dunkin Donuts’ strategy is the importance of proactive communication with customers. Brands should be aware of current events and incorporate them into their marketing strategies, which Dunkin Donuts excels at.

If you enjoyed our analysis of Dunkin’ Donuts’ marketing strategy, be sure to check out our other blogs for a series of case studies on various other organizations’ marketing tactics.

If you want to learn how to create campaigns similar to Dunkin Donuts, consider exploring reputable institutes like IIDE that offer Online Digital Marketing Courses in India .  

IIDE also offers various other digital marketing courses for people just like you if you want to learn these abilities for yourself. So begin your self-improvement journey right now!

Many thanks for taking the time to read this! If you’d like to consume more of such quality content, you can dive into our collection of detailed marketing strategies for Big Brands like these here – http://iide.co/case-studies/

Author's Note: My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India . Practical assignments, case studies & simulations helped the students from this course present this analysis. Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience. If you found this case study helpful, please feel free to leave a comment below.

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Aditya Shastri

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

Thank you so much! I used this for my business class, lots of great information.

Dunkin Donuts’ marketing strategy is spot on! Their social media engagement and event sponsorships are top-notch, keeping them ahead in the game.

When did your company start, and how did it begin its journey in the industry?

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Marketing Plan for Dunkin Donuts to double its number of stores in the US by 2020

Marketing Plan for Dunkin’ Donuts to double its number of stores in the US by 2020

1. Executive summary

The three year marketing plan for Dunkin’ Donuts has been created by its founders to secure additional funding for growth and to inform the employees of the current status of the company and the direction it is aiming for its future. Although Dunkin’ Donuts have rivals like Starbucks next to it, since it was first set up in 1950 it had continued to expand across the US, with now serving more than 3 million customers everyday. According to market research analysts Dunkin’ Donuts has experienced greater than anticipated demands for its coffee and menu items as the company builds itself on serving simple fare at a reasonable price to working class customers and people across all age, race and income demographics. Dunkin’ Donuts has ambitious plans to expand into a national coffee powerhouse and to differentiate its products from rivals since it has its own clear vision and knows the type of customers it should be targeting and how to position itself on a competitive market. By 2020, Dunkin’ Donuts intends to increase its number of stores to more than 8600 in around 45 states altogether. The long-term objective is to hit 17,000 restaurants (Mccue, 2017). This marketing plan gives an overview of the company’s plans for an initial expansion of doubling its number of restaurant outlets across the US, with illustration of the current market and financial situation it is facing.

2. Company overview

Dunkin’ Donuts is one of the world’s leading baked goods and coffee chain founded in 1950 by Bill Rosenberg who set up the first Dunkin’ Donuts shop and Quincy MA. Five years later the company became franchise legacy. It grew from its values that lie in believing in the needs of its customers and to provide the best food, beverages and the best of everything that goes beyond a cup of coffee to make the communities better off. To date it has served more than 3 million customers across the US while supplying more than 50 varieties of premium beverages, breakfast, sandwiches and baked foods. It has 12,000 restaurants worldwide, and that is 8600 restaurants in 41 states across the USA, and over 3200 restaurants across 36 countries. 30 cups of coffee are sold per second (Mccue, 2017). Dunkin’ Donuts is the subsidiary of the Dunkin Brands Inc. Dunkin’ Donuts has a unique creation of its products with exciting flavours made by its chefs to satisfy its targeted customers, and above, to prioritise the needs and to remain loyal to the tastes and time of its customers. Dunkin’ Donuts originally created items, tastes, looks and shapes, all indirectly shows off the company’s slogans ‘America runs on Dunkin’’. Dunkin’ Donuts targets all class of the population while being careful not to alienate its traditional customer base. Dunkin’s customers are seen as ‘tribe’ that enabled it to sustain the waves of tougher economic crisis in 2009 when its rival coffee shop faced a fall in demands. Dunkin’ Donuts is all about ‘going after the average Joe’ and for four consecutive years it has been ranked as the number one in the coffee category on the customer loyalty survey, that is, it is ahead of number-two Starbucks. It has been the top brand exceeding the customers’ expectations with respect to quality, taste and customer service. On the BrandIndex rating, Dunkin’ Donuts overall score is double than that of McDonalds and triple than that of Starbucks. Dunkin’ Donuts is committed to contributing to the community welfare and since 2006, it has been deeply embedded in communities across the US and donated over $11 million to hundreds of national and local charities through ‘The Joy in Childhood Foundation’ ( http://www.dunkinbrands.com/foundation ). The company also offers five hours volunteer time to its employees to perform community service, and that is over 3,000 hours per year to support great causes, such as filling bag-packs with nutritious food for children in need, blood donations and cleaning up local parks.  The Dunkin’ Brands believe in the culture for diversity and inclusion (Dunkin Community Involvement).

3. Situation Analysis (SWOT)

The marketing environment for Dunkin’ Donuts represents an overwhelming array of opportunities for growth. Nevertheless, there are countless challenges that the company faces and still believes it can succeed in its mission to meet the needs of more people. The table A in the Appendix  illustrates the SWOT analysis to highlight the strengths, weaknesses, opportunities and threats of Dunkin’ Donuts. The SWOT analysis represents a sketch of the company’s position in the marketplace. Since its existence, Dunkin’ Donuts has built some impressive strengths while aiming forward to new expansion opportunities. Its dedicated founders, the Dunkin Brands Inc. and its loyalty towards its growing number of brand-loyal customers place the company in a strong position to sustain any market crisis. The recent strong positive financial performance for the 2016 has been promising for the company, with an operating income margin of over 50% for the year. This performance was driven by the highly ritualistic, high-margin coffee and beverage menu offerings throughout the franchises. The stores sales grew by 1.6% and the Earnings per Share (EPS) grew to 17% on a 53-week basis (Annual Report 2016). The sound financial performance places Dunkin in a good position to grow. However, while Dunkin’ Donuts considers expanding its products into new markets, it has to carefully assess the market entry criteria and be on guard against marketing myopia and failure to offer quality depending on the culture and tastes of the new targeted customer segment. Competitors may attempt to copy the products or duplicate the way it offers its products online. These are weaknesses and threats which Dunkin’ should pay attention to. Nevertheless, the strong relationships with customers and franchisers place Dunkin Donuts in a very strong position to thwart competitors.

4. Objective

Besides all other objectives of Dunkin’ Donuts, its more pressing objective is to expand its restaurant outlets on a much wider geography on both local and international grounds. Therefore, the company has embarked on an aggressive outlet expansion to benefit the growing demand for coffee. The objective of Dunkin Donuts is to open 148 new franchises in international markets in the medium term to more than triple its international growth from the previous year.

5. Strategy & Segmentation, Targeting and Positioning

This section consists of the core aspects of the marketing plan. It outlines details regarding the customer segment, which the company will be serving, and how it will create value for these customers. Its market positioning will be based the design and quality of its products that will be created according to its marketing mix that is, the product, price, place and promotion. In order succeed, Dunkin’ Donuts will follow its market entry strategy which it has been following since its existence, that is, franchising within the US. On international level, it will enter new market via joint venture and country or territorial licensing arrangements with master franchisees. Currently Dunkin’ has franchisees across Asia, Middle East In a competitive market place, Dunkin’ will follow its customer-driven strategy of understanding the customers’ needs and to win over the market by offering great differentiated product and value. The target market analysis revealed the gaps that Dunkin’ Donuts will be filling, that is, to grab the market where no other rivals have yet explored and where the demand for coffee will be high. Dunkin’ Donuts aims at targeting the groups of customers from all classes, even from the corporate high-class environment, including the average class of customers. The target segment of customers ranges from all ages, starting from teenagers to older people. Also, as Dunkin’ Donuts becomes innovative, it will be target the market with related segments of customers who prefer to be served in an innovative way, that through online purchasing, rather than the traditional way. As for the customers who prefer to meet around a table to sip coffees, Dunkin’ Donuts attempts to create more inviting cosy environments to attract customers to linger. Its positioning statement through advertising, design of its product and the development of a new slogan ‘ ‘America rise on Dunkin’ is intended to reach as much of the target market as possible. The advert is expected to attract the attention of young generation of all classes, not only the average across America. Dunkin’ Donuts strong brand of its beverages, donuts, bagels and variety of goods make it strong to compete with other brands along with the built up customer loyalty legacy the company has since over the last 68 years of existence. Dunkin Donuts competes primarily on the Quick Service Restaurant (QSR) segment of the restaurant industry. Competition is mainly based on the product, quality, restaurant concept, service, convenience, value perception and price. Competition intensifies as rivals increase the breadth and depth of their product offering, particularly, during breakfast, daytime and open new units (Annual Report 2016).

