WDFA Gets to Roots of Best Marketing Practices

With its turnkey solutions, experience supporting franchises and grassroots approach, DDIFO Sponsor WDFA Marketing (WDFA) stands apart from the competition. No matter the size of your budget, WDFA can help you make the most of every marketing dollar. The firm’s products and services are designed to meet today’s challenges for immediate sales results and efficient, low-cost production.

 WDFA prides itself on fearless innovation, ethical responsibility and exceptional service all focused on maximizing your return on investment. Each and every campaign is designed for measurable impact. WDFA’s staff works to evaluate a campaign’s effectiveness and make adjustments to increase value and success. While the company happily offers traditional marketing services like direct mail and door-hangers, it also specializes in non-traditional tactics.

 “As far as our tactics go, the possibilities are endless. We start with acquiring the best data that is available on the target customer, and then work tirelessly until we find the best way to drive them to your door,” said WDFA Marketing Executive Vice President Jason Fordley. “Whether it’s traditional print media, direct-to-door, cultural marketing or more innovative guerrilla tactics we can handle it all. We find that on the franchise level, micro-targeting within the community is a reliable way to ensure that we’re staying where your customers are, so that we don’t waste any of your budget, but we’ve also done full zip code saturations.”

 Under the umbrella of micromarketing, WDFA’s guerilla marketing campaigns often involve street teams – called brand ambassadors – who connect directly with your customers in the neighborhood or at community events. WDFA retains only the most reliable and passionate people who are able to drive more customers to your shop and boost your bottom line.

 Here are just two examples of successful WDFA strategies:

Sending brand ambassadors to a community event (e.g. movies in the park, a local outdoor concert) with “jet packs” of complimentary coffee or Coolatas: As they entice a consumer with free beverage samples, they simultaneously offer a flyer or coupon designed to bring that person into your store. Depending how close the event is to your shop, the brand ambassadors can even use sidewalk chalk to visually lead customers to your doorstep.

Orchestrating “guerilla projections” for shops that are open at night: WDFA has two different types of special projectors to “broadcast” your signal, so to speak. A large projector shines still shots or actual movies on a nearby building or wall. Using hand-held projectors, about the size of a cell phone, WDFA brand ambassadors cast images on the ground, surrounding buildings, even parked cars. Again, once they’ve drawn consumer interest, they follow up with a targeted flyer or coupon that drives customers to you.

“Our non-traditional, attention-getting methods might seem unconventional, but they help to ensure that the tactics drive sales,” said Fordley. “For example, there are so many people handing out flyers on the street that people often try to avoid them. But the right location at the right time, with a little something extra—sidewalk chalk, mini-projections, or just a really fun personality—that changes the game. People actually want that flyer; they seek it out! And that’s what it’s all about for us—finding a way to maximize the effectiveness of a tactic. If our clients don’t feel the ‘WDFA effect’ in their bottom line, then we’re out of business.”

Another key element is WDFA’s quick turn-around on orders. For example, a flyer or coupon piece can move from conversation to design to delivery within just a few days. And, because of the volume of work WDFA does with its nationwide trusted vendors and suppliers, you’ll save on production costs. What’s more, if you own multiple shops and want to launch a concurrent campaign across all of them, this usually means more savings: The more stores involved, the lower the cost.

WDFA offers countless strategies, including utilizing social media and social networking sites like Facebook and Twitter to capture new customers and keep “regulars” coming back for more. Basically, whatever you want to accomplish in terms of promotion, WDFA has a way to get you there. Whether you want to follow a traditional route or are looking for unconventional tactics, WDFA can help tailor your marketing in ways that will most effectively reach customers and drive sales.

“We look forward to working with Dunkin’ Donuts franchise owners as we feel that our arsenal of tactics and our collective drive to succeed can be a major asset,” Fordley said. “‘Partnership’ is a very important word to us, so we’ll do what it takes until our client thinks of us in terms of a strong, reliable partner that can be trusted to drive sales whenever it’s needed”.

For more information or to launch a campaign, contact Jason Fordley at 646-240-4880 or jasonf@wdfamarketing.com.

