Today we will do a deep dive into the thriving empire of Dunkin' Donuts. 🍩
In this video, we'll uncover the secrets behind Dunkin' Donuts' astonishing success, from its humble beginnings to becoming a global food and beverage industry icon. This case study is a must-watch if you're an aspiring entrepreneur or simply curious about what makes a brand stand out.

From its inception in 1950, Dunkin' Donuts has conquered millions' hearts and taste buds. We'll explore how their simple yet effective business model and unwavering commitment to quality have propelled them to the top.

Marketing plays a pivotal role in their success. Discover how Dunkin' Donuts has consistently engaged with their customers, leveraging social media, advertising, and promotions to maintain their brand's popularity.

As we journey through this case study, you'll learn about Dunkin' Donuts' global expansion strategy, and the challenges they've overcome to become an international sensation.

So, grab your favorite Dunkin' coffee, sit back, and let's unravel the recipe for Dunkin' Donuts' unprecedented triumph. Don't forget to hit the like button and subscribe for more engaging business insights.

Dunkin' Donuts has a rich history dating back to 1950, and in this video, we explore how their simple yet effective business model and unwavering commitment to quality have propelled them to the forefront of the food and beverage industry.

Discover the marketing strategies that have played a pivotal role in Dunkin' Donuts' success. We'll show you how they've consistently engaged with their customers, using social media, advertising, and promotions to maintain their brand's popularity.

As we delve into this case study, you'll gain insights into Dunkin' Donuts' global expansion strategy and the challenges they've overcome to become an international sensation.
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Today, Dominos, McDonald's, KFC or Pizza Hut There is no fast food chain in the world that is 100% based on franchisee business Except 1 And that is Dunkin Donuts Dunkin Donuts is the biggest donut chain in the world And very few people know But Dunkin Donuts is 1 of the largest coffee chains in the world which today runs more than 12,900 outlets in 42 countries But how?

How did a company that sells simple donuts become so big?

And why are they sitting on the franchise?

And most importantly, what is so special about Duncan Donuts business model that it became the world's biggest donut chain.

So today we will understand all these things in

This story begins in 1948 when Bill Rosenberg opened a restaurant in Quincy, Massachusetts called Open Cattle where he sold sandwiches, coffee, donuts, snacks, etc.

But in a short time he found out that half of his sales

And not just sales, but half of his profit margin was also coming from selling these 2 products.

So that's why they started working on these 2 products only.

And in 1950, they changed the name of their restaurant to Dunkin Donuts.

Because of these 2 things, their restaurant becomes famous in every area around them.

But Rosenberg wanted to expand his business further, for which he thought the best way was to do a franchise.

After which in 1955, Bill opened his first franchise in War Thrasher and by the year 2000, the number of franchises of Dunkin Donuts had increased by more than 5000.

But in the next 16 years, that is, from 2000 to 2016, the number of franchises increased by 150% and reached more than 12,000.

As the franchise culture was becoming popular the scams that were happening were also increasing

was only 1 way to use less money in an effective way and expand Dunkin Donuts very quickly And to solve this problem, he first understood the problem of all franchisee owners and after that, along with many franchisee operators, he went to 1960 and started International Franchisee Association i.e.

IFA And this solution helped many companies like KFC, McDonalds, Starbucks and many more But even now, Bill had a big challenge and that challenge was how to maximize the profits of his franchisee stores so that as many people as possible take their franchisees and their business can move forward.

To solve this problem, Bill started working on these 3 things The first 1 was site selection Whether it's a small tea stall or a franchisee store.

The most important thing in a restaurant business is its location.

And it depends on its location how successful the restaurant will be.

That's why Bill decided that whenever someone opens a Dunkin Donuts franchise, its location should be the best location.

So, whenever Dunkin Donuts selects a site, they mainly focus on

The first criteria is population density, which means how many people live in a particular area and how big is that area.

Then comes the second criteria, which is traffic flows.

That is, how much traffic flows in that particular area.

Meaning, how many people leave their homes and go to the office or go out somewhere.

After which comes the third criteria, which is spending capacity.

That is, how much money do people have in that particular area how much money is in their pocket to spend and the fourth criteria is store proximity that is, how far is that particular store from the rest of the people in that area is it that the store is

the business of Dunkin Donuts, it is very important to have a population of at least 35,000 to 50,000 in that particular area.

population less than that, then the store will not be open.

