Dunkin' Donuts

How Dunkin’ Donuts Transformed From the 80’s to Now

Authors

Anatolia McRoberts

Anatolia McRoberts

Abanoub Michail

Abanoub Michail

George Olynyk

George Olynyk

Nkem Okorie

Nkem Okorie

School

Rutgers Business School

Rutgers Business School

Professor

Jeana Wirtenberg

Jeana Wirtenberg

Global Goals

12. Responsible Consumption and Production

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Summary

With changing times, companies are constantly being forced to adapt to the world they exist in; having to satisfy customers and meet the status quo. With constant change, companies are forced to break boundaries and go above and beyond to be the best in the business. Constant change as rapid as this leads to innovation. Based on our initial interview, our contact gave us a breakdown of how Dunkin’ Donuts has innovated itself as a brand and a culture.

Innovation

The innovation of Dunkin', being a part of the sustainable coffee challenge, means that Dunkin’ donates a percentage of sales to coffee sustainability research, striving to have the first sustainable agricultural product. Eliminating the use of foam cups and transitioning to paper has also been innovative. The company's values line up with UN Sustainable Development Goal 12, responsible consumption and production. The purpose of this innovation is to reduce the waste produced through styrofoam cups and to produce a better and cleaner product for their consumers.

The biggest transition Peter Matarazzo, owner of four Dunkin’ franchises described, was how Dunkin’ has worked towards making everything simpler and more practical, while trying to streamline its business to focus more on the retail end. To-go cups had used styrofoam for a very long time, but a couple of years ago transitioned to using only paper. Some people pushed back at first, but now it has grown to where people have become comfortable using paper cups every day.


How Dunkin’ Donuts Transformed From the 80’s to Now

"Dunkin’ Donuts’ New Rainforest Alliance Certified™ Dark Roast Blend Now Available Nationwide", DunkinDonuts.com, September 22, 2014

Inspiration

In the appreciative interview, Peter Matarazzo, owner of four Dunkin’ franchises, spoke about how back in the day when he was 13 there was no paper, everything came from styrofoam cups. There was silverware, china mugs, and the soups to go were in foam cups.

In the interview, Peter went into detail about his inspiration to switch to plant-based food options, ​​“The motivation is to try and get a broader base of customers. Not everyone wants to have a bacon, egg, and cheese sandwich. The goal is to have everyone walk into our store and find something they enjoy.”

For Peter, managing the Dunkin’ Donuts restaurants has been a long and fulfilling journey. He has seen the restaurant take leaps forward in its advocacy for a sustainable future. Peter continues to implement his management philosophy of “hiring people I know are good people at the end of the day.” This mindset has continually allowed the business to thrive in the way that it has.

Overall impact

Since 2018, Dunkin' has been a committed member of the sustainable coffee challenge. The sustainable coffee challenge is a commitment among large coffee consumers and producers to create a more sustainable product. They aim to make coffee a completely sustainable crop by growing it in a way that conserves nature and provides a better livelihood for the people who grow and process it. Dunkin' has also changed multiple of its products to be more sustainable. These include its infamous coffee cups, updating them from styrofoam to paper. Its goal in doing this is to reduce the amount of waste created by consuming its products. Another way in which Dunkin' has changed is the introduction of plant-based goods and vegan options on the menu. The aim of this initiative is to be more inclusive to customers with plant-based/vegan diets. The short-term effects of this would be minimal as the goal of both these initiatives is long-term. The aim of both of these is to increase the company's appeal to the public both by appearing as an environmentally conscious company and by providing products to a wider range of consumers.

Business benefit

These two innovations, the introduction of plant-based goods and paper cups have had great benefits to Dunkin as a whole. While rebranding the image of Dunkin as an environmentally friendly and socially responsible company, Dunkin has also benefited from this financially. An article written by Restuarantbusinessonline.com titled “Plant-based meat helps lift Dunkin’s sales.” provides more information on this. They said “ The Canton, Mass.-based coffee chain said Thursday that its same-store sales rose 2.8% in the company’s fourth quarter ended Dec. 28.”... “That was the highest level in six years and came, thanks largely to the company’s espresso-based beverages and its Beyond Sausage Sandwich, which the company introduced nationwide in November.” Because of the introduction to the plant-based sausage sandwich produced by Beyond Meat, This Dunkin location had seen its best sales in over six years. Likewise, Peter Matarazzo said that his store's numbers have increased similarly to this one.

Social and environmental benefit

The goal of this is sustainability, producing a product that lasts and is environmentally friendly. This benefits society as a whole, as it aims to reduce waste produced from its coffee cups and make the environment cleaner.

Peter described the future benefits to society, “I would hope that Dunkin’ continues to listen to people who don’t eat our standard products. If there is another concept that would appeal to someone looking for a healthier meal or sustaining items, that would be awesome.”


Interview

Peter Matarazzo, Franchise Owner

Business information

Dunkin' Donuts

Dunkin' Donuts

Worldwide
Year Founded: 1950
Number of Employees: 10000+

Dunkin’ is a very large company with more than 12,700 restaurants. Dunkin’ originated in 1948 in Quincy, Massachusetts. It was originally called Open Kettle, but then was renamed in 1950. As years went by they expanded with more restaurants being opened.