Restaurants

Dunkin' makes it official: It's dropping 'Donuts' from its logo 

Key Points
  • Dunkin' Brands will drop the word "donuts" from its branding.
  • The company name Dunkin' Brands will remain the same.
  • The branding change is due to be rolled out in January.
Dunkin' Brands

After months of testing a possible name change, Dunkin' Brands is finally ditching the word "donuts" from the coffee chain's branding and logo.

The company, which also owns Baskin Robbins, said Tuesday that its company name, Dunkin' Brands, will remain the same.

The switch to just "Dunkin" will begin in January. The restaurant has used "Dunkin'" in its tagline "America Runs on Dunkin'," since 2006 and found that customers reacted positively to the shortened name.

Growing competition in the coffee and breakfast space has pressured Dunkin' into making itself known for more than just its doughnuts. Dunkin's strategy, which it laid out during its investor day in February, includes slimming down its menu, increasing speed and convenience, and focusing more on its beverages than its food.

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Currently, beverages account for about 60 percent of Dunkin's sales. However, executives on a media call Tuesday stressed that the company is not ditching doughnuts from its menu. In fact, Dunkin' sells more than 3 billion doughnuts and munchkins every year.

The branding change is just another extension of Dunkin's effort to remain more relevant to consumers. A new Dunkin' logo will be featured on the exterior and interior signage at all new and remodeled restaurants in the U.S. and eventually internationally. Previously, the signage was only used at Dunkin' next-generation stores.

Executives said Dunkin' will roll the cost of the brand changes into its existing remodeling budget. The company also expects to open 1,000 new stores in the next three years.

Dunkin' Brands

"By simplifying and modernizing our name, while still paying homage to our heritage, we have an opportunity to create an incredible new energy for Dunkin', both in and outside our stores," Tony Weisman, chief marketing officer at Dunkin' U.S., said in a statement.

Shares of Dunkin' Brands rose more than 1 percent on Tuesday and have climbed more than 39 percent in the last year.