Learn more at: WDFA Marketing

OEM Upgrades & Innovations Keep RFT Customers Up and Running

Since 1989, DDIFO Sponsor  R.F. Technologies, Inc. (RFT) has provided the quick-serve restaurant industry with drive-thru systems sales and repair services.  To date, the company has handled over four million repairs, ranking it the largest independent service center for drive-thru communication systems in North America.

While that ranking and the volume of repairs are impressive, there’s something even more notable about R.F. Technologies’ repair services:  the proven quality and product innovation.  Through results of independent, third-party testing and ongoing response of customers, it’s clear that R.F. Technologies has advanced its capabilities beyond basic repair services; the company offers significant OEM improvements that are of measurable benefit to restaurant operators.

“We have a full research and development team in-house,” explains Bob Noorian, President of R.F. Technologies, Inc. “We actively develop solutions and improvements for the equipment we sell and service.  Many of our customers don’t realize just how proactive we are in creating real product innovations.”

RFT’s R&D team, comprised of engineers and repair experts, is perpetually testing, investigating and creating prototypes and operational solutions to combat issues of product functionality and durability.  Working in tandem with the company’s sales and customer service teams, the R&D professionals identify equipment issues, assess functionality concerns and find better ways to fix what breaks. 

With its unique position in the marketplace, RFT is able to both quickly respond to known product repair issues and preempt potential issues before certain equipment filters into the general market. 

Noorian offers insight.  “We closely track all repair services. Thanks to the immense volume processed daily, we’re able to quickly identify recurring problems and respond to with equipment improvements and repair solutions.”

Through broad-reaching, closely knit partnerships with various franchise communities, RFT often gets early knowledge of potential issues and is able to innovate practical repair solutions before concerns hit restaurant operations en masse.

“This forward-thinking approach really sets us apart and heightens not only the quality and value of our repair service, but of the OEM equipment as well.”

Excellent examples of RFT’s OEM improvements include solutions created for two commonly used headsets in QSR environments—3M’s C1060 and XT-1 models. 

Such headsets are subjected to harsh treatment in the demanding restaurant work environment.  With insider insights about product use as well as well-documented accounts of recurring issues, RFT’s R&D team created an array of practical improvements to address areas proven weak through daily wear and tear.  RFT’s  custom tooling, perfected with in-house and field testing, allowed the following improvements to be achieved and successfully implemented, dramatically improving the performance and longevity of the headsets.

        ·     support jacket for mic boom

        ·     support sleeve for headband

        ·     thicker case parts

        ·     stronger headband

        ·     operator-friendly tactile feel buttons vs. OEM non-click buttons

A third-party material testing and engineering firm conducted comprehensive performance tests on components of each of these products, comparing OEM standard headsets to RFT-enhanced models.  RFT-enhanced products outperformed the OEM models on all counts. 

            1. TWIST & PULL

            RFT design tested at 47.4% longer durability when a “Twist and Pull” load was applied. The OEM failed at an average of 35.6 lbs releasing the metal band and      wires RFT’s enhancement held up to 67.8 lbs and only twisted internally.

            2. RESISTANCE TO TORSIONAL LOAD

            RFT’s design showed higher tolerance at 270º of rotation versus the OEM which failed at 180º of rotation. The RFT version suffered only a metal band      fracture when failing at 270º, compared to a complete case split for the OEM     product.

            3. MOUTHPIECE

            The RFT mouthpiece design was slightly stronger when subjected to a straight  pull—42 lbs versus 33.0 lbs respectively.

Other products, including the HME Odyssey IQ, have also outperformed OEM models in third-party testing.  According to Noorian, RFT is able to achieve such high performing product improvements because of the company’s investment in custom tooling and the expertise of the staff. 

“No one else in this industry has this level of repair solutions, as we custom tool—literally remake—the parts that require improvements,” Noorian says.

He also points out that the RFT advantages don’t end with the physical enhancements of the products.  “We provide same day service, while OEM’s offer 2-week turnaround times, and we don’t charge for inbound shipping.  Our cost value is $120 per headset while the OEM’s is $200 per headset, and we back our products with free, live, 24-hour professional support.”

