Controlling Risk

Let’s face it, running a small business is a risk—and not just in a bad economy. Every day different challenges threaten to undermine a business owner’s efforts or sap his investment.

Some risks can be avoided; others, like natural disasters, can’t. Rupali Shah and Storm Wilkins, attorneys with the firm RPS Legal Solutions, LLC in Philadelphia, provide legal advice and representation of their business clients.  They also help franchise owners manage risks and prevent little problems from destabilizing a business.

“Business owners need to be more analytical when it comes to understanding the risks that can impact their business,” said Wilkins, who also holds an insurance training designation. “Whether it’s a slip-and-fall accident or a tornado, there are certain risks all businesses face.”

RPS is in the process of creating a training course to help owners of hospitality and fast food franchises better manage risk. Some of the information is pretty basic like posting contact numbers for all emergency personnel—not just police and fire but also snow removal or flood mitigation. And, all managers should know the name and contact info for the company’s insurance company.

According to Shah, in some circumstances, insurance companies can deny a claim or refuse to pay a settlement if the business owner has not met all the conditions of his policy. “Owners have an obligation to report any incident to their insurance company, in the event there is a claim or a lawsuit against them.”  In fact, Shah said, many business owners don’t even know how to submit a claim to their insurance company.  Business owners should consult with their agent or attorney in the event their insurance company denies coverage for a claim which they believe should be covered.

Insurance is one important risk management tools but there are others business owners must use to help avoid and mitigate risk. Perhaps the most important, according to Shah and Wilkins is employee training.

“Business owners risk exposure to lawsuits or fines if they do not make sure their employees are trained and supervised. When owners are off-site they are more exposed to employment liability cases,” Shah said. “What if you have a defective piece of equipment and no one tells you until there’s an accident? That puts you in a position of risk because the employee can claim you ignored the problem.”

Business owners also face exposure to fines and/or lawsuits if they are not in compliance with local and federal laws and regulations—from health and hygiene to sexual harassment.  Shah says having policies in place to train employees and educate them about changing laws can help insulate owners from risk.

RPS also advises business owners to maintain a cash reserve to cover unanticipated expenses. Many business owners have all their cash tied up in operating costs and debt service and that can create difficulty—especially when economic factors cause business to dip.

Some risks can be avoided; others have to be managed. In either case, business owners need to have plans in place and a trusted team to help them cope with even the most unexpected risk.

For more information about RPS Legal Solutions, LLC go to www.rpslegalsolutions.com

Franchisor Retaliation: A thing of the past?

The American Heritage Dictionary defines retaliate as, “To return like for like, especially evil for evil.” In life we are taught that one good turn deserves another. In franchising, many believe there is evil lurking when a franchisor decides it does not agree with the words or actions of one of its franchisees. This is especially so when the actions of the franchisor are based on that franchisee’s membership in or leadership of a franchisee association.

Attorney Eric H. Karp of Witmer, Karp, Warner & Ryan, LLP, a Boston-based law firm where he specializes in the representation of franchisee associations, says retaliation has been declining within most franchise systems for two main reasons.

The first is the growth in existence of franchisee associations. Unlike DDIFO, which was formed in 1989, many franchise associations have begun forming just in the past decade as franchising has become more common. More Franchisors have grown accustomed to the existence of independent franchisee associations this their systems, and the more enlightened ones will take advantage of the opportunity to collaborate with them,

The second reason Karp believes retaliation appears to be waning is traceable to the 2007 Federal Trade Commission (FTC) mandate that the existence of a franchise association be included in Franchise Disclosure Documents. The FTC said franchisors must, “Disclose, to the extent known, the name, address, telephone number, email address, and Web address (to the extent known) of each trademark-specific franchisee organization associated with the franchise system” for all prospective franchisees.

“One of reasons disclosure is so important is that they are a legitimate source of information about a system for a potential franchise owner. They teach you about the culture of a system,” said Karp. “The FTC’s regulation was fought by the franchisor community because it provides a stamp of approval on the existence of franchisee associations.”

