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 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 together with his brother-in-law to set up his first outlet in 1946. by 1953 he was keen on franchising the business, so he came up with a franchise brochure called Dollar From dunkin donuts menu with prices. He had to mortgage his house to purchase out Harry Winokur – he saw no future in franchising – and used just $90,000 from investors to start as the banks were not convinced Rosenberg could grow the business through franchising. He proved financial institutions along with his brother-in-law wrong.
Rosenberg went into franchising within the belief his success lay in sharing his gains. Bearing this in mind, he started profit sharing with employees and in the end gave them stock options. He involved franchisees in decision-making, providing them with representatives in the advisor councils to discuss goals and profit targets with management. Eventually, his franchisees got to enjoy a tremendous edge over independent operators as a result of Dunkin’ Donuts’ volume purchases, which made supplies cheaper, along with its top management team that backed them entirely. Dunkin’ even hatched a clever pr campaign that helped secure its outlets. It recommended that franchisees provide free doughnut and coffee – to get consumed on the premises – to police officers on duty, hence buying protection for shops that have been open round the clock.
To compete better, Rosenberg imposed continuous franchisee training and eventually create Dunkin’ Donuts University in Randolph, just outside of Boston. He drew up a method that allowed Dunkin’ Donuts to redesign the organization, redefine its strategy, and introduce new items when possible. When Dunkin’ created its donut holes, the “munchkins” increased sales system-wide by 10 percent. To fulfill the medical-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 sure they’re of the best.
Still, Rosenberg was sometimes hard to satisfy. “I tell [people] that progress is caused by enlightened dissatisfaction. If you are satisfied, you are going to never improve,” he says inside 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 location and realized they must close 100 stores and write off $3 million in losses. As a result, Dunkin’s share price tumbled; angry board members and bankers leaned on Rosenberg to sack his top managers. His reply: “Look, I actually have faith within these people. Basically If I allow them to go, I have to start around hiring other individuals and teaching them all the things I have already taught our current management. Should you be a father with Bob’s background and you will have the faith i have in him, how will you let your son browse through the rest of his life thinking he was actually a failure? There is absolutely no way I might do this. I couldn’t let Bob and also the others undergo life believing which they hadn’t succeeded.” His faith in the people proved him right. Dunkin’s share price recovered. And then in 1990, the identical management team presided over Dunkin’s takeover of dunkin.
Rosenberg’s people paid him in 1989, each time a Canadian financier started buying up Dunkin’s stock and after that announced a takeover. Franchisees placed huge ads in The Wall Street Journal in protest, and though Dunkin’ eventually was required 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 path of one American success story, and then for propagating and professionalizing the franchising business by helping establish the International Franchise Association, a team committed to self-regulation and to improving franchising being a itxino for expansion. In 1970, American lawmakers almost outlawed franchising as a result of the shenanigans of some franchisers, so the group took over as 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 planning to embark on a franchising career. “In my humble opinion, franchising is the absolute epitome of entrepreneurship and free enterprise, and it is unquestionably probably the most dynamic economic factors in the world today,” Rosenberg says inside the book Franchising, The Business Strategy That Changed The Entire World. How true!