And most importantly, the density of the population should be somewhere in the middle of the store.

If the population is more than that, the store will not be open.

And apart from all these things, 1 more thing is taken care of.

At least 1000-1200 vehicles should be accessible to the site.

Whenever someone comes to buy a Dunkin Donuts franchise, the person who buys it is given the freedom to choose the location of that particular site.

But yes, whenever this happens, a location data report is given to that particular franchise by Dunkin Donuts and all these criteria are mentioned in it.

And when those criteria are fulfilled, the store will open.

Now, the person who wants to buy a franchisee has to evaluate his location based on this particular report.

And if that location does not fit there, then Dunkin Donuts selects a best location for him.

It so happens that after choosing his location, the franchisee selects it and gives it to the development manager.

And the development manager verifies that particular location based on his criteria.

And Once the verification is done, the company tells the franchisee owner to sign a lease agreement with the owner and take the place.

And as soon as the lease agreement is signed after selecting the location, the construction manager of Dunkin Donuts starts working on developing the franchise facility.

Now comes the second part of site selection, which is training.

Now look, stores are built in such places where a lot of customers will come, but now to provide good quality food to these customers, it is also necessary to train those employers.

And to do this, in 1966, Bill Rosenberg started Duncan Donuts University, that is, DDU.

Now, whenever a franchise of Duncan Donuts opens, the franchise owner

the DDU They are taught bakery and equipment handling skills, quality control, health and safety standards, how to manage human resources, basic accounting skills

Now the site is selected and people are trained

Now comes the third and most important point, which is the central production facility In February 1994, Dunkin Donuts opened a central production facility in Richmond, Virginia called Kitchen.

And as of 2019, Dunkin Donuts has more than 73 centralized production facilities in the entire US.

This is important because CPF is a large-scale donut production facility Where a lot of donuts are made in bulk And once they are made, they are sent to all the nearby franchisee outlets To make this process efficient Dunkin Donuts uses the shop information system Which is SIS Which tells it That based on its old sales It can analyze the data and think That how much stock do I need this month and how much stock will I be able to sell?

next 3 days So the CPF, or Central Production Facility Has the data of the sales in a nearby store That happened last year on Christmas And on that basis, They can sell more donuts in that particular store Let's say there's XYZ store Which sold 2000 donuts on Christmas last year So what will CPF do this year?

This year, CPF will send 2500 donuts to that store So that your sales might increase a little this year Now, The biggest advantage of this data is that it helps the CPF know where to send what amount of goods And it can prepare and deliver accordingly So that there is no shortage of stock in any store But this is a very small thing Because with the help of CPF, Dunkin Donuts has 3 big benefits The first benefit is Maximize economies of scale With the help of CPF, Dunkin Donuts can maximize economies of scale in 2 ways The first is Production Facility Suppose that a Dunkin Donuts store gets a special order of 200 donuts from a school.

If the store makes these 200 donuts by itself, it will take them the whole day.

So, in 20 minutes, the CPF will do this and deliver the donuts to the store on time.

And from there, the school's order will be completed.

And the second place is the equipment cost.

If every store makes donuts by itself, then different machines will have to be installed in each store.

But because all the work is done in 1 place, all the doughnuts are made in 1 place, so the cost of equipment is saved.

You don't have to install different machines in every store.

come to the third benefit, which is low capex.

Now think, if there is no food in a store, what is the use of a kitchen?

And if there is no kitchen, then a store can be opened in a very small space.

And when the space is small, then the cost of rent will be less and the cost of making it will also be less.

So in this way, Dunkin Donuts set up a central production facility and made their operations so efficient

And because it became easier, more and more people took their franchise and the business kept on growing.

But, did you know that in 2019, Dunkin Donuts rebranded itself and changed its name to Dunkin.

And this move was described by Dunkin Donuts as a very good future strategy.

But what's so special about this strategy?

Look, in the last few years, people were becoming aware of their health.

And America is the biggest market for Dunkin Donuts.

And there, Dunkin Donuts was seen as an unhealthy breakfast option.

That's why Dunkin Donuts realized that the sooner they can detach themselves from the word donuts, the sooner their business will come to the line.

