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  • 7/28/2019 Dunkin Brands Corporate Social Responsibility Report (CSR) Redesign

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    serving responsibly

    2010 Corporate Social Responsibility Report

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    About This ReportWe are pleased to present Dunkin Brands rst corporate social responsibility (CSR)

    report, Serving Responsibly. This report ocuses on our corporate unctions and North

    American acilities owned and operated by Dunkin Brands or our subsidiaries or the

    year 2010. We plan to repor t on a two-year cycle . We will explore oppor tunities to

    report data rom our ranchised restaurants, ranchisee owned and operated distribution

    centers, and our supply chain, in uture reports. We have utilized the Global Reporting

    Initiative (GRI) G3 Sustainability Reporting Guidelines to guide the structure and content

    o this repor t. We are sel-declaring Application Level C under the G3 guidelines. For

    more details, please see our 2010 GRI Content Index atwww.dunkinbrands.com/Responsibility.

    We welcome your eedback at

    [email protected]

    or

    CSR Department, Dunkin Brands, Inc.,

    130 Royall Street, Canton, MA 02021

    Dear Stakeholders,

    I am pleased to share Dunkin Brands rst corporate social responsibility (CSR) report,

    entitled Serving Responsibly. More than just a title, Serving Responsibly denes Dunkin

    Brands commitment to always consider the needs o Our People, which includes our

    employees and ranchisees, Our Guests, Our Neighborhoods and the interests o Our

    Planet with every key business decision.

    Dunkin Brands is at the beginning o its CSR journey. While we have made progress in

    many areas, we recognize there is much more or us to do. We know that with near ly 100

    percent ranchised restaurant operations, our business model presents specic sustainability

    and reporting challenges and opportunities. However, by working closely with our ranchise

    community and an independent stakeholder advisory group, we are committed to

    addressing the social and environmental issues that ace our business.

    Over the past ew years, we have tackled a variety o CSR issues, ranging rom providing

    more nutrition inormation or our guests to decreasing the impact our packaging has

    on the environment. We have introduced a line o better or you products through our

    DD Smart and BRight Choices menu items, established a Nutrition Advisory Board, and

    launched a zero grams trans at menu or both Dunkin Donuts and Baskin-Robbins.

    We have also made eorts to understand our impact on the environment with the opening

    o our rst LEED certied store in St. Petersburg, Florida, and another opening later this

    year. We are actively engaged in nding more sustainable building and utility solutions that

    reduce costs or our ranchisees while beneting the environment.

    Additionally, we launched a 100% Fair Trade CertiedTM espresso line to support armers

    in coee-growing countries, and in 2006, we partnered with our ranchisees to establish

    The Dunkin Donuts & Baskin-Robbins Community Foundation to deepen our impact in

    communities we serve. More inormation on these and other initiatives are detailed in this

    report.

    We realize that the most prominent sustainability issue we must deal with is our Dunkin

    Donuts oam cup. While there is currently no single-use hot beverage cup on the mar ket

    that meets our criteria or perormance cost and recyclability, we are committed to solving

    this and other packaging issues, by working with our industry partners, manuacturers and

    material engineering researchers. In addition, we have initiated a variety o in-store tests

    including reusable mug programs and recycling programs or ever ything rom cups to coee

    grounds.

    Certainly this is not an exhaustive list o our CSR ocus areas, nor is it a static list. As

    quickly as we nd solutions, other challenges will emerge. However at Dunkin Brands, we

    are committed to growing our business in a way that is protable and sustainable or the

    employees, the ranchisees, the communities and the planet we so proudly ser ve.

    We look orward to sharing our ongoing journey with you and invite you to share your

    thoughts with us at [email protected].

    Nigel TravisCEO, Dunkin Brands Inc. &

    President, Dunkin Donuts U

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    Table of Contents

    CEO Letter 3

    About Dunkin Brands 7Starting Our Journey 8

    Issues Assessment Grid 9

    Stakehold Engagement 10

    Brie Brand History 11

    Our GuestsNutrition Advisory Board, Menu Labeling 13

    Nutrition & Better-or-you choices, Zero Grams

    Trans Fat 14

    Bright Choices, Consumer Care 15

    Guest Satisaction Survey, Food Saety 16

    Marketing to Children, Suppliers, Restaurants,

    Allergens 17

    Our PlanetPackaging Composition 19

    Quest or the Cup 20

    Packagin Goals 21

    Sustainable Ingredient Sourcing, Supply Chain,

    Supplier Code o Conduct 22

    Volumes or top ingredients, coee, animal welare 23Palm Oil, Sustainable Building 24

    Energy Usage 25

    Building 26

    Our PeopleDiversity 30

    Our NeighborhoodsDDBRCF, Hunger Relie, Saety, Childrens Health,

    Regional Chapters, Our Company 36

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    Serving Responsibly

    Dunkin Brands, Inc. is the parent company o two o the

    worlds most recognized and beloved brands Dunkin

    Donuts and Baskin-Robbins. We strive to be the premier

    Quick Service Restaurant (QSR) ranchisor with a lead-

    ing position in the coee, bakery and ice cream seg-

    ments o the QSR categor y.

    Dunkin Brands has more than 16,100 Dunkin Donuts

    and Baskin-Robbins restaurants worldwide, nearly 100

    percent o which are currently owned and operated

    by ranchisees. Both brands oer lexible concepts or

    single units and multi-store developments in ormats that

    include reestanding restaurants, travel plazas, universities

    and other retail environments.

    In addition to our Canton, Massachusetts headquarters,our corporate-owned acilities in 2010 included our ice

    cream manuacturing acility in Peterborough, Canada,

    traini ng acil ities in Burbank , Caliorn ia and Braintr ee,

    Massachusetts, two company-owned restaurants in

    Massachusetts and 13 restaurants in Texas through DBI

    Stores, LLC. Dunkin Brands, Inc. is a subsidiary o Dunki

    Brands Group, Inc., which, on July 27, 2011, began tradin

    on the NASDAQ under the symbol DNKN. Prior to

    July 27, 20 11, a conso rtiu m o pr ivate co mpanie s owned

    the Com pany. Those privat e compa nies co ntinue to own

    a controlling interest in the Company.

    Strong customer sentiment or our brands is evident

    throug h the n umerou s awards and re cogniti ons we h ave

    earned throughout the years. We have been named #1

    in Customer Loyalty in Coee or the past ive years

    by Brand Keys Customer Loyalty, and in 2010 earned

    the titl es o Best Air port Franch isor in Airp ort Rev-

    enue News and #18 in the Top Franchises to Start by

    Forbes Magazine. Also in 2010, QSR Magazine namedDunkin Donuts #7 and Baskin-Robbins #36 in the

    Quick Service Restaurant Top 50.

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    Starting Our JourneyDunkin Brands is at the beginning o its CSR journey. In

    2007, the CSR department was ormed to address the

    environmental, social and economic issues that touch our

    business. In 2009, Dunkin Brands joined Ceres, a network

    o investors, environmentalists and public interest groups

    that works with companies to address sustainability

    challenges. Developing our rst CSR report provided an

    opportunity to ormally engage a cross-unctional group

    o internal and external subject matter exper ts to identiy

    material issues, review the Companys eorts to date and

    establish short- and long-term goals. This report is the

    rst step in an ongoing process to grow our business in a

    manner that is both protable and sustainable taking into

    consideration the needs o our employees, our ranchisees,

    the communities we serve and the environment.

    Our reportis titled Serving Responsibly, whichrepresents our commitment to responsibly serve Our

    People (employees and ranchisees), Our Guests, Our

    Neighborhoods, and Our Planet. Serving Responsibly is the

    guiding principle o Dunkin Brands CSR eorts providing

    the ramework that helps us measure where we are today,

    set goals or where we want to be in the uture, and engage

    with internal and external stakeholders.

    To support this commitment, we completed our rst-ever

    issues assessment to prioritize and ocus our CSR eorts.

    We worked with a consultant to identiy the ull spectrum

    o challenges acing both Dunkin Donuts and Baskin-

    Robbins. We also took into consideration input provided

    by a group o external independent stakeholders convened

    in partnership with Ceres. We recognize that this Issues

    Assessment Grid represents a snapshot in time and that the

    materiality o these issues could evolve based on various

    actors. We will continue to monitor our material issues

    to ensure that we are responsive to both business needs and

    stakeholder concerns.

