Innovation

Dunkin’ is known as the company that sells donuts. As of January 2019, the company has officially changed its name from Dunkin’ Donuts to just Dunkin’. As customers worldwide are confused by this name change, the company’s intentions are good. This business model was made to make everyone aware they do not only sell donuts, but also offer coffee and many other specialty breakfast items.

Dunkin’ made it even easier for people to be healthy by creating an app to order on the go. Living in a generation where everyone can do more things on their cellular devices, they are now encouraged to order healthy items on this app. Dunkin’ has also developed a PDF nutrition tab that provides the sources of calories such as carbohydrates, proteins, and vitamins, etc., so that customers are aware of what they are eating.

Along with the name change and the app, they have created a program called “DD Green.” They are in the process of implementing their buildings to be made in a way that will benefit not just customers but also the planet.

Dunkin' Goes Green

Inspiration

As customers worldwide are confused by the name change, the company’s intentions are good. This business model was made to make everyone aware they do not only sell donuts, but also offer coffee and many other specialty breakfast items. Dunkin’ received the redesigned cups, sandwich wraps, and bags that have only Dunkin’ written on them. This name change is linked to the UN Sustainable Development Goal of Good Health and Well-Being, as they offer more than just sugary donuts. They want to make the staple in their business coffee and the many different types that they offer, such as espresso, lattes, macchiatos, and even cold brew. Dunkin’s marketing team decided to make this change to keep up with the world’s need for coffee. They wanted to make their packaging more modernized with less wording and more color. The name change also implemented several healthy choices to their menu such as a “power sandwich” made with a veggie egg white omelet and turkey sausage and a “new energy cold brew” to help consumers with their energy levels while staying healthy. Our interviewee, Vishal Patel, stated, “I love the name change. It helps us to stay relevant to our customers and holds us to what we know best, which is coffee.”

Convenience and the ability to have healthy choices is a great way to keep a business running. America is a country where most of the time people are in a rush; with the app, there is no need to wait in line for orders. It is as easy as checking the menu on your phone and ordering the meal your body is craving or needs. You can satisfy your needs as well as getting to the places you need to be in time because you did not have to waste five to ten minutes in a line.

This company is aware that climate change is a global concern, and they want to identify and address their impact. They ultimate goal is to create an energy efficient and sustainable restaurant designed to save 25% more energy compared to their standard restaurants, and they plan to have 500 of these DD Green establishments open by 2020 (“DD Green”).

Overall impact

In 2013, “Dunkin' Donuts began moving away from a doughnut-based identity, declaring itself a 'beverage company,' when beverage sales reached 58 percent. According to the New York Times, that figure has gone up slightly to 60 percent” (Romo). Dunkin's name change definitely relates to a sense of purpose because they want people to know that they care about their health and want their stores to present a positive impression.

Americans are always in a rush, and the app helps them to plan accordingly with their lifestyle. Patel mentioned, “our customers really appreciate how the app is helping them in choosing the right food.” They are able to order their specific order down to how much ice they want in their drink. “Looking at the number of guests who have downloaded the mobile app as well as the number of members the DD Perks Rewards program has, you can see that both programs really resonate with customers simply because both provide guests with new levels of speed and convenience so that people can run on Dunkin’ more quickly than ever before” (Tode).

The ways they make these buildings green is by increasing the efficiency of heating and cooling equipment to help lower energy use and emissions, installing low-flow faucets that prevent and reduce water waste, using LED lights to save energy, and using sustainable materials and paint to help improve the quality of the air. They also intend to put these locations near public transportation so they can help reduce carbon emissions. Our interviewee stated that he hopes to have the chance to work in one of the new buildings because they are safer for the environment and they are more modern looking. The way they create these buildings is made up of five stages: site development, store efficiency, healthy indoors, sustainable operations, and innovation and community (“Dunkin’”). Each of these stages involves looking for the best ways to build these DD Green restaurants in the most sustainable ways.

Business benefit

They cut out 10% of the company’s food menu to help the shift toward promoting drinks. The Chief Marketing Officer has let the world know that Dunkin’ does not plan on taking donuts off of their menus (“Dunkin”). Although this innovation is new, it is likely that the coffee sales will increase by more than 20% (Malone).

Dunkin’s “on the go” app is going to have significant impact on the business style of Dunkin’ in the future as more customers will be updated on new, healthier menu choices.

The green initiative is already paying off, and not just for the environment. “My water and sewer bill are down about $200 to $300 per month,” said MacDonald. “My trash bill is actually cut in half. That’s about $400 a month in savings just for the trash. That’s huge.”

Social and environmental benefit

Apart from all the projects that Dunkin’ has established, Dunkin’ also has a collaboration with The Rainforest Alliance, which is an international nonprofit organization that works to conserve biodiversity and ensure sustainable livelihoods so that the planet and people prosper together. “Rainforest Alliance certification helps to protect wildlife; safeguard soils and waterways; and improve quality of life for workers, their families and local communities” (Cronin). Furthermore, Dunkin’ is a franchise that cares about the environment and the well-being of its customers. The Director of Markets Transformation for the Rainforest Alliance, Alex Morgan said, “We’re proud to be working with a company that shares our vision for a future where people and the planet can prosper together.... By prioritizing sustainably sourced coffee, Dunkin’ Donuts is renewing their commitment to being environmentally, socially, and economically responsible” (Cronin).

Interview

Vishal Patel, Store Owner