Article Points:
• "Europe accounts for only 1 percent of the company's $9.3 billion in sales." Europe is now in expansion mode and plans to open 1,500 locations in England, Bulgaria and Eastern Europe. Proper expansion will help increase sales in Europe.
• In the 1990s Dunkin' Donuts attempted to expand in the U.K. but failed because of poorly chosen locations and inexperienced franchisees. This caused the company to lose money. However, Dunkin' Donuts is attempting to reach these markets again by opening stores around the same location.
• Dunkin' Donuts is now tailoring its menu for the European market. They are trying to reach the market appropriately by hiring staff from the local area. The staff will have more knowledge and a better understanding of European consumers.
• The company is also trying to turn a cup of coffee and a pastry into a sit-down meal. Seating as an option would allow customers to sit and chat, which will create an atmosphere like Starbucks and other small local cafes. Dunkin' Donuts plans to have a location in Leeds that will offer 100 seats for customers.
• Location is key in Europe. In the past, Dunkin' Donuts has struggled to breakeven in various locations. This forced the company to close down numerous locations in the 1990s. Dunkin' Donuts has done well in Germany, which now has 58 shops. In one of their newest locations, the store generated more than $40,000 in sales - double what an average American store generates.
• One of Dunkin' Donuts biggest struggles is its competition. Competitors include local and international companies such as Krispy Kreme, Starbucks, Caffe Nero and Whitebread's Costa Coffee. Starbucks plans to have more than 4,000 stores in Europe by the end of 2019, which can hurt Dunkin' Donuts.
Research Points:
• CEO, Nigel Travis plans on starting out expansion in Europe on the outskirts of town. "The trick to expansion for a new brand is airports, train stations and motorways - high footfall areas to give us brand presence," Travis told The Independent."
• Travis sees competition in Europe as an opportunity for growth. Although the company notes that there is a lot of coffee competition in Europe, investors believe that there is an opportunity for economic growth.
• Dunkin' Donuts has joined forces and created relationships with different partners from all over the world during their expansion. In China the company made an agreement with Golden Cup Pte. Ltd. (a joint venture between Jollibee Worldwide Pte. And Jasmine Asset Holding Ltd.). In Iceland, it is working with Drangasker to help develop Dunkin' Donuts restaurants.
• Dunkin' Donuts past struggle has not held the company back. Dunkin' Donuts continues to expand and has made its way to Iceland. The company is scheduled to open 16 locations within the next five years. " ‘We continue developing Dunkin' Donuts restaurants in Europe and are pleased to announce our arrival in Iceland," said Paul Twohig, president of Dunkin' Donuts U.S. and Canada, and Dunkin' Donuts & Baskin-Robbins Europe and Latin America. Adding: "We're excited to work closely with 10-11 to bring quality food and drink to our Icelandic customers'" (Icelandmag.com).
• With expansion comes rebranding. Dunkin' Donuts has rebranded it self in multiple countries as previously mentioned. In other places such as India, the company offers items such as veggie burgers and chicken patties because people "just don't like doughnuts" (Foxnews.com). Other menu items all over the world include the Grapefruit Coolatta, which is available in Korea and the Choco Nut Donut, which can be found in Thailand locations.
• Other countries where Dunkin' Donuts plans on expanding includes Austria and Mexico. In Austria they plan on expanding 25 different locations in Austria within the next five years. In Mexico the company plans on adding over 100 locations in central and western Mexico over the next few years.
"Dunkin' Donut's Global Expansion Includes Mexico." Fox News. FOX News Network, 7 Jan. 2015. Web. 22 Apr. 2015. .
"Dunkin' Donuts Is Scheduled to Open Sixteen Restaurants in Iceland in the next Five Years." Icelandmag. Web. 22 Apr. 2015. .
Pozzebon, Stefano. "A Huge American Donut Brand Is Returning To Britain." Business Insider. Business Insider, Inc, 6 Oct. 2014. Web. 22 Apr. 2015. .
"Press Releases." Press Releases. Web. 22 Apr. 2015. .
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