independent joe september issue

IndependentJoeThe Quarterly Magazine of DD Independent Franchise Owners

August/September 2009 • Issue 2 DD Franchise owners Kini Do it together!

East meets

wEst also in this issue:

tim HOrtOnsHas arrived in nYC

Different cultures build Dunkin’ Donuts success

a committed franchise owner and true friend:HOnOring jOHn HEnDErsOn

www.lisasousa.com

Lisa & Sousa Ltd. is a firm with over 50 years of collective experience representing

multi generational Dunkin Donuts franchisees in the acquisition, financing, development,

structuring, transitions and transfer of franchised and other businesses.

Specific examples include:

transfer of ownership of 100 franchise locations in Northeast, Southeast and other parts

of the United States; sale of 48 locations in NY; purchase of 15 stores in the Northeast;

acquisition of multi-shop networks in Florida (18), Vermont (20) and Cape Cod, MA (20);

Store Development Agreements (SDA’s) throughout the country; and formation of

cooperative Central Production Locations (CPL’s).

Lisa & Sousa Ltd. is general counsel for the Dunkin Donuts Independent Franchise

Organization (DDIFO) with a membership of approximately 1500 Dunkin Donuts franchise

units nationwide.

Our clients have chosen to have an on-going relationship with Lisa & Sousa Ltd. because of

experience, proficiency, determination and attention to detail.

AUGUST/SEPTEMBER 2009 • IndEPEndEnT JoE 3

independent joe is published quarterly by dd Independent Franchise ownersEditors: Jim Coen, Matt Ellis • Contributors: Stewart Lytle, Susan Minichiello, Judy Rakowsky

Advertising: Amy Levine • Graphic Design/Production: Susan PetersenDirect all inquiries to:

DDIFO, Inc. • 150 Depot Street • Bellingham, MA 02019508-422-1160 • 800-732-2706 • www.ddifo.org

DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts Franchise Owners.

Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc. All Rights Reserved. Copyright © 2009 • Printed in the U.S.A.

IndependentJoeThe Quarterly Magazine of DD Independent Franchise Owners

together we kin’ do it!As President of the dd Independent Franchise owners (ddIFo) I am pleased to introduce to you our second issue of “Independent Joe.”

Four times a year “Independent Joe” (IJ) celebrates owning a dunkin’ donuts fran-chise. IJ is full of articles and information regarding the proud ownership of one of the world’s great iconic brands.

I’d like to thank all the people that helped put this publication together including Amy Levine, ddIFo Membership director for coordinating our Associate Member Adver-tising program whose financial support is critical in making this publication possible.

ddIFo has a fine team of writers that have worked diligently to produce quality journalism, and valuable content. Special thanks go to Matt Ellis, Stewart Lytle, Judy Rakowsky and Susan Minichiello. ddIFo is fortunate to have Sue Petersen as our graphic designer. Sue not only creates appealing graphics but she is a wonder-ful illustrator. Last but not least, thank you to the franchise owners for taking the time to com-municate and share great sto-ries with us all.

This year, ddIFo is celebrating its 20th year of existence. Twenty years of independence while striving to protect and enhance the business interests of dunkin’ donuts fran-chise owners. on September 22nd, we will hold our Fall Members meeting at the dCU Center in Worcester and celebrate our 20th Anniversary with top quality content, and vendor exhibition.

The mission of ddIFo is to unite dunkin donuts Franchise owners, to protect and advance their independent business interests. ddIFo is committed to provid-ing valuable information and dialogue to improve the day to day life of franchise owners. We educate our members, are involved in government affairs, support the dunkin Brands Community Foundation, and produce quality publications on behalf of our members.

I want to assure you that in conjunction with the ddIFo board of directors, we are

all working very hard to provide valuable support and representation to our mem-bers. We trust you will find “Independent Joe” to be informative and entertaining. Please review the ads in this edition and support the vendors that are supporting us and bringing opportunities to the dunkin’ donuts franchise community.

news that affects dunkin’ donuts fran-chise owners is breaking and changing all the time. For regular updates on issues that affect your business, we invite you to visit our website, www.ddifo.org.

We also invite you to have your voice heard through our online forums and regular member meetings. The strength of ddIFo lies in the organization’s indepen-dence and its membership. We are all stronger together.

by Jim Coen President, DDIFO, Inc.

03

05 0607

081012

19

togetherwe Kin’ Do it!Jim Coen, President

why DDiFO membership matters to YouKevin McCarthy, Chairman

john HendersonMatt Ellis

tim Hortonsmove to nYCStewart Lytle

DDiFO associatemembers Directory

East meets westJudy Rakowsky

advancing DDiFOLegislative affairsMatt Ellis

index ofadvertisers

“No franchise owner is ever as strong as a group

of united independent franchise owners.”

4 IndEPEndEnT JoE • AUGUST/SEPTEMBER

Philosopher Jacques Rousseau once famously wrote: “As soon as any man says of the affairs of state, What does it matter to me? The state may be given up as lost.” A young Jack Kennedy was so impressed with Rousseau’s observation that he hand wrote it into his loose leaf notebook in 1945 and mulled over it for many years. By the time young Jack Kennedy became the 35th President of the United States Rousseau’s famous observation had morphed in his mind into newly elected Presi-dent Kennedy’s now even more famous Inaugural proclamation: “ Ask not what your country and can for you – ask what you can do for your country”.

why DDiFO membership matters to You

We all belong to a nation, a state or some sort of larger organized system but no matter what the origin or source or size of that system the idea of ac-tive participation in something larger that one’s own immediate self-interest always holds forth as a universal truth. The desirability, if not necessity, of active interest and participation holds equally true for a dunkin’ Brand franchisee.

ddIFo membership matters because unity is strength and the more members who are unified then the more strength. numbers matter and when dunkin’ management or outside equity investors see a vibrant and growing ddIFo they will treat you as an individual franchisee much more respectfully and differently than if you stand alone. Management is always interested in how big and diverse ddIFo is and the Press, as well, always wants to know how many franchisees have joined ddIFo.

ddIFo membership matters because no man or woman is an island. Mem-bership in ddIFo gives you regular sources of guidance and information directly relevant to you as a franchisee. Whether it be “news You Can Use”, a paid detailed analysis of the franchise agreement, attendance at conferences like the upcoming one on September 22, 2009 at which special panels on impor-tant subjects such as “cost controls” will be provided the members, assistance in relevant legislative matters from the spe-cial ddIFo advocates we have retained, useful and talented legal analysis from Lisa and Sousa as well as other outside legal experts we use, a state of the art and industry leading website designed to give you both valuable information and provide a strong voice for you, a profes-sional Board of directors which draws on experience, expertise and leadership not available to any other franchisee

continue to be pleased with Jim’s leader-ship.

ddIFo needs your hearts and your minds along with your active par-ticipation if for no other reason than to preserve and grow what for many of you is a lifelong devotion and investment. Throughout this issue of Independent Joe you will see opportunities and requests for your active participation in your ddIFo and, for your individual and collective sakes, I hope you all respond positively because through your active participation ddIFo will roar like a lion and not bleat like a lamb. Your choice.

