Dunkin' Brands CEO plots new course for growth
The parent company of Dunkin’ Donuts has elevated the man behind the company's recent branding and menu changes to be its new CEO.
David Hoffmann, 50, is succeeding Nigel Travis, 68, who is retiring from his role as CEO of Dunkin' Brands. Travis was responsible for a 60 percent revenue increase at the company during his tenure.
Hoffmann has big plans, saying his primary goal is to continue modernizing the 68-year-old coffee and doughnut company. This is to keep its iconic brand relevant amid stiff competition from other national chains and local coffee shops.
“Relevance is at the heart of what we are trying to do. Brands that stay narrow in their lane do their best. On the Dunkin side, that is great coffee, fast. It’s our sweet spot,” Hoffmann told CNBC on the heels of the company’s announcement Wednesday that CEO Nigel Travis, who took the company public in 2011 and has been with the brand for nearly a decade, was stepping down effective immediately.
Hoffmann says his focus will continue to be on the Dunkin’ Blueprint for Growth, a strategy designed to make the company the “leading beverage-led, on the go brand.” The plan so far has resulted in reducing the menu, implementing new value promotions and menu items, as well as a next-generation concept store in that debuted in Quincy, Mass. earlier this year. The new concept store introduces a sleeker design, as well as featuring drive-thru lanes for mobile orders, among other changes.
“The next-generation concept store is the embodiment of the blueprint — it shouts great coffee, fast,” Hoffmann says.
Dunkin’ is on track to bring 50 next-generation stores to the U.S. this year, as well as a handful of modernized Baskin Robbins locations, Hoffmann said.
Another step for the company, according to Hoffmann, is for the company to reduce its environmental footprint. Dunkin having previously committed to ditching its famous foam hot cups by the year 2020, just as other competitors have, such as Starbucks, who has also recently announced their plans on stepping up their path to sustainability.
“Dave had to demonstrate what he had to lead this great company. He did that in three ways — he gave franchisees leadership, he pulled together the blueprint for growth and he has the franchisees’ respect. He earned this in every way,” Travis says. He said they wanted to announce the change before the company's Independent Franchise Owners conference in September.