Dunkin Donuts Store

Dunkin', formerly known as Dunkin' Donuts, is the leading coffee and baked products chain in the world. Every day, over three million customers take orders from Dunkin'.

Besides the more than fifty donut varieties on offer, the company also serves premium beverages, baked goods, breakfast sandwiches, and bagels.

Depending on location and other market dynamics, a Dunkin' franchise should make between $620,000 to $1.3 million every year.

Dunkin franchises featuring a drive-thru window can expect extra sales of anywhere from $200,000 to $300,000 a year. 

Starting a Dunkin' franchise is, therefore, a lucrative venture. This is because they are a leader in the coffee and doughnut market.

Dunkin’ Donuts' History

William Rosenberg started Dunkin’ Donuts in Quincy, Massachusetts, in 1948, as a coffee and donut restaurant known as “Open Kettle.”

In 1950, Rosenberg renamed the restaurant "Dunkin' Donuts" after a brainstorming meeting with his team.

The initial cost of a  premium cup of coffee was ten cents, while a single donut went for five cents.

Rosenberg's vision was to “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.” This philosophy has held to the present day.

The premier Dunkin' Donuts franchise was launched in 1955. From this first franchise, in just ten years, Dunkin' Donuts grew to more than ten franchises.

On reaching its 100th franchise milestone, in 1972, the chain introduced the iconic Munchkins® donut hole treat.

Since then, Dunkin' Donuts has widened its menu to embrace a plethora of beverages and food offerings to cater to the demands of its expanding customer base.

In 2016, the chain introduced On-the-Go Ordering to allow members of DD Perks to order via phone within 24 hours and choose the desired pick-up location, either at a drive-thru or inside a Dunkin’ Donuts outlet.

Since 1950, the chain has grown to 12,900 franchises in 45 nations, 9408  of those in the U.S. With plans to double outlets in the U.S, Dunkin' is set to expand into more than 17,000 locations worldwide.

Dunkin' Coffee Flavors

Dunkin' Coffee Flavors

Besides the classic roasts that have made Dunkin' insanely successful, the chain offers a range of flavors to make sure your coffee is not just a hot or chilled beverage.

The flavors introduce fun into every Dunkin' cup of coffee. You can choose from the bagged varieties, the flavored K-Cup® Pods, or both. Here are some of the coffee flavors you will find at Dunkin':

  • French Vanilla Ground Coffee

  • Hazelnut Ground Coffee

  • Hazelnut K‑Cup® Pods

  • Turtle Love® Ground Coffee

  • French Vanilla K‑Cup® Pods

  • Turtle Love® K‑Cup® Pods

  • Chocoholic Pancake® Ground Coffee

  • Dunkin' Cinnamania® Ground Coffee

  • Caramel Me Crazy Ground Coffee

  • Caramel Me Crazy K‑Cup® Pods

  • Cinnamania® Coffee K-Cup® Pods

  • Chocolate Covered Strawberry Ground

  • Blueberry Muffin K-Cup® Pods

  • Chocolate Covered Strawberry K-Cup® Pods

  • CoffeeBlueberry Muffin Ground Coffee

  • Pumpkin Spice Ground Coffee

  • Pumpkin Spice K‑Cup® Pods

  • Polar Peppermint™ Coffee K‑Cup® Pods

  • Cinnamin' Nutmeg Ground Coffee

  • Cinnamin' Nutmeg Spice K-Cup® Pods

  • Holiday Cheers Dark Roast Coffee K‑Cup® Pods

  • Holiday Cheers Dark Roast Coffee

  • Polar Peppermint™ Ground Coffee

Why Consider Opening a Dunkin' Franchise?

Opening a Dunkin Franchise

The quick answer to this question is that Dunkin' franchises are highly lucrative. Opening a franchise with them is more than just launching a new business. You are teaming up with a brand that has witnessed consistent exposure and growth since the 1950s.

Among the most successful Dunkin' franchisees is Robert Branca. Together with his wife, they run about 700 Dunkin' stores in the U.S. If for no other reason, you can open a Dunkin' franchise on the basis that it's a sure bet. But if you need more reasons, here are a few:

1. A Large Client Base

In an article titled "New England’s love for Dunkin’ Donuts …”, which was published by The Seattle Times on March 13, 2018, and updated on March 14, 2018,  customers appeared to lean more on Dunkin' than on Starbucks. Not far from where the franchise's headquarters is, 47 percent of grown-ups confessed to having visited Dunkin' within the last month. In Manchester, NH, the number of Dunkin' diehards is even higher with over 50% of the population enjoying the company's products.

Besides, Dunkin' serves about three million clients in the world every day. Add these numbers to the over eight million who have downloaded their DD perks mobile app program and you have a compelling reason to start a Dunkin' franchise.

2. The Dunkin' Brand Speaks for Itself

Located in almost 13,000 locations, 9408 of these in the U.S, Dunkin' brands have almost 100% brand recognition, 98% to be exact. The fact that the company continuously invests in its brand awareness by partnering with other leading brands such as Coca-Cola, Saucony, and JetBlue is another reason you should consider opening a Dunkin' outlet.