6. Tactics & Action

In attempt to accelerate its expansion, Dunkin’ Donuts intends to offer wide range of incentives to its franchises. Among others, these include reduced royalty fees for three years and up to $5000 for stores that meet the opening goals. Dunkin’ Donuts aims at transforming the marketing strategy into action through the marketing mix that is, the four broad groups of P’s: Product, Price, Place and Promotion. In order to deliver its value proposition, Dunkin’ Donuts already have the product to offer to the new market, which is the existing portfolio of products and also new products to fit into new countries and the respective cultures. Dunkin Donuts will set new strategies in respect to the place where it will be offering its products, that is, to consider its new upmarket blends of espresso-based coffee, including the Pumpkin Latte and Vanilla Spice, ice coffees. The company already has an effective pricing strategy that targets the average customers. Dunkin’ intends to offer its products to sell on its high street restaurants, on supermarkets for its packed coffees and online to satisfy a wide range of customers. One-way to differentiate its service from other competitors, Dunkin’ Donuts strive to add the unique style in presenting its product and also to focus on a variety of donuts especially design for diabetics and obese customers. This implies that Dunkin’ will be competing on the quality of its products, which it relates to value pricing with one segment of customers being able buy these products at affordable prices. As part of its promotional strategy, Dunkin’ Donut has decided to created new advertisements to attract more customers along with a new slogan: ‘America rise on Dunkin’ ‘. The reason for changing the slogan and making it more resonating is to attract a new group of customers from other locations through an emotional connection and also through the premium coffees.  As it has been doing in the past, it will continue to invest largely in advertisements to attract its new customers. It will also invest in improving on its online marketing campaigns to drive both the average and classy customers to order its products online, as being a digital leader (Cooper, 2017). The company intends to launch a huge campaign in every location where it will be opening an outlet. Such campaign will have the impact of attracting the mass customers in addition to Dunkin’ offering free coffee and donuts for the first 100 customers. In the years to come, Dunkin’ Donuts plans to sponsor international games such as the Olympics and to contribute further in the needs for poor children and welfare of the communities.

In 2016 Dunkin’ Donuts generated $608 million from its US segment and $22.9 million from the international segment. As at 31 December 2016, Dunkin’ Donuts had 12,258 distribution points of which 5,284 were international and 2,538 were in the US. Revenues are generated mainly from royalty income associated with franchised restaurants; rental income from restaurant properties that are leased to franchisees; sales of ice-cream or other products to franchisees in certain international market and; other income from licensing or transfer fees. According to The NPD Group/CREST the US restaurant accounted for approximately $282 billion in sales for the ending 31 December 2016 (Annual Report 2016). The overall performance of Dunkin Donuts have been favourable over teh period 2011 to 2016 as shown in the graph B in the Appendix. Based on the financial performance of the company over last five years 2012-2016, the company’s net income has been increasing with favourable year on year earnings per share, as indicated at Appendix C. With the setting up of new franchises, Dunkin’ Donuts sales is expected to increases by an estimated 20% in the US market and by 15% on the international market if the company opens one new outlet on international level, These figures can be achieved as Dunkin’ would focus on a larger market segment. The table D in the Appendix gives an overview of the estimated forecast figures of doubling its number of outlets in the US, based on the results of the years 2016.

However, the marketing plan is subject to adjustments following proper control and monitoring of analysis, surveys and customer feedback on campaigns. The sales can be monitored through the number units sold and the profits generated. Where the actual sales is lower than the forecasted sales, then further market research, promotion and campaigns will be required to attract sales.

9. C onclusion/Recommendation 

The external environment is ever competitive with rivals like Starbucks and McDonalds, however, based on the company’s strengths and opportunities it is recommended that Dunkin’ Donuts can go forward with expanding its outlets across other regions of the US and internationally. The customers benefit from competition and with the recent crisis that has led most Americans into unemployment and low income, Dunkin’ Donuts makes no difference in the class of customers and its vision to serve the average Joe and other groups of customers looks highly promising and achievable.

10. References

• COOPER, B., 2017. Dunkin’ Donuts Delivers Digital Signage Custoemr Experience. Retail Customer Experience. Com .
• MCCUE, M., 2017. Dunkin’ Donuts. Entrepreneur. 45(1).
• DUNKIN DONUTS, 2016. Annual Report [Online]. Available at: http://files.shareholder.com/downloads/ABEA-68SCR9/4357425295x0x934850/40E9878A-FEB4-44A9-A565-996CDFE165B6/DB_2016_Annual_Report_Final_.pdf [Accessed: 25 April 2017].
• Dunkin Community Involvement [Online]. Available at: http://www.dunkinbrands.com/careers/community-involvement [Accessed: 25 April 2017].

11.Appendix

• Table A: SWOT Analysis of Dunkin’ Donuts

• Dunkin’ Donuts Performance (S&P standard)

(Source: Annual Report 2016).

• Dunkin Donuts Financial Performance – Y2012-Y2016

(Source: Annual Report 2016)

• Budget Estimates based on financial data Year 2016:

TABLE – D Sales Forecast Year 1 to Year 3

America Rise on DUNKIN

  Rational underlying the Poster on Dunkin’ Donuts strategy for doubling its number of restaurant across the US

Referrences

• ANON, 1999. Chapter four part 3: The marketing mix – Marketing communications and promotion. Mastering Marketing .
• SHANNON, J,R., 1996. The new promotions mix: A proposed paradigm, process and application. Journal of Marketing Theory and Practice.

© Copyright Ivory Research Co Ltd. All rights reserved. You may not copy, modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, display, or in any way exploit any of the content of this report, in whole or in part, save as hereinafter provided. You may download or copy one copy of the report you have purchased only for your own personal use for academic study purposes only, however, you may not submit this document under your own name for academic assessment. This also applies to any sections we add to the work that you have completed however; it does not apply to sections completed solely by you. The statements contained herein are statements of opinion of the writer only and not the statements of Ivory Research Ltd, its officers, employees or agents. To the fullest extent permissible by law, Ivory Research Ltd hereby excludes liability for the truth or accuracy of any information provided herein, your statutory rights as a customer are not affected.

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If you searched for "Dunkin' Donuts business plan", you are probably interested in a business plan for a Dunkin' Donuts store. If you are looking to raise capital, you will need a business plan for your business. A business plan should include a detailed market analysis of the industry that the Company is participating and the specific cities that the Company will target.

Dunkin' Donuts, currently rebranding its stores as Dunkin', is an American multinational coffee company and quick service restaurant. It was founded by William Rosenberg in Quincy, Massachusetts in 1950, and had 10,858 stores as of 2013.

The following are the main components of a Dunkin' Donuts business plan:

• Mission Statement
• Growth Strategy
• Products & Services
• Target Market
• Marketing Plan
• Management & Staff

A business plan for a franchise should be comprehensive and accompanied by a financial plan with at least monthly detail in year 1 and quarterly detail in year 2-5. Capital West Advisors can develop a high-quality and detailed business plan and financial plan for you. Call us at (888) 300-3090 for more information and a free consultation.

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Donut Shop Business Plan Template

Written by Dave Lavinsky

Donut Shop Business Plan

You’ve come to the right place to create your Donut Shop business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their donut shops.

Below is a Donut Shop business plan example to help you create your own donut business plan.

Executive Summary

Business overview.

Green Star Donuts is a new, unique, local donut establishment that will serve freshly made specialized donuts to the community of Watertown, MA. Our focus is on using natural ingredients because donuts shouldn’t be highly processed to be enjoyable. We will make and serve all kinds of donuts, from frosted with sprinkles to Boston cream. No matter the time of day or year, our customers are always welcome to come in and enjoy a diverse selection of natural, handcrafted donut treats.

