Selling donuts and coffee alone lifted Dunkin’ Donuts to become one of America’s most loved brands and to grow to 10,000 outlets in 37countries. It owes much to the spunk and vision of the founder, William Rosenberg, who thought the 4 kinds of donuts being served in US shops were an anomaly. So he proceeded to make 52 kinds and won. His creation is now the world’s largest coffee and baked goods chain serving more than two million customers per day.
Rosenberg had partnered with his brother-in-law to set up his first outlet in 1946. by 1953 he was keen on franchising the company, so he came up with a franchise brochure called Dollar From dunkin donuts menu. He had to mortgage his house to get out Harry Winokur – he saw no future in franchising – and used just $90,000 from investors to begin as the banks were not convinced Rosenberg could grow the business through franchising. He proved banking institutions along with his brother-in-law wrong.
Rosenberg went into franchising in the belief his success lay in sharing his gains. With this thought, he started profit sharing with employees and eventually gave them stock options. He involved franchisees in decision-making, providing them with representatives inside the advisor councils to go over goals and profit targets with management. Eventually, his franchisees came to enjoy a tremendous edge on independent operators because of Dunkin’ Donuts’ volume purchases, which made supplies cheaper, and its top management team that backed them entirely. Dunkin’ even hatched an ingenious public relations campaign that helped secure its outlets. It recommended that franchisees provide free doughnut and coffee – to become consumed on the premises – to law enforcement officers on duty, hence buying protection for shops that were open twenty-four hours a day.
To compete more efficiently, Rosenberg imposed continuous franchisee training and ultimately set up Dunkin’ Donuts University in Randolph, just away from Boston. He drew up a process that allowed Dunkin’ Donuts to redesign the organization, redefine its strategy, and introduce new products whenever possible. When Dunkin’ developed its donut holes, the “munchkins” increased sales system-wide by 10 %. In order to satisfy the-conscious, it added oat bran and low-cholesterol donuts to the menu. Today the franchise routinely taps independent laboratories to evaluate its products to ensure they’re of the best.
Still, Rosenberg was sometimes difficult to satisfy. “I tell [people] that progress is caused by enlightened dissatisfaction. Should you be satisfied, you are going to never get better,” he says within the book Franchising, The Business Strategy That Change the World by Carrie and Robert Shook. Nevertheless, Rosenberg remain (@focused on his people. And he never lost faith in his son Bob who helped him manage the organization in good times and bad. In 1973, when sales dipped alarmingly due to Dunkin’s rapid expansion within the Midwest, Bill and Bob toured the region and realized they must close 100 stores and write off $3 million in losses. Because of this, Dunkin’s share price tumbled; angry board members and bankers leaned on Rosenberg to sack his top managers. His reply: “Look, I have faith within these people. Basically If I let them go, I have to start all over hiring other individuals and teaching them all the things I actually have already taught our current management. Had you been a father with Bob’s background and you have the faith which i have in him, how will you let your son glance at the rest of his life thinking he was actually a failure? There is not any way I might do that. I couldn’t let Bob and the others undergo life believing that they hadn’t succeeded.” His faith within his people proved him right. Dunkin’s share price recovered. And in 1990, the same management team presided over Dunkin’s takeover of dunkin donuts menu.
Rosenberg’s people paid him back in 1989, each time a Canadian financier started buying up Dunkin’s stock then announced a takeover. Franchisees placed huge ads in The Wall Street Journal in protest, even though Dunkin’ eventually was compelled to sell later, the newest parent firm, Allied Lyons, kept its management intact. Dunkin’ Donuts continued to prosper.
William Rosenberg died aged 86 on September 22, 2002 at his home on CapeCod. Today he or she is remembered for charting the course of one American success story, as well as for propagating and professionalizing the franchising business by assisting to establish the International Franchise Association, a group dedicated to self-regulation and also to improving franchising as being a itxino for expansion. In 1970, American lawmakers almost outlawed franchising because of the shenanigans of a few franchisers, so the group became the voice from the true and legitimate. In tribute to Rosenberg, it opened the William Rosenberg Franchise Leadership Institute, a school that now provides scholarships to people wishing to begin a franchising career. “Within my humble opinion, franchising is the absolute epitome of entrepreneurship and free enterprise, and is also unquestionably just about the most dynamic economic factors in the present day,” Rosenberg says inside the book Franchising, The Business Strategy That Changed The Entire World. How true!