William Rosenberg opened the first Dunkin Donuts in 1950 and began franchising in 1955. Dunkin Donuts now has over 11,000 locations worldwide operating on a franchising model. Dunkin Donuts sources coffee beans from South America and has strict requirements for growing conditions like altitude and rainfall. The harvesting, processing, drying and storing of coffee beans follows numerous steps to ensure high quality before the beans are distributed to stores or retailed for home use. Dunkin Donuts has loyal coffee drinking customers and has shifted its focus from doughnuts to coffee, earning 62% of sales from coffee.

2. HISTORY
William Rosenberg opened the first Dunkin
Donuts in 1950. Just five years later, Dunkin
Donuts began to sell licenses as franchises.
Dunkin Donuts has established its dominance
as one of the most competitive brands
specializing baked goods products, coffee
beverages, and over the past couple decades
has expanded into the breakfast goods, selling
a variety of different breakfast sandwiches.
Currently, worldwide there are over “11,000”
Dunkin Donut restaurants in 33 different
countries across the world, which operates on
a “Franchising Model” and plans on developing
into other parts of the world.

3. SUPPLIERS
• Dunkin Donuts suppliers in areas of South America; exact locations were not given
due to company trade secrets.

4. SUPPLIER PROCESS
• GROWTH
• SEASON
• HARVEST
• PULPING
• DRYING
• FERMENTING
• STORING

5. GROWING SEASONS
. Since Dunkin Donut specializing in selling and manufacturing
“Arabica Beans” there needs to be very specified growing conditions
for the supplier that need to be met
The environmental regions must be at high altitudes of “16-24
degrees” (1800-3600 feet) and amount of rain and dryness must be
forecasted to some degree of accuracy so that planning of crops can
be implemented.
These environmental growing conditions only allow for just a single
coffee bean season and one maturation season.

6. •
HARVEST
When coffee beans are ready for harvesting, there is only two
methods, (handpicking method) which is manually picked by farmers
from the tree, or the coffee beans are harvested using a machine
(mechanical method).

7. PULPING
“The green part of the coffee bean is to hard and cannot be pulped
manually or by machine” because it is so hard, the green part of coffee beans
are left the end of the barrel system, to be separated from the mature part

8. FERMENTING
Fermentation process is contingent on a variety of supplemental variables including
but not limited to the amount of coffee beans, temperature, and air moisture

9. DRYING
After coffee beans are extracted from the fermenting stage, the coffee beans must be dried
and are then relocated to “drying patio locations” to until the beans have reached a moisture
level of 11-12 percent

10. STORAGE
Coffee beans remain in storage until shipment time to the distributor, to ensure the
high quality of the beans are attained

11. DISTRIBUTING
About 7 years ago, Dunkin Donuts teamed up with Procter & Gamble and
announced that hey entered into an agreement to launch Dunkin' Donuts
coffee products at retail locations.

12. Just over a year later, Proctor & Gamble would no longer be the distributor of Dunkin
Donuts, because of a merger with J. M. Smucker Company, this also included the Dunkin
Donuts agreement that P&G had with Dunkin Donuts

13. Dunkin Donuts “announced that they had
signed a long-term, performance-based
agreement with National DCP (NDCP) to be the
exclusive supply chain provider for all Dunkin'
Donuts restaurants in the U.S.” This agreement
would take affect in the beginning of 2012,
which included mergers of the other existing
regional franchisee-owned establishments into
one national establishment,

14. Franchising
Dunkin Donuts started Franinshing in 1955 and in 1975, Dunkin Donuts has worked with
Sara Lee to supply their franchisees with coffee. According to Sara Lee’s 2005 annual report,
they still roasted “much of” Dunkin Donuts coffee. In 2007, Sara Lee partnered with Dunkin’
Donuts, in a multi-year deal, to be the exclusive provider of Dunkin’ Donuts coffee to
foodservice outlets across the country
Startup Costs, Ongoing Fees and Financing
Total Investment: $216,100 - $1,530,050
Franchise Fee: $40,000 - $90,000
Ongoing Royalty Fee: 5.9%
Term of Franchise Agreement: Term of agreement not renewable
Veteran Incentives: 20% off franchise fee for up to 5 units
FINANCIAL REQUIREMENTS
Net Worth: $250,000

15. Retail Stores
Dunkin Donuts coffee products can be also be purchased at retailer
outlets at many popular US the retailers. The sale of goods by an
indirect retailers make more easily attainable for consumers who enjoy
the beverage in the convenience of there own home

16. CUSTOMERS

17. CUSTOMERS
Dunkin Donuts customers are loyal coffee drinkers which is why Dunkin
Donuts adjusted its market focus, Dunkin’ Donuts shifted its focus from
doughnuts to coffee in the 90s, and went on to earn 62 per cent sales from
coffee within a few years
Currently there are “10,000 Dunkin”' Donuts establishments worldwide,
including over 7,000 franchised retailers, and “3,100 stores in 30 countries
outside of the U.S” to service customers

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