Dunkin Donuts expanding….again?

I happened to notice a Dunkin’ Donuts ad that ran during Monday Night Football the other night.  It appears they are looking to expand their reach after recently going public.  Dunkin Donuts are primarily an East Coast company and to spend the money to run national ads shows they really want to increase their national presence.  I also took notice of the ad since it was recently announced they are adding around 20 locations in the Des Moines market.

What I don’t understand is why they left the upper midwest in the first place.  I am from Minneapolis originally and we had a Dunkin Donuts less than a mile from our house and I recall at least a few other locations.  I don’t remember the coffee being all that special, although I was not really a coffee connoisseur at the time.

So what changed?  In my estimation, the rapid growth of Krispy Kreme around the country overwhelmed the market with donut shops and Dunkin’ Donuts most likely lost quite a bit of  local and national market share along with brand recognition due to that growth.  Krispy Kreme expanded way too fast so now they are the ones closing locations.  So, it’s possible that Dunkin’ Donuts purposely retreated to markets in which they already were dominant in order to rework their national strategy and now their IPO may be the knockout blow to Krispy Kreme (at least nationally).  The additional capital taken in from the IPO will most likely allotted to advertising and working with franchisees to expand to new markets.  It also appears on their website as though they are involved with many different social media avenues and using those to develop brand awareness on the Internet.

For their own benefit, hopefully Dunkin’ Donuts learns from Krispy Kreme’s mistakes of expanding too quickly.  I’m definitely looking forward to their expansion.  Now I won’t have to wait for work trips to the east coast for my Dunkin’ coffee fix.

-Chris

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