NATIONAL TEACHERS COLLEGE

629 Nepomuceno St, Quiapo, Manila, 1001 Metro Manila

CASE STUDY
DISTRIBUTION MANAGEMENT
PROF. DR. DAISY H. ESTRADA

GROUP 3 MEMBERS:
CAPINIANES, MARK ADRIAN DJ.
DEJUCOS, RENALYN M.
DIZON, ANNE LORAINE M.
GODOYO, ANGEL M.
FERNANDEZ, JUDY ANN
JABAL, EULA RICA GRACE N.
MACAHIA, KATRINA MARIE R.
MAGANTE, JOHN LLOYD C.
RAMOS, KAY ANN F.
REUNIDO, ALONA
SINLAO, LOUISE IBARRA I.

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 ACKNOWLEDGEMENT

We would like to express our gratitude to everyone who helped and

supported us throughout the case study. We appreciate their aspirational

suggestions, priceless constructive criticism, and courteous counsel

throughout the endeavor.

First and foremost, praises and thanks to God, the Almighty, for pouring

blessings throughout the case study and providing us with adequate

strength and teamwork to accomplish our work. Our families and friends

deserve special recognition for their patience and encouragement

throughout the course of this effort. Without them, accomplishing this

would be very challenging.

To our professor, Dr. Daisy H. Estrada, we acknowledge the kind of

support, effort, and timely guidance she provided. It would have not been

possible to complete the study without her valuable support.

Lastly, we would like to acknowledge and give our warmest thanks to the

Supervisor of Dunkin Donut – Legarda Branch, Mr. Michael Sison, for the

time, work, and advice they gave, as well as their thoughtful efforts to

share their knowledge and cooperating with us in the interview. We were

able to complete the study despite many obstacles and circumstances

thanks to their unwavering guidance.

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 ABSTRACT

The American multinational coffee and doughnut company, Dunkin’

Donuts, has more than 13,200 restaurants in 40 global markets, making it

one of the largest coffee shop and donut shop chains in the world. In the

Philippines, Dunkin’ Donuts has been serving Filipinos for over 40 years.

There are more than 700 branches across the country achieving a high

degree of accessibility to cater to as many people as possible. Dunkin’

Donuts operates using a franchise model. The organization and

management structure mainly focused on supporting franchisees in terms

of operation, marketing, distribution, and innovation. Dunkin’ Donuts uses

a selective distribution strategy wherein its products and services are

available in a few retail outlets in a specific geographical area. The

company conducts both direct and indirect distribution channels. Dunkin’

Donuts strengthened its supply chain management, timely delivery,

inventory management, franchisee support, quality control, and

sustainability initiatives to protect its competitive advantage in the food

industry. Dunkin’ Donut was able to maintain this distribution strategy

through the years. Being one of the biggest coffee shop and donut shop

chains in the world, Dunkin' Donuts' success is a result of its efficient

distribution management. The company remains competitive and

remains in the industry due to the consistent supply flow from suppliers to

the point of sale.

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 TABLE OF CONTENTS

I. INTRODUCTION
A. Overview of the Study - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 7 – 8
B. Objectives of the Project - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 9

II. Description of the Firm

A. History - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg.10 – 11
B. Organizations and Management - - - - - - - - - - - - - - - - - - - - pg.12 – 15

III. Current Distributions Schemes and Capabilities - - - - - - - - - pg.16 – 17

IV. Illustrative Description of the Distribution Process - - - - - - - - pg. 18 – 21
V. Assessment of the Distribution Process - - - - - - - - - - - - - - - - pg. 22 – 24
VI. Summary, Conclusions, Recommendations
A. Summary - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 25 – 27
B. Conclusions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 27 – 28
C. Recommendation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 29 – 30
Bibliography - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 31

TABLE OF FIGURES
Documentations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg 6
2.1 Organizational Chart - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg.12
3.1 Flow Diagram Chart - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg.18
3.2 Flow Diagram Chart - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 19
3.3 Flow Diagram Chart - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - pg. 20

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 DOCUMENTATION

Dunkin’ Donuts Legarda St 1001 Manila City of Manila Philippines

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 I. INTRODUCTION

A. OVERVIEW OF THE STUDY

Dunkin Donut is a "quick service restaurant." This is a type of restaurant

with fast service, a casual atmosphere, few places to sit, and a small

menu. A fast-food dinner is a place where you can get cheap meals that

are always made the same way and quickly. Dunkin' Donuts is the world's

largest chain of donuts, coffee, and baked goods. They now have about

700 stores all over the country, and their goal is to have 1,000 stores all

over the country.