    Issues Assessment Grid

    Interest to Business

    Interestto

    Stakeholders

    Nutrition

    PortionSize

    Nutrition

    Caffeine

    Environmental

    Footprint

    FoodWaste

    CoffeeGrounds

    Governance & Ethics

    PortionSize

    StakeholderEngagement

    Nutrition

    SodiumContent

    Sourcing

    SupplierCode:Sustainable

    Sourcing

    Program;HumanRights

    PalmOil

    AnimalWelfare(CageFree

    Eggs;Farms)

    Environmental Footprint

    ProductImpact(LifeCycle

    Assessments)

    Product Quality & Safety

    Packaging

    FoamCup;PinkSpoon

    StakeholderEngagement

    Nutrition

    Choice,Transparency

    Sourcing

    Cof fee

    Sustainable Building

    Workplace Practices

    FranchiseeRelations

    LaborPractices;Health&Safety

    EmployeeEngagement&Support

    Environmental Footprint

    Collaboration&Partnerships

    (e.g.FleetEfciency)

    Other Packaging

    Environmental Footprint

    Energy/WaterUse;Waste

    Management

    Sourcing

    OtherCommodities(Cocoa,

    Sugar)

    Hormones,rBGHDairy

    WaterUse

    Nutrition

    HighFructoseCornSyrup

    TransFats

    Workplace Practices

    Advertising(Esp.Children,

    Baskin-Robbins

    Diversity(Workplace,Supplier)

    Governance & Ethics

    PublicPolicy

    Guest Engagement

    CustomerEducation(CSR,

    Nutrition)

    FeedbackMechanisms

    Community Engagement

    DD&BRCommunity

    Foundation

    ProductDonations

    Environmental Footprint

    (HQ, owned stores)

    CarbonFootprint/GHG

    Emissions

    Energy/WaterUse,Waste

    Management

    Dunkin Donuts is the

    worlds leading baked

    goods and coee chain,

    selling almost 2.5 million

    donuts a day and more

    than 1 bill ion cu ps o

    coee a yea r.

    Baskin-Robbins is the

    worlds largest chain o

    ice cream specialty shops

    serving premium ice cream,

    specialty rozen desserts and

    beverages to more than 300

    million customers each year.

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    Stakeholder EngagementDunkin Brands is committed to engaging in a dialogue with

    external stakeholders about the issues most material to

    our business to inorm our CSR strategy. As we developed

    this report, we worked with Ceres to convene a group o

    independent external stakeholders. These individuals are

    members o the Ceres network who have issuespecic

    expertise. We met with this group o stakeholders to

    review material issues, identiy gaps in reporting and

    ensure credibility o goals and targets. We also ollowed

    up separately with individuals rom the stakeholder group

    regarding specic issues and questions throughout the

    reporting process.

    Because Dunkin Brands ability to execute a meaningul CSRstrategy depends on implementation by our ranchisees,

    we have put systems in place to oster an active dialogue

    with the ranchise community. We currently maintain a

    multitiered ranchisee advisory council system that provides

    timely eedback and input on all o our major initiatives. We

    also administer a resource called the Navigator, which is a

    direct corporate point o support to respond to ranchisee

    questions and help them address a var iety o business

    issues. This ongoing dialogue helps to drive system-wide

    improvements.

    In addition to engaging with our ranchisees around business

    issues, we also work closely with them on community and

    charitable initiatives. In 2006 we ormed The Dunkin Donuts

    & Baskin-Robbins Community Foundation, a corporate-

    ranchisee charitable oundation that works in concert

    with ongoing community outreach by ranchisees in the

    communities they serve. The National Foundation Board

    includes seven seats designated or ranchisees and seven

    or corporate representatives. Regional chapters have also

    been created with similar board structures. Working together,

    ranchisees and corporate employees engage in strategy

    development, undraising and grantmaking.

    Moving orward, our goal is to continue to work with internal

    and external stakeholders to urther dene and execute the

    strategies outlined in the report.

    2010 Total GlobalSystem-wide Sales:$7.7 billion

    2010 Total WorldwideLocations:

    16,193in52countries

    DunkinDonuts:9,760in31countries

    Baskin-Robbins:6,433in42countries

    2010 Total U.S. Locations:

    9,319in47statesandtheDistrictof

    Columbia

    DunkinDonuts:6,772in36statesand

    theDistrictofColumbia

    Baskin-Robbins:2,547in45states

    andtheDistrictofColumbia

    Number of Franchisees

    1,932U.S.franchisees;

    27internationalfranchisees

    As is the case with many QSRs, our ranchise business model

    presents specic sustainability and reporting challenges and

    opportunities. Dunkin Brands supports ranchisees in areas

    including menu innovation, marketing, training and providing

    operational standards and oversight. However, ranchisees are

    responsible or operational execution, landlord negotiations

    and services such as waste disposal, landscaping, utility usage

    and hiring. The successul execution o sustainable business

    practices throughout the system requires stewardship by

    our ranchisees. In many cases, ranchisees are the source o

    our CSR innovations and successul char itable initiatives. We

    share these best practices across the system.

    A Brief Brand History

    Originally ounded in 1950 in Quincy, Massachusetts, by Bill

    Rosenberg whose goal was to make and ser ve the resh-

    est, most delicious coee and donuts quickly and courte-

    ously in modern, well-merchandised stores, Dunkin Donut

    now sells 52 varieties o donuts, more than a dozen coee

    beverages and an array o baked goods to more than 3

    million customers worldwide each day. As o December

    2010, Dunkin Donuts had 9,760 restaurants in 31 countries

    around the world.

    In 1946, two brothers-in-law, Burton Burt Baskin and Ir vine

    Irv Robbins, shared a dream to create an innovative ice

    cream shop that would be a neighborhood gathering place

    or amilies. In 1945, Irv opened Snowbird Ice Cream in

    Glendale, Caliornia, and Burt opened Burtons Ice Cream

    Shop in Pasadena, Caliornia. Eventually they combined to

    become Baskin-Robbins. As o December 2010, Baskin-Rob-

    bins had 6,433 shops in 42 countries around the world.

    Baskin-Robbins and Dunkin Donuts were individually

    acquired by Allied Domecq PLC in 1973 and 1989,

    respectively. The brands were organized under the Allied

    Domecq Quick Service Restaurants subsidiary, which was

    renamed Dunkin Brands, Inc. in 2004. Allied Domecq was

    acquired in July 2005 by Pernod Ricard S.A. Pernod Ricard

    made the decision to divest Dunkin Brands in order to

    remain a ocused global spirits company. In March o 2006,

    the company was acquired by investment unds aliated

    with Bain Capital Partners, LLC, The Carlyle Group and

    Thomas H. Lee Par tners, L.P. In 2011, Dunkin Brands GroupInc. led or an initial public oering, and on J uly 27, 2011, th

    Company began trading on the NASDAQ under the symbo

    DNKN. The consortium o private companies, Bain, Carlyle

    and Lee, continue to own a controlling interest in the Compan

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    Our GuestsWe are passionate about offering our guests delicious products

    the y w ill enj oy, giv ing the m p len ty of men u opti ons , a nd prov idi ngaccurate nutrition information so they can make the best choices

    for the mse lve s.

    Nutrition Advisory BoardIn 2007 Dunkin Brands established a Nutrition Advisory

    Board comprised o leading experts on nutrition, health and

    wellness to assist with the development and reormulation

    o products that meet the evolving needs o our customers.This research and perspective helps us better understand

    and anticipate health and wellness trends and incorporate

    current nutritional science into our menu development.

    Additionally, these experts share new developments in

    nutrition and health-related research that impact Dunkin

    Brands products, while ensuring that relevant issues such

    as menu labeling and the communication o nutrition

    inormation remain at the oreront. The board meets twice a

    year to share research and insights.

    During its tenure, the board has provided input on a variety

    o issues including our transition to a zero grams trans at

    menu and the development and launch o DDSMART and

    BRight Choices. The board is now providing guidance on

    core menu optimization or each brand. A complete list o

    board members and their related experience can be ound

    at: http://www.dunkinbrands.com/nutrition.

    Menu Labeling

    At Dunkin Brands we understand and embrace our

    responsibility to provide health-related public inormation.