Kevin is the Chairman of the DDIFO Board of Directors and a past Vice-President of Dunkin’ Brands. Kevin is also a franchise lawyer with Dunkin’ Brand clients through-out New England and the Mid-Atlantic.

organization, a retained well known and excellent media specialist to ensure your voice is heard in the right places and at the right times, a highly successful mem-bership growth executive who constantly focuses on membership outreach, and on and on…all of which are backed by the brightest and best franchise leaders in the industry.

But just joining and paying your dues is not enough. not for a franchise system that created the IFA, founded the first Advisory Council system and created and long managed the industry lead-ing dCP – saving dunkin’ franchisees uncounted millions of dollars since its inception. no - we want more from you that just your membership and your an-nual dues, we want your full interest and participation in the programs, projects and activities of the nEW ddIFo – the one now lead dynamically and creatively yet compassionately by Jim Coen, our now officially new ddIFo President. To say the least, I am confident you will


by Kevin McCarthy DDIFO Chairman


Some people are just larger than life. Across the board, people described John Henderson as a generous col-league, a committed franchise owner and a true friend; he was also a loving husband, father and grandfather. John passed away over a year ago but his impact on the close-knit community of dunkin’ donuts franchise owners and dCP employees continues to this day.

The street sign at dCP Headquarters in Bellingham says “Henderson Way” and a photo of John hangs behind glass in the lobby at dunkin’ Brands in Canton.

“What I remember most about John Henderson was his wonderful pas-sion for dunkin’ donuts,” said Will Kussell, President and Chief Brand officer of dunkin’ donuts Worldwide. “As a long-time dCP board member and Chairman, John made countless contributions to the brand. I particularly remember how he championed our Iced Coffee product in its early stages.”

John bought his first dunkin’ shop in the 70’s and, from the beginning, dis-tinguished himself through his involve-ment with various committees. Mark Silverstein, a close friend and fellow dCP board member described his com-mitment to the dunkin’ system as an obsession.

“If you engaged John in conversation it would invariably come around to dunkin’ donuts. He was full of folk-lore and stories about people. He was always concerned with improving the system for franchisees. He was very talented. He was an amazing operator,” said Silverstein.

“John was all about the brand and the franchisees. dunkin’ donuts was his life and his commitment spread to the charities in his community,” said fellow franchise owner Joe Prazeres who re-members how he and John started the dunkin’ donuts Scholarship in Rhode Island 14 years ago. The scholarship gives one hundred college students in Rhode Island, Southeastern Massachu-

setts and Connecticut $1,000 towards their college education.

“John knew how hard it was for people to put there kids into college,” said Prazeres. “He had a huge heart. For him, it was all about giving back.” Praz-eres credits John with pushing him to

get involved in charities and franchise committees.

Kussell also noted John’s commitment to charitable causes, “He was a tremen-dous supporter of the Jimmy Fund and Special olympics - and a role model for other franchisees as they looked to get involved with charitable endeavors.”

In fact, as a result of his work on behalf of Special olympics, the franchise community is stepping in to make sure future generations of Rhode Islanders remember his name. Proceeds from the inaugural John Henderson Invitational Golf Tournament, held August 31, 2009 at the Kirkbrae Country Club in Lincoln, RI will be used to construct the John Henderson Sports Education and Train-

tributes and memories to agiant in the Dunkin’ systemJohn Henderson’s contributions continue a year after his passing

ing Facility at the new Special olympics headquarters planned in Smithfield.

Whether you were a franchise owner or an employee at dunkin’ Brands—every one knew John. ddIFo Chairman Kevin McCarthy remembers John from the days when he worked with dunkin’ Brands. “John was a unique treasure for the dunkin’ donuts system. When John got up in the morning and went to work, it was always with a mind toward what is going to benefit and grow the system.”

Perhaps his greatest impact was on what franchise owner Bill donovan called “the modern dCP”. In 1982, the owners of 250 dunkin’ donuts stores in the northeast region got together and founded the northeast distribution Center as an independent cooperative. John was one of them—and donovan remembers how it all got started.

“Instead of having guys picking up the flour themselves, John said ‘let’s hire guys to drive trucks and bring stuff to us.’ It was simple and started out without much of a budget. It was just a flicker of a shadow of what it is today. It went from having a small company to just deliver freight to a major logistical operation,” said donovan.

The national dCP is the model for distribution among large franchise networks. Its website notes that it is the exclusive supply chain partner for dunkin’ Brands, servicing over 6,000 dunkin’ donuts and Baskin Robbins outlets nationwide.

But, the dCP is more than trucks and pallets filled with supplies; it is people and that is also where John had tremendous impact. Just ask Janice Murray—an administrative services su-pervisor who has been with the dCP for 12 years. It is sadly ironic that Janice’s most powerful memories of John came when she was battling cancer.

“John was one of the first people that contacted me after I was diagnosed

The inaugural John Henderson Invitational Golf Tournament will benefit the Special Olympics.

Henderson continued on page 14

by Matt Ellis


Tim Horton, a bruising hockey defense-man, who helped the Toronto Maple Leafs win four Stanley Cup trophies in the 1960s, was known for grabbing op-posing players in crushing bear hugs. Boston Bruins star derek Sanderson once bit Horton while caught in a Hor-ton bear hug. Years later, Sanderson explained the bite: “I felt one rib go, and I felt another rib go, so I just had to, well, get out of there!”

Thus, legends, particularly in hockey and in Canada, are built.

The chain took over 13 former Dunkin’ Donuts shops.In mid-July, Tim Hortons -- not the man himself who died in a car crash 35 years ago, but his Canada-based doughnuts and coffee chain -- put its arms around some of the highest profile real estate in new York City. The chain took over 13 former dunkin’ donuts shops, including space inside Penn Station and one next to the new York Stock Exchange. The Financial Post reported that Tim Hortons was also planning to open three addition-al stores in new York City, including one in Times Square, as part of a co-branding

effort with the American ice-cream chain, Cold Stone Creamery.

There has been a long competitive history between dunkin’ and Hortons, going back to Canada in the 1970s. The two companies also battled in Rhode Island, Massachusetts and Connecticut in 2004 over 42 Bess Eaton shops. now they face off in Manhattan, although one dunkin’ franchise owner called the invasion by Horton in new York City as “irrelevant.”

