The New Dunkin’ Donuts

What do you think of when you think of Dunkin’ Donuts? Chances are, you might be envisioning a hot, stimulating cup of coffee instead of a sugary treat. That’s because a few years ago, CEO Jon Luther led the brand through a fundamental change. Instead of being known as a food-based business, the focus shifted to beverages. A change like this might have seemed impossible to some; after all, ‘donuts’ are in the name of the stores themselves. But through a company-wide values emphasis and marketing savvy, Luther and his team were able to bring Dunkin’ Donuts to the forefront of competition.

When Luther took the reins of Dunkin’, the Atkins Diet and low-carb phenomenon were just beginning to cause a frenzy for low-carb foods – and a backlash against highly-processed confections. Dwindling sales and brand presence meant that something needed to change. Luther energized his troops by promoting corporate-wide values such as honesty, humility, and integrity. Those who didn’t want to get on board simply were out, leaving Luther with a group dedicated to re-launching and re-vamping the Dunkin’ brand. By switching from traditional, baking-focused ads to spots that featured busy people fueled by Dunkin’ Donuts coffee, the company was able to portray themselves as an integral part of the day rather than a special, occasional treat. The data suggests a smashing success for Luther and his company: Dunkin’ and Baskin Robbins are averaging $6.6 billion in sales per year. The new slogan, “America runs on Dunkin’” quickly became the motto for caffeinated professionals everywhere, and the rest is history.