Independent Joe Magazine April 2013 #19

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Joe

Independent April 2013

The Magazine for D D

Independent Franchise Owners

Costly

Menu Labeling Tops List of Pricey Propositions Facing Franchisees

Concerns

Jo e New Format

The New

•

New Features

Issue 19

•

New Focus


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LISA on the LAW

By Carl B. Lisa, Esq.

Ban on Sale of Large Sugary Drinks Gets Doused L

ast year with much fanfare, the City of New York, through its Board of Health, called for a ban on the sale of sugary drinks over 16 ounces, in restaurants, concessions and other eating establishments. Such sale was not banned in supermarkets. Advocates, led by Mayor Michael Bloomberg, claimed that the ban was necessary to curb obesity and related, chronic diseases and banning such sales was not only the responsibility of government, but was lawful under its authority to regulate food. Opponents argued that the ban was wrong on two counts. Firstly, the Board of Health exceeded its legal authority in passing such a regulation—the board having no legislative jurisdiction. If such a ban is legal, they continued, it would have to be enacted by the state legislature. Secondly, they claimed selecting a ban on restaurants and eateries, while eliminating other sources of sale from such a restriction—grocery stores, convenience stores and drug stores— was arbitrary, thus the ban should be reversed. The lawsuit was brought by a coalition of restaurant groups, including the American Beverage Association, which will probably attack similar laws elsewhere. In his decision, State Supreme Court Judge Milton Tingling ruled that the ban should be struck down. He ruled that the New York City Board of Health lacked the jurisdiction to enact such a ban unless a showing of imminent danger due to disease was made, citing an earlier case involving an indoor smoking ban. [Boreli v Axelrod 71 N.Y.2d 1987]

Additionally, he added, the regulation was arbitrary, in that it excluded other places of sale such as drug stores and supermarkets, etc. resulting in unequal enforcement among neighboring businesses. He further concluded that the regulation violated the separation of powers doctrine in that the Board of Health attempted to exercise legislative powers it did not possess. In so doing he recited the long history of the City’s charter harkening back to 1686, under King James of England. Advocates, including Mayor Bloomberg have vowed to appeal the decision, which would next go to the New York State Court of Appeals in Manhattan and, presumably, later to the state’s highest Court of Appeals in Albany. Similar bans have been, and are, being proposed in other areas. State laws which limit the extent municipalities can act may come into play. Additionally, the federal government has authority under the Federal Food and Drug Act to regulate food. It is likely that similar bans would be written, enacted and enforced on a municipal level—by town or city councils, or by state legislatures. Ultimately, the final decision on New York City’s “soda ban” will be made by the courts and this battle is likely far from over. Carl B. Lisa is a principal of the firm Lisa & Sousa, Ltd. and serves as General Counsel for DDIFO.

A New Look, a New Focus DDIFO is your organization and the best line of defense against encroachment on your business. In my role as Executive Director, I have talked with a great Ed Shanahan, Executive Director many of you about what we do and do not provide. We’ve talked about how to improve the services and representation you get from your DDIFO membership. We are now beginning the transition of DDIFO into a true and effective national organization that represents your interests and helps you protect your business. You will notice this issue of Independent Joe has a different feel—and a different focus— than prior issues. We are looking to bring you regular, valuable and timely information that will help you succeed as a franchisee and protect your interests as a small business owner. We are now including a number of standing articles in every issue of Independent Joe to help us achieve our strategic goals. “Lisa on the Law” will provide analysis, explanation and assessment of current legal issues affecting franchise owners from DDIFO General Counsel Carl Lisa, Sr.; “My Perspective” is a practical, hands-on article from Adam Goldman, a successful New Jersey franchise owner; and “What’s Brewing: A Look at State Issues Around the Footprint” will regularly detail some of the issues, good and bad, that are pending in various states and municipalities. Of course, we’ll also continue to provide you with other top quality articles of timely interest, including regular information from Washington, DC, the National DCP and Wall Street. Our goal with this magazine is to provide you with regular and more valuable information. I’m excited to begin the re-launch of Independent Joe and the refocusing of DDIFO, with this issue and look forward to your feedback, guidance and input as this process continues. I hope you’ll take the time to give us your thoughts, comments and suggestions! Ed Shanahan DDIFO Executive Director

Independent Joe

April 2013

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Contents Lisa On The Law• • • • • • • • • • • • • • • • • • • 1 Tell it to the Members: CFA Day Forum puts Franchisees on Capitol Hil • • • 2 What’s Brewing: Feeling the Squeeze: Franchisees Face Costly State Laws & Regs • • • • 5 Section 4205 of the Affordable Care Act: New Menu Labeling Requirements• • • • • • • • • • 10 Feds Require New Labeling Requirements: Franchisees Face Fallout from Health Care Law• • • 13 Task Force Green Lights New Products• • • • 19 Directory of Sponsors• • • • • • • • • • • • • • • 25 My Perspective: DD Smart Menu • • • • • • • • 28

Joe

Independent

The Magazine for DD Independent Franchise Owners

Issue #19 April 2013 Independent Joe® is published by DD Independent Franchise Owners, Inc. Editors: Edwin Shanahan, Matt Ellis Contributors: Stefanie Cloutier, Lisa Iannucci, Adam Goldman, Carl B. Lisa, Esq., Susan Minichiello Advertising: Joan Gould Graphic Design: Caroline Cohen Cover Photography: Kenneth Parry Direct all inquiries to: DDIFO, Inc. 150 Depot Street Bellingham, MA 02019 508-422-1160 • 800-732-2706 info@ddifo.org • www.ddifo.org DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts Franchise Owners. INDEPENDENT JOE®, INDY JOE®, and DDIFO® are registered trademarks of DD Independent Franchise Owners, Inc. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc. All Rights Reserved. Copyright © 2013 Printed in the U.S.A.

