Dunkin' President Unexpectedly Speaks at Independent Franchisee Association Meeting
BELLINGHAM, Mass. (Blue MauMau) - After Dunkin Donuts declared ten days ago that it has no ties with the DD Independent Franchise Owners, Inc. (DDIFO), the firm has reversed track. Will Kussell, Dunkin' Donuts Brand Officer and President, and James Allen, Brand Advisory Council Franchisee Co-Chair, not only attended DDIFO's meeting last Thursday, but Mr. Kussell also delivered a crucial message to members. He said that a breakfast war was now being waged in New England about coffee. Kussell declared, “The war of our lives is about coffee. McDonald’s and Starbucks are going straight on to take us out.”
In another surprise statement, Kussell said that Dunkin’ Brands would have no more strategic partners for at least three years. There has been a significant amount of controversy regarding Dunkin' Brands partnership agreements with Sara Lee, Proctor & Gamble and Hess gas stations, allowing them to place Dunkin's number one product, coffee, into grocery stores, gas stations, kiosks, private cafeterias and other retail outlets. DDIFO members have been critical of these alliances stating that they will ultimately devalue the iconic Dunkin' coffee brand.
Although Mark Dubinsky, President of DDIFO, confirmed that Kussell and Allen attended the meeting, he would not confirm the content of what was said by Kussell. But he did state, "Clearly, their willingness to do so represents a renewed possibility for the ongoing improvement of our relationship."
Regarding their meeting in general, Dubinsky expressed that he was very satisfied by the high level of attendance and keen level of engagement demonstrated by their members throughout their meeting. "Today, more than ever before, our members revealed a rare sense of unity and purpose, he said. "We are now stronger and more resolute than any other time in our 19-year history."
Dubinsky said there was also a great show of support for their new professional board of directors, as well as a deep appreciation for all of the contributions made by all of the former directors throughout their history. "Lastly," he added, "several members told me that this was a very successful meeting in terms of the quality of communication, education, and advocacy for our members' long-term business interests."
Related articles:
- Dunkin' Brand's Franchisees Serve Up Brand New Professional Board of Directors
- Dunkin' Responds with No Comment on How DDIFO Conducts Its Affairs
- Dunkin' Franchisee Association Makes Unique Decision in Restructuring Board
Other articles:
- Franchise topic:
What items in the new franchise agreement are you upset about?
Do you have any upcoming renewals? If yes when are they?
Hess already sells coffee to its customers and now it would be Dunkin Coffee how exactly does this event hurt you?
P&G already distributes coffee in supermarkets where people would now get to choose Dunkin amongst Starbucks, Green Mountain and other brands and this exposure to Dunkin Coffee hurts you in what way?
Do you think that Dunkin has a right to do what they want with their brand?
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
Guest makes a very good point about the interplay between operational standards, brand image, and franchisee equity.
The observations about Hess and other alternate distribution channels are not emotional rants but legitimate concerns (and accurate statements, in my opinion) which affect both zor and zee...but disproportionately the zee.
As to TiF "take it or leave it" approach, this may be true for incoming zees. But it is emphatically not the case for the existing Dunkin franchisees who are facing dimunition of equity by virtue of public response to the sub-standard presentation standards of their food in the gasoline stations.
Significantly, the Guest poster did not complain about alternate distribution channels so much as the failure of those alternate channels to adhere to the quality standards of the main distribution channel. We heard much the same analysis in the case of Krispy Kreme a few years ago, and it would appear that Dunkin Brands has seen some wisdom in the concerns such as Guest espoused.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Starbucks doesn't sell coffee; it sells an atmosphere in which you the lowly consumer can feel wonderful engaging in some strange language to order.
So, yes, Starbucks in supermarkets did damage their brand. And no, even though they own it, the shareholders of the public company have the right to fire the directors who signed off on this idea.
Michael Webster PhD LLB
Franchise News
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
This comment has been moved here.
This news article is about Kussell visiting DDIFO and comments should be about that.
Mr. Blue MauMau
Moderator
More of this full open truthful exhanges are going to be needed if DD is going to beat Starbucks and McDonalds' on DD's home turf.
It would have been nice to hear that DD and the Association had found some common measure of the effectiveness of co-branding.
Michael Webster PhD LLB
Franchise News
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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