Why Dunkin’ Donuts Is Now Just Dunkin’ | WSJ The Economics Of

Dunkin’ started out as a small doughnut-and-coffee shop in Massachusetts in 1948 and has grown to over 12,000 stores in 40 countries. Specialty drinks like espressos, cappuccinos, matcha and chai have taken over as leading sellers instead of the company’s food items. The company even dropped ‘Donuts’ from its name.
WSJ’s Heather Haddon explains why the company chose to focus on drinks - not doughnuts and grew to a world-wide chain worth almost $9 billion.
0:00 Dunkin’ dropped ‘Donuts’ from its name
0:54 The coffee giant’s history
3:26 Specialty drinks
4:30 Pandemic struggles
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
#Dunkin #Coffee #WSJ

[@adamanderson7761]

"Donuts weren't seen as a healthy breakfast alternative", so people stopped eating those and started drinking coffee drinks with as much sugar as a soda...lol

[@kensigregory361]

You can also get unsweetened coffee. 🙃

[@mrjezzk]

lol exactly. donuts were just replaced by sugary drinks and a caffeine addiction

[@ruits3060]

That much truth is unacceptable in today's world. You must be prosecuted for the crime lol

[@M4NA5]

In consumables business, it’s all about changing the consumer perception. Always has been. 🔫

[@lizijian1212]

@@kensigregory361 You can also easily make unsweetened coffee at home. 😀

[@tamjeanell]

This is an example of a business that kept up with the stream of time and stayed opened to new ideas and innovative...

[@NadiaSeesIt]

If only they actually had donuts in stock!

[@abby41tuff]

Love these episodes of The Economics Of ...

[@11god87]

I have been seeing the subtle changes with branding, location renovations, and menu options w/ Dunkin' over the years. Its good to know they are doing good and are looking to compete with Starbucks.

[@jeniecommeca1696]

They can’t.

[@charliesmash]

They make sugar drinks. Not really ground breaking.

[@andream7500]

@@jeniecommeca1696 yes they can

[@misterhamez]

@@jeniecommeca1696 did you not watch the video, champ?

[@teewill96]

Former starbucks barista here. We used to say dunkin was nasty brown water but now that I've been gone a few years I think that Dunkin has really improved and starbucks should definitely be worried!

[@allergictohumansnotanimals5671]

As someone who goes to both I agree, Dunkin’ has really good coffee now. There’s more actual coffee in their drinks than Starbucks anyways.

[@adiposerex5150]

I’ve tried both. Both are good.

[@heenanyou]

How do they compare with TImmy's?

[@peekaxu4352]

​@@heenanyouno comparison....and i dont even drink coffee😁😁....thats how good it is

[@Pluralofvinylisvinyls]

Their coffee still sucks. It’s so watery that you barely get any caffeine out it. Doesn’t even come close to the quality of Starbucks. Even the bagels are better are Starbucks.

[@TheGolfClan]

I used to live in the Midwest and think Dunkin was just ok. Now I live on the east coast and I’m hooked

[@gettyyoung46]

Starbucks makes selling coffee drink a superb high margin business. Two spoonful of ground coffee, mixed with water, and ding $2 if not more.

[@brandonbielinski5611]

More like a cup of ice and 2% coffee for $5 minimum lol

[@MahendraSingh-rp6er]

@@brandonbielinski5611 exactly the brewed pike place pods i get at costco are 30 cents each, they sell minimum $5, the cup is mostly ice

[@user-vp1fp9je5l]

They'll always be known as Dunkin Donuts for many of us.. Love these episodes of The Economics Of ....

[@jameswillett7186]

They used to emphasize the freshness of their donuts which were ALWAYS made on the premises. When the hedge fund bought them in 2005 that was the end of Dunkin Donuts. Now all of the donuts are made in a factory and then delivered to the stores- there used to be only 3 Dunkin Donuts in my area now there are zillions because the start up costs of a francisee are low now that each store no longer requires the donuts to either made on the premises or fresh.

[@littlemax8851]

700 cal sugary beverage instead of a 0 cal black coffee & a 300 cal donut. Sounds like we are moving in the right direction.

[@simrans3675]

LETS' GO! USA BABY! WE RULE THE WORLD!

[@EliF-ge5bu]

Nobody is forcing you to buy. People need to start using their brains and be accountable for their own choices in life.

[@simrans3675]

@@EliF-ge5bu Yo, how much donut you had today yo? Yo how much cheese and crispy chicken you had yo?