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Independent Joe

April 2013

Upcoming Events Coalition of Franchisee Associations presents CFA Day

Tell it to the Members CFA Day Forum puts Franchisees on Capitol Hill

F

rom minimum wage to paid sick leave to health care reform, issues debated in legislative arenas this year stand to have a greater impact on small business owners than ever before. More and more small business owners are recognizing the importance of communicating their concerns directly with elected officials—at all levels. Since 2009, franchise owners from various brands have come together under the umbrella of the Coalition of Franchisee Associations (CFA) to identify areas of concern and communicate their positions directly to members of Congress. The 2013 CFA Day Forum will be held July 9-10 at the Fairmont Hotel at 24th and M Streets in Washington, D.C. As a founding member of CFA, DDIFO is working with franchisees from 17 other national brands to promote small business interests on Capitol Hill. Dunkin’ Donuts franchise owners Rob Branca and John Motta have seats on the CFA Board of Directors. “My goal is to get 25 Dunkin’ Donuts franchisees at this event this year,” said Motta. “With everything going on in DC right now—with Obamacare knocking at our door—this is a great event to have franchisees attend because they can talk face to face with their representatives and senators. It’s definitely worth their time.” Two years ago, the Universal Franchisee Bill of Rights was unveiled at the CFA Day Forum. According to CFA Chairman Keith Miller, “The framework of the Universal Franchisee Bill of Rights has resulted in many state legislative efforts

CFA DAY FORUM JULY 9-10

2013

the FAIRMONT

WASHINGTON, D.C.

in the form of The Small Business Investment Protection Act. It is time to bring these efforts to Congress and provide the protections franchisees deserve as co-investors in their brands.” This year, the CFA will be holding a reception for members of Congress the night before franchisees visit Capitol Hill. According to Misty Chally, CFA’s Executive Director, lawmakers from districts represented by CFA Day Forum attendees will be invited to meet and greet. “Because of the prominent issues of the day, members of Congress want to know what the impact would be on small business owners,” said Chally. “We want them to have a good discussion about the issues with the franchisees.” Issues like paid sick leave, minimum wage and health care reform impact all franchisees—regardless of the brands they represent. When franchise owners sit down to talk about issues with members of Congress, they make it clear the issues impact their bottom line and their ability to create jobs, according to Motta. “If you think about the 25 or so employees we have per store, that’s a big number of people we represent in someone’s district. So having numbers is important.” And, even if they don’t agree on the issues themselves, members of Congress from both sides of the aisle are interested in the opinions of small business owners from back home. To register for this year’s CFA Day Forum visit www.thecfainc.com

2013 CFA Day Forum • July 9-10, 2013 • Washington, D.C.


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Š Andres Rodriguez | Dreamstime Stock Photos


What’s Brewing A Look at State Issues Around the Footprint

Feeling the

Squeeze © Andres Rodriguez | Dreamstime Stock Photos

Franchisees Face Costly State Laws & Regs

By Stefanie Cloutier

R

ising health care premiums. Minimum wage increases. Paid sick leave. Bans on large sugary drinks and Styrofoam containers. Running a business has plenty of challenges even before the government gets involved. And get involved they have: federal, state, and local governments are all looking for ways to squeeze more money out of businesses and individuals, while also passing laws designed to “help” people live better, healthier lives. Laws that are not always beneficial to the person who owns the local coffee and donut shop. This is where DDIFO comes in. From states with a Dunkin’ Donuts on every corner to places where the brand is getting ready to make its first foray, the organization is newly focused on legislative and regulatory issues that can impact small business owners. “We’re working to be a national organization,” said DDIFO Executive Director Ed Shanahan. “We’ve done an effective job in the Northeast establishing ourselves as a representative power working on behalf

of individual franchise owners. We’re looking to expand that success to make sure each owner in every state within our footprint can benefit from that same level of expertise, energy and professionalism.” So what issues are out there now that owners should be paying attention to? Well, let’s take a look. Minimum wage could be going up If the federal government gets its way, you could see minimum wage rise from its current $7.25 per hour to $9 per hour, with increases tied to inflation thereafter. For a business owner, that incremental hourly increase will quickly impact your labor budget. And it’s not just at the federal level: ten states increased their minimum wage rate as of January 1, 2013, (see box) and there are at least two others contemplating minimum wage increases. New York, for example, is looking at raising the minimum wage to $8.75, while Illinois is considering an increase of almost $2, from $8.25 to $10, over the next four years. In the state of Massachusetts, by law the state minimum wage must be higher than

the federal minimum wage, by at least ten cents. With a current minimum wage of $8 an hour, legislators are considering an increase ahead of the federal one, to as much as $11 an hour, phased in over three years.

States with minimum wage increases as of January 1, 2013 Arizona

$7.80

Colorado

$7.78

Florida

$7.79

Missouri

$7.35

Montana

$7.80

Ohio

$7.85

Oregon

$8.95

Rhode Island

$7.75

Vermont

$8.60

Washington

$9.19

Independent Joe

April 2013

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DDIFO Sponsor Advertorial

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Independent Joe

April 2013

And in Florida, the state constitution includes a Florida Minimum Wage Act, where the state minimum wage is adjusted annually by the rate of inflation for the twelve months prior to September first of that year. Employers then need to make sure their address is up to date, so that they can receive notice of the new rate in a timely manner. New Jersey lawmakers had proposed a $1.25 increase in the state’s minimum wage, but the measure was vetoed by Governor Chris Christie, who proposed a one dollar increase to phase in over three years. Currently, New Jersey’s state minimum wage is the same as the federal wage. And while it seems only fair to adjust employees’ pay based on inflation, at least one franchise owner feels the pinch of having to pay a higher wage, explaining that his margins are fairly slim. “There’s only so much I can charge for a cup of coffee,” said one New Jersey franchise owner. “At a certain price point, people aren’t going to buy it, no matter how much I’m paying my employees.” He also felt strongly that the kinds of jobs he’s providing are meant to be side jobs, or secondary to an employee’s main wage-earning job, and therefore not one on which someone should expect to support a family. Paid sick leave also on the table Another hot topic between employers and employees is the issue around paid sick leave, and whether to institute regulations requiring business owners to offer some kind of sick leave to all employees, guaranteed pay when they can’t work. In the food industry, having a sick employee come to work is more than just inconvenient to coworkers: it’s potentially harmful to customers. No one wants the potential spread of germs on fresh muffins and donuts, or employees sneezing as they hand over the cup of coffee. But, at the same time, paying an employee for

hours not worked can become a costly proposition. Right now, this issue is getting a lot of play in New York City, where the City Council has passed a bill requiring companies with 20 or more employees to require at least five paid sick days per year; smaller companies would need to provide unpaid sick days. The proposal is tied to the City’s economy—so it would not be in effect during a deep recession. Mayor Michael Bloomberg says he will veto the bill but there are enough supporters among the Council to override the veto. Local taxes – up or down? Every shop owner needs to stay on top of local tax rates, but a critical situation came up recently in Florida, where the question arose as to whether Dunkin’ Donuts shops are a bakery selling pastries or a restaurant. The distinction has an impact on how taxes are collected, since items consumed on the premises are taxed one way, and items packaged for consumption off-premises are taxed another. Dunkin’ Donuts franchise owner and attorney David Daly requested a ruling from the Florida Department of Revenue. The ruling


What’s brewing essentially states that all food items packaged for consumption away from the shop, including baked goods, bags of coffee, and K-cups, are exempt from restaurant taxes. Shops do need to ensure they have a way of tracking these sales and keeping them separate, either through a separate key on the cash register, or a separate cash register all together. This ruling only applies to the state of Florida; however, Florida shop owners should pay attention and make sure they are collecting taxes appropriately. In Ohio, Governor John Kasich is proposing to lower the state sales tax from 5.5% to a flat 5%. However, he also wants to broaden the sales tax to include a number of service industries, a move not popular with a majority of Ohioans. He is also proposing higher taxes on shale natural gases and oil drilling, a move that could cut income tax for small business up to 50% over three years. These talks bear watching.