    We have been providing our guests with nutrition

    inormation or several years through in-store brochures, our

    brands websites and through our Consumer Care 1-800

    team. Since the passage o menu labeling in New York City i

    July 2008, multiple cities and states across the country have

    enacted menu labeling laws and regulations. This city-by-city

    and state-by-state approach has created a complex, highlylocalized regulatory approach to menu labeling. A localized

    approach is conusing to customers as well as costly and

    disruptive to multi-state operators such as Dunkin Donuts

    and Baskin-Robbins. As a result, Dunkin Brands joined

    restaurant industry groups to lead the way to ederally

    mandated menu labeling legislation, which was introduced

    in Congress in September 2008 and enacted by President

    Obama as part o the health care reorm legislation in Marc

    2010. This legislation established one national nutrition

    disclosure standard or restaurants across the country.

    We believe that having one uniorm menu labeling law

    across America is not only better or consumers but also

    more equitable or our ranchisees. Consumers deserve a

    consistent and complete nutritional picture, and the new

    menu labeling law will accomplish that goal. Dunkin Brands

    continues to work with ederal agencies and Congress

    to implement the nutrition inormation and disclosure

    provisions in the law.

    Corporately, we had no incidents o non-compliance

    regarding menu labeling in 2010. We provide our ranchisees

    with the inormation and suppor t required to comply with

    labeling regulations at the restaurant level.

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    Nutrition & Better-for-You ChoicesDunkin Brands recognizes that there is growing concern

    over the ingredients ound in prepared oods, including

    sugars, ats and salt. For many years we have tested and

    launched better-or-you menu items. As consumers increased

    their ocus on health and wellness, we took steps to ensure

    that we were delivering the products our guests wanted, and

    that these better-or-you products were easily identiable on

    our menu boards through the use o the DDSMART and

    BRight Choices logos.

    In 2010, Dunkin Donuts conducted a comprehensive review

    o our current menu por tolios to identiy nutritional gaps

    and new product opportunities. In addition, we revised the

    Dunkin Donuts website to add nutrition inormation to

    ensure that our guests had access to inormation n ecessary

    to make inormed decisions about menu items. We also

    established a nutrition lter and goals to support product

    development. In 2011, we will apply the learnings rom our

    work on Dunkin Donuts menu por tolio to achieve similar

    objectives or Baskin-Robbins.

    Zero Grams Trans FatIn 2007, Dunkin Donuts became the rst major QSR chain

    to introduce a donut with zero grams trans at. This was the

    culmination o nearly our years o eort by the Dunkin

    Brands Research & Development and Supply Chain teams

    to move toward an entirely zero grams trans at menu

    Baskin-Robbins introduced its BRight Choices menu o

    better-or-you rozen treats in Januar y 2009. The line eatures

    Premium Churned Light ice cream; Premium Churned

    Reduced Fat No Sugar Added ice cream; ruit based and non

    ruit based indulgent rozen yogurt; and dair y ree options.BRight Choices options range rom

    80 to 140 calories per 2.5 ounce scoop. All BRight Choices

    oerings are indicated by a special pink star decal on the ice

    cream favor strips in stores and are available year-round.

    BRight Choices Criteria

    PremiumChurnedLight:50%lessfatand20%fewer

    calories(comparedtoourregularicecream)

    PremiumChurnedReducedFatNoSugarAdded:

    25%lessfat(comparedtoourregularicecream)

    Sorbet/Ice:FatFree,DairyFree

    FrozenYogurt:Madewithliveandactivecultures

    Consumer CareDunkin Brands has created a variety o oppor tunities or

    ongoing interaction with our guests. Our guests receive a

    receipt with each purchase inviting them to provide eedbac

    on their experience via an online Guest Satisaction Survey.

    Additionally, our Consumer Care team, located in our

    corporate oce, interacts with our guests via phone calls,

    emails, and letters as well as through social media channels.

    Actively listening and engaging our guests helps us and our

    ranchisees continuously improve our business.

    All menu items are:Reducedincalories,fat,saturatedfat,sugarorsodiumbyatleast25%whencomparedtoa

    baseproductorappropriatereferenceAND/ORcontainnutritionallybenecialingredients.

    in the U.S. Ater testing more than 28 alternative oils and

    proprietary blends and conducting 80 independent tests,

    the teams ound a suitable oil blend that delivers the quality,

    favor and taste our guests have come to expect. Since

    October 2007, all Dunkin Donuts menu oerings nationwide

    have been zero gr ams trans at. Baskin-Robbins oerings,

    including its ice cream inclusions and ribbons, became zero

    grams trans at in 2008.

    When it comes to making healthy choices, some guests want

    to cut calories, some want to increase ber consumption

    while others want to reduce their at intake. Dunkin

    Brands developed the DDSMART menu to help guests

    identiy better-or-you menu items in our restaurants. The

    DDSMART menu helps guests easily identiy ou r greattasting

    oods and beverages that t their dietary wants and needs.

    All DDSMART menu items are identi ed by a special green

    running gure logo on restaurant menu boards.

    Our DDSMART program goes beyond the menu by

    encouraging an active liestyle. Since its launch, DDSMART

    has sponsored running and cycling teams and triathlon clubs.We provide ree, online training programs or guests who

    run their rst 5k, and or the second year we will sponsor

    the Leukemia & Lymphoma Societys Team in Training

    program or individuals training or a marathon or triathlon.

    For the majority o the Team in Training participants, it is their

    rst such event.

    Nutrition Case StudyA highlight o the DDSMART menu is Dunkin

    Donuts Egg White Flatbread Sandwiches.

    In 2008, Dunkin Donuts became the rst

    national QSR to introduce egg white

    sandwiches. The DDSMART menu includes

    two varieties: Turkey Sausage (eaturing turkey

    sausage, spinach and reduced-at cheddar

    cheese) and Veggie (eaturing peppers, onions,

    mushrooms and reduced-at cheddar cheese).

    Both are under 300 calories, with 10 grams

    o at or less, and are served on wholesome

    toasted multigrain fatbread.

    RaspberryFrozen

    Yogur t

    Latte Lite,MulrigrainBagel, andReducedFat CreamCheese

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    Nutrition GoalsLong-Term Goals:

    Continuetolookforwaystoincorporate

    better-for-youchoiceoptionsonDunkin

    DonutsandBaskin-Robbinsmenus

    ReviewandexploreDunkinBrands

    advertisingpracticesthatmayreach

    youngeraudiencestoencourage

    balancedlifestyleoptions

    Baskin-RobbinsShort/Mid-Term Goals:

    Reviewcurrentmenuportfoliosand

    Identifynutritionalgapsandnew

    productopportunitiesby2013

    Establishnutritionlterandgoals

    Revisewebsitetoincludenutrition

    contentby2013

    Guest Satisfaction SurveyIn May 2009, we implemented the Guest Satisaction

    Survey, a powerul tool that provides insight into the guest

    experience to help u s maximize guest satisaction and loyalty.

    Through in-depth analysis o guest comments and sur vey

    responses, we have identied key components o a positive

    guest experience, and as a result have worked closely with

    our ranchisees, restaurant managers, and crew members

    to create a guest-rst culture in our restaurants. Since theinception o this program we have recorded eedback rom

    over one million guests and noted increasing satisaction with

    the Dunkin Donuts experience.

    Marketing to ChildrenDunkin Brands encourages healthy, balanced liestyles to

    address growing concerns about childhood obesity. We

    work diligently to provide a variety o choices in our product

    oerings that appeal to guests o all ages. Dunkin Brands

    recognizes that the ood and beverage industry plays an

    important role in amilies dietary choices, including the

    responsible marketing o products. Dunkin Brands does not

    conduct any child-directed advertising. Additionally, we have

    established an internal working group to keep abreast o

    ederal guidelines and laws applicable to childrens advertising.

    As the Federal Trade Commission and other ederal agencies

    develop guidelines on childrens advertising, Dunkin Brands is

    committed to providing guidance to our brands, employees,

    and ranchisees about best practices to ensure compliance.

    In addition, Dunkin Brands and our ranchisees encourage

    a calories-in, calories-out liestyle by sponsoring activities,

    programs and or ganizations that involve physical activity.

    SuppliersDunkin Brands screens and assesses the quality and ood

    saety management systems o new suppliers entering our

    supply chain to ensure they meet our strict brand standards.

    Dunkin Brands monitors the perormance o key suppliers

    on an ongoing basis and requires regular ood saety audits

    and global ood saety certications by third par ties to

    ensure the highest standards are maintained.

