Dunkin’ into Success

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I’m not an frequent coffee drinker, but I do find myself going to Dunkin’ Donuts for the occasional hot drink. What I do find particularly interesting about the franchise, is that almost every time I go, there seems to be little to no line. So what is it that keep’s its operations running smoothly and efficiently? Dunkin’ Donuts takes a disciplined approach that is able to balance consumer demand with operational execution. Its strategy of offering limited time offer deals has been among the best to work in the restaurant industry. Their strategy allows them to offer a differentiated menu to its wide array of customers. Through this method, Dunkin’ Donuts is able to introduce new products bringing in new customers. Setting themselves apart from its competitors is a key factor that has helped keep Dunkin’ Donuts a thriving business. Limited time offers allows Dunkin’ Donuts to explore new options, to get a feel for what customers want. Many times they find that customers really like a particular item, and they end up integrating it into their core menu.

Dunkin’ Donuts’ success comes from a vast and diverse pipeline that allows them to offer similar but different products engaging its customers to try new things, leading to increased sales. Customization is Dunkin’ Donuts’ core competency, not only does product quality matter, but its service as well.

Dunkin’ Donuts has a very low capital requirement relative to the rest of the coffee retail industry. This is due in part to its business model, centered around establishing franchises across the world. So what are some ways in which it keeps driving profits? One factor to consider is the flow of customers, something very important to managers at Dunkin’ Donuts. Being able to stay on top of demand, especially during peak hours, is an essential factor for their success. Dunkin’ Donuts usually offers little to no in-house dining space. Allowing them to reduce expense and continue to increase their contribution. They focus on giving the customer the convenience of getting an on the run breakfast and or coffee.

What is your opinion about Dunkin’ Donuts?

Do you believe their success is due to their diverse menu or more closely related to coffee demand?

Do you think that by offering quick service, Dunkin’ Donuts is neglecting product value?

Any good or bad experiences?

http://marketrealist.com/2014/02/dunkin-brands-unique-player-maturing-industry/

http://www.qsrweb.com/articles/how-dunkin-donuts-keeps-operations-simple-with-fast-lto-pace/

26 thoughts on “Dunkin’ into Success

  1. Interesting post, my opinion on Dunkin’ Donuts is that it is a great combination of convenience, inexpensive prices, and satisfying taste. I believe the quick service works to its advantage. I take the CTA red line to class everyday, and there is conveniently a Dunkin’ Donuts at the stop I get on and stop I get off. I get the dollar hash browns everyday and am very satisfied with the service. My on the run breakfast every morning for only $1 is a quick and tasty stop that only adds an extra couple minutes to my morning routine. Not a bad deal!

  2. I like the post and agree with you. Dunkin is very efficient with its process and service mainly due to the fact that it has lower inventory cost and their stuff is easy to make. I don’t think they are neglecting product value because their products are made by keeping the process and as well as customers in mind. They know dunkin has long lines at peek hours so they try to make the process efficient by having everything ready and to go. The employee just has to put everything in the right place and has to know what ingredients are used in different recipes.

  3. I, personally, like Dunkin’ Donuts! I agree with the above posts about its high efficiency, low cost, and satisfying taste. I think it accomplishes what customers would expect from it. I believe Dunkin’s success is more closely related to coffee demand, as I wouldn’t say people usually specifically go there for food. I do, however, think their diverse menu is a great addition and when people stop in for coffee, many pick up food along with their drink-a great marketing tool on the part of Dunkin’ Donuts! People typically know what they’re getting at Dunkin’ Donuts and I’ve never had any issues with product quality. I know many people who like their coffee better than any other competitor’s coffee.

  4. I believe that Dunkin Donuts is successful more because of how convenient its service is. As you mentioned, they focus more on their production instead of having a dine in store. When I get coffee in the mornings, I debate on going to Starbucks or Dunkin Donuts. In my mind I know that Starbucks takes longer to provide service, which is why I usually pick Dunkin Donuts. I don’t think that their success is due to the diverse menu, and I think they should just stick with the fast-paced service they offer. Their quality isn’t the best, but it is good enough to satisfy the consumers. Great post!

  5. I think that Dunkin Donuts serves great coffee, especially iced. I think that their success originated with their coffee, but later spread to their menu because people going to work look for quick and easy access to energy, and food and coffee offer just that. I do not think that Dunkin Donuts’s business model results in a loss of value by offering quick service, primarily because I think that they are able to maintain customer loyalty because there are hardly any lines, as opposed to Starbucks.