In new York City, dunkin’ has Horton vastly out-numbered with almost 400 shops in the five boroughs and neighbor-ing new Jersey. But the Canadian import and its new York partner, the Riese or-ganization, have been pushing the public relations needle.

After the changeover was announced, the new York newspapers posted stories and dispatched food critics to draft reviews comparing the fare of dunkin’ donuts with Tim Hortons. nBC’s “Today Show” also carried a national report. The reason for the attention to just 13 shops: many of the reporters, producers and anchors, as well as Wall Street executives, buy their coffee in these shops.

The on-line blogs and reviews have

been humming with displaced Canadians salivating at being able to buy a “Timmie” in Manhattan.

“This morning I was so excited!” Elizabeth oberlin, a three-times-a-week Hortons’ fan from her days growing up in Buffalo, nY was quoted. “This is awesome. Their iced cappuccino is the best.”

Kevin Gamble, a Vancouver native who moved to new York, waved a small Canadian flag on the end of his pencil at the store openings. “I was very excited to come down,” he said.

dunkin’ Brands’ CEo nigel Travis told the Patriot Ledger newspaper that the arrival of a major competitor in one of the com-pany’s key markets has its benefits. At a golf tournament with franchise owners a few weeks ago, Travis said he had never seen the owners so pumped up.

The dunkin’ Brands official statement on the Tim Hortons’ arrival in new York City promised business as usual. “notwith-standing the disenfranchisement of the Riese organization (owners of the 13 initial dunkin’ franchises that changed to Hortons); dunkin’s presence in Manhat-tan and throughout new York City contin-ues to expand.

In the past five years, 244 new dunkin’ donuts shops have opened in new York City, and we intend to continue this pat-

tim Hortonsmove into nYC by Stewart Lytle

tim Horton continued on page 15

Tim Horton built his legendary status over 24 years as the Toronto Maple Leafs won four Stanley Cups.


Air Ad Promotions, Inc.Crystal ShillerP.o. Box 202066Arlington, TX 76006 682-518-7692 [email protected]

Bedford Cost Segregation Bill Cusato60 State Street – Suite 700Boston, MA 02109978-263-5055 [email protected]

Century Products, LLCRobin Rock404 Edwardia driveGreensboro, nC 27409336-292-8090rcr@centuryproductsllc.comwww.centuryproductsllc.com

Construction Art Art Krebs3 Stone Hill driveWestborough, MA 01580888-930-2255constructionart@constructionart.uswww.constructionart.us

Duro-Last Jim Schriber 525 Morley driveSaginaw, MI [email protected]

Granite TelecommunicationsLiz doherty100 newport Ave Ext.Quincy, MA [email protected]

Harbour Capital Scott dillon121 Shattuck Waynewington, nH 03801866-224-9958sdillon@harbourcapital.comwww.harbourcapital.com

IKMS Group Inc. Cliff PrattPo Box 6221Manchester, nH [email protected]

iTech Digitalnatalie Himmel4287 W. 96th StreetIndianapolis, In 46268317-704-0440 ext. [email protected]

JenCas Financial, Inc.Eric dyson4 Country Club Circle - Suite 202Maumelle, AR 72113877-953-6227 ext. [email protected]

Jera ConceptsWynne Barrett17 Fruit StreetHopkinton, MA [email protected]://www.whole-business.com/Site/

Lisa & Sousa Attorneys at LawCarl Lisa, Sr.5 Benefit StreetProvidence, RI [email protected]

Directory of associate members

Contact Juniper Korkie703.854.5498

[email protected]

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LIBERTY ISLAND— It’s a quintessentially American tradi-

tion, suspended since Sept. 11, 2001: to climb to the crown

of the Statue of Liberty and view the nation’s greatest city

through the eyes of its greatest symbol.

On Saturday, the statue, closed above its base since the

terror attacks, will reopen tovisitors — a relative few, in

small groups, specially ticketed, carefully screened and es-

corted by a park ranger.The decision to again allow p

eople under Liberty’s skin

and up to her crown reflectstwo evolving attitudes

toward post-9/11 anti-terrorism security, public

opinion polls and security specialists suggest:

uIt may be time to begineasing some anti-

terrorism security that’s particularly costly, restric-

tive or intrusive.uSecurity and public conven

ience may not be mutually

exclusive.Interior Secretary Ken Salazar

seemed to encourage these

ideas this year when he saidreopening the crown “would

proclaim to theworld— bothfiguratively and literally

— that the path to the light ofliberty is open to all.”

In officially announcing themove onMay 8, Salazar

called it “a newbeginning, restoring confidence in the

American people, in their government and in our

place in theworld.”Visitors on Liberty Island that

day drew the obvious con-

Liberty gets her view backReady for her close-up: The S

tatue of Liberty’s crownwill open Saturday to small groups.

Visitorswill be screened and escorted by a park ranger.

Crown’s reopening represents

milestone in post-9/11 security

ByRickHampsonUSA TODAY

See COVER STORYnext pageu

USA TODAYGallupPolln

Star attraction: For those visiting Liberty Island, security

checks have increased dramatically since the 9/11 attacks.

Coverstory

The nation heads into theIndependence Day

holidayweekend amid the longest and steepest de-

cline in driving since the invention of the automo-

bile.Since the number of miles tra

veled bymotor ve-

hicles in the USA peaked inNovember 2007, the

nation’s 12-month total has dropped by 123 billion

miles, or slightly more than 4%. That’s a bigger de-

cline than the drop of justabove 3% during the

1979-80 Iranian revolution that triggered a spike in

gasoline prices in theUSA.

The 4% drop is the equivalentof taking between

8million and 10million drivers off the road.

“Wemaybewitnessing thebeginningof a funda-

mental shift in American driving habits,” says Ed

McMahon, senior research fellowat theUrbanLand

Institute, a non-profit groupthat promotes in-

novative development.The Federal Highway Admi

nistration’s miles-

traveled report for April, the most recent available,

suggests a slight flattening out. While April’s total

was up 0.6% from April 2008, continuing rises in

joblessness and gas prices arelikely to limit driving,

McMahon says.As the USA prepares to celeb

rate the Fourth of

July, many Americans are choosing to watch fire-

works close to home. AAA projects that the num-

ber of people taking a trip of50 miles or more this

holiday weekend will drop 1.9% from a year ago.

The leisure travel organization attri-

butes the projected decline to uncer-

tainty about the economy, “especially

rising joblessness and saggingpersonal

incomes.” The recent spike in gasprices

alsomight be a concern, AAAsays.

