Friday, February 15, 2008

Dunkin' Donut's Unhappy Franchisees

There used to be a franchise in my town named, Mister Donut. He's long gone.

Then came Tom's Donut's. They still have a few stores.

Krispy Kreme came along with their purple cow form of marketing and became my wife's favorite. (I recall a shocking scene with her last year when we stayed at a hotel located next to a Krispy Kreme store. Until then, I never knew she was a KK freak.)

Anyway, in the world of donut's my favorite, after the demise of Mister Donut, has been Dunkin' Donuts. Well it seems that there is a bit of unhappiness in the Dunkin' Donut world. And I wonder what you think about the marketing strategy?

The short version is Dunkin' Donuts products are now available at places other than Dunkin' Donuts. And the DD franchisees say this cuts into their profits. DD headquarters say it should help the DD franchisees, since it promotes the brand and thus creates more demand, and their franchisees should benefit.

Hmmmm. Krispy Kreme sells their donuts everywhere. Starbucks sells some of their products at your grocery store. McDonalds sells their food only at McDonalds. Why?

But wait, there is more to this story than selling DD products at your grocery store. Click on the website links in the previous paragraphs and you'll notice a difference in what McD's, SB, KK, are doing on line vs. the DD website.

DD sells their stuff on line. That's the real BIG PICTURE, All the other places help you find a location to buy your food in person....

Maybe Barry Labov could help them.


Mediapost has more on this story:

"...DUNKIN' DONUTS FRANCHISEES IN NEW England and New York are publicly opposing the company's partnership marketing strategies involving P&G, Sara Lee and Hess, asserting they will "ultimately devalue the iconic coffee brand," that franchisees' cash flow is down and shows "little sign of improving," and that the partnerships will have a negative impact on Northeast markets.

In a statement released on Thursday, the DD Independent Franchise Owners (DDIFO) said 98% of surveyed franchise owners oppose the Sara Lee partnership that calls for the installation of self-service stations in office building break rooms, cafeterias and other venues with large food-service operations...." (READ MORE)

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