A Fresh Cup of Coffee

Look out Starbucks. Here comes Dunkin’ Donuts. The Massachusetts-based coffee and baked goods retailer wants to establish a beachhead in the lodging industry and plans to offer a variety of franchised store models for in-hotel use—everything from full retail shops to kiosks to coffee stations inside hotel gift shops.

“We continue to grow the Dunkin’ Donuts brand nationally and internationally so we felt it was time for a coffee retail alternative in lodging,” says Chris Burr, the company’s director of alternative points of distribution. The chain already has retail units in several sports venues, airports and a Pennsylvania theme park. “Hoteliers are always looking for ancillary revenues and our model makes good economic sense, particularly since hotels have most of the infrastructure, eliminating the need for huge capital outlays.”

Dunkin’s first hotel installation is in the recently opened Great Wolf Resort in Concord, NC. The outlet in the indoor waterpark resort’s lobby offers Dunkin’s full array of products, including hot and cold beverages, donuts and other baked goods and breakfast sandwiches.

Initially, the firm will target resorts, large airport hotels and even timeshare resorts. In general, says Burr, Dunkin’ hopes to penetrate markets in the East, Midwest and Southwest, which coincides with the company’s retail expansion plans. “We’re not limited to those areas, however,” he says. “We’ll go to any property in any market that makes sense to us and to the hotel owner.”

As part of the process, Dunkin’ will help hoteliers evaluate the kind of unit, menu items, hours of operations and other details that will best fit their customer profiles.

“Our mantra is to match the menu to the venue and match the hours to the venue. We want the unit to be open when it is going to make money and when it’s appropriate,” says Burr. “Likewise, the menu items are dictated by the amount of space available and markets served by the hotel. It may be different for a SMERF hotel versus a corporate airport hotel. We’re open to adjust to those things that make sense for a particular hotel venue.”

While he doesn’t rule it out in the future, Burr says the company currently doesn’t have interest in expanding its hotel presence through Dunkin’ Donuts-brand in-room coffee service or service in meeting rooms and restaurants.


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