Word: dunkin
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Dates: during 2000-2009
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...look and a bulked up $125 million national ad campaign ("America runs on Dunkin'") are part of a carefully orchestrated plan to spiff up the brand with an eye toward taking the company public. A year from now, "we'll sit down and say, Is the company at this point geared for a reasonable IPO?," says Carlyle Group co-founder Dan D'Aniello. Carlyle, together with Bain Capital and Thomas H. Lee Partners, bought Dunkin' Brands from the French beverage giant Pernod Ricard for $2.4 billion in March 2006. To make that investment pay off, Dunkin' will have to fend...
...Dunkin' Donuts, which is based in Canton, Mass., had comfortably enjoyed the second spot in the breakfast market for years. Customers relied on Dunkin' for a doughnut and a cup of joe; they went to McDonald's for anything more. That easy division worked for years. Dunkin' rang up more than $3 billion in U.S. breakfast sales last year, compared with the Golden Arches' $7 billion, according to research firm A.G. Edwards. But the heat is on. In January McDonald's, which is in the middle of its own revival, scored big when its coffee beat Dunkin...
Instead of trying to compete head on at lunch and dinner, Dunkin' is betting on snacks like smoothies and miniature pizzas. Drive-through customers account for 60% of its business, so Dunkin' is focusing on food you can eat with one hand on the steering wheel. Since people stop in for coffee all day long, the hope is that they will be more inclined to grab a quick snack too. The prototype store uses high-speed ovens that can heat sandwiches in less than a minute while giving the bread those toasted brown edges no microwave can imitate...
...find a dollar doughnut menu at Dunkin'. Rather than engage in a price war with the fast-food giants, Dunkin' is trying to close the gap between itself and Starbucks. Although it makes more money on breakfast sales overall than the Seattle-based chain, the average Dunkin' check is just $1.85, vs. $3.75 at Starbucks, notes food analyst Tom Miner of research firm Technomic. Dunkin' has positioned its breakfast sandwiches as quick quality, at the same price as Starbucks, $2.99. "I think they're in a good position against their competitors," says Miner. "Their biggest challenge is to focus...
...people to try out its new menu, the company first has to get them in the door. That's not a problem in places like Providence, R.I., where there is one outlet for every 6,000 people. But Dunkin' has had a rougher time west of the Mississippi River, where it has only about 60 of its 5,200 U.S. stores. Previous efforts to go cross country were haphazard, and those lonely outposts got blasted by stronger regional brands. This year, when Dunkin' rolls out in such new markets as Phoenix, Dallas and Las Vegas, it will blanket them with...