And moving in this direction, in 2019, they decided to change their name from Dunkin Donuts to Dunkin.

Because in the minds of customers, Dunkin Donuts is a donut-selling company.

But the truth is, if we talk about sales, then in 2018, 60% of Dunkin' Donuts sales were only beverages.

So, the re-branding step was very important.

And Dunkin' didn't just re-brand, but also launched many different types of drinks like Espresso, Latte, Cappuccino, Americano and started expanding the drinks menu and this is the reason why Duncan became 1 of the top coffee chains in terms of sales.

In 2019, Dunkin sold 1.6 billion hot and iced coffee cups.

And this number increased in 2021 to 4.4 billion cups.

And in the same way, the company which was known to sell donuts at 1 time, has now become 1 of the biggest coffee chains in the world.

And this brings us to the most important part of this video, which powerful business lessons

this case study and implement in our business.

So the first lesson is, Partners' problem is your problem.

When Bill Rosenberg started expanding his business through the franchisee model, the biggest challenge for him was to win the trust of all the franchisee owners.

Because there were so many scams that people were not trusting the franchisee model.

To stop these scams, he joined together the franchisee operators and formed a particular organization which is known as International Franchisee Association.

And today if you see, there are more than

1400 brands like KFC, McDonald's, Pizza Hut, Starbucks, which are members of the IFA.

Now, they won the trust of the franchisee owners, but the most important thing was the business model.

So, they changed their operating model in such a way that even after investing less money, a franchisee could open their franchise store.

And finally, when the consumer behavior was changing in the market, they rebranded themselves and gave a new direction to the company so that the franchisee owners and the brand could benefit from it.

And this brings us to the second lesson, which is Demand Adoption.

started selling donuts 70 years ago and today they have created such

a big business but as soon as they understood that this donut game will not last long they left donuts and started giving coffee as their priority and today, coffee is the most profitable product of Dunkin So, seeing the changing trend in your business and changing yourself accordingly can change the whole game of a business For example, Many years ago, a person started selling sweets but after some time, he entered the automobile business And when he saw that the trend was changing He entered the education business And today, that same education business Earns him more than 1100 crores a year Just think about it A person who started with a sweet shop Today, his earnings have exceeded 1100 crores But how did all this happen?

And what all things did he do that made him such a big businessman today?

And if you want to learn all things then watch this Ride video.


Speaker 0: Today, Dominos, McDonald's, KFC or Pizza Hut There is no fast food chain in the world that is 100% based on franchisee business Except 1 And that is Dunkin Donuts Dunkin Donuts is the biggest donut chain in the world And very few people know But Dunkin Donuts is 1 of the largest coffee chains in the world which today runs more than 12,900 outlets in 42 countries But how? How did a company that sells simple donuts become so big? And why are they sitting on the franchise?

Speaker 1: And if they are, then why have

Speaker 0: there been no problems in business? And most importantly, what is so special about Duncan Donuts business model that it became the world's biggest donut chain. So today we will understand all these things in

Speaker 1: detail

Speaker 0: This story begins in 1948 when Bill Rosenberg opened a restaurant in Quincy, Massachusetts called Open Cattle where he sold sandwiches, coffee, donuts, snacks, etc. But in a short time he found out that half of his sales

Speaker 1: came from coffee and donuts.

Speaker 0: And not just sales, but half of his profit margin was also coming from selling these 2 products. So that's why they started working on these 2 products only. And in 1950, they changed the name of their restaurant to Dunkin Donuts. Now at

Speaker 1: that time, the quality and pricing of

Speaker 0: the restaurant was important. Because of these 2 things, their restaurant becomes famous in every area around them. But Rosenberg wanted to expand his business further, for which he thought the best way was to do a franchise. After which in 1955, Bill opened his first franchise in War Thrasher and by the year 2000, the number of franchises of Dunkin Donuts had increased by more than 5000. But in the next 16 years, that is, from 2000 to 2016, the number of franchises increased by 150% and reached more than 12,000.