Yet, many franchisees who organize new associations feel they are targeted by their franchisors—even if they can’t prove it. As Karp points out, there is still a minority of systems which believe in what he calls “power franchising”—another name for strong-arm tactics.  On the other hand, in 2004 Karp presented to the American Bar Association Forum on Franchising a study of the six known court decisions in which franchisees claimed to have been terminated, harassed, intimidated and/or retaliated against by reason of their affiliation with a franchisee association. The score was six wins for the franchisees; three substantial verdicts in their favor and three franchisor motions for summary judgment denied. 

Karp is quick to point out that in the Dunkin’ system, fear of retaliation seemed to diminish after former Chief Legal Officer Steve Horn resigned.

“Horn represented unenlightened leadership. System governance through litigation is not a recipe that motivates franchisees to reinvest in the system,” said Karp.

Today 13 states, not including Massachusetts where Dunkin’ Brands is incorporated, have laws that formally protect the rights of franchise owners to freely associate. In addition, several state courts have reaffirmed that right.  The oldest relevant case dates to 1979 where owners of AAMCO Transmission franchises in Michigan were found, “like all other persons in the United States [to] enjoy the right pursuant to the First Amendment of the United States Constitution to assemble, subject only to those exceptions specifically provided by the statute.”

According to Karp, franchise owners who choose to belong to an association—whether it is formally recognized by the franchisor or not—are part of a protected class, based on the actions of state and federal court judges and juries.

Karp says instances when organizers of new franchise associations have been sued, harassed or discriminated against are rare and don’t fit the maturing business culture surrounding franchising, which rewards long-term growth.

And, because there is often greater change among system owners and mangers than among franchise owners, companies that purchase franchise systems are increasingly recognizing the need to tap the institutional knowledge of the franchisees.

“There’s a growing realization that the only way to deal with competition in the marketplace is to establish a cooperative, collaborative and mutually respectful relationship with the independent franchisee association.”

DDIFO Names Seth Vice-Chairman of the Board

Asheesh Seth, the newest addition to the DDIFO’s Board of Directors, has been named vice-chairman of the board. The vote was counted at the most recent board meeting on June 22, 2010 and marks the first time DDIFO leadership has included a vice-chairman.

Prior to joining the DDIFO board in September 2009, Seth was the Executive Director of the Midwest Dunkin’ Donuts Franchise Association (MWDDFA). Last year, that group joined the DDIFO through the creation of a local member committee of MWDDFA members.

“One of the reasons we wanted to give Asheesh a larger leadership role on the DDIFO board, was to validate the importance of our national footprint,” said Kevin McCarthy, DDFIO Board Chairman. “Asheesh was an important voice in the MWDDFA’s decision to join with us and we to be sure the interests of those franchise owners are being addressed.”

“I am thrilled at the opportunity to serve as vice chairman of DDIFO.  I will continue to serve DDIFO and Dunkin franchisees to the best of my ability,” said Seth.

Seth is the Director of Operations for Sterlite Software, an information technology company in Chicago. A Punjabi Indian born in the US, Seth became acquainted with several South Asian Dunkin’ franchise owners through his work providing IT services to their franchises. When the MWDDFA was founded in 2005 he was asked to join as Executive Director.

“I feel that there are several opportunities that need to be explored with regard to DDIFO and the internet.  Through the utilization of social networking sites such as Facebook and Twitter, we can really get the word out as to what we are doing and possibly leverage these resources to better serve our members,” he said.

 In 2008, the DDIFO reorganized its Board of Directors, opting for a group of professional business people who are not Dunkin’ Donuts franchise owners. Other members include Joseph Kimball, Patrick Kaufmann, and Daniel P. Connelly. Jim Coen serves as DDIFO President.

DDIFO now represents over 2300 Dunkin’ Donuts shops in the U.S. and is currently negotiating with the Independent Association of Franchise Owners (IAFO), an organization of Dunkin’ franchise owners from New York, New Jersey, Pennsylvania, Delaware and Maryland to include those members in DDIFO as well.

