Dunkin' Donuts 2015 Annual Report Download - page 4

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Despite this success, we were disappointed with the
Dunkin’ Donuts U.S. comparable store sales performance
particularly in the second half of 2015.
In response to this, we spent countless hours doing deep
dives into our customer analytics, and based on those
findings, developed a 5-part strategic plan, which we
believe will return our brand to the type of comparable
store sales growth we know we are capable of delivering.
We then spent time out on the road in late 2015,
previewing this plan with our franchisees to gain their
alignment and commitment in order to ensure the
long-term sustainability of the plan.
As we discussed with our franchisees, Dunkin’ Donuts is
a brand that operates in between the high- and low-end
of the fast food marketplace. And although operating in
the middle can sometimes be a dicult place to be, it is
also a position that oers us tremendous opportunity
because it means that Dunkin’ Donuts is a brand that is
accessible to all demographics and income levels.
DUNKIN’ DONUTS
U.S. STRATEGIC PLAN
SECOND, we are improving our innovation process
and are focused both on enhancing the product quality
of our core oerings and accelerating our ability to take
new products to market. The Sweet Black Pepper Bacon
Breakfast Sandwich and the Macchiato are examples of
the successful types of products that have recently
come out of our innovation pipeline, and there will more
of these going forward.
FIRST, we will significantly increase our focus on further
building a coee culture at Dunkin’ by more aggressively
pursuing coee innovation. We will particularly focus on
capitalizing on our Iced Coee leadership and on
introducing more premium espresso-based oerings like
our current Macchiato line of products. Espresso-based
beverages were one of our fastest growing categories in
2015, which speaks to the fact that in addition to the
popularity of our drip coee products there is huge
opportunity for us with premium coee oerings.
To take advantage of our unique position,
we are focusing on five main strategies:
Sweet Black Pepper Bacon Breakfast Sandwich
Premium Espresso-based Beverages