Page 66 - Entrepreneur - USA (January - February 2020)
P. 66
THE FRANCHISE
Donuts. Over the next five
years, he opened four more
stores. And that’s when he set
his sights on franchising.
FRANCHISING WAS a new con-
cept in the early 1950s, and not
particularly well-respected.
Howard Johnson’s was one of
the first to do it, and across the
country in California, Ray Kroc
was just discovering and woo-
ing the brothers who’d started
McDonald’s. But Rosenberg
believed franchising could be
transformative, so in 1955, he
bought out his brother-in-law
and sold his first Dunkin’
Donuts franchise.
By 1960, the company was
on its way to 100 stores, and
at a convention in Chicago,
Rosenberg began rallying his
fellow franchise companies—
brands like Chicken Delight,
Burger Chef, and A&W
Root Beer—to organize
into what would become
the International Franchise
Association. Today the IFA is
the world’s oldest and largest
doughnuts in a kettle with ren- today’s food trucks. Open Kettle in Quincy, Mass., franchise organization, rep-
dered beef fat, which she’d Rosenberg was committed just outside Boston. It was the resenting more than 733,000
drain on kraft paper bags. “I’ll to quality, and to get the drip first retail doughnut store with franchise establishments…
never forget licking the grains flavor right in his coffee, he dine-in seating. The coffee was including Dunkin’ units.
of sugar off my lips and fingers,” ran boiling water over leach- freshly ground and brewed “It’s safe to say that Dunkin’
he wrote. “This great experience ing bags in custom-designed in small batches, and while is a very active and well-
left an indelible memory of how 100-gallon stainless steel the typical doughnut shop respected franchise brand,”
doughnuts meant so much to tanks. The diligence allowed offered four or five choices, says Stephen Worley, an IFA
me and every other kid.” him to charge 10 cents a cup, Rosenberg—inspired by spokesperson, clearly careful
Rosenberg went chasing rather than the standard five. Howard Johnson’s 28 varieties not to show preference for one
dough, but originally, it wasn’t And for his doughnuts, he of ice cream—made dozens. member over another. “In many
with Dunkin’. In 1946, starting bought from bakeries that Business boomed, and in respects, it’s one of the more
with a single truck, he founded produced fresh batches mul- 1950, Rosenberg rebranded recognizable franchise brands
what would become Universal tiple times each day. In time, Open Kettle to Dunkin’ in the country.” f
Food Systems, New England’s coffee and doughnuts came to
largest food-service busi- account for 40 percent of his
ness. In addition to running food-service business, so he
commissaries and vending opened a stand-alone retail When you share with others,
machines for factory workers, shop where customers could “ everyone benefits. That’s
the company built trucks with come to him.
sidewalls that opened to the In 1948, with brother-in-law the whole concept behind
street, so workers could buy Harry Wintour as full part- franchising. If the franchisees do
sandwiches, pastries, dough- ner, Rosenberg went brick-
nuts, and coffee—precursors to and-mortar with a place called well, we all do well.”
64 / ENTREPRENEUR.COM / January-February 2020