    RestaurantsOur ranchisees ollow stringent quality and ood saety

    protocols or handling ood as it fows through our

    restaurants rom delivery, receiving and storage, to

    preparation, cooking, holding and service. These protocols

    are dened in our on line global ood saety systems manual,

    which is easily accessible online. Franchisees and restaurant

    managers must successully complete ood saety training

    and achieve certication through a nationally recognized,

    American National Standards Institute (ANSI)-certied

    examination. Dunkin Brands also provides ranchisees and

    their employees with comprehensive training programs and

    support materials available 24/7 via Dunkin Brands Online

    University. In addition, we monitor guest impressions o

    cleanliness in our restaurants through ongoing sur veys to

    help us identiy oppor tunities or improvement. Restaurant

    managers conduct Monthly Food Saety Sel Assessments

    to review the eectiveness o ood saety practices, identiy

    any gaps and take corrective actions i necessary. They also

    measure any imminent health risks along with sanitation

    processes, time and temperature standards, documentation

    procedures, employee health and hygiene. Dunkin Brands

    operations managers also assess restaurant-level ood saety

    perormance during regular Restaurant Operations Reviews

    For select restaurants we also utilize our global Quality

    Assurance team and qualied third-party restaurant ood

    saety specialists or assessment and training to reduce risk

    in our operations and ensure that our systems are deployed

    and eective.

    AllergensWe recognize that allergens are a serious concern or cer-

    tain guests, and proper allergen protocols are a key compo-

    nent o our ood saety system. Our restaurant managers an

    crew members are trained on major ood allergens and the

    symptoms o an allergic reaction, along with proper storage,

    display, preparation, cleaning and transport procedures to

    minimize the risk o cross-contamination. Where appropri-

    ate, we provide supplemental inormation to restaurant sta

    about proper handling o specic menu items. We also com

    municate allergen inormation to our guests through signage

    in our restaurants, on our brand websites, and through our

    Consumer Care team.

    Food SafetyFood saety and quality are

    o paramount importance

    to Dunkin Brands. We

    have rigorous procedures

    in place to ensure to

    the best o our ability

    that we provide sae,

    high quality products to

    our guests. We maintain

    comprehensive Food Saety

    Systems, standards and

    requirements based on Hazard Analysis and Critical Control

    Point (HACCP) principles, as well as government regulations,

    global industry best practices, and our own high standards.

    Through our Food Saety System we work together with our

    suppliers, distributors, manuacturing acilities, ranchisees and

    restaurant crews to ensure the saety our products.

    Dunkin Brands reviews the health and saety impacts o

    100% o our products throughout their lie cycle, rom

    concept and development through manuacturing and

    production, marketing, distribution, use and consumption.

    In the event that a specic product ails to meet our ood

    saety standards at any point in its lie cycle, our Quality

    Assurance team will take immediate steps to recall the

    product or withdraw it rom our system. In 2010, we had no

    outstanding ood saety violations or product recalls throughour supply chain.

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    We recognize that everything we do has an impact on theenvironment. From the materials we use, to the way we construct

    and operate our stores, to the products we source, we arecommitted to adopting better, more sustainable approaches

    whenever feasible.

    PackagingDunkin Brands strives to oer packaging that balances the

    expectations o our guests and ranchisees while minimizing

    our impact on the environment.

    Our Planet

    17%M

    isc

    .Pa

    per

    15%RecycledPa

    pe

    r

    24%

    Foam(cups)

    15%Pap

    erb

    oard

    24

    %P

    lasic

    Resins

    5%o

    ther

    Composition of 2010 total US packaging purchasesfor Dun kin D onu ts & B ask in- Rob bin s:

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    Packaging Goals

    Long-Term Goals:

    Developaholisticpackaging

    scorecardforusewithallsuppliers

    todrivecontinuousimprovementon

    environmentalimpacts

    Performwaste/recyclingauditonsample

    DDandBRrestaurants,andseek

    diversionopportunitiesfortopthree

    wasteitems

    Short/Mid-Term Goals:

    Developacomprehensivestrategyin

    2012toachieveasustainablecup

    solution:

    Formalizeinternalcross-functional

    workinggroup

    Conveneanexternalworkinggroup

    comprisedofexternalSMEssuchas

    researchers,otherEPSfoamusers

    withintheindustryandsuppliers

    Developcleargoalsandtimelinefor

    internalandexternalworkinggroups

    Testareusablemugprogramoptionfor

    icedbeveragesin2011

    Pilottestin-storefoamcuprecycling

    programby2013

    Identifyfranchiseeswithin-storerecycling

    programsandgatherbestpracticesto

    shareacrossthesystemby2013

    CompletetestingofBaskin-Robbins

    pinkspoonalternativeswithplans

    totransitiontoamoresustainable

    materialbrand-wideby2013

    Our Quest for the CupWe know that many people are concerned about the

    environmental impact o Dunkin Donuts oam cups. We are

    concerned too; in act, its our #1 sustainability priority. Our

    guests count on us to keep them running with delicious

    coee served in a convenient, aordable cup that can hold

    up to their busiest d ays. We continue to work h ard to nd

    a cup solution that works or our guests, ranchisees and

    the environment.

    Our research shows that our guests love the benets o

    our current expanded polystyrene (EPS) oam cup: it keeps

    coee hot longer while keeping hands cool, it is very durable,

    and its lid prevents spills and dangerous incidents rom hot

    beverages. We are searching or a cup that provides similar

    benets to our guests, has an improved environmental

    prole and is aordable or our ranchisees. Over the past

    our years, we have reviewed or tested nearly every type

    o single-use hot cup available on the mar ket in our quest

    or an alternative to the oam cup, and there is simply no

    single-use hot cup on the mar ket today that meets all o our

    perormance, cost and environmental criteria.

    We have also considered lined paper cups since they are

    made rom a renewable resource; however, they are not

    recyclable in most communities because special equipment

    is needed to separate the paper rom its petroleum-based

    inner lining. We have also studied compostable paper

    cups, but currently these cups can only be composted at

    a ew commercial acilities, not in backyard compost bins.

    Additionally, while they may appear to be environmentally

    preerable, paper cups o all types require more energy, raw

    materials and water to produce than oam, and they take up

    more landll space.

    So while there is no suitable replacement or our oam cup

    today, we are committed to searching or a viable alternative

    on our own and in collaboration with our suppliers, peers

    and external experts. Some promising innovations such as

    bioresins are in development, but most are not commercially

    available today. To reduce waste in the interim, we reduced

    the weight o both our oam hot cup and our plastic cold cup in

    2009, which reduced the amount o materials sent to landlls

    by 4.6 million pounds annually. Additionally, we are preparing

    to test an in-store oam cup recycling program and we oer a

    reusable mug program as an option or our ranchisees.

    We are also testing alternatives to the current

    Baskin-Robbins polystyrene pink spoon. We

    believe we are close to a new material that will

    be recyclable, strong enough to scoop hard ice

    cream and aordable or our ranchisees. I the

    new material meets our standards, we will plan

    to roll it out by 2013.

    We continue to search or ways to minimize the impact

    o our packaging by substituting materials or using

    postconsumer recycled content whenever possible. In 2009,

    we switched to a new, 100% post-consumer ber napkin

    system-wide, saving annually:

    38milliongallonsofwater

    16,000cubicyardsoflandllspace

    22millionkilowattsofenergy

    11,000gallonsofoil

    323,000lbsofairpollutants

    92,000trees

    We also introduced new napkin dispensers that reduce

    waste by controlling usage. Together, these changes resulted

    in a 25% reduction in napkin waste overall. We have

    established an internal baseline or packaging that identies

    environmental impacts and helps inorm purchasing decisions.

    We recently announced an agreement with Green Mountain

    Coee Roasters, Inc., (GMCR) to produce Dunkin Donuts

    K-Cup portion packs or the Keurig Single-Cup Brewingsystem. GMCR is a leader in specialty coee and

    coee makers, as well as a leader in sustainability. We

    recognize the concerns with single-serve packaging, and we

    support GMCRs eorts to reduce the environmental impact

    o its single-serve portion packs.

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    Sustainable Ingredient SourcingDunkin Brands understands that consumers are increasingly interested in knowing where their

    ood comes rom and how it is produced. We also understand that sourcing our ingredients

    in a responsible way is a key component o a strong supply chain. We are in the process o

    developing a holistic approach to sourcing that balances cost with sustainability issues.