3. Franchise Support

For a franchise to be successful, you need a team of hard-nosed, experienced professionals to guide you in the new venture, especially if this is your first franchise with the company. Fortunately, Dunkin' has such a team. They include field marketing managers, operations, and real estate managers. They will advise on everything, from marketing and management, to site selection and training. The company also has an advisory council that will provide you with feedback so you can see what is working, and what is not. 

4. Dunkin' Is Committed to Healthy Eating Too 

While Dunkin' is known for its donuts, the chain understands that people are becoming increasingly health-conscious. Their menu caters to this demographic with sugar-free flavored coffee, muffins with minimal fat, and egg white flatbread sandwiches. 

These are compelling reasons you should open a Dunkin' franchise. But who needs a reason to start a coffee shop?

The Cost of Opening a Dunkin' Franchise

Drinking Smoothie at Dunkin

In terms of the initial investment required to start a Dunkin' franchise, you will need between $97,500 and $1,717,103.

This is pretty reasonable if one factors in what other brands such as Krispy Kreme, their main competitor, charge.

For instance, to open a franchise with Krispy Kreme, you will need between $440,500 and $4,115,000. 

Here's a breakdown of the costs involved when opening a Dunkin' franchise:

  • Royalty: 5.9%

  • Franchise Fee: $40K to $90K

  • Net worth: Not less than $500K

  • Liquid Assets (available cash): Not less than $250K

  • Initial Investment: $975,000 to $1,700,000

Requisite Skills for a Successful Dunkin’ Franchisee

A Dunkin' franchise is not for everyone, just the same way not everyone is built to run a business. Of course, one can learn the requisite traits needed to operate a thriving Dunkin' franchise. Among the skills and traits you will need include:

  • Agree to work within the limitations and restrictions of the company. For instance, you will only be required to purchase products and supplies from manufacturers and suppliers approved by the company.

  • Possess great interpersonal skills. Your ability to interact and get along well with employees and customers will set the tone for your Dunkin' shop.

  • Be patient. Soon, you will realize that running a franchise takes patience. Like Kimberly Lombardi notes, running a franchise is like "raising a child. Be prepared to love, nurture, and go through the growing pains, from birth to maturity.” 

  • Be a good listener. No one likes to be ignored or assumed. Listen to what your employees and customers are saying, and not saying. Also, give and follow instructions, and believe the product has tangible value to your customers. 

  • Be prepared to work. The company FDD requires one to “Expect to work a full shift at the restaurant every day”, especially during the franchise's first year of operation.

Dunkin Brands Market Capitalization

According to recent figures, the market cap for Dunkin Brands is $8.77 Billion.

In terms of the most valuable companies in the world, this puts Dunkin Brands in the 1552nd position.

In total, Dunkin Brands (DNKN) has a revenue of $1.25 B going by current estimates.

The brand's best year so far was 2019, when it brought in total revenues of $1.31 B compared to the previous year's $1.27 B.

As for the earnings, the franchise brought in $0.42 B according to current figures, which is much less than what the company earned in 2019 ($0.44 B). These earnings are calculated by FBIT (before interest and taxes).

7 Things You May Not Know About Dunkin’

Eating at Dunkin Donuts

Although Dunkin’ is a highly popular global brand, there are several facts you may not know about them. Here are five:

1. With over 25,000 different ways you can order coffee at Dunkin', it will take you 70 years to order a different cup of coffee every day! 

2. The name Dunkin' was inspired by the idea of dunking a donut inside a cup of coffee, which came after the first executives went into a brainstorming session with Rosenberg, the founder.

3. Over two billion cups of Dunkin' coffee are sold every year to more than three million customers.

4. The control of Dunkin's coffee quality is the responsibility of coffee experts. A pound of Dunkin' coffee requires an average of 2,000 coffee beans. Dunkin’ coffee experts taste about 200 cups of coffee every day to make sure the quality is consistent on a daily basis.

5. Australians Call It Dunkin’ Coffee

We are not sure why the Aussies want to be different, but no worries, they still dunk donuts inside their coffee.

6. The Munchkins® Donut Hole Treat started selling in 1973. Today, about one billion of these munchkins are sold annually.

7. The company celebrated the 2011 and 2018 royal nuptials with a limited edition of Royal Wedding Donuts.

From Dunkin Donuts to Just "Dunkin"

After the roaring success of the Dunkin’ Donuts brand, in 2019 the company rebranded into simply, Donuts'. This change, however, did not change its Dunkin’ Brands.

The rebranding came after several months of testing and research. The company finally decided to drop 'donuts' from its logo. However, Dunkin' Brands, which owns Baskin Robbins, stayed.

The change to Dunkin' came after tests running from 2006 indicated that customers were more at home with the short form, Dunkin.

While the company decided to drop "Donuts" from its logo, perhaps informed by the fact that its beverages account for 60% of its productivity, donuts will still remain on its menu. Three billion munchkins and donuts sold per year are a great reason not to ditch the mighty donuts.

Conclusion

Opening a Dunkin’ franchise is a lucrative proposition. Once you get over the hurdle of the initial investment, you will be teaming up with a brand that has been tried and tested since the early 1950s. You will also be teaming up with a brand that’s backed by a team of professionals who will work with you to make sure your outlet is successful. Besides, the newly rebranded "Dunkin" has become highly popular with customers across the world.