Suffice to say, RFT customers reap the benefits of this proactive, progressive approach.   The RFT team frequently receives testimonials documenting the in-field results of RFT’s innovations, including the minimizing of operational interruptions and downtime and the extension of equipment’s life. 

Committed to meeting customer needs, RFT’s position is to continuously conduct field testing and analysis for all products, striving to find and correct issues before customers ever have a problem.

“We go the extra mile so that our customers’ equipment can perform that much longer….to keep their business up and running,” Noorian summarizes. 

For copies of R.F. Technologies’ third-party testing results or for specific product information, visit www.rftechno.com.

DDIFO Approves Mid-Atlantic Franchisee Group and Colitsas as New Board Member

DDIFO has officially approved creating a Local Members Committee for Dunkin’ Donuts franchise owners belonging to the Independent Association of Franchise Owners (IAFO) – representing 125 Dunkin’ Donuts stores in New York, New Jersey and eastern Pennsylvania. The Board has also voted to add IAFO Executive Director Tom Colitsas as a member of the DDIFO Board.

“A lot of work has gone into making this a reality,” said Colitsas. “I met with (DDIFO President) Jim Coen a year ago and we discussed how to bring this region into the association. Going forward we are going to engage in an aggressive campaign to increase membership among franchise owners in this region.

Colitsas says the IAFO is holding a seminar in August on topics of interest to the members and at that time they will discuss the benefits that come with inclusion in the DDIFO. “The recruitment effort will focus on education and communication,” he said.

Perhaps the strongest benefit for IAFO members is their inclusion in a group that is growing not just in size but also in influence. Late last year, DDIFO welcomed a Local Members Committee (LMC) made up of over 400 shops from the Chicago area. With IAFO’s entrance, DDIFO now represents close to 2500 shops nationwide.

“We have a huge investment in Dunkin’ Donuts and, as franchise owners we have to protect our investment by making sure we have strong platform from which we can negotiate with the company,” said one Mid-Atlantic franchise owner who asked to remain anonymous.

DDIFO President Jim Coen says the addition of the IAFO shows that DDIFO’s efforts to provide a united voice for franchise owners is working. “Franchise owners throughout the system are learning that we are a true advocate for their business interests and have the clout to get things done.”

Board Vice-Chairman Asheesh Seth, who was the former Executive Director of the Midwest Dunkin’ Donuts Franchise Association (MWDDFA), says IAFO members will immediately see that DDIFO is a great source of information when it comes to protecting franchisee interests. And, he says, the addition of these new members will further strengthen the DDIFO.

“DDIFO’s strength is directly proportional to the number of members it has.  The more that join, the stronger DDIFO will be. IAFO’s inclusion is a huge step in the right direction toward creating a truly national franchisee organization,” he said.

According to Colitsas, new members from the Mid-Atlantic region are going to play a prominent role in the DDIFO.

“We’re very excited down here. We have a good team of dedicated people and we are going to surprise everyone. We’re going to make this a prominent region and make a big contribution to the national effort.”

DDIFO at the CFA Franchisee Forum in Washington DC July 2010

The Coalition of Franchisee Association held their Capital Hill Forum in Washington DC, July 15th – 17th attracting franchisee leaders from the Meineke, Hardees, Pizza Hut, Burger King, Super Cuts, Buffalo Wild Wings, Subway and Dunkin’ Donuts franchise systems.  Rob Branca and I attended the Forum, representing Dunkin’ Donuts Franchise Owners.

Watch the slide show below!

There was a star studded and information packed agenda, we started Wednesday night when Congressman John Campbell (R) from California’s 48th Congressional District. John lives in Irvine, CA.  joined us for dinner. John has a reputation as a dedicated fiscal conservative, he is an advocate for sensible public policy, and lower taxes for business owners.  As a member of the House Commitee on Financial Sevices, he has taken an active part in addressing the country’s top economic issues, including reducing credit card interchange fees, banking reform, and insurance regulation. He spent a majority of his professional career as a taxation specialist representing several automobile franchisees, in Southern California.