Green Star Donuts is owned by Frederick Davis, an award-winning pastry chef that has perfected his donut recipes over the years. After working for several other establishments and restaurants, he is ready to utilize his knowledge and craft to create the perfect donuts for his own business. He has come back to his hometown community of Watertown, MA, to establish his business.

Product Offering

Green Star Donuts will sell a variety of donuts, all expertly crafted in unique flavors. All products will be made using only fresh and all-natural ingredients and sugar. Because each donut is made fresh every day, they will not include any chemicals or preservatives.

Green Star Donuts offers a large menu of various donut offerings for customers to enjoy year-round. The menu will change with each season, offering flavors and themes that match the time of year. However, there will be many donuts offered year-round as well. Some donuts we will sell include:

• Maple and chocolate bar
• Boston creme
• Chocolate glaze
• Frosted with sprinkles
• Jelly-filled
• Donut twists
• Donut holes

Green Star Donuts will also offer soda, water, and coffee beverages. Coffee beverages will include espresso, lattes, mochas, and macchiatos.

Customer Focus

Green Star Donuts will serve the community of Watertown, MA. Watertown is a small city located outside of Boston and is home to many families, individuals, and businesses. We will serve anyone living or working in this area who needs donuts and coffee to help them start their day.

Management Team

Green Star Donuts will be solely owned and operated by Frederick Davis. Frederick was trained at the Culinary Institute of America and quickly became an acclaimed pastry chef working in some of the most prestigious restaurants in the United States. Since then, he has been working at five-star restaurant establishments as a pastry chef for over ten years. During this time, he has won multitudes of awards, been featured in culinary publications, and has been a widely sought pastry chef all over the country. Frederick has perfected his donut recipes and is ready to come back to his hometown of Watertown, MA, to proudly serve the local community.

Frederick will employ a staff of full-time and part-time employees to assist him with the daily donut preparation, customer service, inventory, marketing, and cleanliness of the business.

Success Factors

Green Star Donuts will be able to achieve success by offering the following competitive advantages:

• All-natural and homemade ingredients: Green Star’s competitors are large franchises that use ingredients filled with trans fats to preserve freshness. Green Star’s donuts are made fresh, in-store, using all-natural ingredients and natural sugar.
• Location: Green Star Donuts will be located in a highly trafficked, prime location in a busy intersection of town.
• Founder: Green Star’s donuts are made by a pastry chef who has perfected his recipe. Frederick Davis has been a celebrity pastry chef for years and has created and crafted thousands of perfect donuts in that time. His popularity will be invaluable to the business.
• Pricing: Green Star Donuts will offer premium artisanal donuts at a price point that is competitive with other establishments.

Financial Highlights

Green Star Donuts is seeking $300,000 in funding to launch its donut shop. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Store design/renovation: $100,000
• Equipment, ingredients, and supplies: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing and advertising: $30,000
• Working capital: $20,000

The following graph below outlines the pro forma financial projections for Green Star Donuts.

Company Overview

Who is green star donuts, green star donuts history.

After consulting with an attorney and CPA on the legal and financial obligations of running a donut shop, Frederick Davis incorporated Green Star Donuts as an S-Corporation on April 10, 2022.

Soon after, Frederick identified a 2,000-square-foot retail space already outfitted with a small kitchen and a drive-thru to use for the shop. The space was a former fast food chain that recently shut down. Green Star Donuts will make small design changes to fit its brand image and donut preparation requirements.

Since incorporation, the company has achieved the following milestones:

• Found retail location and signed Letter of Intent to lease it
• Decided on the company name and developed the logo and website
• Developed the donut menu
• Determined the equipment and inventory requirements
• Began recruiting key employees that will be integral in the operation of the donut shop

Green Star Donuts Products

Industry analysis.

According to IBISWorld, the donut industry was valued at $8.7 billion USD in 2022 and is continuing to grow rapidly. Since 2017, the industry has grown at a rate of 6.5% per year. According to Dataintelo, the industry will continue to grow at a compound annual growth rate of 5.4% until 2030.

This growth is primarily due to the consistent popularity of donuts. For decades, they have been a popular breakfast item and treat for workers, families, and groups. Donuts are also associated with one of America’s favorite beverages- coffee. Customers can hardly resist the temptation when both of these products are sold together.

Donuts are also one of the food items that can be experimented with to keep a continuous appeal. From sprinkles and frosting to unique flavor pairings, there are no creative limits when it comes to donuts. In recent years, donut shops have become innovative with their offerings, which keeps their customers coming back.

Donuts are also a cheap treat, which makes the industry fairly recession-proof. When families want to treat themselves, they can often get a dozen donuts for less than $15. This keeps the demand and popularity for donuts consistently high, which keeps the industry going no matter the state of the economy.

Customer Analysis

Demographic profile of target market.

Green Star Donuts will serve the residents and workers of Watertown, MA, and its surrounding areas. Watertown is full of families and workers who are looking for delicious treats to begin their morning with. Furthermore, the town is home to many schools, churches, and similar establishments looking for local treats and breakfast options for special events.

The precise demographics of Watertown are as follows:

Customer Segmentation

Green Star will primarily target the following customer profiles:

• Nearby schools
• Nearby offices/office workers

Competitive Analysis

Direct and indirect competitors.

Green Star Donuts will face competition from other companies with similar business profiles. A description of each competitor company is below.

Hank’s Donuts

Hank’s Donuts is an international donut and coffee retailer. The company has over 7,600 points of distribution in the United States and is one of the largest coffee and baked goods chains in the world. The chain is a market leader in the coffee, donut, bagel, muffin, and breakfast sandwich categories. According to the company website, it sells more than one billion cups of coffee each year.

About 85% of Hank’s Donut’s points of distribution are traditional restaurants, consisting of stand-alone locations and those contained in gas and convenience locations. In addition, the company has full- and self-service kiosks in grocery stores, hospitals, airports, offices, and other locations with small retail footprints.

Donut Depot

Founded in 1937, Donut Depot is a leading branded retailer and wholesaler of donuts. The company produces more than 20 varieties of donuts, along with a broad array of coffees and other beverages. Donut Depot generates revenue from company-owned stores, domestic franchise stores, and international franchise stores. The company has 95 company stores, 159 domestic franchise stores, and 574 international franchise stores in 21 countries.

As well as selling products through its retail outlets, the company also wholesales branded donuts and packaged sweets to a variety of retail customers, including convenience stores, grocery stores, and other food service establishments.

Dunkin’ Donuts

Established in 1948, Dunkin’ Donuts has been the king of the donut industry in the United States, especially in the Boston, MA, area. Dunkin’ offers a huge variety of donuts, pastries, and beverages, appealing to all demographics that walk into its stores. And with a rewards program and frequent promotions, there are plenty of incentives to get customers coming back time and time again.

Just as with Donut Dept, Dunkin’ sells limited donut and coffee items wholesale in grocery stores and other retail establishments. However, they are most famous for their donut shops, which can be found in all corners of the world.

Competitive Advantage

Green Star Donuts has several advantages over its competition. Those advantages include:

Marketing Plan

Brand & value proposition.

The Green Star Donuts brand will focus on the company’s unique value proposition:

• Offering unique, freshly made donuts in a variety of delicious flavors.
• Located in a prime retail location in a highly trafficked part of town.
• Offering the highest quality donuts at competitive prices.

Promotions Strategy

The promotions strategy for Green Star Donuts is as follows:

Social Media

Green Star Donuts will be active on social media and use targeted social media advertising to attract its most likely customers. The company will frequently post upcoming specials, events, and seasonal featured flavors.

Green Star Donuts will have an informative and attractive website that will feature professional photos of the shop, its donuts, store hours, address, and contact information. It will also use SEO to constantly stay at the top of search engines for anyone searching for donut shops near them.

Green Star Donuts will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The billboard will have an eye-catching picture of its donuts that is sure to grab everyone’s attention.

Pre-Opening Events

Green Star Donuts will organize a pre-opening event designed for prospective customers, local merchants, and press contacts. The event will be fun and inviting in order to create awareness for the company. Attendees will be able to sample the different flavors of donuts.

Green Star Donuts’ pricing will be moderate so customers feel they receive great value when purchasing its products.