According to McCarthy, “These new and diverse sections of the country are adding to the breadth and strength of DDIFO and bringing it closer to being a truly national organization of Dunkin’ Donuts franchise owners.”

Pieces of the Puzzle: A Guide to Successful Asset Protection

It’s estimated that 70% of family businesses in the U.S. fail after ownership is transferred from one generation to the next. Historically, Dunkin’ Donuts has attracted operators whose aim is always to pass the business down to their children—and beyond. The challenge of completing that transfer successfully and protecting the family’s assets is complicated by the language written into the Dunkin’ Donuts Franchise Agreement.

 “Dunkin’ owners face a tremendous hurdle,” says Seth Ellis, managing partner of Ellis & Goldberg, P.L. trusts and estate planning firm and a featured speaker at the recent DDIFO members’ meeting in Newark, NJ. “Understanding the intricacies of the Franchise Agreement is the linchpin to ensuring a successful transfer.”

Ellis, along with business colleague Gary Joyal, managing partner of Joyal Capital Management, L.L.C., offered a snapshot of the challenges Dunkin’ franchise owners face protecting their assets particularly in the face of a life event like death, marriage or divorce.

“The majority of Dunkin’ franchise owners have a substantial portion of their wealth tied up in their stores and corresponding real estate, so we have to be sure those assets are protected in a way that won’t trigger a default in the Franchise Agreement” says Joyal who has been working with Dunkin’ Donuts franchise owners for 20 years.”

According to Joyal and Ellis, one of the most common challenges a franchise owner and his family face when establishing an estate plan is ensuring their team of lawyers, bankers, accountants and insurance brokers are in synch and recognize how their plans will integrate with the Franchise Agreement.

During their 45 minute presentation at the Newark Sheraton, titled, “Pieces of the Puzzle: Plan Integration”, Ellis and Joyal offered the example of two brothers who partnered to buy and run three Dunkin’ shops. Each has children; one of the brothers is in his second marriage. The situation becomes acrimonious when one brother dies and a squabble over ownership ensues among the surviving family members. It’s then further complicated by the terms set forth in the Franchise Agreement.

The moral of the story, according to Ellis and Joyal is that without proper planning from a team that is intimately familiar with Dunkin’ Donuts franchising, families face the possibility of lost assets, damaged family relationships and exorbitant legal bills—as well as potentially losing the right to continue operating any Dunkin’ Donuts shop.

“The typical response we get when we first meet with a Dunkin’ family is that they are all set—they have their documents ready and their team in place. But, after closer examination, we often see that their team is fragmented and the family has tremendous exposure to risk,” says Joyal.

Ellis says families should have their estate documents reviewed often because small changes can impact how the plans will operate in the event of a life change.

“I haven’t met a franchise owner whose shops and holdings remain stagnant. As a result they all need constant review and analysis.”

Over the last 15 years Ellis and Joyal have worked with close to 500 Dunkin’ families to create individually crafted plans. Often times, they work closely with the law firm of Lisa and Sousa, which has represented a majority of New England-based franchise owners. Many of these clients are Dunkin’ pioneers, who have been in the system for 40 years and have successfully engineered succession plans that not only protect assets, but also protect family relationships.

“We got great feedback on our Newark presentation,” Joyal says. “I think it was eye opening for those owners who haven’t thought about how to integrate the team that’s working on their behalf.”

Innovation Helps Commissaries Achieve Efficiency and Consistency

Long before the first Dunkin’ Donuts franchise owner opened a central kitchen (CML), Belshaw was already established as a leader in the manufacture of donut machines. By the time Bill Rosenberg opened the first Dunkin’ store, Belshaw was already selling its machines internationally. By the mid 1960’s, Belshaw machines were helping franchise owners make donuts in the backs of their stores and when the first CMLs went on line in the late 1990’s, Belshaw was the brand standard.

