Leadership - Management

Leadership Cameo: Dunkin’ Brands
Chairman-CEO Jon L. Luther

By Peter Langlois

I recently chatted with Jon Luther about the strategic direction of Dunkin Brands, and why Jon and his company are investing in The Elliot Leadership Institute and its initiatives.

PL: Obviously gourmet/specialty coffee has literally exploded with the

continued growth of Starbucks building the category. How are you addressing

this area, as well as the alternative beverage category overall?

JL: Dunkin’ Donuts is the number one retailer of coffee-by-the-cup in America, serving nearly one billion cups each year. We’re the number two brand overall behind Starbucks. Our concept is based on convenience. In New England, for example, we have 1 store per 7,000 in population density. That’s very high penetration.

We’re hanging our hat on convenience, quality and value. We are making sure we are available to fill each day-part by having multiple locations. People are drinking coffee throughout the day, not just at breakfast, and we want to be top of mind throughout the day.

PL: You've built great brand loyalty along the entire Eastern Seaboard. What is your strategy for penetrating other regions, or do you feel you need to increase share and defend market share in the East?

JL: We’ll continue to fill-in our current markets until we get the kind of penetration we’ve reached in New England. In 2006, we’ll open 1,000 new stores. We’re entering new markets, including Charlotte, Cleveland, Tampa, Jacksonville, and Nashville. In 2007, we plan to penetrate Cincinnati and Indianapolis, along with three other markets that I can’t identify at this point. Since 80 percent of our business is concentrated East of the Mississippi River, there are plenty of opportunities for Dunkin’ Donuts (in this region).

PL: What advantage do you see as a stand-alone company?

JL: Our previous owners’ primary business is spirits. We now have owners who are close at hand and are enthused about our business as a primary venture. So far things are going great.

PL: You're making a big investment in the Elliot Leadership Institute and their initiatives. Would you explain to our readers why you feel this is so important?

JL: Nothing is more important than leadership. I sometimes say that managers are a dime a dozen but leaders are not. We believe in and use the 10 leadership points embodied in The Elliot Leadership Institute model. We see in Alice Elliot and Steve Caldeira, leaders who are as passionate about that leadership as we are about Dunkin Brands. I also feel I should be leaving a leadership legacy, so that others can enjoy the kind of success I have. We are attending ELI seminars, and our teams are moving forward in their leadership skills. The seminars are convenient and don’t take our executives out of the office for extended periods of time. I like that a lot because we need to have them focusing on our brands on a daily basis, not attending long drawn-out seminars.

For more information and insights on Dunkin’ Donuts, Google “Dunkin’ Brands", or visit the company web site. To learn more about www.elliotleadershipinstitute.org, visit their web site.

Bio:

Jon L. Luther
Chairman and Chief Executive Officer
Dunkin’ Brands (Dunkin’ Donuts, Baskin-Robbins, Togo’s)

In January 2003, Jon L. Luther was named Chief Executive Officer of Dunkin’ Brands. Luther, a 35-year veteran of the food service industry, is a proven leader in the quick service restaurant business, with a strong history of creative brand growth and development.

Prior to coming to Dunkin’ Brands, Luther was President of Popeyes Chicken & Biscuits, a division of AFC Enterprises. Under his leadership, the company experienced unprecedented growth, growing store count by 67 percent and driving average annual unit volumes to nearly $1 million, the highest in the QSR chicken category. With Luther setting new standards of performance, Popeyes received top industry honors for menu strategy, store re-design, and customer satisfaction.

Preceding his leadership role at Popeyes, Luther was President of CA One Services, a subsidiary of Delaware North Companies, Inc. CA One Services, the nation's second largest airport food service operator, experienced a major turnaround under Jon’s guidance, increasing operating profits substantially. One of his most exciting innovations was the development of airport "gateways," which allow air travelers to experience the distinctive personality, food and culture of the local city or region.

In 1987, Luther partnered with a venture capital firm and founded Benchmark Services, Inc., a food service management firm specializing in business dining for corporations. As President, he acquired several companies specializing in food service and vending in employee environments, and grew the business into a strong regional competitor. Prior to founding Benchmark, Luther also ran his own consulting firm and served as a Vice President for the food division of Marriott Corporation.

Luther began his career in the foodservice industry in 1967, when he joined ARA Services in Philadelphia. He held several prominent positions within the company, and was eventually named President of ARA's Davre's restaurant subsidiary in 1981.

Luther holds a degree in hotel and restaurant management from Paul Smith’s College. He has also participated in the Wharton School of Business' Community Leadership Seminar Program. He supports culinary and foodservice programs at a variety of institutions, including acting on the Board of Directors for Paul Smith’s College and the advisory boards for the Statler Hotel Management Program at Canisius College in New York, Elliot Leadership Institute, Leadership Roundtable and Restaurant Leadership Conference. He is also a member on the Executive Board of Directors for the Companions in Courage Foundation.