Gas priceswere the driving force be-

hind the nation’s change indriving

habits, says analyst Alan Pisarski, au-

thor of Commuting in America. “When

people saw $3 a gallon, whenthey saw

$4 a gallon, it was something akin to

sticker shock. It really didhavean effect

on people’s behavior.” He says people

started taking transit, carpooling,

merging trips and cutting back on va-

cation travel. Many stayed with alter-

nativemodesof transportationevenaf-

ter gas prices retreated last year.

Bernard Assaf, 36, a software engi-

neer from a northern Atlanta suburb,

says hewon’t get back in his car for the

40-mile round trip to work even if gas

prices plummet. With helpfrom The

Clean Air Campaign, an Atlanta non-

profit that promotes transportation al-

ternatives, he now carpools to a satel-

lite parking lot 7miles fromhome, then

takes public transit to his office. “For

me, it’s not just about the price of gas,”

he says. “If I put 40 miles a day on my

car vs. 14 miles, that’s a big difference.

I’ve gotten too used to doingthings besides grip-

ping the steeringwheel to goback.”

Pisarski andMcMahon say thedrop inmiles trav-

eled has had a greater impact on people living in

far-flung suburbs, whichwerehardest

hit by both the housing collapse and

high gas prices, and thosein rural

communities.John Crabtree, spokesman fo

r the

Center for Rural Affairs, a non-profit

rural advocacy and economic devel-

opment group based in Lyons, Neb.,

says it’s “a double-edged sword” for

many rural communities.

More people are shopping close to

home, giving local merchantsa boost.

“But if youor your child needto go the

doctor, and you live 40miles from the

nearest health care provider,it makes

a differencewhether gas is $2a gallon

or $3 a gallon,” Crabtree says.“People

are forced tomake difficult choices.”

The driving drop-off also signals a

reversal in auto ownership among Af-

rican Americans andHispanics, which

had been increasing since 1970, Pisar-

ski says. “Thatwill limit accessto jobs,

andwill be a factor in theoverall econ-

omy in getting people back towork,”

he says.McMahon says his research s

hows

that people over the past three years

are trending toward compact, transit-

oriented developments that mix resi-

dential, retail and office usesand en-

courage walking. Even when the

economy recovers, he says, people won’t resume

driving at previous rates.“We’ve crossed the Rubicon

here in terms of a

change,” he says.

4th arrives amid shift in drivinghabits

High unemployment, gasprices are taking their tollBy Larry Copeland and Paul O

verberg

USA TODAY

Traffic volumedrops

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mCommunities across USA get creative

as economy forces cuts in festivities, 2A

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mMoney: Car salesmay start toinch up

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mLife: Anti-smoking labels tightened

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ings about potentialmental-health side effects. 7D.

USA TODAY takes a day off for holiday

We won’t publish Friday; seeyou Monday. For

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rted by a park ranger.er.er

ewd and es

ew backescorted by a pa

Contact Juniper Korkie703.854.5498

[email protected]

LIBERTY ISLAND— It’s a quintessentially American tradtradtr i-

tion, suspended since Sept. 11, 2001: to climb to the crown

of the Statue of Liberty and view the nation’s greatest city

through the eyes of its greatest symbol.

On Saturday,rday,rda the statue, closed above its base since the

terror attacks, will reopen tovisitors — a relative few, in

small groups, specially ticketcketck ed, carefully screened and es-

corted by a park ranger.er.erThe decision to again allow p

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toward post-9st-9st /11 anti-terrorism security, public

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Directory of associate members

MacDonald Restaurant RepairMark & debi MacdonaldPo Box 61/ 83 Pond St norfolk, MA 02056508-384-9361debi@macdonaldcompany.comwww.macdonaldcompany.com

NITCO Materials Handling SolutionsBrenden Flagg6 Jonspin RoadWilmington, MA [email protected]

PaychexJim Munro100 River Park drivenorth Reading, MA [email protected]://premier.paychex.com/ largebusiness.com/index.aspx

Performance Business Solutions, LLCJeff Hiatt87 Lafayette Road - Suite 11Hampton Falls, nH [email protected]

Projex UnlimitedMichael Thomas4350 International Blvd., Suite Jnorcosss, GA 30093770-564-0074 ext. [email protected]://askprojex.com/dunkin/

R.F. TechnologiesGary Gerst542 South Prairie StreetBethalto, IL 62010618-377-4063 ext. [email protected] www.rftechno.com

Retail Control SolutionsBob Schellenbach460 Hillside Avenueneedham, MA [email protected]

Rheem Water HeatingSal Brunetto4081 Expressway driveRonkonkoma, nY [email protected]

Richard Brothers ElectricBill Richard905 South Main StreetMansfield, MA 02048800-507-9866office@richardbroselectric.comwww.richardbroselectric.com

Royston, LLCBonnie Padgettone Pickroy RoadJasper, GA 30143770-735-3456 ext. [email protected]

Secure Energy Solutions, LLCChristopher duby146 Chestnut Street – Suite 400Springfield, MA 01103413-733-2571 ext. [email protected]

SnagAJobErin Powell4880 Cox RoadGlen Allen, VA [email protected]

Starkweather & Shepley Insurance Brokerage, Inc.Sabrina San Martino60 Catamore Blvd.East Providence, RI 02914800-854-4625 ext. [email protected]

SureShot Dispensing Systemsdeanna MacKinnon100 dispensing WayLower Sackville, nS Canada B4C 4H2902-865-9602 ext. [email protected]

TDBanknorthPaul Lavallee370 Main StreetWorcester, MA 01608508-424-7179paul.lavallee@tdbanknorth.comwww.tdbanknorth.com

T & K AsphaltTodd Gorell7 Industrial WayWhitman, MA [email protected]

Tetherball Mobile AdvertisingRichard Yancey31 S. Rangeline RoadCarmel, In 46032 [email protected]

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You cannot buy a coolatta or a box of Munchkins on the island of Sao Miguel in the Azores where Manual S. Andrade came from or in Gujarat, in south India where Amrit Patel was born. neither could you find a dunkin’ store in Kara-chi, Pakistan during Siraj Virani’s early years there.

But the roots of more than 50 percent of all dunkin’ donuts franchise owners in the United States run deep in those homelands and lend old World sensibili-ties of hard work, integrity and loyalty to the successful entrepreneurs they have grown to be.

In Chicago, about 90 percent of the dunkin’ franchises are owned by South Asians, comprised of two distinct groups, Gujarati Indians and members of the Ismaili community, an ethnically and culturally diverse community of Shia Muslims who live in more than 25 countries.

In the east, members of the Portuguese community own at least 60 percent of the dunkin’ donuts stores in new England and new York.