Today, Belshaw provides fryers and proofers and finishers to CMLs in New England, Illinois, Florida and Kentucky. They enjoy a unique relationship with the brand, the DCPs and the franchise owners.

“We’re one of the few vendors who can sell directly to franchise owners and the DCPs,” said Roger Faw, president of Belshaw. “Because of that, we can take the layers out of the cost.”

But, it’s not just price that’s positioned Belshaw as an industry leader; it’s also innovation.

“Recently, we’ve been focusing on equipment for finishing. We’ve come out with a sugar tumbler for powdered donuts and a machine that automates icing,” said Faw. “Now we’re working on automatic jelly fillers. We showed the prototype (at the Dunkin’ Brands convention) in New Orleans. We hope to introduce it for test in June.”

Belshaw’s innovations help franchise owners achieve efficiency and consistency—the critical components of a successful operation, according to CML operators. The icing machine, for example, can finish three dozen donuts at once as opposed to having a person hold a donut in one hand and a spatula in the other.

“Their equipment absolutely supports the consistency of the product,” said Mark Dubinsky who runs a CML in Methuen, Massachusetts. “I made plenty of donuts in the back of my family’s store—and I was pretty good—but I never made them as good and consistent as the ones we turn out today with Belshaw equipment.”

“We know that in the business of donut production we are one of one. There is no other supplier like Belshaw,” said Faw. “The reason we are successful is because of what we do for the franchise owner after they buy our equipment.”

“What’s helped us is that Belshaw knew exactly what we needed and the right specs. Their product was custom designed for our end result,” said Peter Martins, co-owner of the JNS Commissary, part of the Salema network, which produces 20,000 dozen bakery products for 43 Dunkin’ Donuts locations in western Massachusetts.

Because of their long experience working with Dunkin’ franchise owners and CMLs Belshaw understands why a Dunkin’ bakery has different needs than, say, an Entenmann’s bakery. Dunkin’ products are not created to have a long shelf life, they are not shrink-wrapped and, even with all the automation available today, they are still touched by human hands.

Martins doesn’t see a fully automated process replacing the current process any time soon. That’s because of the dough that is used to make a Dunkin’ donut.

“Dunkin’ has had this recipe for a long time and it’s been really well received. If we were fully automated, they might have to tweak the recipe and that’s not something that could happen without a major change determined by the brand,” he said.

“One of the great things about the CML program is the level of cooperation between the brand, the franchise owner and us,” said Faw. “Some of the best ideas for how to improve equipment or operations come from the CML but, we don’t do anything to change the process without approval from Dunkin’ corporate.”

That’s why Dunkin’ will extensively test the new jelly-filling equipment before it’s offered to the CMLs. As Martins noted, adding jelly to a hot donut or munchkin is not that simple.

“You have to handle the dough carefully and gently all the way through. The donut is hot and gets damaged easily. Up until now there hasn’t been a machine that can barely touch the donut to protect its quality,” said Martins.

Dubinsky says he hasn’t seen the prototype jelly-filler yet but, “If it works I’d be interested in testing it and analyzing to see if it made sense for my operation.”

Innovation and automation from Belshaw have helped CML operators turn out more consistent products over the last 17 years. The donuts, munchkins and specialty goods are just what the customer ordered, and the efficiency created by Belshaw machines is just what CML operators wanted.

“Everyone has an equal interest in making this thing successful. It’s been a good ride,” said Faw.

Mid-Atlantic Dunkin’ Donuts Franchise Owners Meeting a Success!

Dunkin’ Donuts franchise owners representing hundreds of stores in New York, New Jersey, Connecticut, Pennsylvania and Maryland gathered at the Newark Sheraton Hotel on June 3, 2010 to learn about DDIFO and discuss issues ranging from franchise operations to brand behavior to estate planning.

“This was an outstanding meeting,” said one franchise owner from New Jersey. “I not only learned about what DDIFO is involved in, I also heard news from BAC members I had not heard before.”

