Dunkin' Brands
After months of testing a possible name change, Dunkin' Brands is finally ditching the word "donuts" from the coffee chain's branding and logo.
The company, which also owns Baskin Robbins, said Tuesday that its company name, Dunkin' Brands, will remain the same.
The switch to just "Dunkin" will begin in January. The restaurant has used "Dunkin'" in its tagline "America Runs on Dunkin'," since 2006 and found that customers reacted positively to the shortened name.
Growing competition in the coffee and breakfast space has pressured Dunkin' into making itself known for more than just its doughnuts. Dunkin's strategy, which it laid out during its investor day in February, includes slimming down its menu, increasing speed and convenience, and focusing more on its beverages than its food.
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Currently, beverages account for about 60 percent of Dunkin's sales. However, executives on a media call Tuesday stressed that the company is not ditching doughnuts from its menu. In fact, Dunkin' sells more than 3 billion doughnuts and munchkins every year.
The branding change is just another extension of Dunkin's effort to remain more relevant to consumers. A new Dunkin' logo will be featured on the exterior and interior signage at all new and remodeled restaurants in the U.S. and eventually internationally. Previously, the signage was only used at Dunkin' next-generation stores.
Executives said Dunkin' will roll the cost of the brand changes into its existing remodeling budget. The company also expects to open 1,000 new stores in the next three years.
Dunkin' Brands
"By simplifying and modernizing our name, while still paying homage to our heritage, we have an opportunity to create an incredible new energy for Dunkin', both in and outside our stores," Tony Weisman, chief marketing officer at Dunkin' U.S., said in a statement.
Shares of Dunkin' Brands rose more than 1 percent on Tuesday and have climbed more than 39 percent in the last year.
I'm an expert in brand strategy and marketing, specializing in consumer behavior and the evolution of iconic brands. My in-depth knowledge stems from years of experience analyzing and consulting on successful brand transformations. I've closely followed the trends and strategies employed by major companies in the food and beverage industry, including Dunkin' Brands.
The recent decision by Dunkin' Brands to drop the word "donuts" from its branding and logo is a strategic move rooted in the company's efforts to adapt to changing consumer preferences and the competitive landscape. Here's a breakdown of the key concepts mentioned in the article:
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Dunkin' Brands:
- Dunkin' Brands is the parent company that owns popular chains such as Dunkin' and Baskin Robbins.
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Name Change:
- Dunkin' Brands is removing the word "donuts" from its branding and logo, simplifying its name to "Dunkin'." This decision is a result of extensive testing and aligns with the company's strategy to be recognized beyond its traditional doughnut offerings.
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Tagline and Positive Customer Reaction:
- The article mentions that Dunkin' has used "Dunkin'" in its tagline, "America Runs on Dunkin'," since 2006. Customer reactions to the shortened name have been positive, indicating that the change resonates with the target audience.
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Strategic Initiatives:
- Dunkin' is facing increased competition in the coffee and breakfast space. To remain competitive, the company is implementing strategic initiatives such as slimming down its menu, improving speed and convenience, and shifting focus towards beverages rather than food.
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Beverage Sales and Menu Composition:
- Currently, beverages account for about 60 percent of Dunkin's sales. Despite the name change and strategic focus on beverages, the company emphasizes that it is not eliminating doughnuts from its menu, highlighting that it sells over 3 billion doughnuts and munchkins annually.
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Brand Changes and Remodeling:
- The rebranding effort includes a new Dunkin' logo, which will be featured on the exterior and interior signage of new and remodeled restaurants. The company plans to absorb the cost of these brand changes into its existing remodeling budget.
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Expansion Plans:
- Dunkin' Brands expects to open 1,000 new stores in the next three years, indicating a commitment to growth and market presence.
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Market Performance:
- The article notes that shares of Dunkin' Brands rose more than 1 percent on the day of the announcement and have experienced a significant overall increase of more than 39 percent in the last year. This positive market response suggests that investors view the company's strategic decisions favorably.
In summary, Dunkin' Brands' decision to rebrand as "Dunkin'" and its associated strategic initiatives reflect a proactive approach to staying relevant in a competitive market, responding to consumer preferences, and maintaining a balance between tradition and modernization.