ADA makes an impact Any franchisee preparing for a remodel needs to pay attention to rules outlined in the Americans with Disabilities Act (ADA), and to require their architects do what they need to fulfill the requirements. According to Florida attorney Henry Roman, ADA lawsuits can add up to tens of thousands of dollars in renovation and attorney’s fees. Roman and others tell stories of lawyers who enlist disabled people to purposely scope out violations, sending customers in wheelchairs into establishments to check out sink heights in the bathroom, or the ease of navigation into and out of the place. It’s far easier, and less expensive, to build these accommodations into your renovation than having to do a fix once everything is done. David Daly also notes that owners need to think about their policy on service animals, which also falls under ADA. Being an establishment that serves food,

“If someone comes in with an animal, you can ask what service the animal performs, but you can’t ask about the disability”

Independent Joe

April 2013

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What’s brewing

Seattle, Washington and Brookline, Massachusetts already have instituted Styrofoam cup bans says Daly, gives this issue even greater importance. An owner can get in trouble if people who come in with service dogs get kicked out, says Daly, and yet, Florida law says you can’t allow animals in a store with food. “If someone comes in with an animal, you can ask what service the animal performs, (but) you can’t ask about the disability,” according to Daly. Owners should consider training people how to handle this situation—check with your attorney to be sure you know the rules.. Is Styrofoam doomed? Recently New York City Mayor Michael Bloomberg attempted to enact legislation banning sales of sugary drinks in cups larger than sixteen ounces. A state judge shot it down, but it only spurred him to set his sights on another allegedly harmful substance: Styrofoam and polystyrene packaging. His argument is that these items are not biodegradable, and fill landfills unnecessarily. Despite strong opposition from the restaurant industry—and others—Seattle

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Independent Joe

April 2013

and Brookline, Massachusetts have instituted Styrofoam cup bans; Portland, Oregon and Somerville, Massachusetts are currently considering such bans. Mississippi, meantime, is heading in the opposite direction, working to file legislation that specifically bars cities and towns from enacting any local laws affecting what people can eat or drink without passing it by the state government first. Federal regulations notwithstanding, Mississippi wants to ensure its citizens can continue to have freedom of choice, and control over what they put in their bodies, despite local government’s best efforts to wrest control away. Taking the reins With all this going on, what’s a franchise owner to do? Well, for one thing, know that DDIFO has your back. From keeping an eye out for upcoming legislation that could impact the bottom line, to working with legislators to make changes before laws are final, DDIFO does the heavy lifting for franchise owners. But that doesn’t mean you don’t have to pay

attention. In fact, DDIFO Executive Director Ed Shanahan says it’s vitally important for owners to understand what is being considered by government at all levels, and to communicate their needs. Only by being aware, and early enough in the discussion, can they effectively protect their investment, their business, and their legacy. “I’ve had more than a handful of legislators stress the importance of constituents getting in touch with them,” said Shanahan. “Two calls (on a subject) and they put an aide on it, five calls and they attend to it themselves, seven calls and they consider it a mandate. As busy as owners are, they should set aside the time to really get to know their legislators.” He says CMLs in Rhode Island and Maine have retained lobbyists in their states, which they pay for by assessing each member a set amount of money; he thinks owners in other states may want to do this as well. There’s always strength in numbers, and especially when dealing with the government, it’s nice to know you’re not alone.


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menu Labeling The Rules

Section 4205 of the Affordable Care Act:

New Menu Labeling Requirements When it was signed into law on March 23, 2010, the Affordable Care Act (ACA), commonly referred to as Obamacare, mandated that “restaurants and similar retail food establishments with 20 or more locations list calorie content information for standard menu items on restaurant menus and menu boards, including drive-through menu boards. Other nutrient information—total calories, fat, saturated fat, cholesterol, sodium, total carbohydrates, sugars, fiber and total protein—would have to be made available in writing upon request.” 10 Independent Joe

April 2013

Development and enforcement of the menu labeling requirement, found in Section 4205 of the Affordable Care Act (ACA), is the responsibility of the U.S. Food and Drug Administration (FDA). Even as select municipalities have instituted their own menu labeling requirements over the years, these new federal regulations will supersede any existing state regulations unless the state successfully petitions the FDA for an exception. In 2011, the FDA opened up a comment period to give interested parties the opportunity to provide feedback. The FDA continues to oversee the honing of the proposed regulations; however, the agency recently issued a directive with some specific guidance on the requirements for which affected establishments should prepare.

Current Guidance According to the FDA, these are among the likely requirements for calorie content and related information which will have to be placed on menu boards inside a restaurant and at the drive-thru: Must use the word “Calorie” or “Cal” Must be in a color that has the same level of visibility as the color of the menu item itself; does not have to be the same exact color Must be the same font size Must cover all standard menu items (food and beverages); test items appearing on a menu for up to 90 days are exempt Must appear on or adjacent to the menu board; may not be listed on a

• • • • •

• •

separate board in a different area of the restaurant Combo meals must list standardized ranges of calories for combinations unless, if there are specific alternatives, specific related calorie info must be listed Must include notification that more nutrient information is available in writing upon request Must include a statement to the effect of: Consuming 2,000 calories per day is generally recommended. Consider how menu items fit within your total daily needs, which may be higher or lower depending on age, gender and level of physical activity; or A 2,000-calorie daily diet is used as the reference point for general nutritional advice. Calorie needs vary depending on age, gender and level of physical activity

It is possible the FDA will order additional nutrient information be available in writing, but that has yet to be determined. In the mean time, the FDA has stated that all calorie content and nutrient information must have a “reasonable basis.” This terminology is likely to be further defined.

Photography by Kenneth Parry

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Anticipated Effective Date & Potential Penalties Originally, the FDA intended the menu labeling requirements to go into effect in April 2013. But, in a recent interview, FDA Commissioner Margaret Hamburg told the Associated Press, writing a new menu labeling law “has gotten extremely thorny,” due, in part, to strong lobbying by supermarkets, convenience stores and other retailers that sell prepared food. She said the final rules should become public in the “relative near term.” Once finalized, it is expected establishments will have six months to achieve compliance. The FDA will enforce what’s called “strict liability”, meaning that if you violate the rules, you’re liable; there are no excuses, no exceptions whether the violation is intentional or a mistake. Penalties will depend on the degree of violation. There are likely to be fines for failure to comply for small infractions. All penalties are likely to be civil in nature although, if repeated or deemed intentional or fraudulent, they could lead to criminal liability.