  6. I think that people like convenience and that one stop shop aspect of Dunkin Donuts. Coffee is a huge part of many people’s days and the fact that Dunkin Donuts has a wide range of foods, makes it even more appealing to the consumer. Although Starbucks offers similar services and has a wide range of products to choose from, Dunkin Donuts has a distinct price advantage which makes it appealing to many college people.

  7. Great post that caught my attention. I believe Dunkin Donuts is great and keeps customers satisfied. What i like about Dunkin Donuts is “Happy Hour 3-6pm” where you get a great deal on coffee, making it attract more customers. I believe Dunkin Donuts success comes from great prices on its product, low cost products and of course it satisfies your taste buds.

  8. Interesting post. I personally am not a coffee drinker but know a lot of people that prefer Dunkin over other coffee shops. I think their success has to do with the coffee demand more than anything, but having a diverse menu also helps when trying to bring in customers. As for their quick service I think it only helps them and it isn’t hurting their product value in any way. Talking with coffee drinkers I haven’t heard any complaints about Dunkin lately and it seems as if they have changed their image as of late.

  9. Interesting post, being a Starbucks fanatic I rarely find myself at Dunkin Donuts but when I do it seems that they always have something new to offer. One week they’ll be offering ice cream flavored coffee while next week they’ll be promoting the latest breakfast sandwich, I think Dunkin’s success is due to their diverse menu, they always have something new to offer. Every time I walk into a Dunkin Donuts I feel rushed, they provide very fast paced service, which is great in a fast paced environment. Some of their success can definitely be pinpointed to their speedy service.

  10. Likewise, I am also not a big coffee drinker. I have also noticed the fact the there is rarely a line. I believe that it might be the fact the they offer customers little to no sitting area. I believe that that makes them work faster and they don’t have to worry about customers that are dining in.

  11. HI.Leonel. Personally, i think the menu of DD include all kind of food. . I donot feel the success of DD is because of its menu. i will say it is because of its location. It located everywhere. No matter when you want to buy it, there must be a DD near you. I dont think quick service will cause a bad quality. If the staff cannot take care all the customers, they should hire more staffs.They can not only provide better quality, but also better service. However, i think the most important is the price and taste. DD have to more marketing research on their customers.

  12. I, too am a fan of Dunkin Donuts. It is agreeable that the company holds smooth operations, as well as great marketing strategies. A few marketing tactics that especially come to mind for DD’s success involve the 3-9 pm promotional sales and DD perks app. The sale for 99 cent large iced coffees or teas during the hours of 3-9pm was a successful blowout in the past months. I know many of my friends and fellow students who would rush to any Dunkin location just to receive the special deal. Recently, a similar discount for 99 cent lattes was advertised during the same time frame–especially for the cold winter ahead. In addition, Dunkin Donuts holds a free rewards app that allows not only payment by phone, but special coupons and value points leading up to more secret deals. Strategies like these have definitely contributed to the success of the company. The convenience in location (near or within CTA stations) have presented effective convenience for quick sales. For these reasons, and the quality yet fast food does little to disappoint customers.

  13. Nice post! Personally, I find that Dunkin’s success does not come from a diverse menu. This has actually been McDonald’s problem. They have too complex a menu and it increases service time. I think what works for Dunkin is that it has mastered its process strategy and sticks with it.

  14. Its interesting because Dunkin Donuts really in unique. Other places sell coffee, others sell donuts, others sell breakfast, but DD sells it all. Their convenience really does make them stand out. There are so many locations and they all usually provide quick service. Rewards/loyalty programs really are nice at a place like this where someone might frequent.

  15. Dunkin Donuts does have a solid model laid out in front of them. They are very creative with their menu offerings and whenever I go there, I know I can be out as soon as possible. I think I know what type of quality I’m going for when I go to Dunkin Donuts. People need quick and fast breakfast options, and Dunkin Donuts fits the bill

  16. I really like Dunkin Donuts I usually go there over other coffee places such as Starbucks. I like Dunkin because I think they have a good selections of doughnuts, and I really like the hot chocolate. The people here are usually fast and you don’t have to wait around to get your items like you do at other coffee shops they have a good operations of good you in and out of the door in a timely manner.

  17. Great article! I, too, have noticed that Dunkin Donuts rarely has a long line, and when they do, it usually clears out in about 10-15mins. I think they can owe this to their operational efficiency and management excellence. I also like the idea that they are constantly introducing new products into their franchises and stores; it keeps the brand fresh and running. However, I wish that their coffee was of better quality like Starbucks. Overall, great article.