But there was a big problem. As the franchise culture was becoming popular the scams that were happening were also increasing

Speaker 1: But Bill knew that there

Speaker 0: was only 1 way to use less money in an effective way and expand Dunkin Donuts very quickly And to solve this problem, he first understood the problem of all franchisee owners and after that, along with many franchisee operators, he went to 1960 and started International Franchisee Association i.e. IFA And this solution helped many companies like KFC, McDonalds, Starbucks and many more But even now, Bill had a big challenge and that challenge was how to maximize the profits of his franchisee stores so that as many people as possible take their franchisees and their business can move forward. But how will this happen? To solve this problem, Bill started working on these 3 things The first 1 was site selection Whether it's a small tea stall or a franchisee store. The most important thing in a restaurant business is its location.

And it depends on its location how successful the restaurant will be. That's why Bill decided that whenever someone opens a Dunkin Donuts franchise, its location should be the best location.

Speaker 1: But how will this happen?

Speaker 0: So, whenever Dunkin Donuts selects a site, they mainly focus on

Speaker 1: these 4 criteria.

Speaker 0: The first criteria is population density, which means how many people live in a particular area and how big is that area. Then comes the second criteria, which is traffic flows. That is, how much traffic flows in that particular area. Meaning, how many people leave their homes and go to the office or go out somewhere. After which comes the third criteria, which is spending capacity.

That is, how much money do people have in that particular area how much money is in their pocket to spend and the fourth criteria is store proximity that is, how far is that particular store from the rest of the people in that area is it that the store is

Speaker 1: being opened very far? Look To support

Speaker 0: the business of Dunkin Donuts, it is very important to have a population of at least 35,000 to 50,000 in that particular area.

Speaker 1: If there is a

Speaker 0: population less than that, then the store will not be open. And most importantly, the density of the population should be somewhere in the middle of the store. If the population is more than that, the store will not be open. And apart from all these things, 1 more thing is taken care of. At least 1000-1200 vehicles should be accessible to the site.

Now, let's understand the process. Whenever someone comes to buy a Dunkin Donuts franchise, the person who buys it is given the freedom to choose the location of that particular site. But yes, whenever this happens, a location data report is given to that particular franchise by Dunkin Donuts and all these criteria are mentioned in it. And when those criteria are fulfilled, the store will open. Now, the person who wants to buy a franchisee has to evaluate his location based on this particular report.

And if that location does not fit there, then Dunkin Donuts selects a best location for him. It so happens that after choosing his location, the franchisee selects it and gives it to the development manager. And the development manager verifies that particular location based on his criteria. And Once the verification is done, the company tells the franchisee owner to sign a lease agreement with the owner and take the place. And as soon as the lease agreement is signed after selecting the location, the construction manager of Dunkin Donuts starts working on developing the franchise facility.

But things have just started here. Now comes the second part of site selection, which is training. Now look, stores are built in such places where a lot of customers will come, but now to provide good quality food to these customers, it is also necessary to train those employers. And to do this, in 1966, Bill Rosenberg started Duncan Donuts University, that is, DDU. Now, whenever a franchise of Duncan Donuts opens, the franchise owner

Speaker 1: and his staff are trained for 6 weeks in

Speaker 0: the DDU They are taught bakery and equipment handling skills, quality control, health and safety standards, how to manage human resources, basic accounting skills

Speaker 1: Now the site is selected and people are trained

Speaker 0: Now comes the third and most important point, which is the central production facility In February 1994, Dunkin Donuts opened a central production facility in Richmond, Virginia called Kitchen. And as of 2019, Dunkin Donuts has more than 73 centralized production facilities in the entire US. This is important because CPF is a large-scale donut production facility Where a lot of donuts are made in bulk And once they are made, they are sent to all the nearby franchisee outlets To make this process efficient Dunkin Donuts uses the shop information system Which is SIS Which tells it That based on its old sales It can analyze the data and think That how much stock do I need this month and how much stock will I be able to sell?

Speaker 1: For example, Christmas is coming in the

Speaker 0: next 3 days So the CPF, or Central Production Facility Has the data of the sales in a nearby store That happened last year on Christmas And on that basis, They can sell more donuts in that particular store Let's say there's XYZ store Which sold 2000 donuts on Christmas last year So what will CPF do this year? This year, CPF will send 2500 donuts to that store So that your sales might increase a little this year Now, The biggest advantage of this data is that it helps the CPF know where to send what amount of goods And it can prepare and deliver accordingly So that there is no shortage of stock in any store But this is a very small thing Because with the help of CPF, Dunkin Donuts has 3 big benefits The first benefit is Maximize economies of scale With the help of CPF, Dunkin Donuts can maximize economies of scale in 2 ways The first is Production Facility Suppose that a Dunkin Donuts store gets a special order of 200 donuts from a school. If the store makes these 200 donuts by itself, it will take them the whole day. But the CPF will do this in 20 minutes.

