August 29, 2007
Dunkin’ Healthier Donuts
There probably aren’t too many consumers who go into a Dunkin’ Donuts who are concerned that the items they will buy are nutritionally wanting. With that as a backdrop, how are the chain’s core customers likely to react to the its decision to switch from hydrogenated oils to a blend using oils from palm, soybean and cottonseed?
As of Oct. 15, items on the menus at each of Dunkin’ Donuts 5,400 locations will qualify under federal guidelines to be labeled as containing zero grams of fat. The company, an Associated Press report pointed out, is able to make the zero grams claim as long as items have less than half a gram of trans fat.
Jeff Cronin, spokesperson for the Center for Science in the Public Interest, expressed approval for the chain’s decision.
“It’s good news that they’re dropping most, if not quite all, trans fat,” he said. “If Dunkin’ Donuts can do that, anyone can.”
While the nutritional profile of Dunkin’s doughnuts may be improved, the company has not sought to position its foods as being nutritious.
“The goal was not to make a healthy doughnut, it was really to create a doughnut that was better,” said Joe Scafido, Dunkin’s chief creative and innovation officer told The Associated Press. “Certainly, we did not create a healthy doughnut.”
Dunkin’ Donuts is moving to its recipe reformulation after testing its new oil blend in 400 locations around the country.
“We got no negative consumer feedback, and we sold 50 million doughnuts in that time,” Mr. Scafido said.
Krispy Kreme, one of Dunkin’ Donuts’ chief rivals, is not ready yet to introduce doughnuts made with little or no trans fats. Company spokesperson Brian Little said, “We continue to work aggressively with outside supply partners, and our goal is to get to zero trans fatty acids while maintaining great Krispy Kreme taste.”
Another competitor to Dunkin’ Donuts, Starbucks, plans to eliminate the use of artificial trans fats by the end of the year.
Discussion Questions: How will core consumers of Dunkin’ Donuts react to the news the company is changing the oil it uses to make doughnuts, cookies and muffins? Will the reformulation bring in new consumers? What do you think of the company’s decision to downplay the health aspect of its switch to a new cooking oil blend?
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Less unhealthy does NOT equate to healthy or good for you. As far as I know, palm oil is also full of saturated fat and I fail to see how it is possible to make a healthy donut no matter what it is fried in. What is in the donut itself, for example?
Having said that, I don’t think that DD’s customers could care less. If new customers are attracted on the basis that donuts are good for them, then I don’t think it will be long before the contents are being scrutinised even more closely and the claim questioned. Not capitalising on this change makes sense to me. Let the people make their own decisions based on how much they crave a donut but do not try to persuade them that it is a healthy snack. The most important thing they should push is the taste. If it tastes good and the flavour has been improved, then that is an excellent point to promote.
Patrol officers rejoice! No More Trans Ams! (That’s No More Trans FATS, Officer Fife, and what’s the 0-60 time in them things anyhow? Should we broadcast an APB?)
KFC’s recent move in this direction created no seismic shift in customer preferences. Nor should it in the doughnut bidness. Double D (I used to fry for them during college) made a PC move, dutifully publicized it, and will return to crullers as usual. Frequently excellent coffee, and the waitresses call you Darlin’. Who could ask for more? Certainly not the type of oil used to fry your goods. And I do love those Double D waitresses. How about you?
I agree that Dunkin’ Donuts should downplay the “healthier” angle. Simply put, although eliminating trans fats is a good thing, donuts are still the epitome of junk food. They are high in fat, sugar and carbs and should be eaten sparingly – trans fats or no. They have zero nutritional value. In a country that is already morbidly obese (the latest study stating a substantial rise across the country), it would be irresponsible and dishonest of D&D to promote a donut as being “healthy.”
I think this is incredibly responsible of D&D and they should be commended for it. They are anticipating an inevitable backlash from health groups, nutritionists, etc. and avoiding it – which will work out better for them in the long run.
Core customers will react favorably providing the “new” donuts they joyously dunk at Dunkin’ Donuts taste as good as the old ones. But don’t expect the broccoli-addicted crowd to rush into DD just because of the new cooking grease.
This is certainly a positive move for Dunkin’ Donuts. Everyone loves donuts and, if they are healthier now, people will continue to purchase them. Why wouldn’t you promote it? This is a mistake. Promoting the new tasting good for you donut would not offend existing customers but would draw in new ones! Their coffee has been rated as one of the best. Why not do a joint promotion of good things for you!?? I’m not sure I understand the decision to keep the new healthier donut a secret!
The donuts and muffins at Dunkin’ Donuts are not the best you can buy anywhere. Having said that, the combination of coffee, donuts, muffins and bagels is usually the best available at one stop in an area! It appears that the people at Dunkin’ Donuts did a smart thing in testing the oil change under the radar.
If I were managing DD’s marketing, I would be trumpeting the zero trans fat message. Fast food restaurants typically do not have healthy menus even after the removal of trans fats, yet they all tried to make a splash of the removal of trans fats. DD should do the same because they are in front of their competition. First in is usually an advantage!
Eliminating trans fats is an excellent defensive move for Dunkin’ Donuts. It anticipates a negative issue and eliminates that threat. No one will confuse Dunkin’ Donuts with a health food store, and it’s not reasonable to expect any sales increase. It’s not a good idea to remind customers that sugar, caffeine, and deep frying aren’t health-optimal.
Not everyone will care about this but, for those that do, this will be a great competitive advantage. Therefore, I’m in adamant agreement that they should not downplay it. Hey, we all know eating doughnuts isn’t exactly good for us. Why not give people a reason to make it “less bad”? Don’t we all love a little justification for a treat? And good point that the coffee is excellent.
The public is way ahead of risk-averse marketing executives and media gurus on the health demand. Notice that the size of the organization is directly proportional to the product-development indolence regarding health demand perception. The little guys on the early health wave will rule the next 10-15 years.