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Dunkin' Donuts<br />

Headquarters<br />

130 Royall St., Canton, Massachusetts 02021 USA<br />

Tel: (781)737-3000 Fax: (781)737-4000<br />

www.dunkindonuts.com<br />

Ownership: Private<br />

Segment: Limited Service Donut<br />

System Characteristics 2006 2005 2004<br />

U.S. Systemwide Sales ($000) 4,650,000 3,854,000 3,387,957<br />

Company-owned ($000) - - -<br />

Franchised ($000) 4,650,000 3,854,000 3,387,957<br />

U.S. Number of Units 5,368 4,815 4,522<br />

Company-owned - - -<br />

Franchised 5,368 4,815 4,522<br />

International Sales ($000) 350,000 289,000 249,277<br />

International Units 1,925 1,775 1,700<br />

Average Sales/Unit ($000) 915 911 841<br />

Concept Positioning |<br />

Dunkin’ Donuts is a chain of limited-service specialty restaurants featuring fresh doughnuts, bagels and other baked goods,<br />

including muffins, coffee rolls and croissants. Dunkin' Donuts has also built a large following behind its line of hot and cold<br />

beverages, namely its various flavored coffee drinks. Dunkin’ Brands Inc. is the parent company of Dunkin’ Donuts. Dunkin’<br />

Brands Inc. franchises the majority of its units.<br />

Units are generally open 24 hours day, with about 70% of its sales during the breakfast period. A typical full-producing unit is<br />

about 1,720 sq. ft. Most shops have remote seating, instead of counters, with select units offering a drive-thru window. The<br />

chain also offers satellite shops such as carts and kiosks to small stand-alone shops, with product supplied by a nearby unit<br />

for areas with high traffic and limited space. The company debuted a new prototype in recent years. The latest changes to the<br />

exterior and interior design elements include two drive-thru windows, updated signage, a bakery display and an espresso<br />

station. Additional changes include round granite tabletops, sleek chairs, in-house music and a coffee customizing station. In<br />

an attempt to become a more upscale concept, Dunkin' Donuts plans to introduce these changes systemwide. Dunkin’ also<br />

sells self-service branded products in convenience stores, gas stations and other foodservice outlets is continuing, with many<br />

units operating their own branded product routes. The chain offers its signature coffee online and orders are shipped within 48<br />

hours.<br />

In 1948, William Rosenberg opened a coffee and donut shop called “Open Kettle” in Quincy, MA. When a competitor opened a<br />

donut shop nearby in 1950, Rosenberg modernized his shop design and named it Dunkin' Donuts. In 1955, the company<br />

began franchising operations. In 1989, acquisition by Allied Domecq was completed. In 2000, the company opened its 5,000th<br />

unit. Its Mister Donut brand has been converted to the Dunkin' Donuts name. In 2004, Allied Domecq Quick Service<br />

Restaurants changed its name to Dunkin' Brands Inc. in an effort to reflect its flagship brand. In 2005, Allied Domecq was<br />

acquired by Pernod Ricard and Fortune Brands. In 2005, Pernod Ricard sold Dunkin' Brands for $2.43 billion to a group of<br />

private-equity firms, including Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners. The company is hoping<br />

to expand beyond the Northeast by focusing expansion efforts in Florida, North Carolina and Tennessee as well as Chicago,<br />

Dallas and Phoenix. Dunkin’ Donuts is also looking to expand into several international markets, with plans to open its first unit<br />

in Thailand and eventually mainland China by the end of 2007. The company wants to triple its stores systemwide to 15,000<br />

by 2015.<br />

©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />

Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />

published.<br />

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