Dive Summary:
- Speaking to a conference in New York this week, Dunkin’ Donuts’ CFO Paul Carbone outlined his company's shift from donut makers to basically a beverage company, what he called "the holy grail of profitability."
- This transition has been going on for the better part of a decade, as advertisements and even in-store decorations tend to highlight beverages instead of donuts or bagels.
- According to the company, beverages have a much higher profit margin than just about anything else they sell, thus to continue growth, it was necessary to maximize that portion of their business.
From the article:
Dunkin' has already made changes to its in-store queues, such as highlighting beverages, featuring beverage photos on digital menu boards, training managers to offer beverage samples as opposed to doughnuts and bringing beverages to nearby businesses when a new store opens. Carbone said the "top line" has gone up incrementally because of these changes. ...
