Franchisee Highlight - February 2006

Santos - Miami, Florida

Four Dunkin Donuts stores in Hispanic neighborhoods of Miami and Miami Lakes have brought franchisee Mariano Santos two decades of profits and personal satisfaction.

After graduating from Manhattan College in his native New York City with a degree in accounting, Mariano says, "I wanted to apply my business background to a franchise." He originally moved to South Florida to be near aunts and uncles who were living in the Sunshine State. "We have a close family ... I decided to start over in Florida because I wanted to be with them," he recalls.

Mariano and his brother, Jorge, opened their first store 20 years ago. After his brother's death, Jorge's ex-wife, Julieta Santos, went into business with Mariano. She trains employees, while he handles the day-to-day operations. Their thriving franchises are located at 15368 NW 79th Court, 18714 NW 67th Ave., 15905 NW 57th Ave. and 18403 NW 27th Ave.

Franchising brought Mariano his first bite of the pleasing pastries Dunkin Donuts made a must-have for busy people everywhere. He says he "had never even tasted a donut" before he signed on with the company.

Like many other franchisees in South Florida, Mariano finds coffee is the most popular item for the fast-moving lines of workers who stop by his stores on the way to their jobs or on breaks. Over the years, Mariano has grown from donut novice to donut connoisseur. His top-selling flavors, he says, are traditional favorites: glazed, Boston cream, jelly and chocolate frosted. He also offers special fillings like guava, caramel and cream cheese to tempt Latino taste buds.

Long-term relationships are a key ingredient in the Santos' recipe for success. Mariano takes pride in the high quality of the donuts he and his partner sell. "We've had the same bakers for 15 or 20 years. They're really dedicated -- that's my strong point," he says.

Mariano also relies on the skills and dedication of his employees. "The important thing is to be bilingual in our area where the main language is Spanish. It's very important to communicate with the customers," he says. Job-hoppers need not apply. "We look for long-term employees and managers," Mariano says, adding, "I'm lucky that usually they stay."

Like most successful businesspeople, Mariano does a lot to make his own luck. When it comes to retaining employees, he follows the Golden Rule. "I really try to be in the employees' position, understand when they need a day off. You've got to treat them right. Don't wait until they're ready to leave to do something for them."

Mariano remembers a time when he lost a demanding but valuable employee, and regretted it later. "Every little thing would bother her, but she was the best with customer service," he recalls. Now he's more likely to offer an incentive to keep a top performer on the team. "I've mellowed through the years," he says, adding, "I'm more understanding with the employees. If somebody good is going to leave, I give them more money or more weekends off."

Getting to know regular customers is one of the fringe benefits of having a Dunkin Donuts franchise. "You meet a lot of customers through the years and have time to sit and talk to them," Mariano says. Of course, it's impossible to please everyone. Mariano recalls an awkward encounter with "a customer who said she bought a coffee roll with a roach in it ... she called the company about it." He was relieved to discover that the dark object that bugged the woman was nothing more than a screen mark the roll picked up during the baking process.

Reviewing his years in the donut business, Mariano says, "One of the thing that really helped was having an accounting background. That took care of the numbers -- I knew right away how I was doing."

Looking to the future, he says, "Hopefully we'll continue to do well and if it's recognized, the company will let me grow." Dunkin Donuts executives, he explained, evaluate franchisees based on a number of criteria: financial soundness, having a mystery shopper program and a business plan in place, having enough certified managers to allow for expansion, attendance at company-sponsored meetings that are held every three or four months, and market share. The latter, he says, involves "consistency, and making sure you have knowledge of the local market so you can increase sales."

Local advertising is an effective tool for attracting new customers, Mariano finds. "We have a local newspaper in the Miami Lakes area that's delivered to all residents. We advertise there, and in the church bulletins every Sunday," he says. "We have a high school very close, and we advertise in the school publication, supporting the basketball or football team," he adds.

He's not worried about finding promising new locations when it's time to expand his operation. If they (corporate managers) have a good location in the area," he says, "they'll come to me."