History of Dunkin’ Donuts
History of Dunkin’ Donuts … A Most Successful Business
In 1946, William (Bill) Rosenberg started a company he called Industrial Luncheon Services, whose operation involved delivering meals and snacks to workers in and around the Boston area. After two years of success, he opened a place called the Open Kettle, a coffee and doughnut restaurant in Quincy, Massachusetts. In 1950, Rosenberg changed the name of his place to Dunkin’ Donuts, and the rest is, well, history. It took him only four years to open four additional locations in the greater Boston area, and the growing popularity of franchising convinced him that this was a terrific way to expand further and faster. His philosophy was a simple one: “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.” Thanks to his efforts, Dunkin’ Donuts has become the world’s largest chain serving coffee and assorted baked goods – the menu has expanded from donuts alone to include bagels, muffins, and assorted breakfast sandwiches.
Franchising Is In The Blood
Rosenberg grew so enamored of the franchising concept that he founded the International Franchise Association (IFA) in 1960. Although it has relatively little to do with the Dunkin’ Donuts operation, the IFA has proven to be a great benefit for franchisees and their parent companies. Today, the organization boasts more than 30,000 franchise members and 800 franchising companies. His franchise philosophy helped the company expand greatly over the ensuing decades, and today Dunkin’ Donuts has more than 6,700 locations in 29 countries – from Aruba to the UAE, and plenty of points in between. They claim to serve more than 2.7 million customers a day! Rosenberg died in 2002 at the age of 86.
Massive Quantities and Famous Ads
Although donuts continue to be at the top of everyone’s mind when they think of Dunkin’ Donuts, the company has made quite a name for itself in the coffee business as well. As America’s largest retailer of coffee sold by the cup, they serve close to a billion cups of brewed coffee annually. That works out to around 30 cups per second! There is a pioneering spirit at Dunkin’ Donuts regarding the creation of new donut-type products. The company came up with Munchkins in 1972, which are tiny, ball shaped “donut holes” dipped in various coatings or filled with jelly or crème. More than 700 million Munchkins are sold every year. An important part of Dunkin’ Donuts history is their wildly successful television commercials. Perhaps the most famous one – long since retired but still memorable – was the “It’s Worth the Trip” campaign that featured Fred the Baker (actor Michael Vale) and his sleepy-eyed catchphrase, “Time to make the donuts.” The commercial ran for an unprecedented 15 years until Vale retired in 1997. Because the corporate headquarters are in eastern Massachusetts, Dunkin’ Donuts enjoys a close relationship with professional sports teams in the area. For example, the former Providence Civic Center in Rhode Island’s capital city – home to the American Hockey League’s Providence Bruins as well as a local college basketball team – is now the Dunkin’ Donuts Center. Television commercials featuring players from the Boston Red Sox and New England Patriots have also aired regularly.
Corporate Ownership
Along with Togo’s (a sandwich shop chain) and Baskin Robbins (ice cream stores), Dunkin’s Donuts is today part of Dunkin’ Brands Inc. One of the more popular franchising concepts developed over the past dozen years involves combining all three food operations under one roof. Pernod Ricard S.A., a French beverage conglomerate, formerly owned the existing corporation, but three U.S. private equity companies created the current structure in a consortium-type deal in 2006. These firms were Bain Capital Partners, the Carlyle Group, and Thomas H. Lee Partners.
Quirky Concepts
In an attempt to become “all things donut to all people,” Dunkin’ Donuts opened its first all-kosher establishment on Staten Island [New York] in 2007. The all-vegetarian store is under direct rabbinical supervision, with all the standard pork-based items that make up the chain’s famous breakfast sandwiches eliminated from the menu. The area’s kosher devotees have Leo Tallo to thank for this innovation. A developer who owns more than 40 Dunkin’ Donuts franchise locations, he recognized that Staten Island’s growing population of Russian Jewish immigrants would appreciate something different to eat.
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