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It’s been almost 20 years since Dunkin’ debuted its iconic “America Runs on Dunkin'” slogan. At the time, Dunkin’ billed itself as the best stop for traveling customers. Today, that position continues – but with a digital twist: More than two-thirds of the company’s U.S. sales now occur digitally, via drive-thru or delivery, underscoring the importance of speed and efficiency to the success of any store. “As we increase access to our brand, demand is growing, which is very encouraging,” says Scott Murphy, chief brand officer at Inspire Brands, Dunkin’s parent company.
At Dunkin’, operational efficiency is paramount. Between October 2023 and July 2024, the franchise added 1,000 “NextGen” locations, bringing the variety of these futuristic locations to 4,000. These stores have been designed to higher address the preferences of contemporary customers and the chain’s expanding frozen beverage offerings. . These include digital kiosks, mobile order pickup areas and a beverage tap system. “The ‘NextGen’ store model has been key in driving the success of frozen beverages in particular over the last few years,” explains Murphy. This focus on convenience has largely helped Dunkin’ jump three spots in the Franchise 500, from No. 6 last 12 months to No. 3 this 12 months.
As more and more customers shop online, creating a rewards program has also turn into a more dynamic opportunity. Dunkin’ Rewards memberships grow 12 months over 12 months, giving customers the opportunity to earn points and special bonuses on certain sorts of orders, in addition to earn badges – new in 2024. “Enhanced Status” is awarded to individuals who join Dunkin’ for greater than 12 years times a month, records a constant increase in the variety of members. This is especially vital considering these customers are most definitely increasing their checks and adding food to their orders. “People are drawn to us not only by important moments like the Super Bowl, but also by personalized offers and high-quality services,” explains Murphy. “We spend a lot of time thinking about value – getting it right is difficult, and consumers define “value” in a different way.
The past 12 months has seen a trend of more franchisees selecting to open co-locations and multi-brand restaurants with other Inspire Brands chains, reminiscent of Jimmy John’s, Baskin-Robbins and Buffalo Wild Wings. By combining two restaurants in one location, franchise owners can maximize back-of-the-house space and minimize costs while attracting more customers for a number of meals. “Dunkin’ is a leading base brand for national multi-brand projects, so I’m excited to see how people diversify their portfolio based on the time of day,” says Murphy.