How to Open Dunkin Donuts Franchise
Franchises Desserts

How to Open Dunkin Donuts Franchise: Cost, Profit and Process

Are you looking for starting Dunkin Donuts Franchise at your location? If Yes, then please read this post.

Dunkin Donuts is a limb of the Dunkin Company that is spread all around the world. Dunkin Donuts is a go-to spot for terrific coffee, delicious beagles, sugary donuts, and scrumptious muffins. If you are willing to start a Dunkin Donuts Franchise in India, you will have all your required information right in this article.

Dunkin Donuts has now started running under the name of Dunkin in India, like around the world. The incredible coffee that makes people fall in love is still the same as it was while under the name of Dunkin Donuts. With exceptional high quality, incredible taste, and hygiene measures, the coffee attracts hundreds of customers every day. But coffee is not the only thing that will make your heart skip a beat while you are in the store.

Operating in more than 60 countries, this American brand keeps on innovating different recipes and desserts for their beloved customers.

Apart from all, the company also accepts and performs its role of environment and social responsibility by donating to several NPOs and by reducing waste, saving energy, and by using substantial resources.

 

History of Dunkin Donuts

Bill Rosenberg started a tiny coffee and donut shop back in the year 1946. He had named his shop “Open Kettle.” The coffee and donut shop was a local food shop in Quincy, Massachusetts serving construction workers and other workers around the area.

Within 6 years, Bill was able to render impeccable success with his little shop. In 1950, after he attained all the success and popularity, he opened up another shop in Quincy, Massachusetts and named it Dunkin Donuts.

After a great run of his business and a marvelous growth, Bill retired and his son Robert became the CEO of the company in 1963. The 25 years young man took the company to even greater expansion and opened its 100th location in the same year.

By 1990, the Restaurant chain had expanded to 2000+ locations in numerous countries around the world with 2billion dollars of net annual sales.

In the run, they had also bought their competitors like Mister Donut and Dawn Donut.

Currently, Dunkin Donuts has 10,000+ operating restaurants around the world. They serve around 900 million donuts and about 1.5 billion coffees every year.

 

USPs of Dunkin Donuts

  • Dunkin Donuts sells about 1.5 billion cups of coffee each year in this massive competitive market. The rich quality and aromatic taste of Dunkin Donuts’ coffee is what keeps them at the top of the market.
  • Dunkin Donuts’ donuts and coffee are extremely loved because of the fantastic taste, fresh making, and availability of multiple options to pick out from.
  • The company understands how millions of people around the globe need coffee to kick start their day. For the same, Dunkin Donuts never compromises with the quality of the coffee. To keep people happy with a fantastic mood, the company keeps improvising on the taste of their coffees. They never stop bringing out scrumptious recipes for coffee for their customers.

 

How much does a Dunkin Donut Franchise in India costs?

Investment 

The company states an approximate liquid asset amount of 1,72,92,750 INR. Along with the same amount, the owner of the business must have a net worth of 3 Cr INR. This to ensure capital investment affordability. Capital investment is a must when you wish to open up a Dunkin Donut Franchise.

Depending on the kind of unit the Dunkin Donut Franchise owner wishes to establish, the franchise fee also varies. It can be any amount between 20 lakhs to 70 lakhs depending on the unit.

 

Bond and Profitability

The length of the term extends to a good 20 year span. The profit is ensured as the company makes a massive amount of $6 million in terms of sales annually.

The company is popular for freshly baked products with fine taste. It is a very successful brand in America and the company has been able to establish the same amount of success in India as well.

The profitability is also ensured by the company to the Dunkin Donut Franchise by giving proper training and tactics of attracting customers.

 

Terms for Dunkin Donut Franchise

While giving out Dunkin Donut Franchise the company takes to check on a few things as mandatory terms.

  • The devotion of time and devotion from the owner and the staff comes as a mandatory condition to run an upscale and the business.
  • The Dunkin Donut Franchise is not allowed to run any other business venture unless and until the company has given written permission for the same.
  • The Dunkin Donut Franchise is restricted to sell any products online or through any other device.

 

What are the benefits of owning a Dunkin Donut Franchise in India?

Reputation

Building a reputation for a new business is extremely difficult in times like today. The competition in the market is edge cutting and it does not take long enough for a business to fail and shut down.

