Friday, August 24, 2007

saturation dunking

There has to be a joke in the news that Dunkin Donuts is planning 105 new outlets in Pittsburgh. It's a little odd that they specified 105 stores exactly. Not 100, not something vague like "over 100". The only justification in the story comes from a quote that the company "seeks to open a new location for every 10,000 residents in the region". Of course that would mean more like 230 new shops.... egads, might as well call us trans-fat-Burgh. Maybe we will soon be eating as many donuts as we do ho-hos.

I myself am still waiting for the Krispy Kreme that was oddly supposed to open right next to Whole Foods. But no sign of that anytime soon. I am surprised in that if there really is such an unfilled market for donuts in town, there would have been years of complaints, commissions, policy initiatives and/or analyses over how under-donuted were are. In fact, Dunkin Donuts franchises are typically categorized in the same industry as retail bakeries, so they would be included in the data I compiled on bakeries per capita. We do ok.

and to think we were all worried we were going to be overrun by cupcakeries. The lack of news on the two cupcake establishments in town makes me wonder if they are still open. Some primary research may be required.


Blogger Jonathan Potts said...

Actually, I believe that Dunkin Donuts is trying to position themselves as coffee shops--in the modern, Starbuck's sense of the word--as much as donut places. I wonder, though, whether the availability of donuts was factored into the Forbes rankings...

Nelson Petz (am I spelling that right), who tried to take over Heinz, was at one point interested in investing in Krispy Kreme. He found, from talking to franchisees, that the company was always pushing them to open more locations, and that much of the company's profits was coming from the sale of equipment to franchise owners. So he begged off, and not long after the company had its nose dive.

Friday, August 24, 2007 11:07:00 AM  
Anonymous Anonymous said...

I am happy to report that both Coco's and Dozen are still going concerns. May waistline is less happy about this, but confirms the statement.

Friday, August 24, 2007 11:22:00 AM  
Blogger Bram Reichbaum said...

Ironic you would find a "lack" of news about the two cupcake stores noteworthy. After the grand opening, you wouldn't figure such a store could do much of anything to generate news. But boy were we wrong for a while ...

Friday, August 24, 2007 4:37:00 PM  
Anonymous Anonymous said...

I love Dunkin Donuts coffee and have been in withdrawal ever since the store on the Pittsburgh/Wilkinsburg line closed a few years ago (does anyone know why?) I'd love to own a franchise if they go that route.

Sunday, August 26, 2007 9:39:00 PM  
Blogger Jason Wilburn said...

Potts got it right - if you haven't noticed there is a coffee war going on between Dunkin Donuts, Starbucks and McDonalds.

There are some really interesting demographics around where people buy their coffee. If you can access the Wall Street Journal online search for dunkin and starbucks.

Dunkin Donuts doesn't make any money on donuts.

Monday, August 27, 2007 9:24:00 AM  

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