[@Shay416]

No lies detected 😂

[@Cobra2323]

@@EliF-ge5bu Stop the invasive advertisement and tricking people into thinking this is okay to have everyday. Funny that drinking sugar and high carb drinks affects the brain and alters your addiction which makes your brain think it needs more of that sugary and high carb drink. Go figure.

[@penizzle6319]

I suspect they’ll do even better these days given a looming recession and people cutting back on frivolous costs. As terrible as some people think it tastes, it’s caffeine and it’s half the price of Starbucks.

[@Shay416]

I agree. Plus everyone is addicted to coffee. But coffee is an affordable luxury so I think it might be recession proof. Anyone have any in depth knowledge?

[@djtrankilo231]

I personally love Dunkin's coffee better for that reason and I believe it tastes better

[@andream7500]

I think it tastes better than Starbucks

[@erikgonzalez2278]

I do agree also I mean it’s way more value at Dunkin plus McDonald’s iced coffee are pretty decent. Starbucks is too busy with overseas stores and dealing with their employee issues. Used to be a Starbucks snob but found they were just lacking everyday with their shortages we don’t have this or that

[@amphoteric]

their coffee tastes better than starbucks lol

[@Krystal_Kitty7]

Donuts with coffee is pure genius. I love Dunkin I always get a donut along with my drink, you just can't resist. 🍩☕

[@fs5775]

stale old donuts? yes, I am able to resist

[@MrTmenzo]

High calorie non nutritive junk.

[@z32kev98]

Donuts that been thawing for 4 hrs before being fried😂

[@Jimirulz1]

Nobody actually runs on Dunkin you big dope!

[@Someinternetuser]

Idk what y’all smoking I always get fresh and warm donuts from my local Dunkin’

[@lizfreitas07]

Great content! keep it coming WSJ

[@AnonymousSam]

Dunkin Donuts basically said "What if customers could drink our donuts too?"

[@infinite_vortex]

They'll always be known as Dunkin Donuts for many of us.

[@cometome8194]

Great posting good job WSJ!

[@incognito9909]

Great piece of reporting and a great channel.

[@Jason-kg3oc]

WSJ: People might not get a donut every morning Me: 😬

[@bobbyisbroke]

Anyone remember the original Coolattas?! They were the best!

[@muchatinta_mxl]

Great work. Thankyou

[@bugged1212]

Ah man, lived and studied in New England and Dunkin's everywhere. Back in India and it's followed me back here! They are everywhere here too!

[@ruits3060]

lol.. It's a global world. Everything's everywhere!

[@josephpark9802]

Great video. You guys gotta do one on Panera unlimited sip club!

[@avadoty774]

Coming from NJ, I thought the ubiquitousness Dunkin Donuts was a universal experience. And then I came to AZ for college and there are so few compared to what we have in the northeast😭😭 Only learned it’s more common on the east coast after I moved away

[@user-mn4wx9sy8v]

Great piece of reporting and a great channel.. They'll always be known as Dunkin Donuts for many of us..

[@lasserious]

I prefer Dunkin's coffee over Starbucks by far...

[@jonatanmejia7825]

Some call it an addiction, I call it a lifestyle.

[@funny3291]

Lol 😂

[@delpullen1982]

I call it sad. Way to go wild over a MID company.

[@noelltaravati4177]

WSJ forgot to mention Dunkins growth and the number of stores it currently has. Dunkin currently has 8.500 stores, in comparison to Starbucks with 15.000 stores. In 2020, Starbucks earned 23.5 billion in comparison to Dunkins 1.3 billion.

[@Lovin_NY93]

Oh, I didn't know I was watching a comparison video.

[@markocarroll9424]

Why is Starbucks earnings much higher per store ?

[@talamuffy3094]

@@markocarroll9424 more expensive

[@slodoco]

@@talamuffy3094 That and the brand is more trendy. Also there's a Starbucks on every corner much like MCD's. Sometimes you'll see two Starbucks on the same street right across from each other. It's crazy.

[@tomakinflashian5877]

@@markocarroll9424 think of it this way. even if people never go into a starbucks their specialty coffee brands and products are good enough that people WILL at some point consistently purchase them. the problem is when people are buying coffee to make for themselves they don't want something that has the image of low quality. this is dunkins problem as people assume that it'll be lower quality then starbucks so they refrain from purchasing it. coffee is alot like cigarettes to the people who addicted to coffee whether the average person or a true aficionado image is all that matters. as long as the cost is not something ridiculous and manageable people will buy the brand that has the better image. starbucks for all its faults and mistakes throughout the years has kept its image to the average consumer pristine. dunkin donuts now dunkin(TM) still has the image of being a low quality donut and coffee stop for cops that it has built up throughout the years.

