Selling donuts and coffee alone lifted Dunkin’ Donuts to be one of America’s most loved brands and to grow to 10,000 outlets in 37countries. It owes much to the spunk and vision of the founder, William Rosenberg, who thought the four kinds of donuts being served in US shops were an anomaly. So he proceeded to make 52 kinds and won. His creation is currently the world’s largest coffee and baked goods chain serving more than two million customers a day.
Rosenberg had partnered with his brother-in-law to put up his first outlet in 1946. by 1953 he was interested in franchising the company, so he came up with a franchise brochure called Dollar From dunkin menu. He needed to mortgage his house to buy out Harry Winokur – he saw no future in franchising – and used just $90,000 from investors to start since the banks were not convinced Rosenberg could grow the company through franchising. He proved financial institutions and his awesome brother-in-law wrong.
Rosenberg went into franchising in the belief his success lay in sharing his gains. Bearing this in mind, he started profit sharing with employees and eventually gave them stock options. He involved franchisees in decision-making, offering them representatives within the advisor councils to discuss goals and profit targets with management. Eventually, his franchisees got to enjoy a tremendous edge over independent operators because of Dunkin’ Donuts’ volume purchases, which made supplies cheaper, and its top management team that backed them all the way. Dunkin’ even hatched a clever pr campaign that helped secure its outlets. It recommended that franchisees provide free doughnut and coffee – to become consumed on the premises – to police officers on duty, hence buying protection for shops that were open twenty-four hours a day.
To compete more efficiently, Rosenberg imposed continuous franchisee training and ultimately set up Dunkin’ Donuts University in Randolph, just outside of Boston. He drew up a process that allowed Dunkin’ Donuts to redesign the organization, redefine its strategy, and introduce new items when possible. When Dunkin’ created its donut holes, the “munchkins” increased sales system-wide by 10 %. To fulfill the-conscious, it added oat bran and low-cholesterol donuts to the menu. Today the franchise routinely taps independent laboratories to check its products to make certain they’re of the best.
Still, Rosenberg was sometimes hard to satisfy. “I tell [people] that progress is the result of enlightened dissatisfaction. If you are satisfied, you are going to never get better,” he says within the book Franchising, The Business Strategy That Modify the World by Carrie and Robert Shook. Nevertheless, Rosenberg remain (@dedicated to his people. And he never lost faith within his son Bob who helped him manage the business in happy times and bad. In 1973, when sales dipped alarmingly due to Dunkin’s rapid expansion within the Midwest, Bill and Bob toured the location and realized they have to close 100 stores and write off $3 million in losses. As a result, Dunkin’s share price tumbled; angry board members and bankers leaned on Rosenberg to sack his top managers. His reply: “Look, I have faith within these people. Basically If I allow them to go, I have to start around hiring others and teaching them all the things I actually have already taught our current management. If you were a parent with Bob’s background and you will have the faith i have in him, how could you let your son glance at the all his life thinking he was actually a failure? There is no way I would personally accomplish that. I couldn’t let Bob and the others go through life believing that they hadn’t succeeded.” His faith within his people proved him right. Dunkin’s share price recovered. As well as in 1990, exactly the same management team presided over Dunkin’s takeover of https://www.storeholidayhours.org/dunkin-donuts-menu-prices/.
Rosenberg’s people paid him back in 1989, when a Canadian financier started buying up Dunkin’s stock and after that announced a takeover. Franchisees placed huge ads in The Wall Street Journal in protest, and though Dunkin’ eventually was required to sell later, the newest parent firm, Allied Lyons, kept its management intact. Dunkin’ Donuts continued to prosper.
William Rosenberg died aged 86 on September 22, 2002 at his home on CapeCod. Today he is remembered for charting the course of one American success story, and then for propagating and professionalizing the franchising business by helping to establish the International Franchise Association, an organization committed to self-regulation as well as improving franchising as a itxino for expansion. In 1970, American lawmakers almost outlawed franchising because of the shenanigans of some franchisers, and so the group became the voice from the true and legitimate. In tribute to Rosenberg, it opened the William Rosenberg Franchise Leadership Institute, a school that now provides scholarships to the people planning to begin a franchising career. “Within my humble opinion, franchising will be the absolute epitome of entrepreneurship and free enterprise, and it is unquestionably probably the most dynamic economic factors these days,” Rosenberg says in the book Franchising, The Organization Strategy That Changed The Planet. How true!