A spirited discussion involving five members of the Brand Advisory Committee (BAC) who represent the Mid-Atlantic region, was led by Jim Cain, a long time franchise owner and former BAC co-chair.  The panel took questions from the crowd of more than 50 franchise owners and Cain addressed the role DDIFO plays in conjunction with the BAC to advocate for franchise owners’ interests.

Jim Coen, President of DDIFO, kicked off the day-long session explaining how DDIFO has evolved in the last two years to a larger, more dynamic group led by a professional board of directors. But the key point Coen made was that the inclusion of franchise owners from the Mid-Atlantic region would enhance DDIFO’s influence and effectiveness.

“There is strength in numbers—no doubt about it. Today people have the sense that we are growing and that DDIFO is moving in the right direction.”

Coen said the recent inclusion of over 400 Dunkin’ Donuts stores from the Chicago region and 52 from the Cleveland-Pittsburgh-Youngstown region into DDIFO happened because DDIFO had rewritten its by-laws to welcome the inclusion of Local Member Committees (LMCs).

“Successful associations must address the needs of members in different regions. That’s why we are welcoming LMCs –to insure there is local representation at DDIFO.”

Six months ago the Mid-Atlantic region organized into the Independent Association of Franchise Owners (IAFO). Tom Colitsas, an accountant from Princeton, NJ who specializes in franchising and represents several Dunkin’ franchise owners, is the executive director of that group.

“Our goal today is to set up an LMC like they did in Chicago so we can become part of DDIFO while maintaining a certain independence for this region,” said Colitsas.

“We are pleased to announce the IAFO will be part of DDIFO,” said Coen. “With your help, DDIFO can be a bigger force to be reckoned with.”

Coen said the specific terms of how the IAFO will integrate with DDIFO still need to be worked out but he is pleased franchise owners from the Mid-Atlantic want to join DDIFO.

That sentiment was echoed by DDIFO Chairman Kevin McCarthy who also made clear the benefits franchise owners receive from being affiliated with an independent organization that is well funded and focused solely on their interests—especially as a change in brand ownership looms.

“This was the reason DDIFO was first formed in 1989, because a corporate raider was poised to take over the company. Now, Dunkin’ is owned by a trio of private equity groups whose motivation appears to be selling the business to reap the profits.”

During a question-and-answer session, franchise owners expressed their concern over some of the initiatives the company has undertaken over the last three years because they have cut into franchisee profits.

Among the featured speakers was attorney Seth Ellis whose law firm, Ellis-Goldberg P.L., works with many Dunkin’ franchise owners to protect assets and ensure smooth succession from one generation to the next. Along with his business partner Gary Joyal of Joyal Capital Management, Ellis detailed how proper planning from advisors who understand the inner workings of the Dunkin’ franchise agreement is vital to providing financial security for franchise owners and their families.

16 companies provided sponsorship support for the Mid-Atlantic meeting. Coen recognized the importance of these sponsors to the mission of DDIFO.

“Because of their support, we are able to put on great meetings like this one.”

DDIFO Road Show Stops in Newark

Coming off the announcement that 400 Dunkin’ shops in the Chicago region have joined the DD Independent Franchise Owners (DDIFO), the organization will host a meeting for franchise owners in the New York Metro area and Mid-Atlantic region on Thursday June 3, 2010, at the Sheraton Hotel in Newark, NJ.

“We are very excited about the meeting at the Newark Sheraton,” said Jim Coen, President of the DDIFO. “So far, pre-registration has been very strong, in part because of our dynamic roster of speakers, including Tom Colitsas—a member of the board of directors for the Independent Association of Franchise Operators (IAFO) the area’s newly created franchisee association.” Coen says IAFO is requesting recognition as a Local Members Committee of the DDIFO, similar to the recently created Chicago members committee.

Presently, over 2300 Dunkin’ Donuts shops are represented by DDIFO, making it the largest association of DD franchise owners in the U.S. Coen says his goal is to make DDIFO a nationally organized association. .

