Dunkin' Executive Movement, Horn Dulled?

This eavesdropping bird is hearing strange stirrings today of employee turnover at franchising firm Dunkin’ Brands. There’s news about Frances Allen, brand marketing officer for Dunkin’ Donuts, stepping down. John Costello has been hired as Chief Global Customer and Marketing Officer.

But there is also a whispering of turnover in Loss Prevention, the legal department of Dunkin’ Brands. Rumor has it that Steve Horn, chief legal officer, is effectively no longer heading up the department. Horn has been featured in a number of franchise news stories that showed him training other attorneys on the art of spying on franchise owners in order to strengthen their franchisor’s negotiating positions. He has also been accused by attorneys of creating a profit center for the company based on suing Dunkin's own franchise owners. Horn is a member of the board of directors for Dunkin' Brands.

UPDATE, 5 p.m. EST, Oct 8: The email from Nigel Travis below has just been sent out about Frances Allen stepping down and John Costello stepping in.

Dear Dunkin’ Donuts and Baskin-Robbins Franchisees,

You have probably noticed by now that one consistent theme in all of my communications with you over the past year has been my desire to make Dunkin’ Brands a more operations-focused organization. Additionally, we must also have outstanding marketing that both differentiates our brand and delivers sales. That is why I am very pleased today to announce that we have named John Costello to the newly created position of Chief Global Customer and Marketing Officer for Dunkin’ Brands, reporting directly to me.

A seasoned executive who has led the marketing efforts for some of the world’s best-known consumer goods, retailing and technology companies, John will be responsible for Dunkin’ Donuts’ and Baskin-Robbins’ global brand identities. He will serve as head of the Dunkin’ Donuts U.S. marketing team and partner with our operations executives to drive domestic comparative sales. He will provide functional direction to the Dunkin’ Donuts international marketing team, as well as Baskin-Robbins U.S. and international marketing teams.

As a member of both the Dunkin’ Brands Leadership Team and the Dunkin’ Donuts Management Team, he will provide strategic perspective and insight to our overall business plan. Importantly, he is not completely new to this effort. Working as a consultant for us over the past several months, John has gained great insights into our brands and should have a great impact on our marketing deliverables right away.

One of the early pioneers of multi-channel marketing, John has served as the Executive Vice President of Merchandising and Marketing at The Home Depot, the Senior Executive Vice President of Sears, and the Chief Global Marketing Officer of Yahoo. He has also led several companies, including serving as President of Nielsen Marketing Research U.S.
Earlier in his career, he held a number of senior marketing and brand management positions at The Procter & Gamble Company and also served as Senior Vice President of Sales and Marketing at Pepsi-Cola, USA.

John was named one of the 30 Most Influential People in Marketing by Advertising Age, one of the Top 10 Merchants by DSN Retailing Today and was elected to the Retail Advertising Hall of Fame. He is also a director of The Ace Hardware Corporation.

In addition to John’s appointment, I wanted to let you know that Frances Allen has decided to leave the company. She has worked tirelessly to promote the brand during her tenure here including helping to solidify Dunkin’ Donuts’ position as a coffee leader and reinforcing the “America Runs on Dunkin’” tagline. I would like to thank Frances for her many contributions and for providing a solid foundation from which we can grow the Dunkin’ Donuts brand identity. We wish her well in her future endeavors.

With Frances’ departure, the following people will now be reporting directly to John: Cynthia Ashworth, Vice President of Consumer Engagement; Walter Erwin, Senior Director, Field Marketing; Tom Manchester, Director, Field Marketing; Roxanne Bensason, Director, Field Marketing; Dave Kozak, Director, Field Marketing; Scott Hudler, Senior Director, Brand Marketing; Rebecca Zogbi, Director, Consumer Insights; Cheryl St. John, Senior Administrative Assistant; and the open position of Vice President of Brand Marketing. Susan McElaney, Director of International Marketing, Dunkin’ Donuts, and Brad Wahl, Vice President of Marketing USA, Baskin-Robbins, will have a functional reporting relationship to John.

Please join me in welcoming John to Dunkin’ Brands. His world-class marketing and management skills are exactly the combination of talents we need to help us realize the potential of our brands, increase our franchisees profitability and deliver on our overall financial goals.

Sincerely,

Nigel Travis
Chief Executive OfficerDunkin’ Brands, Inc.