    Supplier Code of ConductDunkin Brands Supplier Code o Conduct requires suppliers to comply with all laws,

    ordinances, rules, regulations and orders o public authorities pertaining to the business that

    supplies the Dunkin Brands system. Currently the Code addresses human rights concerns

    including child labor, workers rights, compensation, discrimination and bribery. We plan to

    complete a review o the Code to ensure it addresses issues most material to our business,

    explore ways to ensure compliance and work with ranchisee-owned distribution centers

    to integrate the Codes elements more clearly into RFPs and procurement decisions.

    Dunkin Brands develops

    products, selects menu items,sets product specications,

    approves suppliers and

    provides quality assurance

    in the supply chain or both

    Dunkin Donuts and Baskin-

    Robbins.

    Dunkin Brands also

    manuactures and distributes

    select ice cream products or

    Baskin-Robbins International

    at a company-owned plant in

    Peterborough, Canada.

    Dunkin Donuts Distribution

    Centers (DCPs) purchase,

    warehouse and distribute ood

    and supplies or U.S. Dunkin

    Donuts ranchisees. The DCPs

    are cooperatively owned

    bytheir ranchisee members.

    Franchisees may only purchase

    DBI approved product rom

    DBI approved sources.

    International ranchisees work

    with Dunkin Brands to identiy

    approved local sources in our

    international markets.

    For Dunkin Donuts, suppliers

    are approved by Dunkin

    Brands but contract directly

    with DCPs.

    For Baskin-Robbins, suppliers

    contract directly with Dunkin

    Brands.

    Baskin-Robbins U.S. supply

    chain is managed by Dunkin

    Brands, and production and

    distribution is outsourced to

    Dean Foods.

    Dunkin Brands Supply Chain

    Dunkin BrandsFranchisees

    Suppliers

    26LightCream

    80Sugar

    110

    Coff

    ee

    (Green)

    41O

    il

    63

    Whe

    at

    (Flour)

    22Egg

    s

    1.1ChocolateChips

    5Liq

    uidS

    ugar

    7Bulk

    Cream

    1.1Pecans

    0.3

    Cocoa

    2.5Almo

    nds

    Baskin-Robbins

    IngredientsPer Year inMillions ofPounds

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    In 2008, ranchisee Robert Aziz built the rst green DunkinDonuts restaurant in St. Petersburg, Florida which achieved

    Leadership in Energy and Environmental Design (LEED)

    Silver certication in 2010. This restaurant serves as a

    model or uture green construction projects and restaurant

    remodeling. In addition to LEED design and construction

    components, the restaurant eatures a reusable mug

    program, donation o letover baked goods to the local ood

    bank, and coee grounds composting. In 2011, we will break

    ground on a second green Dunkin Donuts restaurant in St.

    Petersburg, once again targeting LEED certication.

    The restaurant has composted over 50,000 pounds o used

    coee grounds and paper products since opening in 2008.

    LEED is a valuable resource or identiying opportunities to

    enhance sustainability and inspire rigor and accountability

    in our building initiatives. While we have ound that LEED

    certication is not easible or every new construction

    project or every ranchisee, we continue to implement many

    LEED recommendations to make our restaurants greener.By working with the EDF Climate Corps to understand

    restaurant energy consumption and potential savings, and

    continually enhancing our construction specications, we

    strive to make sustainable building more achievable and

    desirable or our ranchisees.

    Dunkin Brands, Inc. joined the U.S.Green Building Council in 2008

    Sustainable Building Goals

    Long-Term Goals:

    Reducefranchiseeutilitycosts

    Reducecarbonfootprint

    Developestimatedbaselineofenergy

    spendinU.S.DunkinDonuts

    restaurants

    Developenergyefciency

    recommendationsandimplementation

    planforU.S.DunkinDonutsrestaurants

    UtilizeDunkinDonutslearningsto

    improvethesustainabilityofBaskin-

    Robbinsshops

    Short/Mid-Term Goals:

    Createsustainablebuildinglterand

    goalsfornewconstructionin2012

    TwomembersofDBIDesignand

    ConstructionServicesDepartmentto

    achievefullLEEDAccreditationby2011

    OpensecondgreenDunkinDonuts

    restaurantinSt.Petersburg,FLin2011,

    targetingLEEDcertication

    Incorporateimprovedsustainable

    materialsintoDunkinDonutsnewstore

    designin2012

    Palm OilWe recognize that irresponsible palm oil production is

    associated with deorestation, harm to wildlie and other

    negative impacts, so we continue to work with our suppliers

    to purchase the oils or our blend rom sustainable sources.

    Dunkin Donuts currently prepares all o its donut products

    using a blend o palm, soy and cottonseed oil. This blend was

    introduced in 2007 when we began transitioning our entire

    menu to 100% zero grams trans at.

    CoffeeCoee is the main commodity o the Dunkin Donuts brand.

    We select only high quality, 100% Arabica coee beans romCentral America, South America and other regions or our

    proprietary blends. There are many steps required to bring

    Dunkin Donuts coee rom the tree to your cup, and we

    are proud o the strong relationships we have built with our

    partners along the way.

    In 2004, Dunkin Donuts partnered with Fair Trade USA

    to begin purchasing Fair Trade Certied coee or our

    espresso. Dunkin Donuts was the rst national br and to

    sell a ull line o espresso beverages made exclusively with

    100% Fair Trade Certied coee. Our Fair Trade purchases

    help armers and their amilies earn a better income, hold

    onto their land, keep their children in school and invest in

    the quality o their harvest. As o December 31, 2010, we

    purchased 25,893,440 pounds o Fair Trade Certied coee

    and delivered $1,877,640 dollars in premiums back to arming

    communities, impacting an estimated 30,000 people annually.

    In 2008, we began exploring additional partnerships

    to help broaden our support o coee armers. We

    provided a $70,000 grant to the Rainorest Alliance in

    2010 that provided technical assistance and inrastructure

    improvements to groups o small armers rom three

    coee-growing communities in Colombia. By the end o the

    12-month project all three groups had earned Rainorest

    Alliance Certied status, giving them access to the global

    market or cer tied coees. As a result o this success, we

    are exploring additional opportunities to work with the

    Rainorest Alliance on projects that provide training and

    value to armers around the world.

    Animal WelfareWe recognize that animal welare is an important part o

    a sae and sustainable ood supply chain, and like many o

    our stakeholders we care about the way animals are raised

    and treated. Through our issues assessment process, we are

    identiying and tracking animal welare issues that matter

    most to our stakeholders and to the quality and saety oour products.

    Dunkin Brands is committed to actively exploring

    opportunities to source ingredients that meet high animal

    welare standards. We are currently considering the use o

    cage-ree eggs and gestation crate-ree pork in our products

    researching available quantities, easibility and ood saety,

    among other issues. As we develop a holistic approach to

    sustainable sourcing, we plan to establish an animal welare

    policy; incorporate standards regarding the air treatment

    o animals into our Supplier Code o Conduct; and set

    meaningul, achievable goals or improving our perormance

    in this area.

    We congratulate Dunkin Donuts or achieving LEED Silver Certifcation at their restaurant in St.

    Petersburg, said John Toppe, President o the Florida Gul Coast Chapter o the U.S. Green Build-

    ing Council. Third party certifcation through the Green Building Certifcation Institute is not easy

    or a quick serve restaurant to achieve, and we appreciate the extra eort that it took or Dunkin

    Donuts and its ranchisee to work through the process as a pioneer in the QSR industry.

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    Examples of efficiencyimprovements to our

    Dunkin Donuts prototype

    Plumbing

    Addedaeratorsasmandatory

    onallfaucets

    Speciednewwater-friendlyxtures

    Speciedtanklesson-demandhot

    waterheater

    Hvac

    Addednewefciencyguidance

    Providednewbrandminimumeerratings

    Bettereerratingsaffectunitperformance

    positively,reducingutilitycost

    Electric

    Utilizedmostefcientlamping

    andxtures

    AddednewLEDoptionsonsignpackage

    Addedlightharvestingcontrol

    devices/sensors

    Corporate Facilities - Electricity Usage,Natural Gas UsageCorporate acilities in 2010 included our Brand Central

    headquarters, Dunkin Brands University (DBU), our Burbank,

    Caliornia training acility, our Peterborough, Canada ice

    cream plant, and 15 corporate-owned restaurants in Texas

    and Massachusetts.

    In 2011, we will complete the rst signicant renovation

    o Dunkin Brands University (DBU) since the building was

    constructed in 1967. This world-class training acility will

    include an energy management system, energy ecient

    lighting, a white membrane roo, advanced heating and air

    conditioning systems, and a storm water management system

    to help protect the local watershed.

