Dunkin Donuts And Microeconomics

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,

Starbuck’s consolidated net revenue grew 17% to $19.2 billion, from 2014. Their non-GAAP (adjusted-generally accepted accounting principles) operating income was up 19% to $3.7 billion, over their 2014 total. Their non-GAAP operating margin was at 19%, which increased 50 basis points from 2014. Starbucks earnings per share also grew to $1.58, a $.25 (18.8%) increase from 2014. These increases and growth made it possible to return $2.4 billion to shareholders. This money was returned in the form of dividends and share buybacks, up 50% from 2014 (“Starbucks Fiscal”, 2016).

No one wants to spend however amount of money on a cup of coffee for it to taste bad, when paying for coffee you would like to actually enjoy the coffee. Both locations Dunkin’ Donuts and Starbucks have a variety of flavors and options to choose from. In my opinion Dunkin’ Donuts has a very smooth coffee, as Starbucks coffee tends to be more “bold and harsh.” I personally feel that in all my trips to Starbucks, the coffee tends to taste burnt. I myself just do not enjoy that type of coffee, but if you are the type to drink bold and extremely strong coffee, Starbucks is the way to

The determinants of Starbucks profitability over time are variable costs and fixed costs. “A variable cost is a cost that change in direct proportion to a change in the level of activity (dict). Variable costs for Starbucks would include labor, coffee beans, dairy, and plastic products. A fixed cost is indirect costs of business expenses that remain unchanged (dict). Fixed costs for Starbucks include rent, taxes, and insurance as well as advertising. In the figure below (fig 1) we have Starbucks financial data in millions for the year of 2015. This includes their operating expenses, net revenues, such as company-operated stores, licensed stores, CPG, food service. It also includes their total net revenues and their balance sheet. As we can see “Operating costs dropped in the fiscal year

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 market capital of Starbucks is 90.02 billion whereas Dunkin as market capital of 4.47 billion.So we

Dunkin’ Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts that was founded in 1950. At start, it was famous for its quick service food doughnut but now it has already been well known for its high quality coffee and quick customer service. It is one of the subsidiary companies with sister brand Baskin-Robbins under the franchiser Dunkin' Brands.

Dunkin’ Donuts was established by Bill Rosenberg in 1950 in Quincy, MA. Dunkin’ Donuts started license franchises in 1955. It is the world’s leading baked goods and coffee chains serving more than 3 million customers per day. Dunkin’ Donut sells 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast sandwiches, and baked goods. At the end of 2010, there were 9,760 franchises all over the

Starbucks sells coffee, alcoholic beverages, tea, bottled tea, bottled beverages and snacks. Dunkin donuts offers plenty of options in terms of sweet delicacies like brownies, muffins, pastries and donuts apart from espresso and cold coffee. Incidentally, both the restaurants have breakfast on their menus.

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

Dunkin’ Donuts are famous for their many varieties of doughnuts and their wide range of bakery products - muffins, bagels and munchkins® donut hole treats. Their products are represented by more than 6,590 worldwide points of distribution, including approximately 4,815 units in the United States alone.

If consumers in Iowa City are not coffee drinkers, they are able to opt to frozen “coolattas” in a variety of fruit flavors. Dunkin Donuts also offers a wide variety of bakery items and sandwiches on their menu. The bakery items are sure to capture any consumers taste cravings by offering their famous donuts, bagels, muffins, hash browns, and more. The sandwiches on the menu can be for breakfast, or lunch sandwiches. On the sandwiches, you can choose if you want your meat to be bacon, sausage, ham, Angus steak, or turkey sausage. They are served on any type of bakery item included on their menu. This shows there are so many options for sandwiches, and even ranging to a few vegan sandwiches with just eggs or spinach. As for lunch sandwiches, you can choose from ham, turkey, grilled cheese, chicken salad, chicken, and tuna salad. This proves that Dunkin Donuts will satisfy any college student’s food craving by appealing to everyone’s appetite and drink needs.

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.

The company under analysis in this report is Dunkin Donuts. The brand of Dunkin Donuts originated in 1950 when Bill Rosenberg opened the very first outlet in Massachusetts, USA. Today Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3 million customers per day worldwide. It sells about 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast, sandwiches, subs and other baked goods. Dunkin Donuts is a subsidiary company of Dunkin Brands Inc that owns companies like Dunkin Donuts, Baskin Robins etc. Dunkin Donuts is a multinational company with its presence in more than 32 nations. By the end of 2011, there were 10,083 Dunkin' Donuts stores worldwide that included 7,015 franchised restaurants in the United States of America and 3,068 international outlets in more than 32 countries across the globe employing more than 9000 people. According to the financial report published by Dunkin Brands Inc, the parent company of Dunkin Donuts the net sales worldwide totaled up to $8.77 billion, up 5.2 percent from the previous year and the Net income for the year was $108.3 million, up 214.5 percent as reported by the company.

The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)