Operations Plan

The following will be the operations plan for Green Star Donuts.

Operation Functions:

• Frederick Davis will be the Store Manager and Owner of the company. In addition to running the operations of the company, he will also help out with making and selling donuts on a day-to-day business.
• Frederick will be assisted by Kelly Johnson, who will work as the Assistant Manager. She will run the store when Frederick is unavailable and help with some of the operations of the business.
• Frederick will also hire an Administrative Assistant to help with the administrative and operations sides of the business. They will also help with some of the marketing efforts, such as posting to social media.
• Frederick will hire multiple bakers to make and decorate the donuts for sale.
• Frederick will also hire several cashiers to help sell the donuts and make coffee beverages for customers.

Milestones:

Green Star Donuts will have the following milestones completed in the next six months.

5/1/202X – Finalize the lease

6/1/202X – Finish building and designing the store

7/1/202X – Kickoff promotional campaign

8/1/202X – Hire and train staff

9/1/202X – Officially open Green Star Donuts

10/1/202X – Break even

Financial Plan

Key revenue & costs.

The revenues for Green Star Donuts will come from the sales of the homemade donuts that will be offered to its customers. The company will have dine-in and take-out options for its customers.

The major costs for the company will be sourcing the ingredients and production of the donuts. Other cost drivers will be the salaries of the staff, company overhead, and advertising costs.

Funding Requirements and Use of Funds

• Equipment and supplies: $50,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Number of customers per day: 100
• Average order total: $10
• Yearly lease: $50,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Donut Shop Business Plan FAQs

What is a donut shop business plan.

A donut shop business plan is a plan to start and/or grow your donut shop business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Donut Shop business plan using our Donut Shop Business Plan Template here .

What are the Main Types of Donut Shops?

There are a number of different kinds of donut shops , some examples include: Donut bakery, Full-service donut shop, and Experimental donut shop.

How Do You Get Funding for Your Donut Shop Business Plan?

Donut Shops are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a business plan for a donut shop and a mini donut business plan.

What are the Steps To Start a Donut Shop Business?

Starting a donut shop business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Donut Shop Business Plan - The first step in starting a business is to create a detailed donut shop business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your donut shop business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your donut shop business is in compliance with local laws.

3. Register Your Donut Shop Business - Once you have chosen a legal structure, the next step is to register your donut shop business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your donut shop business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Donut Shop Equipment & Supplies - In order to start your donut shop business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your donut shop business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful donut shop business:

• How to Open a Donut Shop Business

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Dunkin Donuts SWOT 2024 | SWOT Analysis of Dunkin Donuts

  Company: Dunkin’ Brands CEO: David Hoffmann   Founder: William Rosenberg   Year founded: 1950   Headquarters: Canton, Massachusetts, United States Employees (Dec 2019): 1,109  Ticker Symbol: DNKN Type:  Public Annual Revenue (FY2019): US$1.37 Billion Profit | Net income (FY2019): US$487.8 Million

Products & Services: Baked Goods | Hot Beverages | Iced Beverages | Frozen Beverages | Sandwiches | Soft Drinks   Competitors: McDonald’s | Burger King | Domino’s Pizza | KFC | Subway | Starbucks | Taco Bell | Chipotle | Wendy’s | Pizza Hut | Papa John’s Pizza | Panera Bread

Fun Fact: Did you know that Dunkin sells 30 cups of coffee every second on average, which amounts to 1.7 billion cups of hot and iced coffee globally every year?

Dunkin’ Donuts was founded on the idea that success comes to those who focus on doing what they do perfectly. With a simple coffee and baking recipe, the fast-food chain grew to become not only a household name but also the fastest growing in the U.S with 13,000 stores spread across the world.

We can all learn something by undertaking Dunkin’ Donuts SWOT Analysis.

Table of Contents

Strengths of Dunkin Donuts

• Global Operations: Tapping into a large market offers more customers, which increases sales and profits. By 2002, Dunkin’ had 5,000 food joints in 38 countries, which has increased over the past two decades to 13,000 restaurants in 46 countries. It has evolved into the largest coffee-and-baked-goods chain in the world.
• Perfect Positioning: Dunkin’ is synonymous with breakfast nearly everywhere. This is attributed to its perfect positioning as the to-go for breakfast. By focusing on a small niche, the fast-food chain has set itself apart from the competition.
• Superb Franchise Strategy: The robustness of business models is put to the test in times of crisis. Dunkin’s franchise strategy cushioned the impact of the pandemic and enabled the company to emerge on the other side better off than competitors.
• Community-Centric Strategies: Adopting strategies that seek to help the community will never go unrewarded. Dunkin’ recently announced it will be hiring 25,000 new employees as part of its commitment to keep America running and working.
• Strategic Branding: With 70 years in the industry, Dunkin’ has always stayed relevant to consumers regardless of the generation. From marketing to dropping ‘Donuts’ from its name and menu changes, the company employs strategic measures to ensure it remains relevant to the target audience. 
• Great Supply Chain Management: Dunkin’ effectively manages its supply chain to ensure timely delivery of freshly baked products and ground coffee to the customer’s preferred outlet. It recently joined the Sustainable Coffee Challenge to increase the supplies of quality coffee.
• Eco-friendly Policies: In the current society threatened by climate change, companies that adopt eco-friendly policies are favored by consumers. Dunkin’ set a target to reduce its carbon footprint and successfully transitioned all its outlets from polystyrene cups to paper cups .

Weaknesses of Dunkin Donuts

• Over-Reliance on US Market:  In FY 2019, 46.7% of the company’s total revenues came from the Dunkin’ Donuts US segment. With nearly half of its revenue generated from the US, Dunkin’ will be severely impacted in the case of economic challenges in the market.
• Slower Expansion: As competitors like McDonald and Burger King expand rapidly across the world, Dunkin’ adopted a limited expansion strategy . This snail-paced expansion is a weakness since Dunkin will always enter new and emerging markets after its competitors.
• Poor Targeting outside the US: While Dunkin’s effective targeting has enabled a steady revenue growth in the US, the chain is struggling in India and other emerging and lucrative markets. This is attributed to poor understanding of non-Americans leading to poor strategies.
• Lack of Variety: Dunkin’ relies primarily on coffee and bakery products, which limits the fast-food chain to a small segment in the food sector. Reducing or streamlining offerings to cater to a specific sector also limits the number of customers.
• Low Financial Capabilities: To compete favorably for market share, companies require immense financial resources. Dunkin’s competitiveness has been undermined by financial constraints and was forced to scale back its expansion plans .

Opportunities for Dunkin Donuts

• Offer Healthier Options: The revenues of Dunkin’s competitors like Burger King increased tremendously after they introduced healthier plant-based options in their menus. Dunkin’ can also exploit the increasing demand for healthy foods by offering healthier options.
• Expand Market Presence: Dunkin’ can cater to more customers and increase its profits. Dunkin’ has to increase the number of store s and market presence to capture more customers.
• Diversify Revenue Streams: Putting all its income generators and resources in one sector can be disastrous if the sector declines. Dunkin’ can diversify its revenue streams to include something like grocery selling healthy and fresh farm produce .
• Strengthen Operations in Emerging Markets: Markets in emerging economies are unsaturated and offer a higher potential for growth . Dunkin’ can strengthen its operations in these markets to catalyze growth.
• Offer More Variety: Since Dunkin’ lacks variety in its menu , it has the opportunity to cater to the needs of the entire food business market. The chain can include all types of meals on its menu for breakfast, lunch, and dinner. More variety, more customers.

