Dunkin' Brands: Moving Beyond 1st, 2nd, or 3rd Place
In his 1989 book The Great Good Place, author Ray Oldenburg coined a term for the type of hangout that serves as an important social gathering point in our society: "the third place." As opposed to the first two places of home and work, in the third place, we can mix freely and unhurriedly, exchange ideas, and generally become revitalized in each other's company. In his widely read book, Oldenburg cites the neighborhood coffee house as a prime example of the third place.
It's an idea that's resonated with Starbucks Corporation (NASDAQ: SBUX) founder and current Executive Chairman Howard Schultz. Schultz has long argued that Starbucks wants to be the primary third place for much of the U.S. and, indeed, the world.
Not so with Dunkin' Brands Group (NASDAQ: DNKN). For several quarters, Dunkin' has worked on a "multiyear plan to transform Dunkin' Donuts U.S. into a beverage-led, On-The-Go brand," to quote what has become almost a rote phrase issuing from the executive suite. At present, as domestic Dunkin' Donuts stores go, so goes the company, as 76% of Dunkin' Brands' revenue is still generated from U.S.-based Dunkin' restaurants.
Source: Fool.com
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