[@Gregory_tottie]

There are so many externalities associated with these sugar drinks. It’s really a disgrace that this wasn’t mentioned.

[@briannarobinson1107]

Yes, a disgusting one is just how rancid the women’s bathroom in an office smells around 9 am. The combination of the smells of several post-coffee morning 💩s ruined many of my days. Thank goodness for WFH

[@briannarobinson1107]

A positive externality would be an increase in sales of febreeze.

[@kidd3225]

The most insane part of the USA, when looking from europe, is how much you guys focus on big corporations, especially franchise chains. Feels like rocket science when it is really just big money pushing toxic products with marketing.

[@baronvonjo1929]

You totally right. Never been over to Europe but I would say Germany had a big focus on their cars and industry. But probably not as big as us And then from my understanding a few Asian countries have a big focus on their companies like the cheabol (did I spell that right) in South Korea. Companies and how they make us feel and perception is a big deal in many ways. Not all the time. But it can be.

[@djtrankilo231]

I'm honestly surprised Dunkin never competed with Krispy Kreme

[@erikgonzalez2278]

I think they killed Krispy Kreme never liked them at all

[@MrLegendra]

It will always be Dunkin DONUTS to me!

[@ronaldvanengen1887]

Most Folks don't know this but to control quality the Doughnuts get delivered to the Stores Frozen then they heat them up!! Krispy Kreme is truly made on site!! Frozen Boston creme doughnut still tastes pretty good!!

[@GenF91]

I’ll be honest, I was never a Dunkin’ Donuts customer until as of late. I really like their Vanilla Bean Coolatta.

[@davidcantor293]

These BILLIONS of cups need to be biodegradable, not just made out of recycled materials.

[@sayoshinakamario]

You should invent one instead of complaining

[@est9949]

​@@sayoshinakamario "Let's complain about complaints"

[@artastheiitheprince2075]

​@@sayoshinakamariohe is not complaining... He is just reminding that those big companies MUST use and choose to use biodegradable cups (and even straws) because if they are earning bigtime from that, they must as well be caring for the nature. Because even if the biodegradable cups are already invented, and if it is not a choice by the company to use it. The invention is useless.

[@AcesizOfficial]

Interesting 👏🏽

[@ravindertalwar553]

Congratulations 👏👏

[@bngr_bngr]

Dunkin’s barely has enough employees to keep its stores open. They need to increase wages and benefits for employees.

[@1gks]

dunkin is not good enough for them to be raising their prices like they’re starbucks 😭

[@wellwell8211]

1:10 that makes so much sense now omg

[@alparslankorkmaz2964]

Nice video

[@deepchowdhury5360]

@cnbc if you look af their international m they have introduced local breakfast menus which are quite popular in that country to maximise sales

[@Mirsab]

1:04 wait, Dunkin was not the name of the owner and is derived from literally dunking donuts?! 😂🤯 The more you know

[@samuelpaniagua9755]

could you do a video of the economics of little caesars?

[@sunablast]

WE LOVE DUNKIN

[@crystallewis5902]

Ironically, I stopped going to Dunkin Donuts after they shifted from focusing on donuts to drinks since I don't really drink coffee. DD has one donut flavor I enjoy but none of the stores ever carry it. And generally Krispy Kreme's donuts, or donuts from a bakery, are much better.

[@slodoco]

Which one? Out of curiosity

[@crystallewis5902]

@@slodoco The chocolate creme donut! I sometimes see the vanilla creme donut (and occasionally I'll get one), but I really prefer the chocolate filling, which I haven't seen in years.

[@imamountainheadtoo]

I love Krispy Kreme but closest store to me is 3 hours away, so Dunkin it is :P

[@josephmarchione9846]

The donuts were the point of differentiation since they were actually decent in comparison to Starbucks weak offerings 10 years ago. I noticed Dunkin's donuts have taken on an artificial flavor and their coffee is whatever. stopped going several years ago.

[@briannarobinson1107]

Bring back the chicken salad and onion bagels. Paired with a sweet tea, one of my favorite meals back in 2013. Bring it back FOR ME

[@onetwo-dr8hl]

Dunkin proves Americans love coffee flavored water 😂

[@ninjanerdstudent6937]

I am reminded of the episode that Bart Simpson gets a tattoo and the tattoo parlor turned into a Starbucks on his way out.