As soon as final requirements are written, DDIFO will post the information on the website, www.ddifo.org.

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Does listing calorie counts on menu boards really help patrons eat healthier? Studies on the subject offer differing results.

Section 4205 Ch

ains with 20+ Locations Must List Calori e Information

Feds Require New Labeling Requirements

Franchisees Face Fallout from Health Care Law By Susan Minichiello

A

Concerns and questions

One aspect of the ACA that will impact all franchisees is Section 4205, which will require chain restaurants with 20 or more locations to list calorie content information on menu boards, including drive-thru menu boards. The new menu labeling

Upon first hearing about the new menu labeling requirements, a busy small business owner’s mind might begin reeling: Where am I going to fit this information? Am I going to have to buy all new menu boards? Will I be forced to go digital? Will I have to shut down shops to make the transition? Will my guests stop buying

s various provisions of the Affordable Care Act (ACA) are implemented, franchise owners must stay vigilant learning about and preparing for compliance.

requirements are scheduled to go into effect this spring.

donuts or stop coming into my shop altogether? And most importantly: What is all of this going to cost me? Stop. Take a deep breath. Cities like New York and Philadelphia, and chains like Panera Bread and McDonald’s, have already implemented their own versions of calorie content menu labeling. In 2010, Panera became the first national chain to voluntarily post calories on all

Independent Joe

April 2013 13


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menu Labeling Its Impact

Scott Campbell, a Dunkin’ Donuts franchisee with more than 40 shops in New York City, is eager to calm fellow franchise owners’ fears.

the boards a consumer nightmare with too much info; they will make it presentable. I trust they will make it work. They already had to do this in New York and Philly, and I have not heard any franchisees balk at having to do anything out of the ordinary.”

“Ultimately, you’ll find this is much easier and not at all as harmful as you thought it would be. Within a year of it going into effect, you won’t even be talking about it,” said Campbell. “It helps to try to appreciate that it does educate your guests and allow them to form their own opinions, and that’s great.”

Campbell sees the Dunkin’ experience in NYC as a huge advantage leading up to implementation of the federal law. “The fact that the brand has been through this means they know the missteps and how to work with a government entity effectively. Cutting their teeth on this in New York City will help everyone.”

In 2006 the NYC Health Department first proposed the legislation, which prompted two years of lawsuits and revisions before it was implemented. Campbell recalls his own concerns over the legislation and admits there were growing pains.

To digitize or not to digitize?

menu boards. New York City’s legislation went into effect mid-2008.

“Franchisees consistently speak highly of the pouch cleaner, highlighting its effectiveness and ease of use,” said Arliene Bird, Assistant VP of Corporate Accounts. “The product helps ensure equipment cleanliness, resulting in better quality coffee for Dunkin’ Donuts guests.”

“It required a transition that involved a lot of shifting around of slats and magnets, font sizes and colors; and the combo meal gels provided their own unique challenges,” he said. “But we were heavily engaged as franchise leaders with Dunkin’ Brands and, given all of the factors—the newness, different interpretations—the brand got it right and the transition was as smooth as it could have been.”

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14 Independent Joe

April 2013

Campbell said Dunkin’ Brands offered support not only by providing the actual standard information to be posted but also by leading negotiations with the city over challenging aspects of the law, providing training for franchise owners, even fighting the city on behalf of franchisees who were cited in the beginning of the process. “The brand was very much in touch and really listened to the franchise owners. Their guidance and oversight was really good. They were on it as soon as possible and prepared better than other brands,” said Campbell. “Working together, the brand, the city and the franchisees worked it all out and no one in the Dunkin’ system was fined for any violations.”

At a meeting in early March with franchisees, Dunkin’ Brands acknowledged the pending regulation and the role that digital menu boards could play. According to one franchise owner who asked to remain anonymous, it seems digital menu boards are “going to be the future of all Dunkin’ locations.” He continued, “The brand made it a sell-in that investing in digital menu boards would make it easier to transition to showing the calorie content.” For Campbell and other NYC franchise owners, there were no digital menu boards approved by Dunkin’ Brands at the time they had to post calories, and he admitted, “I can see how that would have made the transition much easier.” Motta already has digital menu boards in one New Hampshire store and one Virginia location. “The beauty of these boards is that you can program them with what you need to. I think they will be able to update the menu boards with the calorie counts and send them to us over the Ethernet line and it will appear. Without the digital menu boards, we will need to climb up and down ladders, take down the existing boards and add the calorie counts to each menu item, which is time consuming and a safety issue,” said Motta.

A franchisee in New Hampshire and Virginia, John Motta, anticipates exactly that kind of brand support in the wake of new menu labeling regulations.

“It will be much easier to implement the calorie content on digital menu boards instead of ordering all new slats for the magnetic menu boards you currently see,” according to the anonymous franchise owner.

“I think that Dunkin’ Brands has this figured out already,” Motta says. “They will not make

But digital isn’t presently an option for the drive-thru. Dunkin’ Brands has been testing

Photography by Kenneth Parry

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a digital drive-thru menu board and has encountered problems. “The brandowned store in Brockton has one in their drive-thru lane, but I know they have issues with sunlight and reflections,” the anonymous franchisee said. With such complications and cost-prohibitive pricing (anywhere from $20,000 to $40,000), no digital menu boards are approved for drive-thru use, so new slats and reconfigurations will be necessary.

Cost to franchisees No matter the type of menu board, franchise owners will absorb costs associated with posting the required calorie information. Franchisees say the cost of new digital interior menu boards is between $11,000 and $12,000. If you are replacing old menu boards with digital ones and need to add electricity and Ethernet, that will run another $2,000 or so. According to franchisees, price breaks are available now while Dunkin’ Brands is encouraging, but not yet requiring, digital boards.

Scott Campbell, a New York City franchisee, says one year after menu labeling went into effect, customers are again ordering the same mix of products. “I haven’t even heard a guest mention calories in at least a year,” he said.

Pricing can drop a bit when franchisees order multiple boards at a time. “I don’t see there being a huge cost impact in implementing the calorie content whether with digital menu boards or the regular magnetic boards. Sales are projected to grow 2.5% with digital menu boards, so you will see some growth in sales after that investment,” said

drive thru

one anonymous franchise owner. “The magnetic slats aren’t too expensive and if someone doesn’t want to purchase digital, that’s the way they should go.” But what about costs in terms of lost sales if guests are influenced by the calorie information to switch from buying coffee and a donut or muffin to just the coffee?