Donuts, freshly brewed coffee, and other savory treats that are typical

"pasalubong ng bayan" are served here. Dunkin Donuts also has more

than 13,200 stores in almost 40 different countries. Inspire Brands owns

several restaurants, including Dunkin' Donuts. Also, around the world, there

are more than 11,300 Dunkin' Donuts shops. That's more than 8,500 stores

in 41 states in the U.S. and more than 3,200 stores in 36 other countries.

Dunkin' Donuts also has 270,000 workers, 54% of whom are women and

46% of whom are men.

Franchises owned by Dunkin’ Donuts are successful businesses; their 23%

EBITDA margin is significantly greater than the typical profits for a quick-

service restaurant. The average Dunkin’ Donuts generates roughly

$305,000 in profits (earnings before interest, taxes, depreciation and

amortization) annually based on an average annual turnover of

$1,056,000.

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Here in the Philippines, The first Dunkin' Donuts store opened in Makati

Commercial Center in 1980. According to Philstar, last 2010 the world’s

biggest donut, coffee and baked goods chain Dunkin’ Donuts has

expanded to approximately 700 outlets all over the country, serving

donuts, original brewed coffee and other savory treats. Dunkin’ Donuts

continues its hugely successful Philippine expansion, targeting the opening

of 1,000 outlets nationwide. According to Rosanna Ledesma, business

development director of Golden Donuts, Inc., the company that brought

the international brand to the country, the move “furthers the company’s

vision of bringing the brand closer to more homes all over the country,

making it truly part of the Pinoy’s everyday life. The locations that convey

the fun and vibrant Dunkin' Donuts philosophy will be prepared to offer an

ever-growing number of customers the chain's classic goods, including

signature donuts like the Choco Marble Frosted, Sugar Raised, and

Bavarian Kreme, the all-time favorite Munchkins, original brewed and iced

coffee, as well as popular Bunwiches and croissants.

Dunkin’ Donuts is renowned for offering a huge variety of donuts. In

addition to many others, they include varieties like glazed, chocolate

frosted, Boston Kreme, and jelly-filled. Munchkins: Available in a variety of

flavors and assortments, Munchkins are bite-sized donut holes. Coffee

selections at Dunkin’ Donuts include hot and iced coffee, espresso, lattes,

cappuccinos, and macchiatos. There are various coffee flavors and

blends available. Breakfast sandwiches are available at Dunkin’ Donuts

on bagels, English muffins, croissants, or with alternatives like bacon, egg,

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 and cheese or sausage, egg, and cheese. Bagels and other bakery items

are available, along with muffins, croissants, and other goodies. Frozen

Drinks & Coolattas: Dunkin’ Donuts offers a variety of frozen drinks, such as

Coolattas in flavors like strawberry, vanilla bean, and coffee. Sandwiches

and wraps: Dunkin’ Donuts provides a selection of sandwiches and wraps

for lunch, including versions with turkey, chicken, and ham. The size of a

product may vary at Dunkin’ Donuts. They normally provide the following

serving sizes for coffee and other beverages: Small: Usually 10 ounces (296

ml). Typically, a medium is 16 ounces (473 ml). Typically 20 ounces (591 ml)

or larger.

B. OBJECTIVES OF THE PROJECT

1) To understand how Dunkin donuts deal with their supplier and how they

optimize distribution process to ensure the timely delivery of high-quality

donuts and beverages to its consumers

2) To know how Dunkin Donuts Develop and implement stringent quality

assurance standards for donuts and beverages to Ensure that all suppliers

and distributors adhere to these standards to maintain product quality

and consistency.