    Sustainable Sourcing Goals

    Long-Term Goals:

    ReassesstheSupplierCodeofConduct

    toensurealignmentwithcore

    humanrightsprinciplesandhigh

    sustainabilitystandards

    Worktounderstandhowthecompany

    canensurecompliancewiththeCode

    andintegrateitselementsmoreclearly

    intoRFPsandprocurementdecisions

    Short/Mid-Term Goals:

    Developaholisticapproach

    tosustainablesourcingof

    commoditiesthatbalancescostwithsustainablelters

    Createasourcingltertoguide

    futurepurchasesandestablish

    goalsforitsuse

    Exploresourcinganadditional

    certiedcommodityin2012

    Establishananimalwelfare

    policyby2013

    Completefeasibilityandresearch

    ofavailablequantitiesof

    cage-freeeggsandgestation

    crate-freeporkby2013

    Donuts stores in order to better support our ranchisees.

    One area o ocus will be tracking impacts, to help determine

    easibility and scalability o sustainability eorts. We have also

    joined the Environmental Deense Funds Climate Corps

    program or 2011, which will provide us with an estimated

    baseline o energy spend in U.S. Dunkin Donuts restaurants

    along with recommended energy eciency projects and

    strategies or engaging our ranchisees.

    We are committed to providing our ranchisees with the

    tools and support necessary to reduce our collective

    environmental ootprint while improving protability. In

    2008, we hired proessional energy consultants to review

    our restaurant specications and recommend opportunities

    to improve building design and energy eciency. We have

    implemented many changes to our prototypical drawings

    based on their recommendations, which means building a

    new Dunkin Donuts restaurant is now more ecient and

    aordable, and long-term operating costs or our ranchisees

    are lower. We have also developed low- to no- cost energy

    reduction measures that existing stores can implement, rom

    solar shades and motion sensors to daylight harvesting. We

    continue to partner with our ranchisees to test new energy

    ecient technologies or our restaurants across the country.

    Improving ranchisee protability and reducing our carbon

    ootprint is a priority. To help share what were learning, we

    have created an online sustainable building resource or

    approved ranchisees, architects, contractors and engineers

    to access government energy rebates and incentives, energy

    calculators, and a host o other sustainable building inormation.

    Sustainable BuildingAt Dunkin Brands, we recognize that sustainable building and

    remodeling has the potential to boost reputation, reduce

    costs and save energy throughout our ranchisee community.

    In this report, we share initial data about the impacts o our

    corporate acilities, but we know that our restaurants are themain source o our environmental impacts, including carbon

    emissions that contribute to climate change. Our ranchisees

    manage their own utility bills and contracts. We do not

    currently have the ability to capture or track restaurant utility

    data at the corporate level. However, in 2010 Dunkin Brands

    acquired and began operating a small number o Dunkin

    First LEED certifed restaurant in St. Petersburg, FL (2008)

    2,892,18

    9

    Corporate-owned

    Resta

    uran

    ts*

    5,5

    60

    ,0

    00

    Bra

    nd

    Central

    5,6

    14

    ,742

    Pe

    terboroug

    h

    799,9

    52

    Burba

    nk

    342,942DBU

    CorporateElectricityUsage 4,244

    Pe

    terb

    oroug

    h

    99,7

    08

    Corp

    ora

    te-own

    edRes

    taurants

    799,9

    52Burbank

    11,793DBU

    CorporateNatural Gas

    Usagein Kilowatt Hours per Year

    In Therms per Year*Brand Central is a rented building; natural gasusage data could not be obtained

    *Calculations based on data collected rom 12 o 15corporate-owned restaurants

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    Our PeopleFrom our employees to our franchisees and crew members, we

    believe in treating everyone with respect and fairness.

    Dunkin Brands is committed to the success o our

    employees, ranchisees and crew members. Through our

    recruiting strategy and workorce planning, we attract,

    hire, develop and promote top perorming talent who

    demonstrate our values and drive our business results. We

    are ocused on ostering a culture that is sought-ater and

    ueled by high-perorming people who grow while delivering

    strong global results.

    As o December 31, 2010, Dunkin Brands employed

    1,086 people 1,014 were based in the U.S. and 72 were

    based in other countries. O our domestic employees,

    425 worked in the eld and 589 worked at our Brand

    Central headquarters in Massachusetts or our satellite

    oce in Caliornia. In addition, our ice cream manuacturing

    acility in Peterborough, Canada, employed 56 ull-time

    employees. Other than 28 employees in Peterborough who

    are represented by the National Automobile, Aerospace,

    Transportation & General Workers Union o Canada, Local

    462, none o our employees are represented by a labor

    union. In 2010, Dunkin Brands, Inc. had 20 reported work-

    related injuries and illnesses involving corporate employees,

    resulting in 31.5 days o missed work. Twelve incidents

    occurred at our headquar ters, and eight occurred either o

    site or during business travel.

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    DiversityThe ollowing charts represent Dunkin Brands 1,014 corporate employees in the United States. We are ully reporting

    ethnicity or the United States only as we are not required to solicit this inormation rom non U.S. employees. Our

    ranchisees are independent business owners; they and their employees are not included in our employee count.

    Employee Value PropositionDunkin Brands has developed Employee Value Propositions

    (EVPs) or Dunkin Donuts and Baskin-Robbins employees

    and crew members to outline the points o dierentiation

    that make a unique culture in our restaurants. In 2010, we

    launched training programs designed to highlight the EVP

    or crew members and restaurant manager s called Theres

    no Dunkin without U and BRing your Best! As a result o

    the positive eedback and success o the brand EVPs, we are

    now in the process o developing an EVP or our corporate

    employees.

    Organizational DevelopmentDunkin Brands is committed to a corporate culture in which

    individuals take ownership o their own career success with

    consistent guidance rom managers and support rom the

    organization. We oer a comprehensive training program

    beginning with an orientation program or all new employees.

    Training is tailored to the demands o the position. For

    example, new Operations Managers receive over 300 hours

    o classroom and on the job training to prepare them to

    support our ranchisees and restaurant managers. We also

    oer a perormance management process with tools that

    support development planning and evaluation. One hundred

    percent o eligible employees receive perormance reviews

    annually. In 2010 we introduced Fierce Conversations,

    a training program designed to improve eectiveness and

    results by empowering employees to communicate openly

    across all levels o the organization. To date, over 600

    employees have participated. In 2011 we will increase our

    support or leaders in the organization through supplemental

    leadership training programs and eedback.

    Health and WellnessAt Dunkin Brands, we support our employees eorts to

    maintain a healthy liestyle. Our Brand Central headquarters

    eatures a ree tness center with cardiovascular and strengt

    training equipment; classes such as spinning, yoga and muscle

    conditioning; and monthly educational programs highlighting

    ways to stay healthy and improve overall wellness. Field-

    based corporate employees are eligible or a monetary

    reimbursement to be used towards the purchase o a gym

    membership.

    Green TeamEmployees can channel their passion or environmental

    sustainability by joining the Green Team, a group o

    proessionals who work together to promote green

    practices such as recycling and reducing waste and energy

    use, and improve our sustainability eorts both at home and

    at work. In the past, the team has h osted initiatives including

    an electronics recycling day and a oam cup recycling

    program at our headquar ters. The team has also worked to

    secure designated carpool and hybrid parking spaces and

    organized outdoor volunteer projects.

    Non US

    Based Ethnicity

    Ethnicity Grand Total

    Grand TotalGender

    Female Male

    Female Male

    Asian (Not Hispanic or Latino)

    Did Not Disclose

    Hispanic or Latino

    Two or More Races (Not Hispanic or Latino)

    White (Not Hispanic or Latino)

    #N/A

    Non US Total

    US Based

    US Total

    Total

    1

    1

    6

    12

    20

    497

    1

    8

    1

    12

    30

    52

    52

    1

    9

    1

    1

    18

    42

    American Indian or Alaska Native (Not

    Hispanic or Latino)

    Asian (Not Hispanic or Latino)

    Black or African American (Not Hispanic

    or Latino)

    Did Not Disclose

    Hispanic or Latino

    Native Hawaiian/Other Pacific Islander (Not

    Hispanic or Latino)

    Two or More Races (Not Hispanic or Latino)

    White (Not Hispanic or Latino)

    #N/A

    3

    18

    16

    10

    12

    1

    2

    431

    4

    1

    15

    8

    4

    18

    2

    4

    460

    5

    4

    33

    24

    14

    30

    3

    6

    891

    9

    72

    1014

    517 569 1086

    Non US

    Based Gender Total

    Female

    Male

    Non US Total

    US

    US Total

    Grand Total

    20

    52

    497

    503

    14

    Female

    Male

    #N/A

    72

    1014

    1086

    Gender Total

    2

    7

    9

    Female

    Male

    Total

    %22%Female

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    Disaster Relief FundDunkin Brands Disaster Relie Fund provides disaster relie

    and emergency hardship assistance in the orm o unds,

    services, acilities or goods to Dun kin Brands employees,

    ranchisees, aliates and their amilies in the United States

    who have become victims o ederally declared disasters.

