Sunday, July 13, 2008

Blog post #6 QUESTION

Dunkin's Donuts-living in the Seattle area it's probably considered bizarre for me to make note of this: there are no Dunkin' Donuts out here. Not a single one in the whole state of Washington.You may laugh and say "Who cares?". Seattle is up to its eyeballs in coffeehouses. Fine but I still miss Dunkin' Donuts. No, it's not for the doughnuts. It's the coffee. Dunkin' Donuts is good for a quick, unfussy cup of decent coffee. And then there's the difference in price and speed. Starbucks is expensive and slow. You're expected to linger while you sip your Quad Soy Vente Latte. Dunkin' Donuts may sell some weird coffee drinks too but most people order basic coffee.Is the lack of Dunkin Donuts a result of the Starbucks Divide? (ie. liberals go to Starbucks while conservatives get their coffee at Dunkin' Donuts). Nope, Washington State may have been blue for the 2004 election but so was Massachusetts. And Dunkin' Donuts was originally founded in Massachusetts.Perhaps the explanation is that the Dunkin' Donuts chain just doesn't stretch this far West. But then again, according to their web site, they have stores in 29 countries including the Philippines, Indonesia, South Korea
Dunkin' Donuts plans to open its first shop in Shanghai this Spring. It plans to put up over 100 stores in mainland China over the next 10 years.
The Massachusetts-based seller of coffee and baked goods started to invade the Chinese market back in January 2007 by putting up its first shop in Taiwan. It currently operates 10 shops in Taipei supervised by franchise partner Mercuries & Associates. Aside from its mainland expansion, the company also plans to put up 10 additional shops in Taiwan.
Dunkin' Donuts granted Taiwan-based Mercuries & Associates franchise rights in Shanghai, as well as in the provinces of Jiangsu and Zhijiang. The mainland shops will offer Dunkin's signature products including its coffee, espresso, donuts, and other baked goods. The shops will also serve items—which would suit local taste—such as green tea, honeydew melon donuts, and mochi rings made of indigenous rice flour.
A subsidiary of Dunkin' Brands Inc., Dunkin' Donuts is expanding globally and currently has 7,900 shops in 31 countries.
History
In 1946, William Rosenberg founded Industrial Luncheon Services as a company to deliver meals and "coffee break snacks" to customers in the outer reaches of Providence, Rhode Island. His business saw success and Rosenberg soon followed by opening up his first coffee and donut shop called "The Open Kettle". In 1950 he opened the first store known as "Dunkin' Donuts", which is still standing today at 543 Southern Artery in Quincy, Massachusetts[1]. By 1954, Rosenberg had opened a total of five Dunkin ' Donuts shops, with Natick, Somerville, Saugus, and Shrewsbury added to the list. The first franchised Dunkin' Donuts shop in America opened in the Webster Square area of Worcester, Massachusetts in 1955.[2] To save on rent, Howdy Beefburger (a chain of fast food restaurants similar to McDonald's restaurants) frequently shared parking lots with Dunkin' Donuts shops. Howdy Beefburger could not compete, and had disappeared by 1980.
For a while, Dunkin' Donuts and its other quick-service brands - Togo's and Baskin-Robbins - were owned and operated by Allied Domecq. Allied Domecq has since been bought out by Pernod Ricard for its Spirits and Wine division, breaking off the quick service brand to create Dunkin' Brands, the current owner of Dunkin' Donuts. Currently, there are 5,541 Dunkin' Donuts franchises in the United States, 79 in Canada, and 1,846 throughout the rest of the world.
Dunkin' Donuts has come under fire from some of its franchisees for allegedly strong-arming them out of a business at large financial losses. Dunkin' Donuts has sued franchise owners 154 times since 2006. Over the same stretch of time, McDonald's was involved in five lawsuits. Subway, a company that has four times the number of locations as Dunkin' Donuts, sued its franchises 12 times. Franchisees allege that the company's larger business strategy requires multi-unit franchisees who have ample capital and can open numerous stores rapidly to compete with Starbucks. [

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