3) To determine the impact of Dunkin' Donut's distribution strategies on their

business and to know how Dunkin Donut became successful because of

their distribution strategy

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 II. DESCRIPTION OF THE FIRM

A. HISTORY

Dougnut or more popularly known as donuts, a globally known snack or

dessert made from fried dough has, since it was introduced, in the 1980’s

by the Americans, captured the delicate and palatable taste buds of

Filipinos for sweet baked snack. In fact, local patronage has been

steadily increasing. Nowadays, there are quite a number of stores, within

and outside prestigious malls all over the country sell donuts under various

brand name, has mushroomed and all competing for market share.

In 1950, William Rosenberg experienced a moment of clarity. He found

that the residents of Quincy, Massachusetts enjoyed dunking his

assortment of doughnuts into their morning coffee after he had baked

them for them. Donuts with coffee quickly became a popular treat, and

customers kept coming back for more. Because of this trend, Rosenberg

set out to provide the highest standard of coffee available. This

catapulted his company to unprecedented heights, eventually giving rise

to Dunkin' Donuts (Dunkin.co.uk, n.d.).

In 1963, at the age of 25, Robert Rosenberg took over the chain from his

father. The younger Rosenberg, a graduate of Harvard Business School,

ran the company until 1999. During his tenure, the company streamlined

its menu, switched to paper and Styrofoam cups, and added new items

like muffins, bagels, donut holes (Munchkins), croissants, breakfast

sandwiches, Coolattas, and more (Daszkowski, 2018).

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The development of the company persists. The brand change to simply

"Dunkin'" was revealed in September 2018 at the company's Global

Franchise Convention in Canton, Massachusetts. The new branding,

developed by Jones and a team that included Knowles Ritchie, BBO New

York, and Arc Worldwide, debuted in stores in January 2019. The pink and

orange color scheme and the logo font from 1973 were preserved by the

corporation (Daszkowski, 2018).

Dunkin's mission is to provide superior coffee with an increased level of

intensity. Each blend is handpicked to achieve the deepest, creamiest

taste. Dunkin' is committed to providing excellent coffee with a wide

range of flavors, whether you prefer a strong espresso, a creamy

cappuccino, or a decadent latte. Recently, Dunkin' Donuts is well-known

for its wide variety of delicious donuts. You may be sure that they will have

whatever it is that you're wanting, as their website offers over 50 different

donut varieties and always has seasonal promotions. Coffee and

doughnuts are as natural a pairing as bacon and jelly.

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B. ORGANIZATION AND MANAGEMENT

2.1 Organizational Chart

Every position at a Dunkin' Donuts location is essential to the franchise's

success.Each restaurant site will have a store manager, an assistant

manager, a shift leader, three to four crew members, and a baker during

the initial rollout. These occupations and the number of employees will

change depending on the demand at each site. All five Dunkin' Donuts

locations will conduct a bi-monthly review of staff performance and a

sales analysis. Every restaurant has a store manager in charge of

overseeing the day-to-day operations. They will ensure that the costs of

food, cleanliness, food preparation, and marketing are kept below

acceptable limits at their restaurant. The success of a restaurant depends

heavily on store management. The assistant managers, shift leads, and

crew members at the new Dunkin' Donuts stores will be under the

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 management of the locations' managers, who are in charge of their

growth and development.

Dunkin' Donuts is a popular international chain of quick-service restaurants

specializing in coffee, doughnuts, and other baked goods. The

organization and management of Dunkin' Donuts follow a hierarchical

structure with a transparent chain of command. Here is an overview of

the organization and management of Dunkin' Donuts:

The corporate structure at the top of the organizational structure is the

parent company, Dunkin' Brands Group, Inc., which oversees the Dunkin'

Donuts brand and other brands. Dunkin' Brands Group sets the overall

strategic direction and provides support to franchisees. Dunkin' Donuts

primarily operates using a franchise model. The company grants

franchises to individuals or entities to conduct their own Dunkin' Donuts

locations. Franchisees have significant autonomy in managing their stores

while adhering to the brand's standards and guidelines.