When you own a Dunkin Donut Franchise, you start a business that already has a massively established reputation and trust within people. You will not have to work for years and years on building trust and reputation, it will be handed overpacked in a golden box to you.

People will walk into the store without even questioning their thoughts for once and you will have a sturdy flow of business.

 

Net Profit

With business running literally around the globe, the company makes a massive and assured profit. Running in 10,000+ locations in 50+ countries, the company assures profit to each of its franchises. As per the stats taken out in the year 2018, the company had made a humongous profit of $1 billion in the year.

With an already established name of the brand and trust in people, the Dunkin Donut Franchise will have a sturdy flow of customers. With their USP of constant work on new recipes and ecstatic variety of baked goods, customers are assured to come in and munch on their favorite snacks without wondering a lot.

The restaurant has something for everyone and so people even on foot can never stop coming in delighted by their favorite treats and wonderful coffee.

 

Tools and support

The company delivers tools when a new Dunkin Donut Franchise is established to help the business flourish. The company also provides support to make the business owner or the manager and staff understand the working of the Dunkin Donut Franchise. This helps in accomplishing the management goals for the franchise. The support training also makes the franchise learn how to work and operate the store more efficiently to ensure cost efficiency and effectiveness.

In case the franchise is facing any trouble in understanding the market or the operations, the company will be ready to help in the understanding.

 

What are the requirements to start a Dunkin Donut Franchise in India?

Area

Area sizes can differ as per the choice of the owner of the franchise but the ideal area for Dunkin Donut Franchise is between 300 sq ft to 700 sq ft. the company is focusing on opening small stores right now as they are both cost-efficient and profitable to the country.

The location of the store is mandatory to be in a rushed area with easy accessibility. The furniture, equipment, and ambiance should be as per the company standards. There should be a seating arrangement for at least 4 to 5 people.

 

Skills and Experience

The priority of the company is to find a business owner who has prior experience in the food industry. Dunkin Donut is constantly looking for growth in business and is only associating with the experts or people who have experience in the industry.

They are also seeking for a person who can efficiently run and operate a high performing team.

The company runs a background check on the owner. Finds out about their past experiences and only works with the person or the owner of the track record is acceptable.

 

Regions of operations

The company is spread out in about 10,000+ locations around the world covering 60 countries. In India, the brand is still new and is seeking to establish more and more outlets. Right now, Dunkin Donut Franchise stores are present in around 9 states of the country. The company is planning to open more stores covering all the states and all the major cities of India.

The target is to reach more and more population in one of the most populated countries in the world and the largest marketplace too.

 

Training

The training program requires a minimum of two people to attend, the runner of the business and the partner or the shareholder. The training program goes on for about 20 days. Once the training is done, the next comes an online training that is about 65 hours long and can be completed at the Dunkin Donut Franchise itself.

The training program is mandatory to attend by the management as well as the staff working at the outlet. The training is specifically made to cover all the programs from branding to business management. The training comes along with support from the team experienced in operations, marketing, and development. The training purpose is to introduce the employees to the work method and the goals of the company they need to achieve. Also, the ethics of the company are included in the training program.

 

Requirement of staff

According to the area, the staff requirement can differ. The ideal staff requirement of a Dunkin Donut Franchise is 25 to 30 employees including the helping and cleaning staff, the kitchen staff, the management, and the front face staff.

 

Conclusion

Source: Wall Street Journal

Dunkin Donut was established in 1946 by Bill Rosenberg. Bill started a small coffee and donut shop for the local workers in the town of Quincy, Massachusetts but soon his shop had gained immense popularity.

In 1950, they opened their second shop and since then there has been no looking back.

Just 70 years ago there were only two outlets of the company that now is spread in 10,000+ locations around the world in over 60 countries.

The company runs with the USP of serving a vast variety of baked goods and a marvelous coffee of supreme quality to its customers to give them smiles.

When you own a Dunkin Donuts Franchise, you also own their brand name for your business that you do not have to build from scratch.

An approximate investment of 1.8cr rupees will get you your Dunkin Donut franchise up and running.

To make sure you get the ownership, it is mandatory for you or the owner to have experience in the food industry along with a net worth of 3 cr. at least.