“We’ve all been taught by our families to never forget where you came from and at the same time to know where you are and where you want to go,” said Vishal Shah, whose late father, Prabhulal Shah, was a good friend of Amrit Patel’s and bought the family’s first Chicago-area franchise in 1977.

Globally from East to West, hardships ranging from war to barren economic landscapes often motivated future franchise owners to leave home to seek safety and better opportunities for themselves and their families. And the dunkin’ donuts franchise rewarded hard work and teamwork even as it of-fered extended families and immigrant networks a foothold in a new land and a launch pad for their American dreams.

Each immigrant group points to a few pioneers who risked everything they had

East meets westDifferent cultures build Dunkin’ Donuts success.

by Judy Rakowsky

as well as their family’s future when they bought that first franchise.

Shah called it the Pied Piper model: “one or two respected members of the community finds a franchise, likes it and notices it is profitable and thinks it would make a good business.”

In the Gujarati community around Chi-cago, Amrit Patel was leading the way.

“People knew Amrit back in the day, and it kind of just grew,” said Shah. “It was a good way to create wealth while main-taining a family structure.”

Siraj Virani wasn’t the first member of his Ismaili com-munity to buy a franchise, but he

has become

one of the best known. His journey started in 1971, during the Indo-Pakistani war, when he traveled by boat, camel and on foot from what is now Ban-gladesh to join his mother and siblings in Pakistan. Then, armed with a scholar-ship, he made his way as a 19-year-old to America. In 1985, he succeeded in buying his first dunkin’ donuts franchise in the Chicago area.

Virani’s determination paid off. He now has 13 stores and supplies baked goods for another 18 stores around Chicago, and recently he was honored with the American dream award by the national Restaurant Association.

When Manuel S. Andrade bought that first franchise in 1969 in Providence, he

started a cavalcade from the village of Vila Franco de Campo on the Azorean island of Sao Miguel, an agricultural atoll where many farmers grow pineapple. In 1971, John Batista left the village, and came to new England by way of Mon-treal, where he married his wife, from the same village. Batista’s older brother Joe was just starting in the business in Rhode Island with his brother -in-law Andrade. John Batista later bought his own shop in Worcester, MA.

“It was not the business that drew us here,” said John Batista. “There was a dictatorship there and the opportunities were not there. So for economic reasons at the time people immigrated.”

now hundreds of new England and upstate new York store owners are Andrades, Batistas or Salemas - or have relatives from some of all three families. But they all track back to Vila Franco de Campo, which one franchise-owner called “a cross between Hawaii and a little Italian village.”

Several hundred if not a thousand dunkin’ donuts shops are owned by people who trace their origins to that vil-

East/west continued on next page

The wedding this summer for Siraj Virani’s daughter was a 600-guest

affair at the Schaumburg Convention Center outside Chicago.


lage. When they go back on vacation in the summer, franchise owners bump into each other all the time.

The striking similarity among the fran-chise owners, whether Catholic, Hindu or Muslim, hailing from Western Europe or South Asia is an appreciation that bor-ders on reverence for the old World and those who carved the path.

John Batista, 62, may have been the first in his family to become American, but he carries with him the example of his late father, a farmer raising pineapple. “Work was not a stranger to us,” he said. So when Batista had a store of his own he knew what to do: work.

“We didn’t have machines. Everything was done by hand. That’s what we did,” he said. “We turned out oK.”

Miquelina Senra Andrade, “the oldest franchise owner wife,” remembers those days in the 1960s in Providence when her husband was the day baker and his cousin Manny Pacheco Andrade was the night baker.

“Manny’s family and my family all come from Sao Miguel. Everybody came here looking for the American dream,” she said. “Mr. Rosenberg (the late founder of dunkin’ donuts) believed in helping people and he believed in helping his franchise owners. He passed his dream on to a lot of immigrants. A lot of them didn’t have a lot of education, but he

gave them the opportunity to own their own businesses.”

The family relationships running through the franchise owners are a dizzying quilt of in-laws, siblings and cousins. now the franchises are being passed down to the next generation and younger relatives are buying their own stores and estab-lishing networks of stores.

“dad had all the sweat; I have the tears,” said Michael Batista, the 32-year-old owner of 20 stores in central Connecti-cut. “He had to put a lot more muscle into it. These days it’s a different beast,” he said.

But he said that he and his two sisters and 13 cousins - all in the business - welcomed the opportunity to follow the footsteps of their parents.

“I know my father literally uprooted himself from a little island to come to this county to do this for me,” Batista said.

“We just have jelly in our blood. This is what we do,” “I stood on a milk crate at age 7 and filled Munchkins .”

The change over time of selling more coffee than donuts also hits home in a second-generation household.

“Growing up if I wanted this toy it would be, `do you know how many donuts I have to sell for you to have that toy?’“ asked Michael Batista. now he answers an appeal from his 3-year-old son noah: “do you know how many cups of coffee I have to sell for you to have these toys?”

not only is the brand in Batista’s blood, it’s in his wife’s as well. When he was attending a family wedding in Sao Miguel as a 13-year-old Batista met nancy An-drade, the woman he wound up marrying after they reconnected in the late 1990s at the retirement party of Fred the Baker of “Time to Make the donuts” fame.

Family relationships are key in the South Asian communities as well, but kin is not necessarily limited to blood and in-law relations.

For instance, Vishal Shah said his father and Amrit Patel went to college together and helped each other in the early days of franchise ownership. Patel’s fam-ily now has 30 stores around Chicago. And after college Shah, who immigrated at age 4, went into the business that his mother was running after his father passed away in 1988.

“In Indian culture, if it’s a friend of your father you still call him uncle,” Shah said. “You are family through respect because your parents are friends; everybody’s family.”

That makes a big difference on a daily basis in business.

“We all help each other,” said Shah, whose family has six stores. “Whenever someone needs something no one ever said I don’t have the time. If your mixer goes down, it’s a matter of a couple of phone calls and you know you’re taken care of.”

Likewise, he said, if half his crew gets sick, those same few calls will get him back in business. “They’ll do what they can.”

Virani said the dunkin’ donuts franchises lend themselves to family-oriented own-ership. “This is a business that needed a lot of family members.”

The tight-knit Ismaili community is geared toward shared problems and responsibili-ties, not letting one fail if the community can find a way to solve a problem.

“In my culture, we believe in unity,” said Virani. “our ambitions are all the same and we make sure the return is also suc-cessful.”

The South Asian and Portuguese com-munities place high values on education and improving knowledge and expertise with each generation.

