EXCLUSIVE: Dunkin' Donuts on How to Create Opportunities in a Competitive Marketplace
Following the recent opening of Dunkin' Donuts first express store in the UK, we spoke with Jim Johnstone, Managing Director of Dunkin' Brands UK & Ireland about the group's plans for the UK.
QSR: What are your plans for the Dunkin’ Donuts brand in the UK?
We have four franchisees signed up in the UK which will translate to 100 stores. We look for a combination of franchisees who have the right experience and right franchising. Out goal is to have 100 - 150 stores in the next five years.
QSR: What kind of offering can we expect to see as you grow?
I think it will be a combination of high street stores with the full product range, including Baskin-Robbins, and also some express stores like the one recently opened on Baker Street.
QSR: Who do you see as your competition in the UK?
This is probably the most competitive market in the world. We compete with Costa and Starbucks, Krispy Kreme, McDonalds and Greggs. What we’re doing is positioning ourselves in the middle between a Costa’s and a Greggs- doing a really good coffee be it espresso or filter, offering a great range of lunchtime sandwiches, as well as a world class doughnut range. When you combine these three strands I think our product offering is unique and is our point of difference. I think we are able to bring something different to the market and want to be a brand that appeals to everyone. People that want a coffee but don’t want to go to Costa can come to us and get some great food as well. Equally people who go to Greggs and get great value for money can come to us and get the same thing and still have a nice experience.
QSR: Is competing in the coffee market in the UK a focus for Dunkin'?
Yes- coffee is important for us but the UK coffee market is very competitive. So the way we are competing is by making our coffee part of a larger offering- so that people come in for coffee and another product- be that coffee and a doughnut or coffee and a sandwich.
QSR: Is your menu standardised globally ortailored for the UK market?
It is a bit of both. There is a core offering like the Boston Cream doughnut, filter coffee etc that is available at all stores around the world but then in the UK there is a greater focus on say espresso based coffee than there is the US. We take the US market and tweak it for UK tastes.
QSR: Given the menu is tweaked for the UK marketh how do you approach product development?
We have regular meetings with the UK brand team. They will show us new offerings they are planning 6-12 months out. We test it as franchisees as do Dunkin’ Donuts with customers and move things forward from there.
QSR: What product developments do you have in the pipeline?
We’re doing a lot of work on our flavouring range. So recently we launched a chicken tikka wrap and a breaded chicken grilled roll, and offering product combos with those. We are also launching some new breakfast products shortly. It is a large part of our offering in the US and we’re looking at ways to enhance our breakfast offering here. We have a lot of other products in the pipeline too. New product development is crucial for our brand, and in the Baskin-Robbins offering too where we launch a new flavour every month.
