Case 7 Dunkin' Donuts-Growth Feeds a Sweet Tooth The java giant is opening hundreds of stores and entering new markets appealing to a new generation of customers. But can Dunkin' Donuts stay on course with its rapid growth? Donuts with Passports Dunkin' Donuts's present global travels are a long step from its first coffee shops opened in the Boston, Massachusetts, area in 1950. Now it's an international brand with a reputation for quality that has earned the trust of many loyal customers. Company executives are hoping that careful strategic planning will keep consumers worldwide "Runnin' on Dunkin'." Part of Dunkin' Donuts's strategic plan of action includes focusing on its core products-coffee and donuts. With 500 billion cups consumed every year, coffee is the most popular global beverage, and estimates are that Americans drink 400 million cups a day. Dunkin' Donuts serves close to 3 million of them. That equates to about 30 cups per second and 65% of the company's annual revenues. Target on Emerging Markets Most Americans have experienced the Dunkin' Donuts brand through one of its almost 11,000 outlets. The Dunkin' brand has carved out an international niche, not only in expected markets such as Canada and Brazil, but also in some unexpected ones such as India, Brazil, Qatar, South Korea, Pakistan, and the Philippines. The company is betting big on emerging economies. "Emerging markets are attractive because they are growing very quickly, they've a fast-growing middle-class [eating out more], and they love American brands," says CEO Nigel Travis. The company's growth plans include opening between 80 and 100 outlets in India, bringing the country's total number of Dunkin' Donuts stores to 500 within a 15-year period. "The company plans to locate in Asia a 'disproportionate' number of the 350-450 outlets that it plans to open outside the U.S. this year," Travis said. There are now more than 10,850 Dunkin' Donuts retail locations, including in excess of 7,650 in the United States alone, and they are operating in more than 3,150 locations in other countries. As of the end of January 2017, all Dunkin' Donuts locations were owned and operated by franchisees. New Products For most of its existence, Dunkin' Donuts' main product focus has been donuts and coffee for dunking them. Since Stan Frankenthaler became executive chef and vice president, Dunkin' has launched about 25 new products annually as part of a new product innovation initiative. It has stepped up by offering a variety of espresso-based drinks and sugar-free flavorings, including caramel, vanilla, and mocha swirl. Dunkin's strategy now includes breakfast sandwich combinations of eggs, cheese, ham, and sausage on Texas toast, as well as English muffins, croissants, bagel sandwiches, and burritos. If plans prove successful, more customers than eve may flock to the shops. However, it may take a while to convince them that Dunkin' Donuts is the place to go to for a breakfast