Dunkin’ Donuts Franchise Owners Slam Dunkin’ Marketing

by sean on February 16th, 2008

(Franchisee Marketing) Dunkin’ Donuts franchise owners are understandably upset at Dunkin’ Brands partnerships with Proctor & Gamble, Sara Lee & Hess, saying these moves will devalue the Dunkin’ Donuts brand and negatively affect their declining sales.

Franchisees Don’t Like The Way Marketing Runs At Dunkin’
by Nina M. Lentini, Friday, Feb 15, 2008
DUNKIN’ DONUTS FRANCHISEES IN NEW England and New York are publicly opposing the company’s partnership marketing strategies involving P&G, Sara Lee and Hess, asserting they will “ultimately devalue the iconic coffee brand,” that franchisees’ cash flow is down and shows “little sign of improving,” and that the partnerships will have a negative impact on Northeast markets.
In a statement released on Thursday, the DD Independent Franchise Owners (DDIFO) said 98% of surveyed franchise owners oppose the Sara Lee partnership that calls for the installation of self-service stations in office building break rooms, cafeterias and other venues with large food-service operations.
It also said that 97% oppose the Hess partnership, which calls for the installation of self-service coffee, hot chocolate and donut stations within Hess gas-convenience stations from New Hampshire to Florida.
Last year, Dunkin’ Brands partnered with P&G to sell packaged coffee in supermarkets, drug stores and off-price retailers. DDIFO says those 12-ounce packages of coffee compete directly with the 16-ounce packages sold at Dunkin’ Donuts shops. “To date, franchisees have received no financial benefit from P&G sales,” it says.
“These deals will negatively impact their businesses and the Dunkin’ Donuts brand over the long run,” said the franchise owners group. READ ON

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