The Profits Run on New Dunkin’ Donuts Products

It can be tempting in times of economic crises to batten down the hatches and wait out the storm.  Dunkin’ Donuts’ president and CEO, Nigel Travis, decided to take a different tack.  A slate of new products were behind much of the company’s 10.9 percent sales growth in the first quarter of 2012.  These numbers continued the upward trend from the end of 2011.


Travis believes that much of the growth resulted from an increase in customer traffic and spending.  New offerings, such as breakfast and bakery sandwiches, limited time selections, and K-cups to be used at home raised revenue without affecting the sales of products traditionally purchased in store.


Increased Revenue = Increased Expansion Opportunities


With a goal of doubling the number of Dunkin’ Donuts storefronts in the next 20 years, the numbers seen in the first quarter of 2012 are encouraging.  Existing franchise holders appear eager to expand their businesses and there is plenty of interest among potential new franchisees as well.  It all paints a very positive picture for the future of this popular chain.


Innovation at Dunkin’ Donuts goes beyond the kitchen and into the marketing department as well.  The new flavor of the month, 3-Point Chocolate, was introduced during March Madness capitalizing on annual basketball fever and samples of the new cake products lead to an increase in cake sales.


The Future of Dunkin’


Dunkin’ Brands continues to dedicate itself to growth and has just signed a new agreement that will supply its distribution network.  The contract with National DCP would help to drive down product costs in sparsely populated territories in order to encourage potential franchisees to tackle new areas.  The company hopes to see 260-280 new units by then end of 2012.


Sister company Baskin Robbins also saw good growth in the first quarter of 2012.  Sales were up 7.2 percent, although some of that increase may be attributed to warmer than normal weather throughout the period.

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