Now that the cat is literally out of the bag, Dunkin’ Brands has made it officially known that they are interested in going public on NASDAQ. This would be a necessary step in building enough cash so that they can command attention in the western market of the United States and creep up on the Starbucks coffee war numbers.
According to an anonymous executive, they incur a supply chain challenge at approximately 7-10% higher costs of procurement and distribution with their supply hub coming from Chicago. This seems excessively high as Warren Buffet’s rail roads and the very large Port of Long Beach, CA could be used as well as a possible land bridge trucking combination.
This Canton, MA based corporation is doing extremely well in the local area. I recently applied to two different positions as they are expanding their operations team. My beverage supply chain expertise and high level sales management experience seemed like a perfect match but my application grew quiet as an internal candidate took the coveted spot. Officially, I was asked to apply to other positions but to date they haven’t even scheduled an interview. So much for the number one ranked Penn State supply chain Graduate Certificate with a 3.56 gpa!
The Canton, MA headquarters has a real functioning Dunkin’ store and a Baskin Robbin’s on the first floor with a full size basket ball court in the parking lot. Do they play the neighbors over at Reebok? I could be a power forward on the office team and can clearly box out.
I felt I was a strong candidate and even offered some very creative and outside of the box ideas on how to help grow the business with my past experience with Coca-Cola’s “Project 2000” and modern beverage industry trends. As an almost daily customer of the franchise stores I can clearly see room for growth in a variety of areas.
In Boston, the measurement of the D&D store is by feet not by miles. With such a saturated foot print the average customer can decide, within reason, if they want a drive through, better situated parking, or a smaller line at a distant store. You can clearly see that the 400 Square foot airport outlets do a tremendous business. In continuation of my thoughts about using a smaller footprint I asked about branded vending machines. Why are their no top of the line Dunkin’ Brands vending machines that have the ability to dispense hot and cold fresh ground coffee with any combination of sugars and milk you can think of. How many combinations does the Coca-Cola Freestyle fountain vending machine have? The newest Pepsi machines allow the social user to buy a code for friends and redeem them at all new machines. Imagine the sales of full branded D&D machines in Time Square NYC vs. an old coffee vending machine with tiny Styrofoam cup. How about drive through coffee vending machines?
Further, why not compete in the energy drink category with a line of canned prepackaged beverages that could ride on the distribution systems of established beverage companies? You build this brand but fail to sell the idea. Starbuck’s has coffee in the convenience stores and they do sell because they aren’t being challenged. At the very least mirror the strategy, like in a game of chess!
My other original idea was based on the, “Groupon” mentality of buying and selecting a dozen donuts to build by smart phone application for friends or co-workers. I just know how long the lines are in the morning and wouldn’t it be nice to have you donuts pre-ordered for a meeting with value added coffee, juice and breakfast sandwiches all delivered to the office without having to “sky cap” in the lap top, the presentation packets, and the all other hassles. The water companies have home and office delivery? Why doesn’t Dunkin lead the charge for an operational streamlined bakery savings. If the demand is pre-ordered you will sell exactly what was ordered. This equates to less spending on gas for a one way ride, less waste, and no out of stocks and a manufacturing savings. Further, the Japanese already did a case study on freshness and the outcome of their continuous improvement was to have smaller multiple daily deliveries to keep up with demand at their 7/11’s.
So I ask the question, why was the internal candidate hired when upon my first day of being hired I can directly save the company 15K. I’m talking 15K from the moment I sign my pen to paper. That seems pretty good for the first minute of work with the tax incentives that come with hiring me? I was told that while the internal candidate was still negotiating his lofty salary, that I was no longer a candidate. Seems fishy to me, as they should have sealed the deal and then informed me I was no longer in the running. Be sure that the water for that coffee is clean and pristine! That, my friends, is an honest look at why a fresh set of eyes are priceless among true winning operational team builders.
Prepared by Ken Kansky of www.Zibiza.com a boutique supply chain beverage consultancy.
Dare to dream big because with time and water you can move a mountain with water, gravity, erosion, and plate tectonics.