Joining Colitsas on the agenda for the meeting is Seth Ellis of Ellis & Goldberg, P.L. a trust and estate planning firm with areas of practice in administration and litigation for probate, trust and guardianship cases. Ellis currently represents a number of DD franchise owners in New England and Florida.

Also on the agenda are: Kevin McCarthy, Esq., Chairman of DDIFO and Gary Joyal, Managing Partner of Joyal Capital Management, LLC and Affiliates. There will be a Q & A session of Brand Advisory Council members that will be moderated by Jim Cain.

Over the past year, DDIFO has joined with a number of sponsors to provide direct access for franchise owners to vendors and service providers. 16 sponsors have signed on to be part of the Newark meeting.

Among the strengths of DDIFO is its independence. As McCarthy wrote in the upcoming edition of Independent Joe magazine, “There is no stronger rationale for the existence of DDIFO than its exclusive focus on the welfare of its franchisee members. Forceful, exclusively focused, well financed and independent strength is available to you as a Dunkin’ franchise owner through DDIFO.”

The DDIFO Mid Atlantic Franchise Owners meeting kicks off at 10am. You can register to attend here.

Access Offers Pay per Performance Marketing Options for Franchise Owners

If Dunkin’ Donuts franchise owners are not familiar with how Access Rewards works, they may want to ask their customers. According to Doug Jentzsch, Director of Partnership Marketing for Access, customers who belong to various groups or associations that offer member discount programs are printing coupons for Dunkin’ stores more than any other restaurant or service provider in their database.

“It’s quite impressive considering we promote over 250,000 different business locations across the country,” said Jentzsch.

Access Rewards is one of the nation’s largest affinity marketing companies. Started in 1984, Access creates private-labeled discount programs for our client organizations—like teacher’s associations or travel clubs. Through the programs, members save on all kinds of products and services. The organizations use the programs to increase profit and achieve a variety of organizational goals.

Earlier this year, Access signed on as a DDIFO sponsor because it is in the process of expanding its business to include a Rewards Program for customers.

“The way it works is, we work with a local bank that wants to add local content and opportunities for cardholders in a specific region to earn rewards. The participating business—like Dunkin’ shops— can use it as a way to increases customer count and frequency as well as the amount they spend on each visit,” said Jentzsch.

He says a customer with a CitiBank Rewards card, for example, could receive a dollar back on his credit card when he spends $7 or more. There is no upfront cost to the franchise owner to enroll, there’s no out of pocket expense. The franchise owner only pays when the offer is redeemed with the correct credit card. Access can develop up to four different offers for each location—customized to help the franchise owner increase sales.

By offering the discounts to credit card holders in a specific geographic area, Jentzsch says, the franchise owner is able to generate new customers and more business from the people who already frequent his shop.

Based on data from Access, coupons offered through their traditional affinity marketing program are already a huge success with Dunkin’ customers. Jentzsch says he believes the new rewards program will also be a hit with customers and franchise owners.

For more information, contact Doug Jentzsch by email: doug.jentzsch@accesscashrewards.com or by phone 866.681.2427.

Jera Concepts Helps Franchise Owners Forecast

Wynne Barrett of Jera Concepts explains forecasting in one simple sentence. “Good data in means good forecasting out.” As a former Dunkin’ franchise owner and now the VP of Business Development for Jera, Barrett understands the inventory and supply chain challenges franchisees and central kitchen (CML) operators face. When he joined Jera in 2004 he helped develop the food service component of Jera’s network solutions business.

The “data in/forecasting out” theory is particularly relevant now with Dunkin’ Brands’ greater emphasis on forecasting to ensure better merchandising. As an approved Dunkin’ vendor and a DDIFO sponsor, Jera wants franchise owners to know their forecasting system can help franchisees and CML’s achieve their goals.

“Forecasting represents a major change for a lot of franchise owners. It’s a paradigm shift and we want to help walk them through it,” said Barrett.