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menu Labeling Its Impact According to Motta, “We all know which foods have higher calorie counts and which do not. Still, this new legislation may have an impact on our business as people will now see that some food items have a higher calorie count than they expected and not buy certain products.” The anonymous franchisee doesn’t anticipate a significant impact on guest buying patterns. “We live in a transparent world with a highly educated population. Our nutritional information has been available for years and can be viewed online. I believe our customers already know more or less the caloric content of what they’re ordering and eating from Dunkin’ Donuts.” Scott Campbell saw firsthand how customers in New York City responded. “Initially, guests were buzzing about calories and we saw a shift in buying patterns, especially with certain muffins that surprised people. We saw guests switching from certain

muffins to lower calorie donuts or from one type of donut to another. Some guests made a conscious and enduring shift to healthier options like our oatmeal and wraps, but this didn’t hurt sales; they’re still buying multiple items,” said Campbell. “Honestly, within six months, most people returned to their old patterns. We sold more donuts and muffins last year than ever before, and I haven’t even heard a guest mention calories in at least a year.” Studies of consumer behavior before and after calories were posted on menus seem to support Campbell’s anecdotal experience. A Stanford University study conducted at Starbucks in the first year of calorie posting revealed a 6 percent reduction in calories per transaction but no substantial change in the chain’s revenue. A 2009 New York University study found, “Calorie information on menus appears to increase awareness of calorie content, but not necessarily the number of calories people purchase.” A study by The NPD Group on sit-down chain restaurants indicated largely the same.

“We are proud to be installed in many Dunkin’ Donuts locations and to know how thrilled franchisees are with our product and service,” said Manager Jim Higgins. “We regularly receive comments about how impressive the energy savings, customer service and ROI are.” Each installed device saves about $500 per year; DDIFO members are eligible for special financing or a 10% product discount if paid-infull within 10 days of receipt.

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April 2013

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menu Labeling Its Impact Bonnie Riggs, NPD’s restaurant industry analyst and author of the report said, “In the short term, we expect consumers may react to calorie labeling with some shift in foods/beverages ordered, but expect that old behaviors will return in time. Operators may want to plan for some initial shift in product mix when the new menus are presented to consumers.” “In the beginning, watch carefully your numbers on muffins and other higher-calorie items and adjust your “Operators may want to plan for some initial shift in product mix when the new menus are presented to consumers,” said NPD restaurant inventory accordingly,” industry analyst Bonnie Riggs. said Campbell. “Be sure to keep a close eye on it, so when your guests begin reverting back to old patterns, you’re ready to react.”

What’s the point? If the goal of new menu labeling regulations is to battle America’s obesity epidemic by changing consumer behavior (as was the original argument), a new study in the research journal Appetite should garner the federal government’s and the FDA’s attention.

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It suggests context is key—that calories alone are of far less consequence than pairing calories with related physical activity information. The study indicates that the effect of “physical activity based labels” on consumer fast food meal selections is significant. As reported by ThinkProgress, study participants saw “one of four menus: some saw just the calorie count, some were given the calories and the amount of time it would take to burn off the meal, others saw the calories and the distance needed to walk it off, and some were given no nutritional information at all. “People who received no nutritional information ordered the most caloric meals, while people who saw the distance they needed to walk to burn it off ordered meals that were 200 calories lighter.” It further found, “A menu that directly translates calories into physical activity may be the key to changing eating habits.” But, from a practical perspective, pairing calories with physical activity information seems unrealistic if not impossible, especially in locations limited by space and already flooded with signage.

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18 Independent Joe

April 2013

Referring to the calorie-only menu labels alone, Jeff Lenard of the National Association of Convenience Stores said, “In a small store like a convenience store, that is really putting a lot of signage all over the place. You just hit a point where words become noise, and that’s not good.”


Photography by Lisa Iannucci

Franchisees on the Innovation Task Force see and taste potential new products at different points along the development pipeline.

E

Task Force Green Lights New Products By Lisa Iannucci

ven as a customer stares intently at the daily offerings of donuts, muffins, sandwiches and drinks, the next great beverage or snack is somewhere in the pipeline. So far this year, Dunkin’ Brands has announced the introduction of a limited-time-only (LTO) French Toast Bagel, reduced fat cinnamon cream cheese spread, and an Irish Crème Donut, as well as an Irish Crème Frozen Coffee Coolatta and Irish Crème Latte in select markets. Bringing savory new treats and refreshing new drinks to the Dunkin’ menu is no arbitrary event.

New York’s Hudson Valley (about 80 miles from New York City), Yuwen Chen and his brother Yu-Shin Chen have seen a number of new items come down the pipeline. They were kids working in the family store when Dunkin’ expanded the coffee and donut menu. Like other long-time franchisees they know new product launches can fail if the due diligence isn’t done.

“Our culinary research and development team is constantly in the process of creating new menu items to surprise and delight our guests at Dunkin’ Donuts,” according to Karen Raskopf, Chief Communications Officer for Dunkin’ Brands. “Inspiration can come from a number of places, including trends in the food industry, conversations with our franchisees and feedback from our guests on what they’d like to see in our restaurants.”

“The plain egg white patty was a good, healthy alternative, but it never received the proper support to be successful,” he said.

Before any new product gets onto a Dunkin’ menu, it has undergone a considerable amount of testing. The latest test item to earn permanence is the Dark Hot Chocolate. In the 31 years his family has owned Dunkin’ Donuts shops in

Yuwen Chen and his brother run a network in New York’s Hudson Valley.

Not everything can have the impact iced coffee did, Chen says. “They won over hot coffee drinkers with this product and the margin is better, so we should reduce LTOs and concentrate on the bread and butter of what’s made this brand successful.” Raskopf explains the culinary team frequently meets with crossfunctional teams including marketing, operations and consumer research, to help determine which products will ultimately be offered.

Independent Joe

April 2013 19


Innovation Task Force Franchisees play an important role in deciding which inspirations become the next innovations. Members of the Innovation Task Force (ITF), an offshoot of the Marketing Steering Committee, see and taste products across all categories at several stages of their development, helping decide which concepts will create a buzz and which will be a bust.