• Executives: Dunkin' Brands Group has an executive leadership team

responsible for making strategic decisions, overseeing operations, and

ensuring the growth and success of the brand. This team includes positions

such as the CEO, CFO, CMO, and other key executives.

• Regional Management: Dunkin' Donuts operates with regional

management teams that support and guide franchisees. These teams

oversee a specific geographic area and ensure franchisees maintain

brand standards, receive operational support, and effectively implement

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 marketing initiatives. Dunkin' Brands Group maintains a strong relationship

with franchisees. They provide initial training, on-going support, and

access to various resources, including marketing materials, operational

guidelines, and technology platforms.

• Operations and Training: Dunkin' Donuts has established standardized

operating procedures for different aspects of the business, including food

preparation, customer service, and store maintenance. Franchisees

receive comprehensive training on these procedures to ensure

consistency across all locations.

• Marketing and Advertising: Dunkin' Donuts has a dedicated marketing

team responsible for developing and executing marketing strategies and

campaigns. They work closely with franchisees to ensure consistent brand

messaging and support local marketing initiatives.

• Supply Chain Management: Dunkin' Donuts has a robust supply chain

management system to ensure the availability of high-quality ingredients

and other supplies for its stores. They work with suppliers to maintain

consistent product quality and negotiate pricing to benefit franchisees.

• Technology and Innovation: Dunkin' Donuts invests in technology and

innovation to enhance the customer experience and streamline

operations. This includes mobile ordering, loyalty programs, and digital

marketing initiatives.

Franchisees are encouraged to adopt and leverage these technologies

to improve their store's performance. Overall, Dunkin' Donuts' organization

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and management structure focus on supporting franchisees, maintaining

brand standards, and driving growth through effective marketing

strategies and operational excellence.

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III. CURRENT DISTRIBUTION SCHEMES AND CAPABILITIES

Distribution Strategy plays an important role because it reduced costs,

more transparency and collaboration, wider customer reach and faster

growth. Dunkin Donut is using selective distribution.

Based on our survey and research, Dunkin Donut is using Selective

Distribution. Selective Distribution is selling a product at select outlets in

specific locations. Doing this allows manufacturers to pick a price point

that targets a specific market of consumer, therefore providing a more

customized shopping experience.

Additionally, since the 1970s Dunkin' Brands has utilized franchisee-owned

regional distribution centers to supply products to its domestic Dunkin'

Donuts franchisees, but the costs of those supplies, historically, would vary

depending on the concentration of restaurants and other distribution

requirements. Under the new agreement, uniform costs will eventually be

charged across the core distribution area so franchisees in areas with

fewer restaurants will not pay a premium compared to franchisees in

areas with more stores. In return, the Dunkin' Donut franchisee-owned

cooperative will be assured that, provided they meet certain

performance-based requirements, Dunkin' Brands will use them as the sole

procurement and distribution partner for domestic Dunkin' Donuts

restaurants. Dunkin’ Brands generates revenues primarily through royalties

from franchisees (owners of individual retail locations), rental income (also

from franchisees), sales of goods within Company-owned stores and

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elsewhere and other licensing fees. Moreover, Dunkin Donuts’ strategy for

distribution includes direct and indirect channels. Direct channels include

Dunkin Donuts outlets where customers can enjoy a variety of products

daily. Dunkin Donuts serve the customer directly and get feedback

instantaneously which is very important in today’s world to improve and

satisfy the customer by providing value. Indirect channels involve retailing

partnerships with stores like Wal-Mart, Kroger, and CVS, where Dunkin

Donuts coffee is available. Dunkin Donuts is present in over 24 countries

through franchises and has formed strategic alliances with local home

décor outlets. Throughout the years, Dunkin’ Donuts has maximized retail

outlets like convenience stores, franchisees, department stores, and

shopping malls.

