Selling donuts and coffee alone lifted Dunkin’ Donuts to become one of America’s most loved brands and to grow to ten thousand 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 has become the world’s largest coffee and baked goods chain serving a lot more than two million customers a day.
Rosenberg had partnered along with his brother-in-law to put up his first outlet in 1946. by 1953 he was interested in franchising the organization, so he came up with a franchise brochure called Dollar From dunkin menu. 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 start because the banks were not convinced Rosenberg could grow the business through franchising. He proved banking institutions and 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 ultimately 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 have a tremendous advantage over independent operators because of Dunkin’ Donuts’ volume purchases, which made supplies cheaper, as well as its top management team that backed them entirely. Dunkin’ even hatched an imaginative publicity campaign that helped secure its outlets. It recommended that franchisees provide free doughnut and coffee – to be consumed on the premises – to law enforcement officers on duty, hence buying protection for shops which were open round the clock.
To compete better, Rosenberg imposed continuous franchisee training and eventually put up Dunkin’ Donuts University in Randolph, just outside Boston. He drew up a process that allowed Dunkin’ Donuts to redesign the business, redefine its strategy, and introduce new products when possible. When Dunkin’ developed its donut holes, the “munchkins” increased sales system-wide by 10 percent. To fulfill the-conscious, it added oat bran and low-cholesterol donuts to its menu. Today the franchise routinely taps independent laboratories to check its products to ensure they’re of the best.
Still, Rosenberg was sometimes difficult to satisfy. “I tell [people] that progress is the result of enlightened dissatisfaction. Should you be satisfied, you will never improve,” he says inside the book Franchising, The Organization Strategy That Alter 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 organization in good times and bad. In 1973, when sales dipped alarmingly due to Dunkin’s rapid expansion inside the Midwest, Bill and Bob toured the location and realized they have 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, I have faith within these people. If I let them go, I have to start throughout hiring others and teaching them all the things I have already taught our current management. Should you be a parent with Bob’s background and you have the faith which i have in him, how can you let your son browse through the rest of his life thinking he was a failure? There is no way I would accomplish that. I couldn’t let Bob and also the others proceed through life believing that they hadn’t succeeded.” His faith in his people proved him right. Dunkin’s share price recovered. And then in 1990, the same management team presided over Dunkin’s takeover of dunkin donuts restaurant.
Rosenberg’s people paid him in 1989, each time 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, even though Dunkin’ eventually was required to sell later, the 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 or she is remembered for charting the path of one American success story, and for propagating and professionalizing the franchising business by helping to establish the International Franchise Association, a group focused on self-regulation and to improving franchising as being a itxino for expansion. In 1970, American lawmakers almost outlawed franchising as a result of the shenanigans of some franchisers, therefore 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 the people wishing to begin a franchising career. “In my humble opinion, franchising is the absolute epitome of entrepreneurship and free enterprise, and is also unquestionably one of the most dynamic economic factors in the present day,” Rosenberg says within the book Franchising, The Organization Strategy That Changed The Entire World. How true!