Threats for Dunkin Donuts

• Intense Competition: With strong competitors like McDonald’s, Burger King, KFC, Starbucks, Pizza Hut, and Domino’s, Dunkin’s market share , and profits are always under threat.
• Inherent Issues in Franchising: Even though franchising is an internal matter, external forces play a role in the success of the franchising model. Other fast-food chains like Subway are struggling to effect new prices with opposition from franchise owners. Dunkin’ is also threatened by inherent issues in franchising.
• Global Pandemic and Recession: The pandemic has devastated economies globally with many countries already sliding deeper into recession. The fast-food sector is not immune to the pandemic or recession , which means Dunkin’s operations and profits are under threat.
• Increasing Health-Consciousness: The ever-increasing number of health-conscious consumers threatens fast-food chains including Dunkin’ Donuts. Since Dunkin’ offers unhealthy fast-foods , customers can migrate to competitors offering healthier options.
• Stringent Regulations: The prevalence of cardiovascular diseases, hypertension, and obesity due to unhealthy junk and fast food can prompt governments to enact stringent regulations targeting fast-food joints like Dunkin’ Donuts.
• Rising Costs: From rising prices of farm products due to climate change to the burdening costs of logistics, each additional dollar chips Dunkin’s profits.
• Ginsberg, M. (2020, January 14). #1 on the Franchise 500: Even Without the ‘Donuts’, Dunkin’ Takes the Cake . Entrepreneur.
• Balu, N. (2019, October 31). Dunkin’ profit beats as costs dip defend in competitive breakfast and coffee market . Reuters
• Hunt, R. (2020, May 9). Why Dunkin’ Brands’ Franchise Strategy Is a Strength During COVID-19 . Motley Fool
• Urena, R. (2020, June 8). Dunkin’ Donuts Prepares to Hire 25,000 New Employees as Lockdowns Ease. Financial Buzz
• Koch, L. (2019, September 20). Rebuilding a Brand to Remain Relevant: An Interview with Dunkin’ CMO Tony Weisman . eMarketer
• Industry News (2018, December 6). Dunkin’ Joins Sustainable Coffee Challenge . QSR Magazine
• Holbrook, E. (2020, May 11). Dunkin’ Donuts Says All of its Restaurants Have Transitioned from Foam to Paper Cups . Environmental Leader.
• Great Speculations (2019, September 27). Dunkin’ Donuts US To Push Revenue Growth For Dunkin’ Brands . Forbes
• Kalogeropoulos, D. (2019, February 11). Dunkin’ Brands Path to Coffee Dominance Just Got Steeper . Motley Fool.
• Turner, A., and MacKenzie, S. (2018, October 26). Where Dunkin’ went wrong in India . CNBC
• Pomranz, M. (2019, May 14). Dunkin’ Donuts’ Menu Is Getting Smaller. Food and Wine.
• Goldman, D. (2017, July 27). Dunkin’ Donuts drastically scales back expansion plans . CNN Money
• Sarkar, A. (2019, August 2). Burger King owner dishes up profit beat as new products boost traffic . Reuters.
• Wiener, B. D. (2018, January 9). Dunkin’ Donuts wants to double the number of stores . CNN Money
• Bjarnadottir, A. (2019, May 3). 10 Fast-Food Restaurants That Serve Healthy Foods . Health Line
• Retail Asia (2018, October 16). Dunkin’ Donuts Thailand expects growth after rebranding . Retail News
• Liberto, D. (2018, September 26). Why Dunkin’ Is Dropping ‘Donuts’ From Its Name . Investopedia
• Rogers, K. (2018, February 9). Dunkin’ CEO has a plan to win the coffee wars in cafes and at the grocery store . CNBC
• Pagones, S. (2019, December 2). Subway CEO under fire for reportedly slashing prices . FOX Business
• De Costa, K. N. (2020, April 30). The year started off well for Dunkin’. Then the pandemic hit . Boston.com
• Laseter, E. (2018, January 12). Here’s Exactly What You’re Eating in a Dunkin Donut. Cooking Light.
• Dhingra, S. (2019, June 7). World Food Safety Day: India must regulate foods with excess fat, sugar, and salt . Down to Earth
• Mazzoni, M. (2018, September 27). Dunkin’ Donuts Pledges to Help Coffee Growers Adapt to Climate Change . Triple Pundit
• Featured image by Lu Amaral  on  Unsplash

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Brianna Parker

She is a creative writer, corporate storyteller and global brand consultant, who has a unique combination of a business and creative mindset.

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Dunkin’ Donuts’ Global Marketing Strategy: A Formula for Success

• January 30, 2024

Table of Contents

Delving into dunkin’ donuts’ global marketing strategy, dunkin’ donuts’ global history, the power of localization, cultural sensitivity and local partnerships, embracing digital marketing and social media, a global brand built on local affinity, faq: dunkin’ donuts’ global marketing strategy.

The aroma of freshly brewed coffee and the sight of warm, glazed donuts—these are the sensory cues that have made Dunkin’ Donuts a ubiquitous presence in the global food and beverage industry. From its humble beginnings as a small donut shop in Quincy, Massachusetts, Dunkin’ Donuts has grown into a global powerhouse with over 21,000 stores in 60 countries , serving over 5 million customers daily ( Statista, 2021 ). This remarkable expansion is a testament to Dunkin’ Donuts’ global marketing strategy, particularly its mastery of localization.

Localization, the process of tailoring marketing strategies to specific cultural and regional contexts, has been instrumental in Dunkin’ Donuts’ success . By understanding local preferences, customs, and traditions, the company has been able to connect with consumers on a deeper level, fostering a sense of belonging and cultural relevance . This approach has not only boosted brand loyalty but also opened doors to new markets, enabling Dunkin’ Donuts to become a truly global brand.

The journey of Dunkin’ Donuts from a local donut shop in Quincy, Massachusetts, to a global powerhouse is a testament to the company’s strategic approach to internationalization and its unwavering commitment to understanding and adapting to local markets .

In 1950, Bill Rosenberg opened the doors of Open Kettle , a donut shop in Quincy, Massachusetts. His vision was to provide freshly brewed coffee and delicious donuts to his customers. The shop was an instant success , and Rosenberg soon expanded the concept, renaming it Dunkin’ Donuts in 1955.

Dunkin’ Donuts continued to grow steadily in the United States, becoming a household name for its coffee and donuts. However, Rosenberg had always envisioned a global reach . In 1963, he opened the first Dunkin’ Donuts outside the United States, in Canada. This marked the beginning of a long and successful journey of international expansion .

Key Factors Driving Global Success

Dunkin’ Donuts’ global expansion has been driven by several key factors:

• A Focus on Quality and Value: Dunkin’ Donuts has maintained a commitment to providing high-quality coffee and donuts at affordable prices . This has resonated with consumers around the world, who appreciate the brand’s value proposition.
• Adaptation to Local Markets: Dunkin’ Donuts has recognized the importance of adapting its products , marketing strategies, and brand messaging to local preferences and customs. This has allowed the company to connect with consumers on a deeper level and build strong brand loyalty in each market it enters.
• Local Partnerships and Cultural Sensitivity: Dunkin’ Donuts has formed strategic partnerships with local businesses and organizations to gain insights into local markets and ensure cultural sensitivity. This approach has been instrumental in building trust and goodwill with consumers.
• Effective Use of Digital Marketing and Social Media: Dunkin’ Donuts has been a pioneer in leveraging digital marketing and social media to reach global audiences. The company has created localized content and campaigns that resonate with consumers in different countries.
• Continuous Innovation and Expansion: Dunkin’ Donuts has remained committed to innovation, introducing new products and menu items that appeal to local preferences. This has helped the company stay ahead of the competition and maintain its relevance in a dynamic global market.

In the competitive landscape of global business, Dunkin’ Donuts stands as a testament to the transformative power of localization . While many multinational corporations stumble by attempting to impose a one-size-fits-all approach, Dunkin’ Donuts has masterfully adapted its offerings and messaging to resonate with the unique preferences and cultural nuances of each market it enters. This localized strategy has not only fueled the company’s global expansion but also solidified its position as a beloved brand among consumers worldwide.

At the heart of Dunkin’ Donuts’ localization strategy lies a profound understanding of local tastes and preferences. The company has conducted extensive market research to identify the unique culinary trends and preferences of different countries. This deep-dive into local tastes has guided the development of customized menu items , ensuring that Dunkin’ Donuts offers products that truly resonate with local palates.

In a nod to Singapore’s renowned passion for matcha, Dunkin’ Donuts introduced the “ Matcha Green Tea Latte ” to its menu, catering to the local palate. In Brazil, the company introduced the “ Dunkin’ Donut Pao de Queijo ,” a savory donut filled with Brazilian cheese bread, catering to the country’s affinity for cheesy snacks .

