The Secrets of Successful Development: How Some Franchise Brands Do it Better Than Others

Creating and growing a business is easier said than done. 

In the world of franchising, a brand’s success is weighed heavily on its ability to develop a strong footprint and make an impact on as many consumers as possible. That being said, a brand’s rapid growth can create additional challenges. Trying to grow too quickly  can be harmful to any  business type, but a franchise brand that rushes into expansion too soon could risk crashing into financial doom. 

Many franchise businesses have failed after neglecting to listen to the insight of the consumer and overestimating their ability to expand. Remember Krispy Kreme? The brand’s infamous donut shops were once a staple on almost every block across the U.S., but they’ve since downsized. In 2003 and 2004, Krispy Kreme’s revenues increased by 15%, but those same store revenues had only increased by .1%. Krisy Kreme’slarge expansion was consequently followed by the closing over half of their locations nation-wide, letting future franchise generations know that although their product may be popular it’s not necessarily marketable to everyone.

So, what does success look like when trying to develop a franchise brand? McDonald’s laid the model of success that Dunkin’ has since transformed to meet the needs and desires of their target consumers, benchmarking a whole new standard for franchise success. 

The true hero of Dunkin’s past was the donut. When the company was founded in 1950 fitness and nutrition weren’t as important to their customers, and while the brand still sells donuts in their stores, coffee has become the focal point. For other brands, a moderate level of success and a focus on a hero product is enough to sustain growth but Dunkin’ paid attention to its consumers changing preferences and was able to shift their brand’s focus to maintain their consumer base.

New York City 35% of coffee drinkers prefer Dunkin’ over Starbucks for their morning cup of coffee In the early 2000s Dunkin’ saw that its coffee sales were on the rise, as many of their drive-thrus were serving customers quicker than Starbucks. The brand also noted the success in offering customers a variety of flavors for their coffee. By diversifying their product, Dunkin’ was able to reach a whole new customer base.

Dunkin’ has since evolved, and in 2018 cut donuts from their brand name entirely. In addition to expanding its shops throughout the 2010s, Dunkin was able to extend its reach further with a strong commitment to social media efforts. TikTok stars like Charli D'Amelio have been brand advocates for Gen Z, helping inform a whole new generation of Dunkin’ fanatics. 

Success in franchise growth today is not linear — tapping into the insights from customers is key. Knowing what your customer base looks like and how they think is important in making sure you’re able to adapt, create and grow a valuable brand. Especially in the game of franchise.