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IV. ILLUSTRATIVE DESCRIPTION OF THE DISTRIBUTION PROCESS

3.1 Flow Diagram

Dunkin’ Donut method in distribution is selective distribution. Selective

distribution is a system and strategy by which a company sells its goods

through a select group of intermediaries. This involves a smaller number of

intermediaries, using criteria set by the vendor such as geographic region,

service and support capabilities. The reputation of the intermediaries is

important in this method because vendors need to have a stronger

relationship with retailers in order to be selective.

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 3.2 Flow Diagram

Dunkin’ Donuts distribution channels are direct and indirect channels.

Companies are able to establish sincere connections with the consumers

of their products through direct distribution. Customers' comments and

product performance evaluations can be addressed by businesses.

Direct-to-consumer fulfillment services allow businesses an opportunity to

interact with customers and earn their loyalty and confidence. On the

other hand, by using indirect distribution, you can separate the expenses

of delivering and storing goods. Simplifying the process of finding your

items for customers. Gain from the expertise, resources, and sales force of

your third party. In addition, in terms of distribution channel, Dunkin’ Donut

is using level 2 Distribution Channel in which distributor delivers products

only to retailers, who sell them to consumers.

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 3.3 Flow Diagram

Lastly, Dunkin’ Donut is using distribution franchise. It is a contract in which

a franchisor gives the franchisee the right to distribute or sell a specific

product on its behalf. Under this arrangement, the franchisee becomes

the exclusive or semi-exclusive distributor of the franchisor’s product.

Similar to a business format franchise, the franchisor licenses the franchisee

with the right to use their trademark, logo, and trade name. However, a

distribution franchise is distinct from a business format franchise because it

does not adopt the franchisor’s operational distribution system. This

arrangement limits competition for the franchisor’s products in these

areas, thus enabling a franchisee to increase their product sales. The

franchisee still maintains their local identity which affords them flexibility

with customized service for local consumers. Additionally, if required, the

franchisee provides pre-sale and post-sale services for the franchisor’s

products. Therefore, although the franchisee represents the franchisor’s

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image, the franchisee is still largely responsible for the system through

which they run their business.A distribution franchisee’s ability to provide

customized marketing and service increases its customer base and thus

improves sales. A distribution franchise accounts for a larger percentage

of retail sales than a business format franchise. This is because a

distribution franchise’s primary focus is on the sale of the franchisor’s

products and not the franchisor’s operational system. This focus enables a

franchisee to obtain quicker sales as they are bringing the franchisor’s

products to market within their own established system.

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 V. ASSESSMENT OF THE DISTRIBUTION PROCESS

The distribution process of Dunkin' Donuts involves a well-structured system

to ensure the efficient delivery of their products to their various outlets.

Here is a summary assessment of the distribution process of Dunkin' Donuts:

• Supply Chain Management Dunkin' Donuts has a robust supply

chain management system. They work closely with suppliers to

source high-quality ingredients and materials for doughnuts and

other products. This ensures consistent quality across their outlets.

• Dunkin' Donuts operates centralized distribution centers

strategically located to serve their outlets efficiently. These

distribution centers receive bulk orders from suppliers and store,

sort, and distribute the products to individual stores. Dunkin' Donuts

emphasizes timely delivery to ensure their outlets have fresh

products for customers. They have established delivery schedules

and use efficient logistics systems to meet these schedules. This

keeps their doughnuts fresh and of high quality of their doughnuts.

• Effective inventory management is crucial to Dunkin' Donuts'

distribution process. The company closely monitors stock levels at

each outlet and uses forecasting techniques to anticipate

demand. This allows them to replenish inventory promptly,

minimizing stockouts and waste.

• Dunkin' Donuts has a franchise model, and they provide extensive

support to their franchisees regarding distribution. They offer

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 training programs on inventory management, order placement,

and product handling to ensure consistency across all franchise

locations. Dunkin' Donuts maintains strict quality control measures

throughout the distribution process. They have established product

quality standards and conduct regular inspections to ensure

compliance. This helps keep the brand reputation and customer

satisfaction.

