News

Dunkin' Donuts franchisees strategize beverage, breakfast position

October 24, 2014

More than 100 members of the Dunkin' Donuts Independent Franchisee Owners association met this week in Las Vegas to discuss how changes in the beverage and breakfast marketplace may impact their business. According to a news release, the DDIFO members, who represent more than 2,700 franchised locations throughout the US, used McDonald's 30-percent drop in profit as a benchmark for their strategy.  

"The majority of the McDonald's fall-off occurred in the lunch and dinner hours. While breakfast was said to be higher, it appeared to be driven by deep product discounts, which do not positively benefit franchisees or the brand over time,"said DDIFO Restaurant Analyst John A. Gordon.

This week's 2014 DDIFO National Conference marked the first time the group held its annual three-day meeting outside the Northeast. According to a news release, several speakers addressed losses at McDonald's as a potential indicator of how consumers' tastes, habits and preferences are changing at a time when millennials represent a greater demographic and Baby Boomers are losing market clout.

Menu complexity and the creep of low margin, low volume menu items plaguing McDonalds – and threatening Dunkin' and other quick-service restaurant brands – was a major topic of formal presentations and social discussions at the conference. One Midwestern franchise owner read an excerpt of an email which detailed more than two dozen brand initiatives rolling out this month, highlighting how franchise owners are concerned about menu complexity.

The conference also featured presentations on the growing risks of online hacking, new efforts by labor union to organize QSRs and the current state of the Dunkin' franchisee-owned supply chain known as the National DCP.

 Dividend issued

Also this week, parent company Dunkin' Brands Group declared a quarterly cash dividend to shareholders. The dividend of $0.23 per share of common stock is payable on Dec. 3 to shareholders of record at the close of business on Nov. 24.