    Since 2005, we have awarded over $300,000 in grants to

    mitigate both personal and business related hardship.

    Tuit ion Rei mbu rse men tDunkin Brands oers a tuition reimbursement program to

    support the continuing education o our employees. We will

    reimburse employees up to $5,000 per calendar year or

    undergraduate or graduate courses that support their work

    or prepare them or uture positions within the company.

    People Goals

    Long-Term Goals:

    Developalong-termstrategyondiversity

    andmulticulturalinitiatives

    Continuetointroducetrainingprograms

    thatimprovetheguestexperienceand

    businessresultsattherestaurantlevel

    Short/Mid-Term Goals:

    Launchsupplementalleadershiptraining

    programsandfeedbackmechanisms

    tosupportleadershipdevelopment

    acrossalllevelsoftheorganization

    DevelopandcommunicateanEmployee

    ValuePropositionforcorporate

    employeesby2012

    ReassessourNewFranchiseeTraining

    processtoensurenewfranchisees

    havethetoolstobesuccessful.

    Introducerevisedlearningpathby2013

    Summary of Benefits

    Medical

    Denta l

    BasicLifeInsurance

    BasicAccidentalDeath&

    DismembermentInsurance(AD&D)

    Short-andLong-TermDisability

    FlexibleSpendingAccounts(FSA)

    Long-TermCareInsurance

    EmployeeAssistanceProgram(EAP)

    401(k)Plan

    PaidTime-Off:Vacation,Holidays,Sick,

    Personal,Bereavement

    Part time employees (21 hrs per week) are noteligible or benets except or 401k, EAP andPaid Time-O. Part time employees are also

    eligible or voluntary benets such as moviepasses and pet insurance.

    Womens Integrated Network (WIN)Since 2009, Dunkin Brands h as hosted the Womens

    Integrated Network (WIN), a orum or discussion

    about issues acing women in the workplace. Now 300

    individuals strong, WIN organizes programs and speaking

    events pertaining to community outreach, networking and

    continuing education. These programs are designed to

    support personal and proessional development or women.

    Dunkin Brands Scholarship ProgramEach year, the Dunkin Brands, Inc. Scholarship Program,

    sponsored by the Dunkin Brands Charitable Trust Fund,

    awards scholarships to children or grandchildren o Dunkin

    Brands employees and U.S. Dunkin Donuts and Baskin-

    Robbins ranchisees. Up to eight scholarships o $2,000 each

    are awarded annually or ull-time study at any accredited

    post-secondary institution o the students choice.

    Scholarship recipients are selected on the basis o academic

    record, leadership and participation in school and community

    activities, honors, work experience, a statement o

    educational and career goals, and an outside appraisal.

    Employee BenefitsDunkin Brands benets program is designed to deliver

    value to our employees and to meet individual needs and

    circumstances. The summary o benets highlighted is just

    part o our package or U.S. employees, which also includes

    competitive base salaries, incentive pay opportunities, and

    additional value-added benets that are intended to enhanc

    our employees quality o lie.

    Franchisee & Crew Member TrainingDunkin Brands oers a comprehensive series o training

    programs or Dunkin Donuts and Baskin-Robbins crew

    members, restaurant managers and ranchisees. We also oea robust library o online and instructor-led courses designe

    to oster deep connections to our brands heritage and to

    help both ranchisees and crew members grow, so they can

    better serve their customers and enhance the protability o

    their restaurants.

    Dunkin Brands award-winning and innovative training

    programs cover topics ranging rom product knowledge to

    product assembly, ood saety, guest service, retail technology

    human resources, operations management, protability,

    leadership and others. Our perormance-based curriculum is

    lled with scenarios that mirror real-lie work experiences to

    provide the most impactul learning experience or trainees.

    Employee Tuition Reimbursement Program:

    In 2010 we gave $86,100 to 26 corporate employees.

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    1. Hunger ReliefFullling critical hunger needs in our communities through

    partnerships with local ood banks and hunger relie

    organizations. The DDBRCF has had a long-term national

    partnership with Feeding America, the largest domestic

    hunger-relie organization, donating nearly $1 million to

    support local ood banks. In addition, our ranchisees have

    held ood drives and organized volunteer days at their local

    ood banks to address hunger in their communities.

    Supported 15 backpack programs

    in 12 states

    Distributed 126,476 bags o ood

    Provided ood to 7,617 children

    Programs exceeded goal or number o children

    served by 11%

    Our NeighborhoodsWe are dedicated to serving the basic needs of our local

    communities from providing food for the hungry and support forchildrens health and wellness, to ensuring our neighborhoods are

    safe and secure.

    The Dun kin D onu ts & B ask in- Rob bin s C omm uni ty Fou nda ti onAt Dunkin Brands, community is the heart o our business. Thats why we joined together with our

    ranchisees to establish The Dunkin Donuts & Baskin-Robbins Community Foundation (DDBRCF) in

    2006. The DDBRCFs mission, serving our neighborhoods through hunger relie, saety and childrens

    health, has evolved to closely align with the charitable interests o our ranchisees. At the national

    level we partner with a very limited number o national or ganizations whose missions are aligned

    with our ocus areas. Through the generosity o our ranchisees, employees, vendors and guests,

    The DDBRCF raises unds to suppor t national partners and regional grantmaking. Since 2006, The

    DDBRCF has awarded more than $2 million in grants.

    The DDBRCF ocuses support on three critical issue areas that are relevant to the neighborhoods we serve:

    2. SafetyEnsuring the saety o our neighborhoods and communities

    through partnerships with organizations that support

    our reghters, public saety ocers, and troops at home

    and abroad. In 2010, The DDBRCF launched a national

    partnership with the USO through an $82,500 grant to

    provide morale, welare and recreation-type services to

    troops and their amilies. The DDBRCF also has a long-term

    partnership with the National Fallen Fireghters Foundation

    (NFFF) to support amilies o reghters who have lost thei

    lives in the line o duty. To date, we have given $350,000 to

    the NFFF.

    Coee delivered to more than 80USO Centers nationwide

    Impact more than 3 million service members

    and their amilies

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    Regional ChaptersIn additional to national undraising and partnerships, The

    DDBRCF also engages in local community engagement and

    grantmaking through our eight regional chapters. Regional

    chapters are led by ranchisees and corporate employ-

    ees who volunteer their time to raise awareness o The

    DDBRCFs mission and partners, plan and par ticipate in

    community-based undraising events and make grants to

    local organizations.

    SoutheastSoutheast Gol Tournament: In 2010, The DDBRCFs

    Southeast Regional Chapter hosted their second annual gol

    tournament. This tournament has raised more than $95,000

    over the past two years to support local grantmaking in the

    Southeast region.

    Mid-AtlanticDunkin Cup: The DDBRCFs Mid-Atlantic Regional Chapter

    hosted the 3rd Annual Dunkin Cup, a gol tournament to

    benet The DDBRCF. Over the past three years, the Dunkin

    Cup has raised more than $245,000 to support local grant-

    making in the Mid-Atlantic region.

    Employee EngagementOur employees are passionate about giving back to their

    community. Each summer, we host a back-to-school backpack

    drive to benet The Home or Little Wanderers in Boston.

    In 2010, we collected 115 backpacks or children in need.

    Additionally, on an annual basis, Dunkin Brands employees

    are invited to participate in ou r week-long Season o Giving

    in early December. In 2010, we provided more than 175

    children and three amilies in need with gits, volunteered at

    13 organizations, donated coats and personal care items to

    local shelters and sent more than 3,000 pounds o coee to

    troops overseas. Employees are also invited to participate

    year-round in Donation Nation, a centralized location to

    collect toiletry items and recycle unwanted cell phones,

    printer cartridges and eyeglasses.

