Selling donuts and coffee alone lifted Dunkin’ Donuts to be 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 its founder, William Rosenberg, who thought the four kinds of donuts being served in US shops were an anomaly. So he proceeded to make 52 kinds and won. His creation is currently the world’s largest coffee and baked goods chain serving greater than two million customers each day.
Rosenberg had partnered with his brother-in-law to place up his first outlet in 1946. by 1953 he was keen on franchising the organization, so he came up with a franchise brochure called Dollar From dunkin donuts coffee. He needed to mortgage his house to purchase 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 organization through franchising. He proved the banks along with his brother-in-law wrong.
Rosenberg went into franchising in the belief his success lay in sharing his gains. With this in mind, he started profit sharing with employees and in the end gave them stock options. He involved franchisees in decision-making, offering them representatives in the advisor councils to go over goals and profit targets with management. Eventually, his franchisees got to enjoy a tremendous edge over independent operators due to Dunkin’ Donuts’ volume purchases, which made supplies cheaper, as well as its top management team that backed them all the way. Dunkin’ even hatched a clever public relations campaign that helped secure its outlets. It recommended that franchisees provide free doughnut and coffee – to become consumed on the premises – to police officers on duty, hence buying protection for shops which were open 24 hours a day.
To compete better, Rosenberg imposed continuous franchisee training and ultimately create Dunkin’ Donuts University in Randolph, just away from Boston. He drew up a method that allowed Dunkin’ Donuts to redesign the organization, redefine its strategy, and introduce new items whenever possible. When Dunkin’ developed its donut holes, the “munchkins” increased sales system-wide by 10 percent. In order to satisfy the-conscious, it added oat bran and low-cholesterol donuts to its menu. Today the franchise routinely taps independent laboratories to evaluate its products to make certain they’re of the highest quality.
Still, Rosenberg was sometimes challenging to satisfy. “I tell [people] that progress is the result of enlightened dissatisfaction. Should you be satisfied, you may never get better,” he says within the book Franchising, The Company Strategy That Change the World by Carrie and Robert Shook. Nevertheless, Rosenberg remain (@focused on his people. And that he never lost faith in his son Bob who helped him manage the business in happy times and bad. In 1973, when sales dipped alarmingly because of Dunkin’s rapid expansion in the Midwest, Bill and Bob toured the region and realized they need to 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, We have faith within these people. Basically If I let them go, I have to start throughout hiring others and teaching them everything We have already taught our current management. Should you be a father with Bob’s background and you have the faith i have in him, how could you let your son browse through the all his life thinking he was actually a failure? There is not any way I would do that. I couldn’t let Bob and the others proceed through life believing which they hadn’t succeeded.” His faith in his people proved him right. Dunkin’s share price recovered. And then in 1990, exactly the same management team presided over Dunkin’s takeover of dunkin donuts restaurant.
Rosenberg’s people paid him back in 1989, when a Canadian financier started buying up Dunkin’s stock and then announced a takeover. Franchisees placed huge ads within the Wall Street Journal in protest, and though Dunkin’ eventually was compelled to sell later, the brand new 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 is remembered for charting the path of one American success story, and for propagating and professionalizing the franchising business by helping establish the International Franchise Association, a team focused on self-regulation and to improving franchising as a itxino for expansion. In 1970, American lawmakers almost outlawed franchising because of the shenanigans of some franchisers, and so the group became the voice of 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 embark on a franchising career. “Inside my humble opinion, franchising is definitely the absolute epitome of entrepreneurship and free enterprise, and is unquestionably probably the most dynamic economic factors in the world today,” Rosenberg says within the book Franchising, The Company Strategy That Changed The Planet. How true!