Next US Senator Scott Brown from Massachusetts  joined us at a CFA PAC Lunchon where we had the opportunity to sit and eat with the Senator and discuss small business and franchisee issues. Later that day Senator Brown voted to pass the Financial Services bill which included the Durbin Amendment to reduce Debit Transaction swipe fees.

Some of the other speakers were:

George Will, Washington Post Columnist

Sam Donaldson, Retired ABC Correspondent

Mike Bober , Coalitions Director for the National Republican Congressional Committee

Katie Hays Strong, Executive Director of the US Chamber of Commerce Public Affairs Division

Rick Berman, President of Berman and Company

Douglas Kantor, of Stephen Johnson LLP

David Kreutzer, Ph.D. Research fellow in Energy and Climate Change

Representative Steve Kagen (D-WI) 8th District of Wisconsin

Representative John Boehner (R-OH)8^th District of Ohio

Hudson Riehle, VP Research, National Restaurant Association

James Hammersley, Office of Policy and Strategic Planning at the US Small Business Administration

Robert Skelton, CAE Chief Administrative Officer for the ASAE

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.”

HME Drives Accuracy & Speed of Service

With state-of-the-art drive-thru communications systems and timers alongside premium service and support, HME is a one-stop shop for improving drive-thru management and efficiency. HME has worked with Dunkin’ Donuts franchise owners and Dunkin’ Brands for many years, and now, the company is a DDIFO Sponsor.

Established in 1971, HME has a history of continuous innovation, including being the first to introduce the wireless drive-thru headset to the QSR industry. Following in that tradition, HME launched its groundbreaking ION IQ digital drive-thru headset system in February of this year. The system is designed to improve the drive-thru experience for both customers and employees with five cutting-edge sound technologies that reduce noise and increase clarity in headsets and speakers.

ION IQ also features a message center that allows you and your managers to customize alerts, reminders and greetings. Headset alerts and reminders can focus staff on issues of food safety, store security, key tasks and more. The customer greeter can deliver varying messages related to things like the time of day, store specials or new product promotions. What’s more, the entire system is remotely accessible, meaning you can modify the base station settings from anywhere.

HME’s ZOOM drive-thru timer system is another key component to increasing accuracy and speed of service. Its multi-colored graphical dashboard display makes it easy to see your operations performance in real time. The display shows how many cars are in the drive-thru and the cars change colors to indicate how quickly (or slowly) customers are being served. You and your staff can immediately identify bottlenecks and take action. The display also can be customized to show comparisons of actual service times to goal times.

With ZOOM’s fully customizable and remotely accessible graphical reports, you can easily see and evaluate performance issues and tie issues to specific day parts, shifts, day of the week, etc. Like ION IQ, you don’t need to be in the shop to access the system: Wherever you’ve got an Internet connection, you’ve got access. And if you’re shop has a System 30 Timer, HME’s DASH upgrade uses your existing system to provide the features of ZOOM at a fraction of the price.

Together with its top-notch products, HME prides itself on outstanding service. Most problems can be fixed over the phone with HME’s technical support specialists. If a part requires a physical repair, HME can advance ship a refurbished replacement to you so there is no down time. You can also opt in to an Equipment Maintenance Agreement (EMA), which covers your entire system–headsets, belt-pacs, base station, speakers and battery chargers–for a low monthly fee. The EMA also covers other brands like Panasonic and 3M.

VP of Marketing & New Business Development Daren Haas describes HME’s competitive edge this way, “Our advantage is that we are entirely focused on drive-thru restaurants. Our 30-plus years in the QSR industry makes us a leader in drive-thru solutions, always providing innovative solutions and cutting-edge technology to our customers. And since we manufacture, sell, market, design and support all of our products, customers can rely on us for all of their drive-thru needs.”

For more information and to find out about special pricing packages, contact HME Dunkin’ Donuts Account Representative Lisa Jokinen at 858-535-6085 or ljokinen@hme.com.

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.”

Next Page »