Brand Refresh: Franchise Lessons from Dunkin’ Brands

Bloomberg’s newest television show, C-Suite with Jeffrey Hayzlett, got in the trenches of the war-room at Dunkin’ Brands as they launch a new franchise refresh. Dunkin’s leadership exposes how they made the decision to expand their product lines beyond their 60% market share in doughnuts and appeal to larger target demographic including travelers and millennials.

I traveled to their headquarters in Boston to learn the 5 components that are successfully maneuvering the $9 billion dollar company through change and brand identity in the midst of a brand refresh:

1. You can only move as fast as your slowest common denominator. They’ve realized they’re in the business of growing their franchises, not just selling them. This allows them to put more emphasis and focus on what they can do better for their franchisees, whether it’s in supply chain, marketing, creating new products, recycling, or raising brand value.
2. Complacency is a cancer in the c-suite. Stay relevant. Dunkin’ realized quickly customers wants and needs evolve over time. Now, they’re going after the mobile businessperson and the telecommuter. They’re redoing the stores, giving them a better look with softer seating and USB ports. This will move them from a morning coffee business to an all day business.
3. Know who you are. When you think of Dunkin’ Donuts, you probably think of donuts. But 60% of their volume comes from coffee! They’ve recognized that, and are giving their stores a coffee house feel while at the same time diversifying their menu to attract an even larger audience.
4. Know who your competition is, but don’t focus on them. Sometimes businesses lose focus, shifting it away from their customers and on to how to beat their competition. Dunkin’ doesn’t do that. They don’t look at their competition as “competition” – they recognize them and what they’re doing – but they focus on what they do and what their customers want. When a business does this, they’re value goes up and they’re not distracted by what their competitor does or doesn’t do.
5. Don’t be afraid to try where you’ve failed before. Dunkin’ is a perfect example of this. They’re expanding into California after two failed attempts with the goal of opening 1,000 new stores by 2015. They realize there are inherent risks, but the rewards outweigh those risks multiple times over.

Learn more about Dunkin’s story by watching the full episode or by visiting their website.

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Jeffrey Hayzlett is a global business celebrity and speaker, bestselling author, Contributing Editor and Host of C-Suite with Jeffrey Hayzlett on Bloomberg Television. He is the CEO of The Hayzlett Group, an international strategic business consulting company focused on leading change and developing high growth companies. Connect with Hayzlett on Twitter, Facebook, LinkedIn or email.