  18. Interesting post about Dunkin’ Donuts. Being a fast food, breakfast based store makes the ability to base their menu on the ingredients their customers base enjoys an easier task then in other fields of fast food service. I also did not realize until your post that Dunkin’ Donuts usually don’t offer a large dining space. In New York, Tim Horton’s is a big competitor to Dunkin’ Donuts; they have bigger stores that almost always have a large dining ability. I think the dining option does entice people to come in for breakfast, not just for on the go food.

  19. I go to dunkin donuts for their donuts and not their coffee, although sometimes i would buy their coffee when going for a doughnut. I believe their success is their diverse menu and donuts not their coffee. Not necessarily sometimes their are products that dont really require to have great value, for example coffee and donuts can be done with the same quality if the exact procedure is followed every time. Mostly good experiences with Dunkin Donuts, i feel that their donuts are fresh and their coffee is not to bad.

  20. The world of Dunkin is my dreamland not for the donuts but for the coffee they have the best coffee in world to my taste buds. Ive been a loyal customer since the late 80’s it was a different company back then low budget limited but still the coffee was great. in the late 2000’s the company rose back up under new management changed their business model to compete with gourmet breakfast makers, like Einstein bagels, Tim Horton’s, and Panera bread I must say they have survived and prospered and most important my coffee still taste great every morning.

  21. My opinion of Dunkin’ Donuts is that it is a thriving enterprise in a highly competitive field, which is the food industry. Based on the report, it is apparent that Dunkin’ Donut is an example of a successful business that thrives through improving customer relations and offering quality products. The company has substantially invested in satisfying its clients, which is an essential thing in business. The company prioritizes the needs of the customers, which significantly contributes towards attracting and maintaining consumer loyalty. In addition, the organization has effective strategies that make it highly efficient and cost effective.
    Both aspects contribute towards the success of the business. The diverse menu increases the demand for coffee, which increases their number of sales. The company provides a wide range of coffee products, which attracts more people, thus increasing demand. Therefore, both factors result in the success of the business.
    Quick services do not necessarily lead to the neglect of product value. The purpose of prompt services is to minimize the rate of long queues, which in most cases results in the loss of clients to competitors. In addition, from the information provided it is clear that the organization still produces quality products. Quick services allow the business to implement new ideas.
    There are no bad experiences at Dunkin’ Donut. They are quick, offer quality products and services.

  22. I believe Dunkin’ Donuts is a benchmark for coffee shops worldwide that are targeting on-the-go-customers.
    Customers don’t like waiting in lines, always prefer customized products rather than standardized, and still looking for a satisfactory taste. These 3 needs are being met by Dunkin’ Donuts as it provides a quick service, pleasant variety of hot drinks and donuts. Dunkin’ Donuts are still able to sell its products at reasonable competitive prices because its strategy focuses on reducing fixed cost (tables and chairs) through targeting on-the-go customers rather than in-house dining.
    The nature of the products is not much affected by time I believe. By reducing the service minutes to customers, Dunkin’ Donuts are not lowering any of the quality or taste therefore, it’s a smart strategy to reduce servicing time since its not in a tradeoff with quality.
    Dunkin’ Donut key success is in its quality, which is the (fitness of its products to customers needs).

  23. I agree with the above post. Inexpensive prices, satisfying taste, customized products and quick service has made Dunkin’ Donut (“DD”) one of the most successful stores in the coffee retail industry. DD products are easy to make henceforth; I don’t think they are neglecting product value when offering quick service. I believe that offering limited dine-in service allowed DD to reduce its cost and focuses more on providing fast drive-thru service to its customers even during peak hours. It may not offer the best quality of coffee, but its speedy service is their key success that enabled them to maintain customers’ loyalty till today.

  24. Great post! Dunkin Donuts are known for their high standards of efficiency in product making with good food, low cost and convenient services. Personally having good food and coffee is more satisfying than having to sit in a good place with bad food/coffee, which is exactly what is mentioned in the post, Dunkin Donuts focus on their products efficiency instead of their dine in coffee shop. Having to get coffee before work or school, makes me personally go for dunkin donuts as it is an on the go service, even though their coffee might not be the best. However other coffee shops can take more time to provide the service to the customers. Moreover, their differentiated menu is also a good idea as it adds new categories of products for the customers’ convenience.

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