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Ken Blum, a franchise owner in northeast Ohio, chairs the Profitability Subcommittee and sits on the Innovation Task Force. “The test kitchen brings us new product for four hours,” said Blum. “We want to know if it tastes good. Can we make it efficiently in the stores? Can we sell it at a profit?” The Task Force meets quarterly and learns everything about a potential new product, including holding times, shelf life and, of course, cost estimates. “Marketing will tell you what they think it can sell for, but it’s a high-level discussion,” he said. “Would the market support this price point? Is it big enough, too small or the right shape? You can have a lot of different discussions in this committee.” “In the early concept stages, the committee is asked for input on the appeal of new items and how they fit into our overall menu,” said Raskopf. “It works from the beginning with several goals in mind – brand differentiation, delicious flavor, seasonal fit, profitable sales opportunity, and straightforward operations handling. As the product continues down the development path, we ask our franchisees and other committee members to weigh in on accomplishing these objectives and helping to meet the challenges.” Once a product is discussed and the feedback is passed on, Blum says the committee may never hear about the product again. Other times, a different rendition of the original product ends up in stores. “I’ve also learned that just because I like something doesn’t mean that the public is going to like it and vice versa,” said Blum.

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“For example, I’m not a big hot-and-spicy guy, but some products have a lot of spice to it that are very successful. As a Profitability Subcommittee member I look at my role as giving feedback and understanding the cost ramifications. We need to know that it fits in the overall scheme of what we’re already making and there’s a seamless transition or new platform to deliver the product.” Blum says the committee’s feedback does not guarantee the success or failure of the product. “It might not have tasted good or we can’t make it efficiently in the store. It’s impressive that every three months they have four hours of food to show us. They actively work on keeping that pipeline full and there’s a good disciplined approach to product innovation.” If the task force identifies concerns, Raskopf says, Dunkin’ Brands considers the feedback. “Innovation is a constant process of sifting and honing the very best concepts into actual menu items that appeal to our guests and fit into our overall menu. It takes a lot of work and each stage of the development process across the innovation to market pathway is in response to feedback and learnings gained from guests, crew members, internal specialists and our franchisees. We also invite many other stakeholders into


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the meetings including equipment, consumer research and other franchisee committee members.” Some new products require the addition of new equipment. “Bringing in new equipment isn’t a bad thing and even if we bring in new equipment, we’ll find other products we can use it for,” said Blum. “If you never innovate, you’re going to be left with shag carpet and fuzzy wallpaper. You have to keep up with the times. For example, if you look in the past 5-1/2 years, we switched from microwaves to turbo chef ovens which make a far superior product.” Once a new item clears the initial hurdles, it is shared with consumers through sensory panels, which allow customers to sample hopeful products. “Our culinary team also partners frequently with the equipment team as they are integrally linked to deliver great menu items that are delicious for our guests and easy for our crew members to make in-store,” said Raskopf. Once a product gets the go-ahead, it is rolled out in a beta test, or test in a small market. “They’ll test it in one, two or three markets,” said Blum. “For example, in Cleveland we tested the Angus Steak & Egg sandwich recently.” According to Raskopf, the amount of time it takes to get from idea to store depends on the product. “Extensions to existing product lines can move the quickest, for instance around nine months. Many limited time offers can take from 12 to 18 months to get from concept to actual calendar launch either regionally or nationally. New platform development and testing takes the longest amount of time as platforms also generally include some equipment enhancements.” Some products are launched regionally, depending on local tastes. Things like Kolaches in Texas, Dulce de Leche Donuts in South Florida and Long John Donuts in Chicago are not offered in distant markets. “We try to keep local and regional flavor preferences in mind when introducing new products at Dunkin’ Donuts restaurants across the U.S.,” said Raskopf. “For instance, our Northeast and Mid-Atlantic customers love apple flavors in the fall more than other regions. In the Southeast, we’ve developed a best-in-class biscuit, which leads into a biscuit menu anchored by a delicious chicken biscuit. We’re

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April 2013 21


Innovation Task Force constantly working on what those ‘right’ menu items are for other regions as well.”

Bagels were one of Dunkin’s most successful product innovations and remain a reliable seller.

They can also become limited-time-only products. Not all franchisees favor LTOs as much as other products and marketing strategies.

Chen is a RAC leader, but still wishes he had greater input on new products that come down the pipeline. “There’s a lot of good stuff, like the two new flavors of iced coffee that were recently introduced—mint chocolate chip and butter pecan—but I wish the marketing dollars were spent more on advertising the products that we already have, instead of too many LTO products.” The decision to introduce new products into the marketplace also depends on the needs and trends of the consumer. Over the last few years, the health conscious consumers have wanted a lighter menu, which includes the introduction of egg white options. “You try to cast as big a net as you can,” said Blum. “You can’t be all things to all people. I think our menu has evolved to meet the changing consumer. We’re never going to have 100% batting average with everything we make, but if it’s not best in class, it’s

pretty close. As a franchisee who lives and dies on this pipeline, I feel good about the process in place.” Rob Branca, a franchise owner in Massachusetts and Florida and who partners with Blum in Ohio, is also a member of the ITF. He says it’s important that franchisees are included in the development of new products at the earliest stages because the franchisee best knows the guests and the operational complexities of serving fresh, great tasting food and beverages with consistently high quality. “The ITF is a high-energy, interesting and important forum where we work on items from the beginning, conceptual point, through modifications to new ideas, cooking processes, equipment needs and marketing ideas,” said Branca. “It is a vital and thriving component to our business. We are fortunate to be led by John Costello and Stan Frankenthaller, each undisputed industry experts, and their teams who are all talented and highly collaborative with us.” ITF members are just like all Dunkin’ Donuts franchise owners, they are always on the lookout for the next big thing. “Iced coffee wasn’t big, but the reformulation won over hot coffee drinkers,” said Chen. “Coolattas were a hit, but not the same impact that bagels had—they were a game changer.”

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DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

24 Independent Joe

April 2013


Photo by Caroline Cohen

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Brian Colburn 443-996-1792 • brian.colburn@susquehanna.net 2 Country View Road, Suite 300, Malvern, PA 19355 www.susquehanna.com

CSM Bakery Products

Marla Cushing 770-723-2083 • marla.cushing@csmglobal.com 1901 Montreal Road, Suite 121, Tucker, GA 30084 www.csmbakeryproducts.com

CareerBuilder.Com

Maureen O’Neill 781-453-3570 • maureen.oneill@careerbuilder.com 400 Crown Colony Drive, Suite 301, Quincy, MA 02169 www.careerbuilder.com

Employers Reference Source

Sandra Fabrizio 888-512-2525 • sandraf@employersreference.com 1587 Hamilton Avenue, Waterbury, CT 06706 www.employersreference.com

Gecko Hospitality

Robert Krzak 630-390-1000 • robert@geckohospitality.com 1415 West 22nd St., Tower Floor Oakbrook, IL 60523 www.geckohospitality.com

Independent Joe

April 2013 25


Directory of Sponsors Granite Payroll Associates

Marco Schiappa 401-263-7921 • marco@granitepayroll.com 176 Granite Street, Qunicy, MA 02169 www.granitepayroll.com

Gulpfish.com

Ilya Reikhrud 800-974-4514 ext. 101 • ceo@gulpfish.com 1005 Main Street, Pawtucket, RI 02860 www.gulpfish.com

Ovation Payroll

Jim Ferreira • 203-530-3512 2 Stamford Landing, 68 Southfield Rd. #100 Stamford, CT 06902 jferreira@ovationpayroll.com • www.ovationpayroll.com

Snagajob

Erin Brumfield 804-822-4604 • ebrumfield@snagajob.com 4851 Lake Brook Drive, Glen Allen, VA 23060 www.snagajob.com/employer-solutions

Insurance

The Hill Agency

Rita Frailey 800-446-1775 • rfrailey.hilla01@insuremail.net 5 Washington Avenue, Endicott, NY 13760 www.thehillagencyinc.org

Legal

Lisa & Sousa Attorneys at Law Ltd.

