5C's Analysis on Dunkin Donuts Case Study 16

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5 - + R K Dunkin' Donuts Inc. Channel Member Training Dunkin' Donuts Inc., a fast-food franchisor with an annual sales volume of $6 billion worldwide in 2010, opened its first doughnut and coffee shop in 1950. Today the com- pany has more than 9,700 locations in North America and 31 foreign countries. The majority of its shops are operated by independent franchisees, all of whom have under- gone intensive training at "Dunkin' Donuts University," which the company maintains at Quincy, Massachusetts. The six-week training program consists of a five-week formal course, broken up into six-day work weeks, and a final week spent on the job in a local doughnut shop. Approximately half of the program deals with technical production techniques used in the manufacture of doughnuts and similar products. The other half is concerned with financial, personnel, and management practices to be followed by owner-managers of the retail stores The training schedule for each franchisee and the instructional materials for each of the 30 days in training are precisely programmed. Exhibit 1 illustrates a typical daily schedule. As the trainees proceed through the program, they are tested with a series of exams. These measure both their retention of the material covered and their aptitude in per- forming the various manual tasks associated with doughnut production. The trainees are given uniforms, operating manuals, and all the other items required for the course. During the two and a half weeks they spend on doughnut production, the trainees study subjects ranging from the fermentation process occurring in yeast doughnuts to the correct selection of frying oils, the maintenance of equipment, batch planning, and so on. Trainees are required to achieve a certain level of proficiency in doughnut produc- tion before they can move on to the management training portion of the program. During this management training phase, the company attempts to convert what are often blue-collar employees into professional managers. Franchisees are introduced to techniques used in interviewing and selecting employees, rating their job performances, and carrying out many other managerial tasks. They also learn how to train employees in the use of supplies and selling techniques. A record is kept of each trainee's progress in the program. Exhibit 2 illustrates a weekly training report. Copies of such reports are made available to the district manager in whose assigned area the franchisee is to be located. The faculty of Dunkin' Donuts University consists of a director of training and two assis- tants, augmented by technical, financial, and marketing executives from the nearby corporate headquarters. A local company-owned outlet is used for on-the-job training Training does not end with graduation from Dunkin' Donuts University. Each franchisee is expected to partici- pate later in a continuing series of regional and national training seminars scheduled by the company 591 592 Part 5: Cases Instructor EXHIBIT 1 Franchisee Daily Training and Classroom Schedule (Dunkin' Donuts Inc.) Subject Place/Time (Week 1 Day 1) Classroom 8:00 AM 9:30 A.M. Staff Orientation 1. Introduction and background information on members of the training staff a. University Organizational Chart 2. Distribution and review of detailed training schedule and associated manuals 3. Discussion of the training school's require ments, rules, and regulations 4. Review of the objectives, purpose, and scope of the 5-week training and classroom schedule 5. Discussion of the evaluation of franchise owners and other operating personnel during the 5-week training and classroom schedule Introduction to Cake Donut Production 1. Distribution and review of the cake donut production training manual 9:30 AM Director of Management Development Staff Classroom 10:00 A.M. 10:30 A.M. Work Area 10:30 A.M. 11:00 AM 11:00 AM 12:30 P.M. Lunch Staff 2. Introduction to cake donut production equipment and related tools 3. Demonstration of how to produce and prepare cake donuts Staff 12:30 PM 1:30 PM (Not to exceed one hour) Case 16: Dunkin' Donuts Inc. 593 .593 EXHIBIT 2 Franchisee Weekly Training Report (Dunkin' Donuts Inc.) Week Ending Capacity of Trainee Est. Completion Date Number of Hours Trainee Location Area of Training Donut production Sales and finishing Financial management On-the-job training Dunkin' Donuts University classes Total training hours Examination Subject Date taken Working Donut Examination Date taken Score Score Comments on Training Progress Below Average Trainer Average Above Average Outstanding Date A number of Dunkin' Donuts University graduates have gone on to become owners of multiple franchise units. The company, which reports that it has had relatively few franchisee failures, attributes this in large part to the preparation its franchisees receive during the training program