[@benjaminlehman3221]

1:50 that dude looks so familiar. Similar to Bob from Zach and Cody

[@reycin]

Coffee is life ☕☺️

[@yvonneplant9434]

Not theirs! Thank goodness I can get better coffee from independent coffee shops or brew my own.

[@itiswhatitis141]

Well truth is, its just a neurotoxin pretending to give you "energy" ruining your adrenal glands.

[@profylz]

I think i always compared dunkin w/ krispey kreme but that idea has shifted. Pretty interesting.

[@aliciamack9323]

I always love dunkin

[@PinkRose0910]

I enjoy their savory food items along with tea.

[@yuliasasangka3937]

Obviously I'm the old time diner here becs still love the doughnuts itself.

[@matthewdeschenes7652]

I love dunkin , rather go there than starbucks or tim hortons or mcdonalds. Actually fresh and lots of options

[@josephmarchione9846]

Dunkin needs to restore "Donuts" to their brand because the donuts used to be the main reason to visit over the other coffee chains. Drinking out is a luxury good as I'm very perticular about my coffee blends, therefor the venue has to have strong coffee and light food offerings to make it valuable. The breakfast "food" items are greasy calorie bombs.

[@cynras4553]

Remember the combo menus back in the day ?

[@NewEraChi]

They need to bring those back

[@erikgonzalez2278]

I agree with what everyone is saying Dunkin really caught up to Starbucks.

[@airise410]

Dunkin's cold brew is actually nice and has more consistent flavor compared to Starbucks' cold brew from my experience.

[@sastrinidis]

That was my go to until the price just about doubled. Now I make it at home.

[@ifyouknowyouknow6964]

Yeah I agree it has like a signature taste and smell. I had to look it Up when I got coffee 2 weeks ago.

[@Sassyellechica]

Although prices are about the same now with the cost of coffee. I'll take Duncan donuts over Starbucks any day. I'm a dunkinista

[@ruits3060]

Dunkinista???? Just when I thought no other stan word can beat Swiftie for being more cringe, I read this comment.. I'll detox quickly now lol

[@paillette2010]

Haven't been to a Dunkin donuts since the mid 90's.

[@taylorlibby7642]

Sure wasn't the donuts. Those things are borderline inedible.

[@RedElectric3]

Y'all know Dunkin doesn't make the donuts in house, they arrive on a delivery truck every morning at 3am. blea XP

[@ctgal9698]

A few locations still have facilities on site with a baker that actually makes the items very early before store opening

[@CheetoPuffin]

They shrunk the size of the Donuts in 2020😢😢

[@davidmitchell6873]

A few years before that, they stopped making them in store and brought them in pre made.

[@nakulpuniyani]

Next- Dunkin' craft beers 🍻

[@BradThePitts]

Capitalism: The donut with a hole in it is the same price as the donut without a hole it. Cut the hole in the donut, and sell them separately! 😆

[@Andyisbeep]

Honestly Dunkin’ here in the us has been lacking a lot lately. I came back from Europe and Dunkin has way better options there than in America

[@Shay416]

Tim Hortons makes better drinks than Dunkin. Y'all deserve better

[@djtrankilo231]

​@@Shay416 I'm still sad Timmy's bombed here in the U.S.

[@Earth1218]

@@Shay416 Yup. Tim Horton’s had good balanced coffee. Not as oily/burned tasting as Starbucks and not as weak as Dunkin. It sucked when they closed all their stores around St. Louis.

[@valf156115]

Thats so interesting cause where i live in canada tims is considered worse than mcdonalds coffee even!

[@Lovin_NY93]

At one point, we had 4 Dunkin Donuts in my town. Now we only have 2.

[@aml5061]

The economics of REI!!

[@beenjammin8581]

Dunkin has the best coffe Coffee with toasted almond 2 sugars and 6 milk pumps is imba

[@bambinaforever1402]

Some years ago was travelling through Florida, wanted to visit Dunkin Donuts but all the locations i could find were closed due to some sanitary problems. That was way before corona. So 1 month in Florida - no donkin donut

[@JustMe-gs9xi]

Dunki's and FL are a bad fit....imo. FL is so messed up,,, i blame FL, Don't hold it against Dunkies,, You can buy the beans and make coffee at home.

[@kissyou427]

I am not left wing or right wing, i am the whole chicken lollll

[@huus5682]

im on the breast side

[@DrivetoThrive5779]

Japan’s 7 Eleven Latte coffee is more delicious then any other coffee

[@JoshuaChowabc]

I love their colors

[@snickerbars4129]

Dunkin dont sell coffee, they sell coffee flavored water.