Beyond menu adaptations, Dunkin’ Donuts has demonstrated cultural sensitivity by incorporating local customs and traditions into its marketing campaigns . For example, in South Korea, the company partnered with a popular K-pop group to create a limited-edition beverage and merchandise line, aligning with the country’s vibrant pop culture scene.

In India, Dunkin’ Donuts collaborated with Holi, a Hindu festival celebrated with vibrant colors, to create a limited-edition “Holi Donut” series, featuring colorful glazes and sprinkles, mirroring the festive spirit of the occasion .

While adapting to local preferences, Dunkin’ Donuts has carefully maintained its global identity , using its iconic logo and branding elements to ensure brand recognition across different markets. The company has also been mindful to avoid cultural appropriation, ensuring that its localized offerings and campaigns are respectful and authentic to local customs.

Dunkin’ Donuts has effectively leveraged digital marketing and social media to reach global audiences and connect with local consumers. The company has created localized social media pages in different languages , sharing content that is relevant to local interests and trends .

For instance, Dunkin’ Donuts’ French social media page features content about French pastries and coffee traditions, while its Spanish page highlights local coffee culture and recipes. This localized approach has helped Dunkin’ Donuts establish a strong online presence and connect with consumers on a personal level.

Dunkin’ Donuts’ global success is a shining example of how localization can transform a brand into a truly global player. By adapting its products, marketing strategies, and brand messaging to local preferences, Dunkin’ Donuts has built a loyal customer base and established a strong presence in diverse markets around the world . This success underscores the importance of localization as a key component of any effective global marketing strategy.

Dunkin’ Donuts’ success in navigating the diverse cultural landscapes of the world is not solely attributed to its product adaptations; it’s also a testament to its deep understanding of cultural sensitivity and its commitment to building meaningful relationships with local partners.

At the heart of Dunkin’ Donuts’ global marketing strategy lies a deep respect for cultural nuances and traditions . The company recognizes that cultural sensitivity is not about superficial changes but about genuine understanding and appreciation of local customs .

Beyond cultural sensitivity, Dunkin’ Donuts has also forged strong partnerships with local businesses and organizations to ensure that its marketing efforts are culturally appropriate and align with local values.

In Indonesia, Dunkin’ Donuts collaborated with the “Bahasa Indonesia” language program to introduce its menu items in the local language, making them more accessible and appealing to Indonesian customers . This partnership not only enhanced local customer engagement but also demonstrated Dunkin’ Donuts’ commitment to integrating into the Indonesian community.

Dunkin’ Donuts’ local partnerships extend beyond language to include collaborations with food bloggers, social media influencers, and culinary experts in different countries. These partnerships provide the company with valuable insights into local trends and preferences , enabling it to tailor its offerings and marketing strategies accordingly.

In India, Dunkin’ Donuts partnered with renowned food bloggers to create a localized menu that incorporated Indian flavors and ingredients. This collaboration not only resulted in new and exciting menu items but also showcased Dunkin’ Donuts’ willingness to adapt to local tastes and preferences .

Dunkin’ Donuts’ success in building a global presence is a remarkable achievement that underscores the power of cultural sensitivity and local partnerships in global marketing strategies. By respecting local cultures, engaging with communities, and collaborating with local businesses, Dunkin’ Donuts has earned the trust and loyalty of consumers worldwide, transforming itself from a local donut shop into a true global brand .

In today’s digitally interconnected world, digital marketing and social media have become indispensable tools for businesses seeking to expand their global reach and connect with consumers across borders. Dunkin’ Donuts has effectively harnessed the power of digital platforms to amplify its brand presence , tailor its messaging to local audiences, and foster meaningful engagement with customers worldwide.

Dunkin’ Donuts recognizes that effective digital marketing requires localization, adapting its content and campaigns to resonate with specific cultural and linguistic contexts. The company has created localized social media pages in multiple languages , including French, Spanish, and Indonesian, ensuring that its content is relevant and accessible to local audiences.

Dunkin’ Donuts has also leveraged the power of social media influencers to reach a wider audience and gain insights into local trends and preferences. The company has partnered with social media stars and culinary experts in different countries to create engaging content and promote its products in an authentic and culturally sensitive manner .

Dunkin’ Donuts has also employed digital technologies to tailor its marketing efforts to specific demographics and interests. The company has used location-based targeting to deliver personalized messaging to customers based on their location, language preferences, and past behavior . This data-driven approach has enabled Dunkin’ Donuts to create more relevant and engaging content, ensuring that its marketing messages resonate with individual consumers and drive customer loyalty.

By embracing digital marketing and social media, Dunkin’ Donuts has transformed itself into a truly global brand, connecting with consumers across borders and fostering a sense of belonging and familiarity . The company’s localized approach, coupled with its innovative use of digital technologies, has enabled it to adapt to the diverse cultural landscapes of the world, while maintaining its global brand identity.

Dunkin’ Donuts’ global journey, spanning over 70 years of expansion , stands as a testament to the power of localization and its ability to transform a local brand into a global phenomenon. By understanding and adapting to the unique cultural preferences and customs of each market they enter, Dunkin’ Donuts has successfully established a loyal customer base across over 40 countries, solidifying its position as one of the world’s most recognized and beloved donut chains.

The company’s success lies in its ability to strike a delicate balance between maintaining its global brand identity and adapting to the nuances of each local market . This approach, deeply rooted in cultural sensitivity and respect, has allowed Dunkin’ Donuts to connect with consumers on a personal level, fostering a sense of belonging and familiarity that transcends geographical boundaries.

From incorporating regional flavors and ingredients into its menu items to collaborating with local partners and leveraging digital technologies, Dunkin’ Donuts has demonstrated a keen understanding of the importance of localization in global marketing. This commitment to cultural responsiveness has not only earned the company a loyal customer base but has also positioned it as a leader in the global food industry.

As Dunkin’ Donuts continues to expand its global footprint, its dedication to localization will remain its guiding principle , ensuring that the company remains a true global brand, deeply embedded in the hearts and palates of consumers worldwide.

Dunkin’ Donuts’ global success is largely attributed to its strategic approach to localization, which involves adapting its products, marketing campaigns, and brand messaging to suit the unique cultural preferences and customs of each market it enters. The company has also demonstrated a strong commitment to cultural sensitivity and local partnerships, ensuring that its marketing efforts are respectful and resonate with local audiences.

Dunkin’ Donuts has incorporated regional flavors and ingredients into its menu items to appeal to local preferences. For instance, in Indonesia, Dunkin’ Donuts offers a “Capri Blu” donut with blueberry filling and a blue glaze, reflecting the country’s vibrant colors and flavors.

Dunkin’ Donuts has partnered with local businesses and organizations to ensure its marketing efforts are culturally appropriate. For example, in Japan, the company collaborated with the “Sailor Moon” anime series to create limited-edition merchandise and themed beverages.

Dunkin’ Donuts has created localized social media pages in different languages, tailoring its content to reach local audiences. The company has also partnered with social media influencers to promote its products and engage with consumers on a personal level.

Localization is crucial for businesses expanding globally as it allows them to connect with consumers on a deeper level and build a loyal customer base. By understanding and adapting to local preferences, companies can create marketing campaigns that are relevant, engaging, and culturally sensitive.

Businesses can start by conducting thorough market research to understand the unique cultural nuances of each target market. They should then adapt their products, messaging, and visual identity to align with local preferences. Additionally, collaborating with local partners and leveraging digital technologies can amplify their global reach and foster stronger connections with consumers.

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Dunkin' Brands Presents Three-Year Plan Fueled by the Dunkin' Donuts U.S. "Blueprint for Growth" at its 2018 Investor & Analyst Day

Provides three-year financial guidance including 2018 and 2020 growth targets

Unveils menu innovation, new digital technologies, and new in-restaurant experience

News provided by

Feb 08, 2018, 07:30 ET

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CANTON, Mass. , Feb. 8, 2018 /PRNewswire/ --   Dunkin' Brands Group, Inc. (NASDAQ: DNKN ), the parent company of Dunkin' Donuts (DD) and Baskin-Robbins (BR), will host its 2018 Investor & Analyst Day today and present its three-year strategic plan to grow revenue by low-to-mid single digit percentages and operating income by mid-to-high single digit percentages. The Company intends to achieve these targets by positioning its core Dunkin' Donuts U.S. brand to compete even more effectively in the coffee and beverage segment, driving profitable sales growth, and further expanding westward across the country. Dunkin' Brands announced plans to add approximately 1,000 net new Dunkin' Donuts locations in the U.S. by the end of 2020 and expects that more than 90 percent will be built outside of the Northeast. Lastly, the Company reaffirmed its intention to eventually have more than 18,000 Dunkin' Donuts restaurants in the U.S.

