Dunkin Donut’s achieving pre-eminence in Boston and areas surrounding the corporate headquarters is not reason for them to become complacent. Knowing that rapid changes in the fast food and franchising environment is accelerating at top speeds, the company is banking on its Richmond project to help its other franchises achieve pre-eminence in their own locations. The Richmond project will create changes to the technology of Dunkin Donuts operation. Franchises graduate from the Dunkin Donut University to be able to source and cook the donuts themselves at top quality.
With the Richmond project, this manufacturing model will change. In the aim of the project to accelerate the way towards pre-eminence and achieving full market penetration, a central production facility (CPF) linked to satellite distribution points will enable Dunkin Donut retailers to concentrate their energies to customer service. These changes will affect operations of Dunkin Donut both for the head quarters and the receiving franchises of the Richmond project. For one, priorities will change. The priority of the CPF is to supply quality merchandise to the franchises on time and in proper quantity.
The priority of the franchises is to make sure that they adhere to forecasting standards of the CPF so that wastage is controlled. Supply chain management plays a crucial role in the new technology of operations employed. Though franchises will be rid of waking up at 1am just to start cooking donuts, the delivery systems have to operate at effective and efficient rates. Another crucial change to operation is the merging of Dunkin Donuts and Baskin Robbins in terms of site development that is also geared to maximize profitability.
The technology of operations has to be flexible to accommodate Dunkin Donut and Baskin Robbins’ unique brands while profiting through the integration. The Richmond project is an innovative challenge to Allied Domecq in evolving its operations using technology that guarantees quality while the company expands. Reference: Schmidt, Ruth A. and Oldfield, Brenda M. 1999. Dunkin’ Donuts – the birth of a new distribution and franchising concept. Consumer Marketing, Vol. 16 No. 4 1999 pp. 376-383 MCB University Press
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