• Dunkin' Donuts has also taken steps to incorporate sustainability

into its distribution process. They have implemented eco-friendly

packaging and transportation practices to reduce their

environmental impact.

Overall, Dunkin' Donuts has a well-organized distribution process that

enables them to consistently deliver fresh and high-quality products to

their outlets. Their emphasis on supply chain management, timely delivery,

inventory management, franchisee support, quality control, and

sustainability initiatives contributes to their success in the competitive food

industry. Dunkin' Donuts is exploring various methods of increasing

distribution. Possibilities involving new outlets include area development

contracts, subfranchising, regional rollout strategies, and an increase in

company owned stores. Possibilities focusing on existing shops include

sales of branded products through convenience stores and satellite (non-

producing) retail outlets. The case provides consumer data and detailed

information about regional differences, franchise relations, and shop

operations. Raises issues relating to both strategy formulation and

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implementation in a franchise system and requires the student to analyze

the interaction between the structure and management of a franchise

system, and how they both relate to the market

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 VI. SUMMARY, CONCLUSIONS, RECOMMENDATIONS

A. SUMMARY

Conducting a distribution management at Dunkin Donuts is exciting and

challenging. We learned a lot especially on their journey on how they

become successful. Dunkin’ Donuts is an example of a fast-food

restaurant which has a limited menu. They offer donuts, coffee, and a

variety of baked goods. Dunkin’ Donuts’ goal is to have 1,000 stores all

over the country and they have 700 stores nationwide. In addition, more

than 13,200 Dunkin Donuts locations can be found in nearly 40 different

countries. Here in the Philippines, the common "pasalubong ng bayan" like

as donuts, freshly brewed coffee, and other delicious snacks are served.

Every Filipino is familiar with Dunkin’ Donut that’s why we chose their

company in our study. In addition, the purpose of our study is to

understand how Dunkin Donuts works with its supplier and how it

streamlines the delivery process to ensure that its customers receive high-

quality pastries and beverages promptly. Moreover, to comprehend the

stringent quality control requirements that Dunkin Donuts creates and

upholds for its pastries and beverages. We also want to understand how

Dunkin' Donut's distribution techniques affect the company's operations

and how such strategies helped Dunkin' Donut achieve success.

In Dunkin Donuts, a store manager oversees managing the daily

operations at each restaurant. They will make sure that their restaurant's

costs for food, hygiene, meal preparation, and marketing are kept within

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achievable limits. The managers of the sites, who oversee their growth and

development, will oversee the assistant managers, shift leads, and crew

members at the new Dunkin' Donuts restaurants. For different aspects of its

operations, such as food production, customer service, and store

maintenance, Dunkin' Donuts has established standardized operating

procedures. The manager of each site also ensures the availability of high-

quality ingredients for their donuts and other supplies of their store. Dunkin’

Donuts is very strict when it comes to quality control. Upon interviewing

one branch of Dunkin’ Donuts specifically in Legarda, we discovered that

donuts should be discarded after 18 hours only. In Dunkin’ Donuts

Legarda, they must reach a quota of ₱ 40,000.00 worth of products each

day. Each branch also has a contact with the delivery driver. If there is a

delay in the delivery time, the manager of the site will immediately report

a complaint to their supervisor. When it comes to complaints or about the

quality of the products they are offering, the delivered goods will be

returned to their supplier immediately. In Dunkin’ Donuts there are two

schedules of deliveries. They are having a delivery every day for the

supplies in the stores and for the supplies of their products. The first delivery

will be at 6:00 am and the second will be at 11:00 am. In Dunkin Donuts

Legarda branch, their store opens at 7:00 am and closes at 8:00 pm. They

are also strict when it comes to their inventory and ensures that everything

is organized and counted. They have three schedules for updating their

inventory. The first schedule is in the morning, at 6:00 am, the second time

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 that they will be updating their inventory is in the afternoon at 2:00 pm

and lastly in the evening before they close the store at 8:00 pm.

Managing inventory is not difficult if the employee is knowledgeable

enough in the field of the job. With this kind of strategy, Dunkin’ Donut was

able to be successful through the years.

