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 and other drinks, which make up 60 percent of the sales.
The 68-year-old chain has toyed with the idea for some time. In 2006, it released a new motto – “America operates on Dunkin’ – that didn’t mention doughnuts. Last fall, it tested the “Dunkin’” logo on the new store in Pasadena, Calif.; it provides place the name on a few other stores since that time.
“Our new branding is actually a clear signal that there’s something totally new at https://www.storeholidayhours.org/dunkin-donuts-menu-prices/. It speaks to the breadth of our own 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, when it will start appearing on napkins, boxes and signs at new and remodeled U.S. stores. The change will gradually be adopted as franchisees update their stores. It will likely be phased in overseas on the next season, the business said. Dunkin’ Donuts has 12,500 restaurants worldwide.
The brand new logo will have Dunkin’ Donuts’ familiar rounded font and orange-and-pink color scheme, in which the company has used since 1973. The Canton, Mass.-based company isn’t saying just how much the modification will 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 this year, the business 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 remain highly 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 quite 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 grown up with the complete name. Specific words are easier for individuals to keep in mind and conjure emotional connections, she said. Having “Donuts” in the name can also be easier for folks in overseas markets who may well not understand what “Dunkin’” means.
Messing with iconic brands can also have consequences. In 2016, 15 years after replacing Kentucky Fried Chicken with KFC, the company had to issue a press release to combat a web-based rumor which it was compelled to change its name since it doesn’t serve real chicken. And IHOP faced some backlash earlier this summer in the event it announced it absolutely was changing its name to IHOb to remind customers it serves burgers along with pancakes. That one was actually a publicity stunt, nevertheless it annoyed some customers.
Dunkin’ Donuts’ Chief Marketing Officer Tony Weisman said the organization has done 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 planning to feel completely familiar to individuals.” But Reis said even if doughnuts have fallen out of favor among a much more health-conscious subscriber base, people already know Dunkin’ Donuts being 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 had been helping them, giving them a brand identity that was the exact opposite of Starbucks.”
Starbucks representatives were unavailable for comment Wednesday. Going up against Starbucks, whose business was modeled right after the espresso shops of Italy, might be a big challenge for Dunkin’, which always has become known more for the smooth coffees compared to a bold drink like espresso.
Dunkin’ continues to be remodeling its stores with cold-brew taps and drive-through lanes for mobile orders. Like Starbucks, the chain has struggled to draw in new clients. Dunkin’s U.S. same-store sales grew 1.4% inside the second quarter, as a rise in average check offset a decrease in traffic. The company is scheduled to report third-quarter results on Thursday.
Dunkin’ has lagged behind in espresso sales because the category became the fastest-growing sort of coffee in cafes lately. McDonald’s Corp. has a type of low-price espresso drinks, too. The brand new espresso beverages bdcovh be served at Dunkin’s more than 9,200 U.S. stores in bright orange cups to distinguish them off their Dunkin’ drinks in white or clear cups.
The organization is investing $100 million inside the U.S. in the next year, more than half of it in restaurant technology, including the espresso machines. Franchisees have committed much more money for the upgrades. Dunkin’ wouldn’t say how much franchisees are contributing or how much the new machines cost. Company executives chose the Swiss-made machine that might be the new standard, following trips to Europe and repeated tests to obtain the extraction from its coffee beans perfect.
“The new equipment in some ways is faster than 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 the best way to hand-pull espresso shots, steam milk and blend the different drinks with assorted flavors. He stated they may be already drawing in new business in Baltimore.