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 its founder, William Rosenberg, who thought the four types 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 greater than two million customers a day.
Rosenberg had partnered with his brother-in-law to put up his first outlet in 1946. by 1953 he was interested in franchising the business, so he created a franchise brochure called Dollar From dunkin donuts. He were required to mortgage his house to buy 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 company through franchising. He proved the banks and his awesome brother-in-law wrong.
Rosenberg went into franchising within 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, giving them representatives within the advisor councils to discuss 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, as well as its top management team that backed them all the way. Dunkin’ even hatched an imaginative 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 more effectively, Rosenberg imposed continuous franchisee training and ultimately set up Dunkin’ Donuts University in Randolph, just away from Boston. He drew up a method that allowed Dunkin’ Donuts to redesign the business, redefine its strategy, and introduce new releases whenever possible. When Dunkin’ developed its donut holes, the “munchkins” increased sales system-wide by 10 percent. To satisfy the medical-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 highest quality.
Still, Rosenberg was sometimes difficult to satisfy. “I tell [people] that progress is the consequence of enlightened dissatisfaction. In case you are satisfied, you will never improve,” he says within 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 the son Bob who helped him manage the organization in happy times and bad. In 1973, when sales dipped alarmingly as a result of Dunkin’s rapid expansion in the Midwest, Bill and Bob toured the location and realized they need to close 100 stores and write off $3 million in losses. Consequently, Dunkin’s share price tumbled; angry board members and bankers leaned on Rosenberg to sack his top managers. His reply: “Look, We have faith in 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 will have the faith i have in him, how could you let your son browse through the rest of his life thinking he had been a failure? There is no way I might do this. I couldn’t let Bob as well as the others undergo life believing which they hadn’t succeeded.” His faith within his people proved him right. Dunkin’s share price recovered. And in 1990, exactly the same management team presided over Dunkin’s takeover of dunkin donuts menu prices.
Rosenberg’s people paid him in 1989, whenever 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 or she is remembered for charting the path of one American success story, as well as for propagating and professionalizing the franchising business by helping to establish the International Franchise Association, an organization focused on self-regulation as well as improving franchising being a itxino for expansion. In 1970, American lawmakers almost outlawed franchising because of the shenanigans of some franchisers, so the group took over as 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 wanting to embark on a franchising career. “In my humble opinion, franchising will be the absolute epitome of entrepreneurship and free enterprise, and it is unquestionably probably the most dynamic economic factors in the present day,” Rosenberg says within the book Franchising, The Organization Strategy That Changed The World. How true!