So, in 20 minutes, the CPF will do this and deliver the donuts to the store on time. And from there, the school's order will be completed. And the second place is the equipment cost. If every store makes donuts by itself, then different machines will have to be installed in each store. But because all the work is done in 1 place, all the doughnuts are made in 1 place, so the cost of equipment is saved.

You don't have to install different machines in every store. Now

Speaker 1: let's

Speaker 0: come to the third benefit, which is low capex. Now think, if there is no food in a store, what is the use of a kitchen? And if there is no kitchen, then a store can be opened in a very small space. And when the space is small, then the cost of rent will be less and the cost of making it will also be less. So in this way, Dunkin Donuts set up a central production facility and made their operations so efficient

Speaker 1: that it became easier for anyone

Speaker 0: to do business for them. And because it became easier, more and more people took their franchise and the business kept on growing. But, did you know that in 2019, Dunkin Donuts rebranded itself and changed its name to Dunkin. And this move was described by Dunkin Donuts as a very good future strategy. But what's so special about this strategy?

The answer to this is consumer behavior. Look, in the last few years, people were becoming aware of their health. And especially in America. And America is the biggest market for Dunkin Donuts. And there, Dunkin Donuts was seen as an unhealthy breakfast option.

That's why Dunkin Donuts realized that the sooner they can detach themselves from the word donuts, the sooner their business will come to the line. And moving in this direction, in 2019, they decided to change their name from Dunkin Donuts to Dunkin. Because in the minds of customers, Dunkin Donuts is a donut-selling company. But the truth is, if we talk about sales, then in 2018, 60% of Dunkin' Donuts sales were only beverages. So, the re-branding step was very important.

And Dunkin' didn't just re-brand, but also launched many different types of drinks like Espresso, Latte, Cappuccino, Americano and started expanding the drinks menu and this is the reason why Duncan became 1 of the top coffee chains in terms of sales. Let me show you a data. In 2019, Dunkin sold 1.6 billion hot and iced coffee cups. And this number increased in 2021 to 4.4 billion cups. And in the same way, the company which was known to sell donuts at 1 time, has now become 1 of the biggest coffee chains in the world.

And this brings us to the most important part of this video, which powerful business lessons

Speaker 1: can we learn from

Speaker 0: this case study and implement in our business. So the first lesson is, Partners' problem is your problem. When Bill Rosenberg started expanding his business through the franchisee model, the biggest challenge for him was to win the trust of all the franchisee owners. Because there were so many scams that people were not trusting the franchisee model. So what Bill did first?

To stop these scams, he joined together the franchisee operators and formed a particular organization which is known as International Franchisee Association.

Speaker 1: And today if you see, there are more than

Speaker 0: 1400 brands like KFC, McDonald's, Pizza Hut, Starbucks, which are members of the IFA. Now, they won the trust of the franchisee owners, but the most important thing was the business model. So, they changed their operating model in such a way that even after investing less money, a franchisee could open their franchise store. And finally, when the consumer behavior was changing in the market, they rebranded themselves and gave a new direction to the company so that the franchisee owners and the brand could benefit from it. And this brings us to the second lesson, which is Demand Adoption.

Dunkin Donuts

Speaker 1: started selling donuts 70 years ago and today they have created such

Speaker 0: a big business but as soon as they understood that this donut game will not last long they left donuts and started giving coffee as their priority and today, coffee is the most profitable product of Dunkin So, seeing the changing trend in your business and changing yourself accordingly can change the whole game of a business For example, Many years ago, a person started selling sweets but after some time, he entered the automobile business And when he saw that the trend was changing He entered the education business And today, that same education business Earns him more than 1100 crores a year Just think about it A person who started with a sweet shop Today, his earnings have exceeded 1100 crores But how did all this happen? And what all things did he do that made him such a big businessman today? And if you want to learn all things then watch this Ride video.

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How Dunkin Donuts is Secretly Destroying Starbucks ?