[@YouCanCallMeReTro]

Its a change that makes sense. Growing up always associated dunkin's with donuts especially their munchkins but now as an adult its just coffee. Their donuts have gone downhill too they changed the recipes sometime back.

[@bengaliproblem4339]

Bring Tuna back and more food options

[@mariamartin5674]

I prefer Dunkin’ to Starbucks tbh

[@Kirito14682]

Starbucks and Dunkin are 2 completely different brands. Dunkin is more fast food whereas Starbucks is more of a cafe where people can relax and hang out. I think people will always perceive Dunkin as cheap and if their prices are as high as Starbucks people would just choose Starbucks instead.

[@cocoylichuaco3325]

Youd be surprised they’re evolving here in Asia. Dunkin is now banking on outdoor spaces for people who want affordable coffee and good donuts to feast on. They’re already a favorite here (arguably better than Krispy Kreme for many people) so the coffee is really just a logical add-on

[@HarryJoiner]

3:37 - Addictive and ritualistic. Ka-Ching!

[@BladeRabbit]

Love me some dunkin iced coffee

[@mmmnahfam]

anytime I hear "America was becoming more health conscious" I'm like bish WHERE 🥴

[@margaretgomez7962]

Somebody tell me why there are so many Dunkin’ Stores in Boston?👀 I must understand

[@robertmartin3490]

It's now just Dunkin because it's not just donuts. It's also coffee.

[@derekweaver5049]

Their breakfast sandwiches are great

[@speerrituall1]

Ever notice that you don’t smell donuts being baked at Dunkin. They’ve been airplane food for years. The donuts are trucked in daily.

[@benjaminlehman3221]

I want them to add more tea options. I love London fog lattes but I can’t get them at Dunkin.

[@ninjanerdstudent6937]

In elementary school, it became cliché to always bring munchkins for birthdays.

[@kocokan]

Dung King

[@aroundandround]

Dunkin’s lack a warm and inviting decor to sit and sip/bite. I can imagine reading, working, or meeting a friend at a Starbucks but never a Dunkin’.

[@jaydibernardo4320]

I'll stick with Randy's Donuts here in LA. 🍩

[@jamievidd775]

Never bought anything but a coffee on occasion at Dunkin. Other than that, give donuts. Screw those lame overpriced drinks.

[@saynotop2w]

Literally the only cafe in my city without a wifi. They are so cheap.

[@LumaTo]

I was so disappointed when Dunkin donuts finally came to the west coast... My East Coast friends kept on singing its praises... so let down.

[@DemarcusQ]

Yet they remove tasty coffee flavors that aren’t apart a season 🤦‍♂️

[@usk8]

I don't think I've ever had a dunkin doughnuts, here in the UK it's that Krispie creams doughnuts.

[@taylorlibby7642]

Krispy Kreme. A proud Southern tradition. Y'all aren't missing anything from those Yankee donuts. ; )

[@fs5775]

@@taylorlibby7642 As a yankee myself, I can conclude you are 100% correct. Now this is a war that you guys have DEFINITELY won. Krispy Kreme are The Best.

[@spacetoast7783]

Krispy Kreme is not much better.

[@taylorlibby7642]

@@spacetoast7783 It's much much better. ; )

[@drea409]

No contest, Krispy Kreme are the BEST doughnuts. The best Coffee is dunkin or starbucks

[@jiajiachen1296]

DD's recently changed its member reward system, which is a disaster, just making people don't want to go there again......

[@djtrankilo231]

I'm glad I'm not the only one to dislike it. It was my favorite to get XL Original Blends and Midnights for free every other 200 points and now, Large is the biggest I can get

[@DuBstepAnDa98]

I didn't even know they re-branded lol

[@CA2SD]

I went there out of desperation for coffee, and decided to get one donut. I asked the Karen why it was 'cold' ...she said, 'this isn't Krispy Kreme's.' I had no idea a company this large would freeze their donuts.

[@miranda75289]

I wish they were fresh but I still enjoy it there because of the price and my local store is really well-maintained. Krispy Kreme and Starbucks are so expensive.

[@slodoco]

They shouldn't be cold. That was wrong. I would have asked from my money back.

[@roxycauldwell544]

Dunkin's donuts are nasty lol

[@delpullen1982]

@@miranda75289 You could also stop eating dessert for breakfast.

[@3hristopher]

It’s really there muffins and cheddar cheese bread with a med hot chia lotte