Many Dunkin’ franchise owners have been early adopters of forecasting and see the benefits. They also recognize that even the best forecasting can’t prepare you for the unexpected storm or busload of tourists.

“You have to have a tool and theirs works well,” said Ray Messier a Massachusetts franchise owner. “We want to get the right numbers and with their forecasting we know when we’re within the right parameters. Jera has kept us ahead of the curve. Anything we’ve asked them to do they’ve done for us.

According to Barrett, accurate forecasting doesn’t necessarily mean a franchise owner will decrease his daily orders.

“We’ve seen stores where forecasting has reduced product a store orders and we’ve seen stores when orders increase as a result of forecasting,” said Barrett. “Typically almost all stores south of New York decrease see orders decrease while stores in the north can see both decreases and increases depending on the existing merchandising philosophy of an individual franchisee.”

Barrett says he will happily discuss Jera’s forecasting tools with any franchise owner or kitchen operator who is interested in learning more. He can be reached by email: wynne@jeraconcepts.com or by telephone: 508.686.8786.

Squirrel Hill: Not your Grandfather’s Dunkin’ Donuts

Squirrel Hill is a section of Pittsburgh known for its ethnic restaurants, old fashioned grocery stores and trendy boutiques. It is also home to a very different kind of Dunkin’ Donuts shop. Opened less than a year ago, the store is big—over 2,000 square feet—and features a sitting area with bookshelves, a fireplace and flat screen TVs.

“We want people to stay and enjoy the atmosphere,” said Robyn Frederick, Vice President of Marketing for Heartland Restaurant Group, which operates ten Dunkin’ shops. “We are not just a morning coffee stop. We are a lunch place and a way home from work place to stop.”

Because Squirrel Hill is a densely populated, walkable neighborhood, the store gets a great deal of foot traffic. It is located on a corner of a busy street with views of the hustle and bustle of the area, Frederick says it is a great location but that does not guarantee success.

Before Heartland Restaurant Group opened their Dunkin’ franchise, this location was a two-time loser. Both Boston Market and Wendy’s failed here. Frederick believes that’s because those restaurants failed to ingratiate themselves to the community.

“That community can make or break you so you have to embrace them. For us that means doing things differently,” she said.

One of those things was embracing the largely Jewish population in the community. “We are the only fully kosher bakery and coffee shops in Squirrel Hill,” said Frederick. “At Hanukkah we make special jelly donuts because that’s what the community wants.”

In fact, the store’s menu reflects the neighborhood. They don’t serve flatbreads or meat. Instead, they use veggie sausage and veggie bacon. Even their bagels can accommodate a kosher diet plan because they are cooked in separate ovens from other products to maintain Parve. Having a specialty menu is possible because they do all their baking on premises.

Aside from catering to the Jewish community, the Squirrel Hill store also has a special program for nearby college students. “We are right by the campus of Carnegie Mellon University so we decided to get on their meal plan,” Frederick said.

Students who buy a University meal card can use it at the store to buy coffee, donuts or sandwiches. “A lot of kids eat their meals here,” said Frederick.

Even before it opened, the owners of the Squirrel Hill Dunkin’ Donuts made a concerted effort to get to know the community. “We had a meeting with the Rabbi and local school officials to let them know the store would be completely kosher. Then during our 10-day training period, we gave the temple and the schools the baked goods we made during the practice sessions. People loved that,” said Frederick.

 The store is a popular destination for school field trips. Recently, 28 second and third graders from St. Edmund’s Academy toured the store and decorated their own donuts. It was a big hit.

In January, when Jews celebrate Tu B’Shvat, also known as the “Birthday of Trees”, the store welcomed students from the Community Day School and their Rabbi for music and cooking. To commemorate the holiday, students made donuts out of fruits and nuts

Connecting with the community has been a sweet recipe for success says Frederick. “People in the neighborhood tell us how happy they are that we are here and have promised to support us,” said Frederick.

Next Page »