Dunkin Donuts: Case Analysis

Dunkin Donuts: Case Analysis

(A) DD and Tommy

What does Tommy want?

As the case suggested that Tommy has better things to do, therefore he was least interested in running the franchise according to the standards prescribed by Dunkin Donuts for the franchisee. He seemed to violate the rules and regulations that help to maintain a healthy relationship between a company and a franchisee. Tommy was more interested in pursing personal interest to the determinant of the company. The case highlights that Tommy wanted to buy the franchise from the company, take down the Dunkin Donut sign and wanted to run the shop under a new name of his choice, as he was of the perception that he was harassed by the company. He had a keen interest in buying this shop because the location of the shop was ideal. It was surrounded by offices and retails stores. The shop was situated in the area which was densely populated and heavily trafficked, making it a viable source of walk in business. Tommy wanted to buy this shop as he speculated that he will be able to make more revenue if he runs the shop of his own choice.

What does DD want?

Dunkin Donut is not only a very well recognized brand in USA, but it has a reputable brand image all over the world. The goodwill it has in the market helps to make it unique from other donut sellers. According to the case Dunkin Donut had severe problems dealing with Tommy. The store he owned always scored low in the customers satisfaction guide (below 80). The store was found to be dirty and low on cleanliness. Tommy was not providing the customers he entertained with quality donuts. He used to freeze the donuts that were left out at the end of the day, and sell those to the customers the other day. As a result, the customers regularly complained about the stale donuts that were sold to them. The promised made by the company about the quality was compromised. Besides, this the franchise owned buy Tommy also lacked proper records of sales, which was the only measure the gauge the sales performance of the franchise. He was also found to entertain customers with food products which were not allowed by the company as yet.

All these factors were contributing in not only hurting the business of the company, but the brand image it has created since its creation. Dunkin Donut wanted to make this shop a company oriented store or sell it to a new or existing franchise owner which was more reliable. The company wanted that to get rid of this problematic franchisee, in order to maintain the brand image, and the customer base it has acquired since its creation.

What options are there?

The first option that exists for Dunkin Donuts is to agree to the terms of Tommy and buy the business. As Tommy has already bought the land form the land owner, making him the new owner of the ...