East/west continued on page 16

East/west continued from previous page

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After a year of voluntarily leading the ddIFo’s government relations initia-tive, Robert Branca’s role has been formalized. In June, ddIFo President Jim Coen officially named Branca – a dunkin’ donuts franchise owner and operator in four states – as ddIFo Legislative Affairs Coordinator. It remains an unpaid position.

“Being a franchise owner, Rob understands firsthand what impact government regulations have on the operations and management of the business. Rob’s passion is to make sure franchise owners have a say in directing government to effect more positive changes and minimize harmful regulations,” said Coen. “our businesses impact tens of thousands of families, so there’s a lot to protect, and Rob has the capacity and dedica-tion to do just that.”

Branca says he and his partners were evaluating their membership in various organizations, including the ddIFo, a little more than a year ago. Considering the increasing govern-ment regulatory issues affecting their business, they determined there were specific things they wanted the ddIFo to focus primarily on matters

concerning government relations. They felt that legislators and regulators were not aware of the impact of their actions – including costs and other conse-quences of compliance – on dunkin’ franchise owners. Indeed, Branca notes that, “Regulations are issued on a seemingly whimsical basis, often requir-ing a business owner to be in viola-tion of one set of rules to comply with another.” Branca also points out that dunkin’ Brands recognized the need to establish its own formal government relations team rather than relying on the International Franchise Association (IFA) lobby as it had for years, but he still believed franchisees needed their own independent input. “We felt that a strong voice and a more direct ap-proach was necessary to put a face on the small business owner,” said Branca. “While dunkin’ Brands has been highly effective, by virtue of its size it simply cannot be seen as the face of local shop owners. Franchise owners need to fill that role and distinguish our small businesses from the large corporate lobbying interests that are so negatively viewed by the public.”

When Jim Coen became ddIFo president, Branca approached Coen and the ddIFo Board about placing a

high priority on legislative affairs, and he volunteered to spearhead the initia-tive. The new leadership gave Branca the go-ahead to take up government relations and Branca began reporting to Coen and working with Joseph A. Gian-nino, of Government Relations Group, the firm retained by the ddIFo. due to the myriad of complex legislative and regulatory issues now facing dunkin’ franchisees, as well as the outstanding work Branca has been doing, Coen felt it was time to formalize Branca’s role, especially as he has no other function in the other initiatives or daily business of the ddIFo.

“Essentially, we’ve created a powerful government relations team by combin-ing Rob’s and Joe’s efforts and areas of expertise,” said Coen. “Rob was an attorney who worked with a lot of dunkin franchise owners before becom-ing one himself, and worked on national banking legislation as a member of the Washington, d.C. bar, so he has a deep understanding of both the dunkin’ sys-tem and the legislative process. He is a top-notch spokesperson for us because he can so eloquently speak to legisla-tors and regulators about the real-life consequences of their actions.”

Giannino echoes Coen’s assessment. “It’s been an exceptional experience working alongside Rob in an effort to promote our agenda,” said Giannino. “His instincts – both political and practi-cal – are spot on, and the credibility he brings to meetings from the legal and ownership perspectives is very effec-tive.”

Galvanizing franchise owners to get involved and become more politically active is one of Branca’s most press-ing tasks. “As small business owners, we already have power with legislators because – whether they are conserva-tive, liberal or somewhere in between – they all want to be seen as champions of small business,” stated Branca. “As dunkin’ franchisees, we have to take advantage of this power by engaging with our legislators. We need to make

advancing DDiFOLegislative affairs by Susan Minichiello

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sure our representatives know who we are, the vital role we play in our communities and the issues of great-est concern to us. We need to make dunkin’ donuts a political presence in our respective districts by attending fundraisers, making political contribu-

tions, and talking with and writing to our legislators.”

Branca says if franchise owners aren’t comfortable with the political process or don’t have the time to engage

personally, they can request that he find someone to speak with legislators on their behalf. They can also band together with other franchisees in their district and approach or support legisla-tors as a group, or have one of their group deliver their message for all of them. In addition, they can use the CFA Votes tool to easily send letters about key issues to their elected officials. That website can automatically generate letters or emails to the proper federal representatives when a user simply types in his or her address.

“You have to remember the truth in the saying, ‘the squeaky wheel gets the grease,’ and there is a proven way to make your voice heard as a business owner: be engaged in the process and support the officials that support us. Franchise owners should make a point of reading the ddIFo Legal & Legisla-tive Updates and not hesitate to contact me or Jim Coen with any questions they might have about legislative is-sues,” said Branca. “If you care about the future of your business and preserv-ing something for your children, you

need to be actively engaged in the po-litical process. If you do not speak out about an issue, your legislators assume that you don’t care or support what is being done, and you can and will safely be ignored.”

Branca calls attention to the follow-ing legislative/regulatory issues facing franchisees:

• State Nutrition Labeling/Calorie Content Regulations

officials from the Massachusetts department of Public Health (MA dPH) wanted to require chain restaurants to prominently display the calorie content of their food offerings on menu boards. In a late spring meeting with these offi-cials, Branca and Giannino successfully demonstrated the negative implications of such regulations for dunkin’ fran-chisees, highlighting the costs for new signage – including costs to the state if shops had to close for installations, requiring permits, new inspections, etc. – as well as the real possibility that these state regulations could be su-

Legislative continued from previous page

Legislative continued on page 18

Rob Branca is the DDIFO Legislative Affairs Coordinator.

Franchise owners should make a point of reading the DDIFO Legal & Legislative Updates.



Henderson continued from page 6

with stage three breast cancer,” she said. “I can’t say enough about it; he was so supportive. one thing he did that really meant a lot when I was out of work and recovering from treatment, he would send me a joke every day in my email just to give me a little smile in the morning. He was such a busy guy but he took 5 minutes a day to send me a joke. John meant an awful lot to me.”

Years later, when John himself was diagnosed with a rare form of gastro intestinal cancer, Janice recalls how he kept his sense of humor and joked around the best he could in his hospital room.

John’s death came quickly and, as Mark Silverstein remembers, no one could believe it. John had been larger than life and his death—especially because it came from cancer—seemed beyond belief. After all, here was a man who devoted countless hours raising money in the name of another dear friend and dunkin’ franchise owner, George Mandell, who was felled by cancer 10 years earlier.

now, a little more than one year after his death, friends in the dunkin’ franchise community are keeping his memory alive. Aside from the inau-gural John Henderson Invitational to benefit Special olympics of Rhode Island, there is also a new tournament in John’s name to benefit dana Farber Cancer Center. All that in addition to the annual Mandell tournament which,

last year, raised over $800,000 for the Jimmy Fund’s Rising Stars Program at dana Farber.

It’s hard to imagine another franchise owner having the kind of impact John has had on so many of his peers.