Carl Lisa, Sr. 401-274-0600 • clisa@lisasousa.com 5 Benefit Street, Providence, RI 02904 www.lisasousa.com

Paris Ackerman & Schmierer LLP

David Paris 973-228-6667 • david@paslawfirm.com 101 Eisenhower Parkway, Roseland, NJ 07068 www.paslawfirm.com

Vernis & Bowling of Palm Beach, P.A.

Tammy Bouker • 561-775-9822 • 561-775-9822 tbouker@national-law.com 884 US Highway One, North Palm Beach, FL 33408 www.national-law.com

Zarco, Einhorn, Salkowski & Brito, PA

Robert Salkowski, Esq 305-374-5418 • rsalkowski@zarcolaw.com 100 SE 2nd Street, 27th Floor, Miami, FL 33131 www.zarcolaw.com

Grainger

3 Wire Group, Inc.

Access to Money ATM, Inc./Cardtronics

Brady Campbell 858-535-6034 • bcampbell@hme.com 14110 Stowe Drive, Poway, CA 92064 www.hme.com

Sinclair Insurance Group - Risk Management

Starkweather & Shepley Insurance Brokerage, Inc.

Doug Falcone 973-599-0600 • dougf@accesstomoney.com 628 Route 10 - Suite 8, Whippany, NJ 07981 www.accesstomoney.com

Wells Fargo Insurance Services

Fran Kauth 206-718-3573 • fran_kauth@belshaw.com 814 44th Street NW, Suite 103, Auburn, WA 98001 www.belshaw-adamatic.com

Mark Stokes 813-636-5301 • mark.stokes1@wellsfargo.com 2502 North Rocky Point Drive, #400, Tampa, FL 33607 wfis.wellsfargo.com

eCube

Cardie Saunders 888-99-ECUBE • cardie.saunders@getecube.com 5 Cold Hill Road, Building 20, Mendham, NJ 07945 www.getecube.com

Gary Hanna 508-624-7479 • gary@hitechsound.com 53 Brigham Street, Unit 8, Marlborough, MA 01752 www.hitechsound.com

Operations

Derek Knapp 518-563-3200 • derek.knapp@3wire.com 101 Broadway Street West, Osseo, MN 55369 www.3wire.com

Sabrina San Martino 800-854-4625 ext. 1121 • ssanmartino@starshep.com 60 Catamore Boulevard, East Providence, RI 02914 www.starkweathershepley.com

Ecolab

Arliene Bird arliene.bird@ecolab.com 8300 Capital Drive, Greensboro, NC 27409 www.ecolab.com/Businesses

3M Company

KK Insurance Agency

Matt Ottaviano 203-284-3235 • mottaviano@sinclair-insurance.com 4 Tower Drive, Wallingford, CT 06492 www.srfm.com

DTT Surveillance

Mira Diza 800-933-8388 • mdiza@dttusa.com 1755 North Main Street, Los Angeles, CA 90031 www.dttusa.co

Valerie Jenkins 503-887-6775 • valerie.jenkins@grainger.com 100 Grainger Parkway Lake Forest, IL 60045 grainger.com

Jim Sinclair 650-736-3836 • jwsinclair@mmm.com Bldg. 223-2N-20 St. Paul, MN 55144 www.3m.com/xt-1

Ashish Vadya 866-554-6799 • ashish@kkinsuranceagency.com 541 Broadway, Long Branch, NJ 07740 www.kkquote.com

Delphi/Fast Track 2+2 Drive-Thru Timer

Mike Pierce 714-850-13200 • mike@phaseresearch.com 3500 West Moore Ave., Suite M, Santa Ana, CA 92704 www.fasttracktimer.com

Hi-Tech Sound

HME Drive-Thru Headsets

Jarrett Services ATM, Inc.

Belshaw Adamatic Bakery Group

Eric Johnston 732-572-0706 • ej@jarrettforcash.com 1315 Stelton Road, Piscataway, NJ 08832 www.jarrettforcash.com

Bunn-O-Matic Corporation

Mark & Debi Macdonald 508-384-9361 • debi@macdonaldcompany.com PO Box 61, 83 Pond Street, Norfolk, MA 02056 www.macdonaldcompany.com

Todd Rouse 800-637-8606 • Todd.Rouse@bunn.com 1400 Stevenson Drive, Springfield, IL 62703 www.bunn.com

Please Visit The DDIFO Sponsor Directory online at www.DDIFO.org

Macdonald Restaurant Repair Service, Inc.

Mint-X Corporation

Amie Yee 877-646-8224 • ayee@mint-x.com 2048 199th Street, College Point, NY 11356 www.mint-x.com

DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

26 Independent Joe

April 2013


Directory of Sponsors Muzak

Joanna Barrett 803-396-1656 • joanna_barrett@muzak.com 3318 Lakemont Boulevard, Fort Mill, SC 29708 www.muzak.com

New England Drive-Thru Communications

Angela Bechard 888-966-6337 • angela@nedrivethru.com 12 Wildwood Road, Auburn, NH 03032 www.nedrivethru.com

New England Repair Service

Jerry Brown • A Division of New England Coffee Co. 781-873-1536 • jerry.brown@necoffeeco.com 100 Charles Street, Malden, MA 02148 www.nerepairservice.com

Paramount Restaurant Supply Corp.