B. CONCLUSION

In the final analysis, Dunkin’ Brands has successfully maintained a strong

franchise network that has been adept in maintaining strong growth,

profitability and brand recognition while significantly shifting its business

model from food towards beverage. Without direct control over retail

locations, Dunkin’ Brands has continued to focus on franchisee coaching

and support, marketing and advertising and consumer feedback in order

to maintain its overall business and has been quite successful in

maintaining this quality without the distraction of day-to-day operations.

Dunkin’ Donuts’ distribution management is an important part of their

business cycle as they outsource their products and services through

establishing a relationship between the franchisor and local franchisees.

The success of Dunkin' Donuts greatly influenced by its distribution

management. Dunkin' Donuts makes sure that its products are continually

accessible to customers in a convenient and effective way by

strategically managing its supply chain, choosing store sites strategically,

adopting technology, and offering franchisee support. The immersion

activity allowed the group to examine the distribution management of

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one of the Dunkin’ Donuts franchises. The group learned that on top of

Dunkin’ Donuts' priorities are quantity and quality checking as soon as the

product supplies have been delivered. The goal is to ensure that donuts

and beverages maintain their freshness and goodness to serve the best

quality products to their customers. To guarantee that suppliers and

distributors adhere to standards maintaining product quality and

consistency, they practice careful observation of the timely delivery in the

supply chain. Supplies must be delivered on time to measure the

efficiency of the supply chain. The business also takes quick actions, such

as reporting to the management or suppliers, if the products do not meet

the quality control standards. Dunkin’ Donuts’ effective distribution

management contributes to its success being one of the largest coffee

shop and donut shop chains in the world. The persistent delivery flow, from

suppliers to the point of sale, keeps the business competitive and stays in

the industry. It is also what keeps the customers feeling satisfied and keeps

patronizing Dunkin’ Donuts. By maintaining its reputation for convenience

and quality through efficient distribution management, the company

strengthens its position in the fiercely competitive food and beverage

sector.

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 C. RECOMMENDATION

• The study shows that Dunkin’ Donut has a limited variety, limited

international presence and limited store. Dunkin' Donuts could expand its

menu to cater to a broader range of customer preferences.

Therefore, we recommend the ff:

• Healthier Menu Options

This could include introducing more plant-based options, healthier choices, or

unique flavors. They can also remove artificial sweeteners, flavors, and

preservatives from their menu. By doing this, Dunkin can attract customers

who want healthy breakfast and snacks. They can also advertise their healthy

menu on social media platforms to let people know and attract customers

who are looking for healthier options.

• Diversification into New Variants and Food Product Categories

Dunkin can also acquire the opportunity of diversification by introducing new

product lines in its menu, such as new sandwich variants, salads, snacks,

smoothies, juices, and tea, which can be adapted to tastes region or culture-

wise. Customers are looking for a wider variety of food and beverage options,

and Dunkin can attract them by offering co-branded products and partnerships

with other companies. Dunkin' Donuts is known for its coffee, so offering diverse

coffee blends and flavors is essential. Expanding their non-coffee beverage

options, such as teas, smoothies, or specialty drinks, can cater to a broader

customer base. Dunkin can also consider introducing regional flavors and

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specialty drinks to cater to local tastes. Dunkin can also conduct surveys and

focus groups to gather feedback from customers and use this information to

improve its menu and offerings.

• Expand Market Presence

With the increasing preference for convenience and contactless services,

Dunkin’ can expand its drive-thru facilities and enhance its delivery capabilities

to cater to customers who prefer quick and convenient service. This would help

the company reach more customers, especially in a post-pandemic world

where contactless options are preferred. Dunkin can also consider partnering

with other companies to open stores in non-traditional locations such as airports,

train stations, and malls.

• Technological innovation

Dunkin’ can continue to invest in digital technology, such as mobile ordering,

loyalty programs, and artificial intelligence-driven personalized marketing, to

improve customer experience, streamline operations, and gain a competitive

edge.

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