"Since our initial public offering in July 2011 , Dunkin' Brands systemwide sales have grown by greater than 40 percent and total global points of distribution have grown by more than 4,100 units. In that time, we have also returned $2 billion in capital to shareholders through share repurchases and dividends. We are proud of these accomplishments but also realize that if we are to compete even more effectively within the coffee and breakfast segment, we must make further progress against the execution of our multi-year Blueprint for Growth plan, which is designed to transform Dunkin' Donuts U.S. into the most-loved beverage-led, on-the-go brand," said Nigel Travis , Dunkin' Brands Chairman & CEO. "The continued execution of our Blueprint combined with our key value drivers – a tremendous asset-light model with low capital intensity; a history of returning capital to shareholders; and an ability to significantly expand our Dunkin' Donuts U.S. footprint – should fuel strong growth and shareholder value creation for Dunkin' Brands for many years to come."

DUNKIN' DONUTS U.S. BLUEPRINT FOR GROWTH

"Dunkin' Donuts U.S. is well on its way to becoming America's most-loved beverage-led, on-the-go brand. Our Blueprint for Growth, which is rooted in extensive consumer research, is focused on five main areas that we believe will collectively grow top- and bottom-line franchisee profitability: menu innovation; unparalleled convenience driven by digital leadership; broad accessibility to our brand through restaurant growth and new channels for our branded packaged goods; restaurant excellence; and brand evolution," said David Hoffmann , President of Dunkin' Donuts U.S. "Very importantly, collaboration with our franchisees has never been stronger. Together with them, we are laser-focused on bringing about transformative change at Dunkin' that both builds on our heritage yet also updates our offerings and in-store experience to keep our brand modern, relevant, and positioned for long-term growth." 

Menu Innovation

The Company is focused on maintaining and increasing Dunkin' Donuts U.S.' share of the morning daypart before 11 a.m. , which accounts for approximately 60 percent of its systemwide sales, as well as unlocking afternoon growth opportunities through menu innovation and national value offers. As a strong sign of progress with its morning daypart goal, the Company was encouraged by the morning sales performance for Dunkin' Donuts U.S., which comped positively year-over-year and increased sequentially each quarter in 2017. Other notable highlights include:

• New Beverages: Dunkin' Donuts is focusing its innovation efforts on beverage items, including a continued focus on Cold Brew, Iced Coffee and Frozen Dunkin' Coffee, which resulted in its highest quarterly beverage comparable sales of the year in the fourth quarter of 2017. The Company also plans to extend its premium tea and frozen beverage lines and introduce more espresso products.
• New Breakfast Sandwiches: Coming off a record year for breakfast sandwich sales in 2017, Dunkin' Donuts is once again emphasizing morning sandwiches, both new and returning favorites, like the January reintroduction of the Sweet Black Pepper Bacon Breakfast Sandwich, and offering additional flavored bacon on sandwiches throughout the year.
• Craveable Donuts: As the country's largest retailer of donuts, Dunkin' Donuts has an annual calendar full of seasonal donut offerings ready-to-go, leveraging key holidays, like Valentine's Day and Halloween, while ensuring that its Dunkin' Dozen – the brand's twelve best-selling donuts – are available in each restaurant.
• Removal of Artificial Dyes from Donuts: As part of the Company's ongoing efforts to offer cleaner menu labels, Dunkin' Donuts U.S. introduced donuts without artificial dyes in January. The Company is committed to eliminating synthetic dyes from its national food and beverage menu in the U.S. by the end of 2018.
• Value Offers: The Company launched Dunkin' Deals, a series of value offers that are expected to be available at participating restaurants throughout the year. The first Dunkin' Deal of the year, running January 8 through February 25 , includes two Egg and Cheese Wake-up Wrap® sandwiches for $2 and, to drive p.m. traffic, a Medium Hot or Iced Latte for $2 from 2 p.m. to 6 p.m.

Unparalleled Convenience

Dunkin' Donuts holds one of the fastest speed-of-service records in the QSR industry and is committed to constantly making itself even-more convenient for its guests. Additional initiatives include:

• DD Perks ® Loyalty: During 2017, Dunkin' Donuts added more than 2 million members to its DD Perks® Loyalty program bringing total membership to approximately 8 million members. Additionally, On-the-Go Mobile O rdering (OTG), a benefit available only to DD Perks members, is proving very popular and had a retrial rate of 80 percent.
• Tender Agnostic Test: In the second half of 2018, Dunkin' Donuts plans to test "tender agnostic" participation in its DD Perks Loyalty program, meaning members will be able to earn points using all forms of tender, including their DD Card, credit, debit or cash. The Company expects that being tender agnostic will allow it to better connect and serve a wider audience of its most loyal guests.
• Delivery and Catering : In 2018, Dunkin' Donuts is testing a newly-built digital catering platform in several key markets. Dunkin' Donuts also continues to test and expand third-party delivery options with the goal of creating a combined catering/delivery platform in 2019.  
• Innovative Drive-Thru Technology: Dunkin' Donuts expects that more than 75 percent of new restaurants moving forward will have a drive-thru lane. Additionally, with its new NextGen restaurant design (discussed below), Dunkin' Donuts is the first QSR in the U.S. to feature a dedicated mobile order drive-thru lane. On average, a restaurant with a drive-thru boasts 40 percent higher sales volume than a non-drive-thru location.

Broad Accessibility

A critical element of the Dunkin' Donuts U.S. Blueprint for Growth is giving consumers increased accessibility to Dunkin' through new restaurants and branded Dunkin' products sold through new channels, including:

• Growing the Dunkin' Donuts U.S. Restaurant Footprint at an Approximate 3 Percent Annual Rate: The Company expects to add a total of 1,000 net new Dunkin' Donuts restaurants in the U.S. by the end of 2020, representing an approximate 3 percent annual growth rate, and that more than 90 percent of these net openings will be built outside of the Northeast. For 2018, it expects Dunkin' Donuts franchisees will build more than 275 net new locations in the U.S. It expects that new units opened in 2018 will contribute between $140 million and $150 million in systemwide sales this year.
• NextGen Store : The Company recently opened the first iteration of its NextGen restaurant in Quincy, Mass. Designed to cater to the on-the-go customer, the new Dunkin' Donuts restaurant features innovative in-store technologies and design elements and is 25 percent more energy efficient than previous design . New technology includes a beverage bar tap system serving premium pours of cold beverages such as Nitro Coffee. The store also features grab-and-go snacks and a double drive-thru with preview boards and order confirmation screens. The crew members in the restaurant wear new uniforms and headwear designed in partnership with lifestyle brand Life is Good®. Dunkin' Donuts plans to have up to 50 NextGen restaurants by the end of the year.
• Consumer Packaged Goods (CPG): Dunkin' Donuts is also committed to growing accessibility to its brand outside of its restaurants, and in just three years, has expanded its Dunkin' Donuts branded CPG business from approximately $400 million in retail sales in 2014 to nearly $900 million by the end of 2017. In 2017, according to IRI data, retail sales of Dunkin' ready-to-drink (RTD) bottled Iced Coffee exceeded $150 million within the first year of launching.