Jeffrey Cartier 401-247-6500 • jcartier@pararest.com 101 Main Street, Warren, RI 02885 www.pararest.com

Payless Shoe Source

Matt Lemke 785-368-7530 • matt.lemke@payless.com 3231 SE 6th Avenue, Topeka, KS 66607 www.payless.com

R.F. Technologies

UAS Security Systems

Jennifer Morales 618-377-4063 ext. 121 • jenm@rftechno.com 542 South Prairie Street, Bethalto, IL 62010 www.rftechno.com

Chris McGurk 800-421-6661 • chrismcgurk@uas.com 700 Abbott Drive, Broomall, PA 19008 www.uas.com

Silver King

Waste Management

Chris Lyons 630-462-4906 • lyonsc@silverking.com 1600 Xenium Lane North Plymouth, MN 55441 www.silverking.com

JoAnn Bradbury 215-378-1417 • jbradbury@wm.com 107 Silvia Street, Ewing, NJ 08628 www.wm.com

SKAL East, Inc

Tax Deferred Exchange

Kevin Huerth 508-238-0106 • kevin@skaleast.com PO Box 303, 31 Eastman Street, Easton, MA 02334 www.skaleast.com/index.cfm?keyword=dunkin

SureShot Dispensing Systems

Steve Robert 905-827-4415 • srobert@sureshotdispensing.com 100 Dispensing Way, Lower Sackville, NS, Canada B4C 4H2 www.sureshotdispensing.com

TredSafe/WalMart

Ted Travis 909-949-0495 • ttravis@esoriginals.com 450 West 33rd Street, New York, NY 10001 www.walmart.com

Exchange Authority

Marie Dias 978-433-6061 • mdias@exchangeauthority.com 9 Leominster Connector, Suite 1, Leominster, MA 01453 www.exchangeauthority.com

u o Y k n a h T to Our ! Sponsors

www.lisasousa.com

5 Benefit Street, Providence, Rhode Island, 02904 Tel: 401-274-0600 Fax: 401-421-6117 e: clisa@lisasousa.com

We Know your Business. Franchise Corporate & Business Real Estate & Development Employment Trust & Estate Planning Litigation

The Rhode Island Supreme Court licenses all lawyers in general practice of law. The Court does not license or certify any lawyer as an expert or specialist in any field of practice.

Carl B. Lisa Sr. & Louis A. Sousa named Legal Eagles 2009 & 2010

AV® Rated by Martindale-Hubbell Signifying the highest standards of legal proficiency and ethics.

Lisa & Sousa Ltd. is a firm with over 50 years of collective experience representing multi generational Dunkin Donuts franchisees in the acquisition, financing, development, structuring, transitions and transfer of franchised and other businesses. Specific example include: transfer of ownership of 100 locations in Northeast, Southeast and other parts of the United States; sale of 48 locations in NY; purchase of 15 stores in the Northeast; acquisition of multi-shop networks in Florida (18), Vermont (20) and Cape Cod, MA (20); Store Development Agreements (SDA’s) throughout the country; and formation of cooperative Central Production Locations (CPL’s). Lisa & Sousa Ltd. is general counsel for the Dunkin Donuts Independent Franchise Organization (DDIFO) with a membership of approximately 2000 Dunkin Donuts franchise units nationwide. Our clients have chosen to have an on-going relationship with Lisa & Sousa Ltd. because of experience, proficiency, determination and attention to detail.

Independent Joe

April 2013 27


My Perspective:

DD Smart Menu By Adam Goldman

Over the last few years, Dunkin’ introduced egg whites in three varieties: turkey sausage, veggie, and plain. That offering was dropped once Dunkin’ Brands found that a healthy option should also be greattasting and the plain was a little too plain for our customers taste. In February the turkey sausage limited time offer (LTO) was such a hit that it became a permanent menu item. The reduced fat blueberry muffin continues to be a top seller throughout the day as both a breakfast item and an afternoon snack, and our breakfast wraps help those customers looking for a smaller portion size. Dunkin’ didn’t just stop at breakfast, introducing tuna and chicken salad sandwiches, an alternative to the high fat burgers from the traditional QSR’s. Any of these items coupled with one of DD’s “Lite” beverages made with skim milk and Splenda further drives home to our customers that we are listening to their needs and desires. While Dunkin’ has developed these great alternatives, the vast majority of those who are looking for healthy alternatives do not know about our DD Smart Menu offerings. In Window 3, marketing developed a fantastic little brochure that introduced our guests to the Smart Menu and calls out those nutritional figures that

28 Independent Joe

April 2013

The turkey sausage egg white sandwich is one one the many healthy alternatives on the DD Smart Menu that has the competition taking notice..

are the most helpful in matching their needs with our products. In my stores we listen for those times when a guest says something has too many calories or too much fat, and introduce them to the DD Smart Menu options. Now if the customer orders a Latte Lite, and a sausage egg and cheese on a croissant with butter and jelly (yes I have a customer who is watching their weight yet orders this regularly) then the Latte Lite may have no effect, but what about someone who is dedicated to a healthier lifestyle?

Karen’s cholesterol, she needs to focus a bit more on the rest of her meals, however that little switch to the egg white veggie and reduced fat cheddar has dropped her levels to the point to where her doctor is holding off prescribing any medication. As an added bonus, the increased protein and reduced fat in both the egg and cheese has given her more energy on the court and left her with the feeling of being full much later in the day and thus reducing the need for a late day snack. This in conjunction with her playing tennis has resulted in her dropping a full dress size. I wonder what Subway pays Jared for his endorsement?

Just a few years ago my wife Karen’s cholesterol was at a level that her doctor wanted to prescribe a statin drug. She decided to change her breakfast routine from a bacon egg and cheese on a croissant to our veggie egg white with low fat cheddar on the bottom half of a croissant. At the same time, she started playing tennis three times a week in between her busy work schedule. She would hear the other ladies on the court complain how they were hungry after their morning cup of yogurt. When Karen told them about Dunkin’s Smart Menu and what she ate each morning the ladies were stunned. “Dunkin’ has healthy things to eat?” they would say.

Overall I think our DD Smart Menu has left the competition jealous and envious—particularly about our great tasting breakfast offerings. I would suggest that for my fellow franchisees to really benefit from our superior menu, taking the Smart Menu brochures and product samples and introducing them to managers at local gyms/workout centers and even a doctors or nutritionists in the area. You may even be able to have the brochure posted on the bulletin board within the gym and a savings offering if they show their gym membership card. In turn they may just recommend to their guests and patients Dunkin’ Donuts as a great way of focusing on their health throughout the day.

Now, after a pre-game breakfast she hosted at one of our stores, the ladies are no longer eating just yogurt and are no longer “starved” while on the court. As for

Adam Goldman is a DD franchise owner with a successful multi-store network in Northern New Jersey. Contact him at njddonuts@gmail.com.

Photo by Caroline Cohen

R

ecently, McDonald’s announced it would add egg whites to their breakfast offerings, specifically focusing on their powerhouse breakfast sandwich, the Egg McMuffin. It seems as though McDonald’s is finally realizing that others in the QSR industry—and specifically Dunkin’ Donuts—have for some time been focused on developing innovative and great tasting breakfast alternatives for health-conscious customers.


Photo by Caroline Cohen


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