Dunkin’ is dropping the donuts – from its name, anyway. Doughnuts are still on the menu, but Dunkin’ Donuts is renaming itself Dunkin’ to reflect its increasing focus on coffee along with other drinks, that make up 60 percent of their sales.
The 68-year-old chain has toyed with all the idea for quite a while. In 2006, it released a whole new motto – “America runs using Dunkin’ – that didn’t mention doughnuts. Last fall, it tested the “Dunkin’” logo on a new store in Pasadena, Calif.; it offers put the name on a few other stores ever since then.
“Our new branding is actually a clear signal that there’s new things at https://www.storeholidayhours.org/dunkin-donuts-menu-prices. It speaks to the breadth in our offerings,” said David Hoffman, the CEO Dunkin’ Brands, the chain’s parent company, in a conference call with media.
The name change will officially take place in January, in the event it will begin appearing on napkins, boxes and signs at new and remodeled U.S. stores. The alteration will gradually be adopted as franchisees update their stores. It will be phased in overseas within the next year, the organization said. Dunkin’ Donuts has 12,500 restaurants worldwide.
The brand new logo will continue to have Dunkin’ Donuts’ familiar rounded font and orange-and-pink color scheme, in which the company provides since 1973. The Canton, Mass.-based company isn’t saying exactly how much the modification will definitely cost.
Dunkin’ Donuts has always sold coffee, but hot breakfast sandwiches and specialty drinks such as the fruity Coolatta and Cold Brew iced coffee are becoming increasingly important to the chain. Within the second quarter of the year, the organization noted that overall U.S. store traffic was down, but revenue was up thanks to sales of higher-margin iced coffee drinks and breakfast sandwiches.
Dunkin’ says the name change is among a number of things it’s doing to stay relevant to younger customers. It’s also simplifying its menu and adding dedicated mobile ordering lanes. But changing the name of iconic brands can be a big mistake, says Laura Ries, an Atlanta-based marketing consultant.
Ries says “Dunkin’” eventually won’t mean anything to younger customers who haven’t evolved with the complete name. Specific words are easier for folks to consider and conjure emotional connections, she said. Having “Donuts” within the name can also be easier for folks in overseas markets who may not really know what “Dunkin’” means.
Messing with iconic brands could also have consequences. In 2016, fifteen years after replacing Kentucky Fried Chicken with KFC, the business needed to issue a press release to combat a web-based rumor that it was forced to change its name because it doesn’t serve real chicken. And IHOP faced some backlash earlier this season if it announced it was changing its name to IHOb to remind customers which it serves burgers in addition to pancakes. That one was a publicity stunt, however it annoyed some customers.
Dunkin’ Donuts’ Chief Marketing Officer Tony Weisman said the organization has been doing lots of testing and doesn’t expect any customer backlash through the decision. “The reaction continues to be overwhelmingly positive,” Weisman said. “It’s just likely to feel very familiar to individuals.” But Reis said even when doughnuts have fallen out of favor among a much more health-conscious customer base, people know Dunkin’ Donuts as a place where they can just get coffee and relish the doughnuts’ smell.
“There’s no problem with still having ‘Donuts’ within your name,” she said. “Long term it was helping them, giving them a brand name identity which was the contrary of Starbucks.”
Starbucks representatives were unavailable for comment Wednesday. Going up against Starbucks, whose business was modeled after the espresso shops of Italy, can be quite a big challenge for Dunkin’, which always has been known more for the smooth coffees compared to a bold drink like espresso.
Dunkin’ has been remodeling its stores with cold-brew taps and drive-through lanes for mobile orders. Like Starbucks, the chain has struggled to attract new clients. Dunkin’s U.S. same-store sales grew 1.4% inside the second quarter, as a rise in average check offset a reduction in traffic. The company is scheduled to report third-quarter results on Thursday.
Dunkin’ has lagged behind in espresso sales as the category took over as the fastest-growing sort of coffee in cafes recently. McDonald’s Corp. includes a collection of low-price espresso drinks, too. The brand new espresso beverages bdcovh be served at Dunkin’s greater than 9,200 U.S. stores in bright orange cups to tell apart them off their Dunkin’ drinks in white or clear cups.
The business is investing $100 million within the U.S. in the next year, over fifty percent of this in restaurant technology, like the espresso machines. Franchisees have committed even more money to the upgrades. Dunkin’ wouldn’t say exactly how much franchisees are contributing or just how much the newest machines cost. Company executives chose the Swiss-made machine which will be the newest standard, following trips to Europe and repeated tests to obtain the extraction looking at the coffee beans perfect.
“The new equipment in some ways is faster compared to the old equipment,” said Scott Murphy, chief operating officer of Dunkin’ U.S. Parag Patel, a franchisee who owns 25 Dunkin’ shops in Baltimore and five in California, spent months teaching his employees how to hand-pull espresso shots, steam milk and blend the various drinks with assorted flavors. He stated these are already drawing in new clients in Baltimore.