Krispy Kreme Case Analysis Essay

As a district manager, many responsibilities come with the job. District management is responsible for virtually all the operations in the company with respect to the business goals that have been set out in the company plan. This is especially the case when the district assigned is a group of new area start-ups. District managers are responsible for the allocation of resources, hiring, training and managing teams. The roles of a district manager starting new Dunkin’ Donuts locations are no different yet they include the responsibility for a smooth start. These added responsibilities include job design,

3-17. How many times has the company been sold? When and by whom to whom?

Doughnut Time’s domestic target audience is consumers between the ages of 15-24 who live in urban locations where Doughnut Time is accessible (Stone, 2016). This segment is comprised of high school students, university students and new practitioners (Tonkin, 2016). According to Tonkin (2016), consumers in this demographic are a key market for the fast food industry and provide stability and revenue growth. This target audience is suitable for Doughnut Time as these consumers are less health-conscious than older counterparts and are strongly affected by technology and economics (Tonkin, 2016).

I have chosen Dunkin Donuts for my Ethnography of a Coffee House report. Opened in 1948 by William Rosenberg in Quincy, Massachusetts, Mr. Rosenberg named his restaurant “Open Kettle” which at that time served only donuts and coffee. Two years later in 1950, Mr. Rosenberg renamed his restaurant “Dunkin Donuts.” Mr. Rosenberg’s goal was “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores,” a philosophy which still holds true today (News Dunkin Donuts).

The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.

Dunkin’ Donuts has over six-thousand locations in the United States and serves over three and a half million customers daily. The biggest competitor for Dunkin’ Donuts are Peet’s Coffee & Tea, Starbucks, and McDonalds. In order to maintain market competitiveness Dunkin’ Donuts must remain driven towards service excellence. This starts by hiring staff members that are eager to provide the best customer service with every interaction they have and be able to produce an excellent product. “Dunkin’ Brand offers a comprehensive series of award-winning training programs for crew members, managers and franchises designed to foster deep connections to our brands’ heritage and improve the guest experience and business results at the restaurant level.” (Schmidt,R.A & Oldfield, B.M. 1999) Bill Rosenberg the founder of Dunkin’ Donuts operates by a simple philosophy but one that is carried through each store. “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern well-merchandised stores” (Dunkin Donuts, n.d., pp. 1) Being a new district manager tasked with opening five new locations will help fulfill Rosenberg’s vision of providing the best product around in a courteous environment both for staff and customers. This paper will focus on job design, organizational design, recruiting and selecting, training personnel and performance appraisal are key elements in the success of opening five new locations.

Research showed that 54% of the Americans over the age of 18 drink coffee everyday and 62% of the regular coffee was purchased from a coffee shop, rather than homemade. For corporation coffee house chain, Dunkin’ Donuts is developing very well in home base country and has its chains everywhere including Asia. That is why it is chosen to study within this industry for its financial performance.

Krispy Kreme has experienced dramatic growth over the past 5 years based on their income statement. Every line on the income statement has grown rather impressively. Revenues have grown from $220M to $666M and net income has grown from $6M to $57M. Based on the income statement, Krispy Kreme is doing very well.

As Wall Street Journal stated, Krispy Kreme grew too quickly and diluted its cult status by selling its doughnut in too many outlets. They could not anticipate when the demand decreased due to low-carbohydrate diet trend issues. It can be seen clearly that interest expenses also increased for the year ended Feb 2, 2003 to the year ended Feb 1, 2004 as the debt increased.

This report deals with a comparison of Starbucks and Dunkin Donuts based on brand positioning,attributes,brand identity and surveys conducted online for preference over the other brand.

Socio-Cultural- Due to the numerous cultures present in Dunkin' Donuts' target market, the company as a whole must be in continuous change in order to keep up with its consumers. Dunkin Donuts must keep in mind the age, income, occupation, and most importantly the lifestyles of their customers if they wish to succeed in such a competitive market. As an answer to this problem, the company has implemented several changes aimed at keeping and attracting a new customer base. Many restaurants are looking towards centralized kitchens to maximize space and reduce costs, consequently cutting product costs, thus saving the customer money. The

Strengths: Dunkin’ Donuts is very popular in its industry and has established a powerful brand and image through its efficient operations, low prices and the wide range of high quality products it offers. Moreover, the company experiences economies of scale as it has many operations worldwide. In addition they have significant bargaining power against their suppliers due to the experience they obtained and the support they acquire from Allied Domecq, one of the strongest companies in the market.

Founded first as a restaurant called Open Kettle, it was later renamed to Dunkin Donuts in 1950 by William Rosenberg and Stephen So in Quincy, Massachusetts. Dunkin Donuts has become most famous for its donuts over the years, as well as their coffee. They have approximately 3,000 restaurants in the US and around the world, and sell 2.5 million donuts every day. Dunkin Donuts has evolved into one of Forbes magazine “Top 10 Global Fast-Food Chains”, and tops the lists of other noted industry websites and magazines. Recently, Dunkin Donuts has changed the way they want customers to think about them by incorporating the tag line “America Runs On Dunkin”, and adding new menu items, to their marketing

Even though Dunkin Donuts is an international business, each individual store has its own set of goals and missions to achieve success. This is also known as the value chain, which is “the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.” (Oxford) After observing and working for Dunkin Donuts, the business’ success is primarily based off the happiness of their loyal customers and smooth teamwork of their employees. This particular Dunkin Donuts on Western Avenue in Peoria, Illinois is faced with a lot of challenges, but with the right approach to these challenges can make their business even more successful.

A shift in consumer demand to want healthier fast-food options has hit the industry hard. Dunkin’ Donuts and Starbucks have combated this shift by offering healthier menu items, something Krispy Kreme has failed to do. Dunkin’ Donuts offers healthy breakfast sandwiches and