Dunkin Brands announced on Sept. 25 that it is officially dropping the word "Donuts" from its branding effectively in January 2019. From then on, the brand will be known as simply "Dunkin" in all of its ads, packages, and store signage, including all of the company's social media accounts.
In its announcement, the company said although the word "Donuts" will no longer be visible and associated with its branding, doughnuts will remain the key offering of all of its stores, including the 1,000 new stores the company is planning to open by the end of 2020. After all, no other company has superseded Dunkin as America's number one retailer of doughnuts. It has, in fact, has been selling an average of 2.9 billion doughnuts per year on a global scale.
Another exciting part of the name change is the company's plan to incorporate the eight-headed tap system for cold beverages in selected stores. This will encourage Dunkin crew to serve customers like bartenders. There will also be a glass bakery case at the forefront where guests can choose doughnuts on their own.
Other upgrades include Dunkin first-ever mobile order drive-thru lane where those who have pre-ordered online can skip the long queues at the stores.
The company explained that these changes are aimed at attracting the younger customers or the millennials without foregoing the company's heritage. The name "Dunkin" will still be presented in its familiar pink and orange colors and the company's iconic font that is all being used since 1973.
From January 2019, the new name will also be adapted across all brand new stores and remodeled stores worldwide.
Tony Weisman, chief marketing officer for Dunkin, has a nice interpretation about the impending name change. In a letter, Weisman said calling the company simply "Dunkin" is a relationship similar to when a stranger have another stranger call each other by their first names and then friendship ensues. In essence, the new branding is like taking Dunkin's relationship with its customers to the "friendship" level.
Dunkin has actually been undergoing a transformation in the recent years to attract more customers and increase its revenues. Most recently, the company simplified its menu and instead highlighted its beverages like Cold Brew Coffee, Nitro Coffee, and ice teas. It also introduced products like Donut Fries.
CNBC noted that Dunkin has been meeting growing market competition that it needed to transform from being merely a coffee and breakfast place. The company has presented its market strategy, including the name change, as early as February this year during a call with its investors.
Indeed, shares of Dunkin Brands jump 1 percent higher on Tuesday following its official announcement, CNBC noted.
