Swot analysis of Dunkin Donuts. Dunkin’ Donuts LLC is a US doughnut and coffee service restaurant multinational company. William Rosenberg was the founder of Dunkin Donuts, and he laid the foundation of the company in 1950. The headquarter of the company is in Canton, Massachusetts, USA.
Dunkin Donuts’ main products and services are;
- Soft drinks,
- Frozen beverages,
- Ice beverages,
- Hot beverages,
- Hash browns
- Baked goods, and others
Inspire Brands is the parent company of Dunkin Donuts, and DD’s annual revenue in 2020 was 1.25 billion dollars. Out of which the net income of the company was 0.42. However, Dunkin Donuts’ annual revenue in 2019 was 1.370 billion dollars. The company has employed approximately 250,000 to manage its worldwide operations.
Dunkin Donuts’ top competitors are;
- Mad over Donuts,
- Panera Bread,
- Papa John’s Pizza,
- Pizza Hut,
- Taco Bell,
- Domino Pizza,
- Burger King.
Today, we’ll discuss the swot analysis of Dunkin Donuts. It’s going to analyze the internal and external factors impacting the world’s leading coffee and donuts Chain Company. Here’s the swot analysis of Dunkin Donuts as follows;
Strengths of Dunkin Donuts
Eco-friendly campaigns, climate changes, and environmental issues are some of the world’s top environmental issues. Customers are aware of it and they tend to prefer those companies that are environmentally responsible. However, Dunkin Donuts has taken steps like replacing plastic cups with paper cups at all of its outlets. It shows the company’s commitment to reducing the carbon emission rate.
Dunkin Donuts has a very efficient supply chain system. It makes sure that the customers would get the coffee and freshly baked products on time. The company has recently made an alliance with the sustainable coffee challenge. It’s to amplify the supply of quality coffee.
Dunkin Donuts has been the top choice of customers for the past 70 years regardless of various generational trends. In fact, the company changed its name and menu, but it remained relevant to the customers through strategic branding.
Dunkin Donuts is a socially responsible organization. In an environment of the global economic crisis that has unemployed millions of people globally. The restaurant chain brand has decided to hire 250000 employees to keep America working and running.
Dunkin Donuts follows the franchising business model and it provided great support to the company during the pandemic year. It’s because the company doesn’t have to carry the expense and loss alone, it was distributed among franchisees.
Dunkin Donuts has established a reputation for offering breakfasts. In fact, breakfast and Dunkin are synonymous with each other. The focus of the company on one niche has allowed the company to differentiate itself from competitors.
Dunkin Donuts falls under the category of the world’s largest donuts and coffee chain brands. In fact, the company is operating its business in more than 46 countries worldwide. The brand has approximately 13,000 location points and chain restaurants.
According to an estimate, the net worth and brand value of Dunkin Donuts in 2020 was 6.4 billion dollars.
Weaknesses of Dunkin Donuts
The reason the expansion rate of Dunkin Donuts is slower is that Dunkin Donuts has limited financial capabilities. They’re restricting the company’s growth. That’s why the market share of the restaurant chain brand is declining.
Bakery items and coffee are the main service offers of Dunkin Donuts. This menu restricts the company to a small segment of the customer market. The limited menu and customer market decrease the company’s profitability.
Low Market outside of the US
The targeted marketing has stabilized Dunkin Donuts’ earnings in the US market. However, the restaurant brand struggled a lot outside the US and the Indian market. It shows a poor understanding of the customer market outside the US.
Slow Market Expansion
Starbucks, Burger King, and McDonald’s are global brands with a speedy expansion rate. Dunkin Donuts, on the other hand, has always followed a slowly growing strategy like a snail. It turned out to be a great weakness of the chain restaurant brand in the developing markets, where the competitive brands have established a great name.
Dependence of the US Market
Approximately more than 46% of Dunkin Donuts’ annual revenue comes from the US market. It means that the company heavily depends on the USA as its major source of revenue. However, the global economic crisis has badly impacted the company’s annual revenue globally.
Opportunities available to Dunkin Donuts
Dunkin Donuts offers limited items on the menu. Since the company targets a wide range of audiences in the food industry. Therefore, the brand expands its menu and offers different types of meals like dinner, lunch, and breakfast. The variety would allow the chain restaurant brand to target more people.
The unsaturated markets in developing countries have great growth potential. Therefore, it presents a great opportunity for Dunkin Donuts to launch new locations and brand franchises in new geographical areas. It would help the company to increase its profitability and customer market.
Bakery items and coffee are the main products and services and sources of revenue for Dunkin Donuts. It seems as if the company’s business relies on the sale of a few products which is very risky. The brand should add fresh farm products and grocery items to its portfolio in order to stabilize its business.
The healthy diet trends have compelled competitors to introduce healthy products on their menus. They’re attracting the healthy diet-conscious market. Dunkin Donuts should enter into the healthy diet food category and exploit the growing opportunity.
Threats Dunkin Donuts has to face
The global economic crisis and uncertain market conditions have increased the overall supply chain, distribution, and logistic costs. The increasing cost has impacted the company’s profitability.
Many reports have proven the fact that processed junk food causes obesity, hypertension, cardiovascular, and other diseases. It has forced the governments to introduce different types of regulations for the food companies like Dunkin Donuts.
The healthy diet trends have made people picky about their food. However, the unhealthy food and menu of Dunkin Donuts are pushing people to the other competitive brands.
International political issues have impacted the global economy and put it into an economic recession. Dunkin Donuts couldn’t keep out of it because of the worldwide unemployment rate and decreasing buying power of customers. Such issues impacted all businesses equally.
Domino’s, Pizza Hut, Starbucks, KFC, Burger King, and McDonald’s are the top competitors of Dunkin Donuts. Their increasing profitability and market share are limiting the company’s growth.
Conclusion: Dunkin Donuts Swot Analysis
After a careful study of the swot analysis of Dunkin Donuts, we’ve concluded that Dunkin Donuts is indeed the world’s leading chain restaurant company. The economic recession, competitors, healthy diet trends, regulations, and limited portfolios are some of the main challenges. Dunkin Donuts should expand its business market and product portfolio in order to address these issues.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.