Join our Waitlist for Expert Advice!

West Coast, Get Ready — Dunkin' Is Coming, and It's Bringing 'Insta-Ready' Gen Z Drinks With It The coffee shop's sales topped $10 billion in 2021, and its coming in at #5 on our 2023 Franchise 500.

By Britta Lokting

This story appears in the January 2023 issue of Entrepreneur. Subscribe »

Courtesy of Dunkin'

See where Dunkin' ranks when our 45th Annual Franchise 500 list is released on January 16, 2024.

Started Franchising: 1955 | Total Units: 12,957 | Cost to Open: $437.5K-$1.8M

Dunkin' executives were nervous when the pandemic halted the morning commute, but the company's drive-thru capabilities saved the day. Now, almost three years on, Dunkin' is setting records. U.S. sales topped $10 billion in 2021 and Dunkin' was on track to open 300 new restaurants in 2022, all styled in the brand's new "Next Gen" image. The remodeled restaurants focus on mobile ordering, which has already generated $1 billion in sales.

After falling to No. 11 last year, these innovations propelled Dunkin' back into the Top 10 — for the 15th time in 20 years. But that's not its most impressive streak: It is one of only three franchises that has ranked in every single Franchise 500 in the list's 44-year existence.

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

Food and social media are now Dunkin's top priority. Doughnuts have been relocated to the front of the Next Gen stores and iced coffee is on tap at the counter to enhance efficiency and quality control. Dunkin' has doubled down on its iced drinks market, expanding a summer staple into a year-round menu item. It also launched new menu items like avocado toast — a less indulgent alternative to a doughnut or a hearty breakfast sandwich. Dunkin' wanted to reach a new customer base who are looking for a quick bite to pair with their coffee. All of these changes still make for easy to-go and drive-thru orders — the backbone of Dunkin's experience — during a time when people still don't want to get out of their cars.

View the 2023 Franchise 500 Ranking Now

"If you think about that next- generation consumer, they're drinking iced beverages more than hot and they're a little younger, a little more female, a little more diverse," says Scott Murphy, Dunkin's brand president. Those consumers, he says, are looking for iced beverages like Dunkin' Refreshers that are brightly colored and Instagram-ready.

Perhaps no one represents this consumer base better than TikTok influencer and Dunkin' fanatic Charli D'Amelio. The company named a drink after her and partnered with her to host an event for the Dunkin' crew. With her 148 million followers on TikTok and 49 million on Instagram, D'Amelio has been a huge asset to Dunkin'. "We're one of the most-followed restaurant brands on TikTok and it's in part because of her," says Murphy.

Related: How Dunkin' Pivoted to Serve the Home-Office Crowd

Now, the company — which has been mostly East Coast-based — is eyeing an expansion westward. Armed with parent company Inspire Brands' $1 billion-plus ad fund, Murphy says Dunkin' will soon populate the entire country.

Britta Lokting is a journalist based in New York. Her features have appeared in The New York Times, The Washington Post Magazine, MIT Technology Review, and elsewhere.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Social Media

How To Start a Youtube Channel: Step-by-Step Guide

YouTube can be a valuable way to grow your audience. If you're ready to create content, read more about starting a business YouTube Channel.

Business News

These 3 Side Hustles Make the Most Money While Working Fewer Hours, According to a New Survey

The survey also found that having a side hustle doubled as a path to becoming more employable.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.

Franchise

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

Business News

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.