Restaurant Excellence

Key to increasing Dunkin' Donuts' share of market and comparable store sales is the in-restaurant experience. The Company is undertaking numerous initiatives including menu simplification designed to better serve the on-the-go customer. Additional initiatives include:

• Menu Simplification: In 2017, Dunkin' Donuts tested a simplified menu in nearly 1,000 restaurants across multiple markets to make room for new menu items and to improve franchisee profitability as well as the guest experience with faster, more accurate service. The Company began rolling out the simplified menu to additional restaurants in January and expects to have it in place across the entire system by the end of the first quarter of 2018. Based on its test markets, Dunkin' Donuts believes the simplified menu will ultimately benefit the top-and-bottom-line.
• OTG Mobile Ordering Platform: Dunkin' Donuts is continuing to evolve its mobile ordering platform by optimizing speed in drive-thru locations. With an estimated 30 percent of crew member time spent taking orders, Dunkin' Donuts expects O n-the- G o M obile O rdering will not only improve order accuracy and speed-of-service, but will also free up crew members' time, enabling them to focus on other operational aspects, including store appearance.    
• Upgraded Point-of-Sale (POS) and Back-Office Software Systems: The upgraded POS and back-office systems, which require less crew training time than the previous systems, are expected to improve order accuracy and speed of service.
• New Employee Training Tools: Dunkin' Donuts continues to enhance its training with a focus on shorter, more interactive, and more video-based materials designed to appeal to a new generation of employees. This is intended to improve employee retention and customer service.  

Baskin-Robbins U.S.

Coming off an improving comparable sales performance in the fourth quarter of 2017, Baskin-Robbins U.S. plans to maintain the positive momentum in 2018 through a focus on consumer convenience and modernizing its stores and menu.

• Consumer Convenience: Baskin-Robbins plan to continue to expand delivery options with almost half of all Baskin-Robbins locations in the U.S. now offering delivery through DoorDash.
• Improved BR App and On-line Ordering: Early in the second quarter of 2018, Baskin-Robbins plans to launch an improved app and on-line ordering system. This is expected to improve the guest experience, especially on mobile devices.
• New Store Image: Late in the fourth quarter of 2018, Baskin-Robbins U.S. plans to unveil a new store look designed to appeal to guests of all ages.
• Product Innovation: The brand is expanding its focus on beverages in 2018, including an increased emphasis on milkshakes, as well as focusing on ice cream cakes.

INTERNATIONAL

Dunkin' Brands continues its work to stabilize its international businesses and, along with its franchisees, is focused on driving traffic through value offerings, product innovation, and making the brands more easily accessible through digital technologies.

Dunkin' Donuts International is encouraged by the early results of its new restaurant design, which positions the brand as a coffee-focused chain. With 40 of the newly-designed International restaurants located in eight different markets outside the U.S., the stores are experiencing an increase in overall average weekly sales and, importantly, an increase in beverage units.

Baskin-Robbins International is focused on ice cream gallon consumption across the business: through stores, delivery, and consumer packaged goods. Sales outside of the restaurants have expanded the brand's touchpoints, making Baskin' more accessible and driving incremental ice cream sales throughout the year.

Delivery continues to be an opportunity for both brands, and the Company is working with its partners to roll-out delivery programs in as many markets as possible based on the success that its Middle East and Asia franchisees are experiencing.

FINANCIAL GUIDANCE AND REPORTING UPDATES

"In January, we announced an approximately five percent reduction in our general and administrative expense target in 2018 which would place our G&A at approximately two percent of systemwide sales while also ensuring that we have the resources necessary to achieve our financial goals. These include growing Dunkin' Donuts U.S. comparable store sales, supporting franchise development of Dunkin' Donuts restaurants across the U.S., and expanding our consumer packaged goods business," said Kate Jaspon , Dunkin' Brands Chief Financial Officer. "Looking ahead and given the rapidly changing retail environment, we are updating our long-term guidance targets, many of which have been in place since our IPO in 2011. We are now providing a three-year outlook for our expected financial growth through the year 2020."   

Below are the Company's long-term (2020) and 2018 targets as well as updates as to how Dunkin' Brands will report its financials moving forward. The 2018 guidance does not include any impact from the $100 million investment in the Blueprint for Dunkin' Donuts U.S. Growth that the Company previously announced.

• Low-single digit percent Dunkin' Donuts U.S. comparable store sales growth accelerating to upwards of 3 percent by 2020
• Addition of approximately 1,000 net new Dunkin' Donuts locations in the U.S. by end of 2020, with more than 90 percent of net openings built in markets outside of the Northeast
• 75 percent of traditional restaurants expected to be drive-thru locations
• Targeting 500-plus DD Green Achievement certified restaurants
• Approximately 1,000 NextGen restaurants per year, inclusive of new and remodeled stores, once the new image is released
• High-single digit percent growth of Other Revenue driven by consumer packaged goods
• Low-single digit percent Baskin-Robbins comparable store sales growth
• Zero to 10 net new Baskin-Robbins locations each year
• Low to mid-single digit percent revenue growth
• Mid to high-single digit percent operating income and adjusted operating income growth
• Approximately 1 percent Dunkin' Donuts U.S. comparable store sales growth
• Greater than 275 net new locations in the U.S.
• Approximately 50 NextGen restaurants, including both new and remodeled stores
• High-single digit percent Other Revenue growth driven by consumer packaged goods
• Ice cream margin dollars flat compared to 2017 from a profit dollar standpoint
• 5 percent reduction to G&A expense
• Mid to high-single digit percent operating and adjusted operating income growth
• $2.20 to $2.29 in earnings per share and $2.40 to $2.45 in adjusted earnings per share (inclusive only of share repurchases to offset option dilution)
• Effective tax rate of approximately 28 percent
• Total shares outstanding of approximately 92 million

Reporting and Guidance Updates

• The Company will no longer guide on international net store openings
• The Company will no longer report Baskin-Robbins International comparable store sales and will focus on the sale of ice cream and other products
• First quarter 2018 will be the first quarter that the Company will report results reflecting the new accounting standards regarding revenue recognition

The foregoing non-GAAP forward-looking financial measures are reconciled from the respective measures determined under GAAP in the attached tables "Dunkin' Brands Group, Inc. and Subsidiaries Non-GAAP Reconciliations."

About Dunkin' Brands Group, Inc.

With more than 20,500 points of distribution in more than 60 countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN ) is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of the fourth quarter 2017, Dunkin' Brands' 100 percent franchised business model included more than 12,500 Dunkin' Donuts restaurants and nearly 8,000 Baskin-Robbins restaurants. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass.

Investor & Analyst Day

A live video webcast of today's investor and analyst day, including slide presentations, will be accessible via the Company's website at:  http://investor.dunkinbrands.com  under "Events & Presentations". The conference is scheduled to begin at 9:00 AM Eastern Time and will continue until approximately 3:00 PM Eastern Time.

A replay of the webcast, along with slide presentations, will remain accessible on the Company's website through March 9, 2018.

Forward-Looking Statements

Certain statements contained herein, including those under the headline "Financial Guidance and Reporting Updates," are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," or "would," and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.  By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risk and uncertainties include, but are not limited to: the ongoing level of profitability of franchisees and licensees; our franchisees' and licensees' ability to sustain same store sales growth; our ability to execute on our Blueprint for Growth plan or achieve the financial results contemplated thereby; changes in working relationships with our franchisees and licensees and the actions of our franchisees and licensees; our master franchisees' relationships with sub-franchisees; the strength of our brand in the markets in which we compete; changes in competition within the quick-service restaurant segment of the food industry; changes in consumer behavior resulting from changes in technologies or alternative methods of delivery; economic and political conditions in the countries where we operate; our substantial indebtedness; our ability to protect our intellectual property rights; consumer preferences, spending patterns and demographic trends; the impact of seasonal changes, including weather effects, on our business; the success of our growth strategy and international development; changes in commodity and food prices, particularly coffee, dairy products and sugar, and other operating costs; shortages of coffee; failure of our network and information technology systems; interruptions or shortages in the supply of products to our franchisees and licensees; the impact of food borne-illness or food safety issues or adverse public or media opinions regarding the health effects of consuming our products; our ability to collect royalty payments from our franchisees and licensees; the ability of our franchisees and licensees to open new restaurants and keep existing restaurants in operation; our ability to retain key personnel; any inability to protect consumer credit card data and catastrophic events.

Forward-looking statements reflect management's analysis as of the date of this press release. Important factors that could cause actual results to differ materially from our expectations are more fully described in our other filings with the Securities and Exchange Commission, including under the section headed "Risk Factors" in our most recent annual report on Form 10-K. Except as required by applicable law, we do not undertake to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Dunkin' Brands Group, Inc.

Related Links

http://www.dunkinbrands.com

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