John Henderson rose to prominence in the early days of dunkin’ donuts. He was a close friend of Bill Rosenberg and believed deeply in the potential of this coffee and donut business. It’s hard to imagine another franchise owner having the kind of impact John has had on such a large group of his peers—as a mentor, an organizer and a friend. But because so many of today’s franchise owners have family links to yesterday, his contributions will be remembered for years to come.

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tern of growth as opportunities arise,” said Michelle King, director of Global Public Relations for dunkin’ Brands.

Travis said the company is taking the Ca-nadian rival seriously, but noted dunkin’

restaurants near the Tim Hortons’ new locations have already seen an increase in business. And he said his chain’s cof-fee, breakfast sandwiches and serving speeds are superior to Tim Hortons.

A new York City franchise owner, who dismissed the competition from Tim

Hortons as largely “irrelevant,” said Hortons’ arrival in Manhattan is mostly the outcome of the long-standing battle between dunkin’ and the Riese organi-zation. “Riese really needed Hortons to replace the dunkin’ shops it was losing,” the franchise owner said.

According to dunkin’s Michelle King, the new York invasion ended the legal battle that began in 2002 between dunkin’ do-nuts and the Riese organization. dunkin’ did not like the quality of the Manhat-tan dunkin’s operations, particularly the stores’ cleanliness. A midtown Manhattan dunkin’ location at 46th and Fifth Avenue, run by Riese, was the target of jokes by late-night comedians in 1998 after The new York Post ran a photo of a mouse chewing on a doughnut in the store win-dow. The mouse made dave Letterman’s “Top Ten List”. dunkin’ donuts was not happy.

At the time, dennis Riese, president and chief executive of the Riese organization, protested, “It got really heavy-handed -- they acted as if no other dunkin’ donuts ever had a mouse run through it.”

tim Hortons continued from page 7

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Virani, who has a Master’s in business ad-ministration, started out studying account-ing while he was waiting tables before he had a franchise. now his daughter’s accounting and his son-in-law’s computer degrees bring valuable knowledge into their day-to-day management.

But generally, as Shah put it, “The first generation was more of a worker bee run-ning their stores in mom and pop fashion while the second generation is more computer-literate and savvy and created a corporate culture, tiers of management, and a more businesslike approach.”

Like many Indian franchise owners, Shah’s father did not seek a career in the profes-sion for which he was educated.

“An industrial engineer by trade, he found the lure of being your own boss more com-pelling,” Shah said.

The rare show stopper for even the busi-est South Asian and Portuguese franchise owners is the family wedding.

Spanning cultures and geography the common thread of the weddings are their importance and sheer proportions. For instance, the wedding this summer for Virani’s daughter was a 600-guest affair

at the Schaumburg Convention Center outside Chicago.

“The whole world came,” Virani said. “They all gave advice. This is our way.”

Just as modern business and the 24/7 world sometimes challenges franchise owners to find ways to honor their culture of origin, so too does such an important life cycle event.

In the case of the Virani wedding it was a challenge to figure out how to keep the tra-dition of the groom arriving to the wedding ceremony on a horse.

“You cannot bring a horse in a convention center,” Virani said. In keeping with the tradition with an American twist, 15 of his friends carried him on a chaise. “He stood like a king.”

It is not easy to keep business from intrud-ing. When Michael Batista married nancy Andrade in 2000 there were 400 guests, but so many of them were franchise own-ers that the november northeast dCP meeting had to be rescheduled.

And last summer, nearly an entire plane of guests for a big family wedding in Vila Franco de Campo was filled with a veri-table Who’s Who of dunkin’ donuts East Coast franchise owners.

East/west continued from page 11 But the shared experience is not just the weddings themselves. From the south Indians to the Ismailis to the Portuguese at these nuptial parties it is easy to find people in huddles talking business. From the Schaumburg Center to the sands of Sao Miguel, there are heads bent in in-tense conversation as serious business is debated above finely decorated tables.

“At all family functions, we talk shop,” said Batista. “That’s what we do at Easter at my house, Thanksgiving at my in-laws, every holiday; every time we get together it’s like an internal district meeting.”

While the graying generation passes down advice based on experience, the younger set tries to keep from checking their cell phones and Blackberries incessantly.

Whether the third generation follows this wave remains to be seen. Shah said he doesn’t know if his 7-year-old daughter will follow him.

“My blood has jelly in it,” said Shah. “It’s camaraderie and it’s a way of course to make a living and create wealth for future generations.”

“But as the Gujarati and Ismaili cultures go we will support them to be more success-ful then we were.”


“We were always at each others’ throats,” Riese said.

King said Riese agreed to leave the dunkin chain by the end of July, as part of a settlement reached in 2004. Last April, Riese asked to keep the fran-chise, but dunkin’ said no.

The Riese organization oper-ates about 100 restaurants in new York City, including T. G. I. Friday’s, Houlihan’s, Pizza Hut and KFC brands in new York. And it has invested in several high-end new York restaurants. Both sides even-tually wanted out. Riese claims that its dunkin’ stores were no longer as profitable because dunkin’ donuts kept raising the bar on its franchisees.

Along the way, however, Mr. Riese insisted that dunkin’ donuts lost an important battle. The fran-chisor waived a non-compete agreement that would have prevented Riese organi-zation from opening a similar restaurant in the former dunkin’ locations.

tim Hortons continued from page 15 one former dunkin’ franchise owner familiar with the Riese operations in new York, said, “Tim Hortons can have it (the Riese locations).” He said dunkin’ donuts partnered with the powerful real estate company in Manhattan to help it gain a foothold in an important market. Ironically,

it appears that Hortons is using the same strategy 25 years later.

dunkin’ donuts is far better known than Hortons, the former franchise owner, who

requested anonymity in exchange for his comments, said. dunkin’ helped draw in people all day to the benefit of other Riese restaurants. Hortons won’t do that immediately, he said.

“dunkin’ needs to recognize that Hortons is a weak sister in the market and pull all the franchisees together and put it out of business,” according to this former franchise owner. He said the remaining shops should focus on quality of service, but not lower prices.

Hortons has good coffee, but so does dunkin’, he said. And dunkin’s donuts are better than Hortons. Hortons has long offered more than donuts. Its sandwiches and soups are very popular. But it is un-clear yet if Hortons will bring its full menu to the Manhattan stores, he said.

Hortons is no newcomer to the U.S. of its 3,400 stores, more than 525 are in the states. Since opening its first U.S. store in 1984 in Tonawanda, nY—near Buffalo— Tim Hortons are operating in 10 states -- Michigan, ohio, Kentucky, Indiana, West Virginia, Pennsylvania, Maine, Rhode Island, Connecticut and Massachusetts.

