As Dunkin’ Donuts makes its third attempt on the UK market, I explore its previous attempts.
The broadsheets such as the Daily Telegraph report that this is the chain’s second attempt at the UK market, but this is incorrect.
The first outlet opened in the UK at Ludgate Circus, London on October 1965. The UK operation entered liquidation in 1968. At the time, the Economist described the attempt as a “flop”.
The second attempt began in 1988. Rather frivolously, its UK head office was at 48 Carnaby Street, London. Four outlets were opened in the Birmingham area, with a bakery at Leamington Spa. 6 DDs (including a 24 hour outlet in Glasgow) and a bakery in Livingston were opened in Scotland. As with now, the plan was to open 100 outlets, with a focus on the London area. The outlets and bakeries were all closed down in 1999, after continuously losing money.
When it failed the (second) time around, DD was actually owned by a British company, Allied Domecq, which has substantial knowledge of the UK property and catering markets, as the owner of J Lyons (including the Wimpy burger chain) and 3,500 pubs.
Clearly the present owner feels that the success of Krispy Kreme in the UK since has cleared the way for another doughnut retailer to enter the fray. The chairman and chief executive in America is also a Brit. But Krispy Kreme clearly presents itself as a premium priced “treat”, whereas the Dunkin’ Donuts model is more of a value proposition akin to Greggs. It’s foolhardy to take on an established competitor such as Greggs in its home market.