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perceded by federal regulations within a year’s time, resulting in even more expense for franchisees and the state. Branca and Giannino persuaded the MA dPH to delay the implementation of state regulations at least until a there is a clearer picture of the federal regulations.

• Massachusetts Tip Pooling Statute

While intended to prevent busi-ness owners and managers who don’t work in direct service operations from skimming em-ployees’ tips, the statute is so ambiguously written that “liter-ally construed, the statute can be read to deny tips to nearly everyone in the team service environment that we have in our shops,” said Branca. “Be-cause the statute says that no one with “managerial author-ity” can collect tips, there are countless scenarios in dunkin’ shops in which someone who is not a true manager would be denied tips despite doing pre-cisely the same work as every-one else on the shift.” Further, the statute has been spurring class action lawsuits, including at least one against a dunkin’ franchisee and was recently revised to make triple damages plus 12% interest and attorney fees mandatory; judges

Legislative continued from page 13 have no discretion in such lawsuits. Branca and Giannino are working with important state legislators to amend the statute to repair the inherent inequities, and Branca is working alongside the Brand and ddIFo legal counsel, Carl Lisa, with the Massachusetts Attorney

General’s office regarding the AG’s role in matter. ddIFo members will be noti-fied which legislators were helpful and

which were not in protecting dunkin’ franchise owner interests.

• Credit Card LegislationA host of credit card-related legislation is pending on the federal level, includ-ing the Credit Card Fair Fee Act. Some of the proposed laws would require credit card companies to negotiate directly with merchants in setting and disclosing interchange fees, some deal with issues of PCI compliance, some with ability to charge different prices for cash transactions versus credit/debit card transactions and the liability and costs incurred by merchants in holding identifying data as required by credit card companies.

• Healthy Families ActPut simply, this legislation would require business owners to maintain any paid vacation/leave programs they already offer employees while additionally man-dating several weeks of paid sick leave, and be a potentially source of litigation and costs.

Branca and Giannino are keeping a close eye on developments with the credit card legislation, the Healthy Families Act, and other laws and regulations with potentially devastating effects on franchise owners. What’s more, they are proactively meeting with decision makers to make the case for amendments or repeals that would best benefit dunkin’ franchisees.

Another priority for Branca is work-ing toward dunkin’ franchise owners forming their own dunkin’ donuts Franchisee Political Action Committee (PAC). Branca and John Paul Motta, a dunkin’ franchise owner, are working together on this with the support of the Brand. They are trying to establish the PAC through the national dCP Board because of the shared issues and con-cerns among all dunkin’ and Baskin-Robbins franchisees. “If we can speak together through our own PAC, we can perhaps influence some of the more harmful legislation that is coming our way and even introduce legislation that would be helpful to all of us. John and I feel strongly that this is a necessary tool for franchisees.”

ddIFo members should feel free to contact Branca at [email protected] with legislative concerns and questions or for advice on effectively stepping up political involvement.


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“In Canada, owning a Tim Hortons is like owning a license to print money,” said one Canadian newspaper reviewer. At home, Hortons sells 76 percent of all pastries and makes 62 percent of all coffee sales. But compared to dunkin’ donuts, Hortons is still relatively unknown among U.S. consumers.

dennis Riese concurred. “You take down one sign and put up another,” he said. “The biggest challenge will be to get new Yorkers to know what Tim Hortons is.”

dunkin’ donuts had a great run in Can-ada for several years. But when it faced tough competition from the upstart Tim Hortons, it failed. According to franchise owners who were watching that com-petition closely, dunkin’ had the wrong marketing strategy, the shops were built primarily for morning traffic. dunkin’ did not understand that Canadians eat out in the afternoons and evenings more than the mornings. The dunkin’ donut shops in Canada did not do well in the morning, but today dunkin’ donuts is built less on the morning traffic. Its menu sells all day.

The dunkin’ locations also were in some bad sites, and they had limited funds to remodel and improve. “It was a recipe for short-lived success,” the former franchise owner said. The Canadian experience was a good lesson.

Horton’s menu was much more diverse than dunkin’s at the time. Hortons, featuring soups and sandwiches and de-emphasizing donuts, “waltzed in with an optimized, relevant menu for the ap-propriate day-parts and killed the dunkin’ donuts shops dead in their tracks,” the former franchisee said.

other challenges in Canada were that the supply chain was underdeveloped. The Canadian shops nearly always paid more for their products than the new England shops did. There were few economies of scale because the market was relatively small.

But the biggest challenge was that Tim Horton was a Canadian super star hock-ey player, going up against an American company. Canadians love their own, said one franchise owner. They don’t dislike American companies, but if they have a chance, they will buy Canadian over American.

Born in 1930 in Cochrance, ontario, Horton grew up playing hockey in mining

communities around Sudbury, ontario. He was acquired by the Maple Leafs orga-nization and moved to Toronto when he was 17 years old. He built his legendary status over the next 24 years as the Leafs won four Stanley Cups.

It was the “old Dunkin’ Donuts” that competed with Hortons in Canada.So when he and partner Ron Joyce, a former police constable, opened a coffee and doughnut shop in Hamilton, ontario in 1964, it was an almost inevitable suc-cess. It did not take long to expand op-erations in a large chain across Canada. Joyce bought control of the company after Horton died.

Estimates are that Hortons sells more than 22 percent of all fast-food in Canada.

“Tim Hortons beating dunkin’ on its own turf was like stealing candy from a baby,” the former franchise owner said.

But a restaurant consultant familiar with the fast-food industry said the dunkin’ donuts that competed with Hortons in Canada “was the old dunkin’. The brand now has a far better handle on the con-sumer.”

Hortons’ move into Providence proved to be less successful, according to various accounts. dunkin’ donuts and Hortons fought over the bankrupt Bess Eatons shops, which had been a staple of Rhode Island for 50 years. Hortons, then part of the Wendy’s International Corporation, bid more for the retail shops – reportedly $35 million.

But dunkin’ donuts “is the 60-pound gorilla in Rhode Island,” one franchisee said. “Chalk up Horton’s experience in Rhode Island as a failure.”

Hortons, which entered new England in 1997 with shops in Maine, has not found the Yankee soil overly profitable. It closed 11 shops in the region in recent years and converted most of the remaining locations to franchise ownership. It has grown over the last five years in new England despite the closings, and now has 54 shops in southern new England and 28 in Maine.

With Tim Hortons now in Manhattan, derek Sanderson, the Turk as Bruin fans called him on the ice, can take a bite out of a Timmie without sacrificing a couple of ribs.

tim Hortons continued from page 17

independent joe september issue

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