    Our corporate volunteer program allows each ull-time

    employee ve hours o paid volunteer time per quarter. In

    2010, Dunkin Brands employees committed 1,445 volunteer

    hours in local communities.

    Charitable GivingIn addition to supporting The DDBRCF, Dunkin Brands and

    our ranchisees are actively engaged in giving back to the

    community.

    Below are just a ew o the non-prot groups & undraisers

    our ranchisees and employees supported in 2010:

    Coffee for Our TroopsCoee or Our Troops was our rst ever national cause

    marketing promotion. Between November 1 - 14, 2010, or

    every two pounds o coee purchased by a guest, Dunkin

    Donuts donated one pound to the troops through our

    partnership with the USO, up to 100,000 pounds. The coe

    was donated to more than 80 USO centers in the United

    States or use at deployments, homecomings and other

    special events attended by military men, women and their

    amilies.

    Baskin-Robbins FunRaisersThroughout the year, Baskin-Robbins shops nationwide

    host old-ashioned ice cream socials to benet local causes.

    A portion o proceeds rom each event is donated to

    a community-based organization as designated by the

    ranchisee. In 2010, Baskin-Robbins shops hosted 703

    FunRaisers, totaling over $76,000 in donations to local

    schools and other organizations.

    NortheastPint or a Pound: The DDBRCFs Northeast Regional

    Chapter has partnered with the Rhode Island Blood Center

    (RIBC) and American Red Cross (ARC) in Massachusetts

    to combat shortages in blood supply during the winter

    months. Anyone who donated blood through the RIBC or

    ARC in January 2010 received a certicate or a ree poundo Dunkin Donuts coee. Since the program started in

    2008, enough blood has been donated to help more than

    1,000,000 people.

    3. Childrens HealthImproving the health and wellness o

    children through partnerships with

    childrens hospitals and organizations

    that support childrens physical activity. In 2010, The DDBRCF

    gave a grant to Do Something to create Get Well Soon

    grants. These grants suppor ted young people nationwide

    who led projects dedicated to helping hospitalized children.

    To date we have given $225,000 to Do Something.

    20 Get Well Soon grant winning projects

    3,014 people involved with the projects

    561,170 people impacted by the projects

    In 2010, we organized two large-scale backpack stung

    events. Together, employees and ranchisees lled bags

    with nutritious ood and beverages to ensure children

    are eating healthy oods on the weekends when school

    meals are not available. At our Canton headquarters,

    250 employees stued 1,500 backpacks to benet

    The Greater Boston Food Bank. In New Or leans, 250

    ranchisees and employees stued 6,600 back packs

    to benet the Second Harvest Food Bank o Greater

    New Orleans and Acadiana.

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    TOTAL GIVING*

    2010 Foundation Grants:

    $428,2272010 CSR Donations (corporate):

    $242,766+*Does not include franchiseegiving.

    Coffee for Our Troops Lottery ProgramIn 2003, the Dunkin Donuts Consumer Care team began

    sending coee to the troops in Iraq. Each month we send

    approximately 50 cases o coee to troops stationed

    overseas. We increase that number to 100 cases during

    the holidays. To date, Dunkin Brands has sent over 160,000

    pounds o coee to U.S. troops stationed overseas.

    Dana-Farber Cancer Institute andJim my Fun dOver the past 10 years, Dunkin Donuts, Baskin-Robbins and

    our ranchisees have helped raise more than $9 million to

    support the Jimmy Fund and Dana-Farber Cancer Institute

    in Boston. In 2010, we participated in several events to

    support cancer research. Dunkin Donuts ranchisees and

    our National Distribution Center hosted the annual George

    Mandell Gol Tournament in memor y o George Mandell,

    a Dunkin Donuts and Baskin-Robbins ranchisee. Dunkin

    Donuts also sponsored the Pan-Massachusetts Challenge, an

    annual undraising bike ride across the state. Baskin-Robbins

    participated in the Jimmy Fund Scooper Bowl, an annual

    ice cream undraising event in Boston.

    Special OlympicsMany Dunkin Donuts and Baskin-Robbins ranchisees hosted

    undraising events in 2010 to support the Special Olympics.

    Rhode Island/SoutheasternMassachusetts:On National Coee Day, September 29, Dunkin Donuts and

    our ranchisees donated 50 cents or every cup o hot coee

    sold to the Special Olympics Rhode Island and Massachusetts

    South Section. Franchisees also hosted the John Henderson

    Invitational Gol Tournament, to benet the Special Olympics

    Rhode Island. Since 1988, ranchisees in Rhode Island and

    Southeastern Massachusetts have donated more than

    $1 million to the Special Olympics through unds raised

    at these events.

    Cops on Top:Franchisees in Indiana, Maryland and Illinois par ticipated

    in the Special Olympics Cops on Top undraising event.

    Police ocers secured donations or every hour they sat on

    Dunkin Donuts rootops to raise more than $250,000 or

    the local Special Olympics.

    Product Donations & Community

    EngagementProduct Donations: While we do not ormally track in-kind

    donations, Dunkin Donuts and Baskin-Robbins ranchisees

    generously donate tens o thousands o dollars wor th

    o product each year to suppor t local community

    organizations and events.

    Community EngagementEl Sueo: Dunkin Brands and theCulinary Institute of America:In 2010, Dunkin Donuts and The Culinary Institute o

    America (CIA) dedicated the nations rst Dunkin Donuts

    Bakeshop, located on the CIAs San Antonio, Texas campus.

    Dunkin Brands made a $900,000 pledge to become a

    ounding donor o the CIAs El Sueo initiative, which

    educates students and industry proessionals about

    traditional Latin American baked goods and provides them

    with industry-specic skills. In addition to opening the Dunkin

    Donuts Bakeshop, Dunkin Brands is oering a culinary

    internship to a CIA student who is interested in cake design,

    product development and commercialization.

    Local Scholarship ProgramsDunkin Donuts has local scholarship programs in Har tord,

    Connecticut; Springeld, Massachusetts; Providence, Rhode

    Island; Philadelphia, Pennsylvania and New Hampshire.

    These programs collectively have granted more than

    $3 million in scholarships.

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    Our CompanyBy responsibly serving the needs of all of our stakeholders,

    upholding high ethical standards and practicing good corporategovernance, we believe we will be able to fulfill our responsibility

    to our inv est ors : s tro ng, sus tai nab le fi nancia l p erf ormance.

    Dunkin Brands success is dependent upon the way we conduct

    ourselves and do business with our ranchisees, vendors,

    suppliers and other business partners. We strive to live up to

    the highest standards o ethical behavior and to live our core

    values: honesty, transparency, humility, integrity, respectulness,

    airness and responsibility.

    Dunkin Brands, Inc. is a subsidiary o Dunki n Brands Group, Inc.,

    which, on July 27, 2011, began trading on the NASDAQ under

    the symbol DNKN. Dunkin Brands Group, Inc. has a nine

    member board o directors. O the ni ne, one is an employee

    (Nigel Travis), one is a ormer employee (Jon Luther), one is

    independent (Michael Hines) and the remaining six are divided

    equally among the three sponsors: Bain Capital, The Carlyle

    Group, and Thomas

    H. Lee Partners. Each board committee operates under a

    charter that will be approved by our board o directors.

    Further details including a description o the composition and

    responsibilities o the board and respective committees as well

    as a list o members can be ound by visiting

    http://investor.dunkinbrands.com/.

    Dunkin Brands Code o Conduct outlines a strong set o

    requirements or employees. It is expected that all Dunkin

    Brands employees comply with both the letter and spirit o

    the Code. One hundred percent o our corporate employees

    have been trained on our Code o Conduct, which includes our

    anti-corruption policy. A portion o this training also includes a

    brie description o the Foreign Corrupt Practices Act (FCPA).

    Dunkin Brands has implemented a training program requiring

    employees working with or having international responsibilities

    to complete FCPA training. As o December 31, 2010, a

    total o 99 employees had ongoing or known international

    responsibilities, and 100% had completed the Overview and

    Risk Assessment portion o the training. O these 99 employees,

    31 (31.31%) employees were part o management and 68

    (68.69%) employees were part o non-management.

    LobbyingDunkin Brands is engaged in the legislative and regulatory

    process around key issues that aect our business, including

    health and wellness, tax and nancial matters, labor issues and

    ranchisee-related legislation. We operate in an evolving and

    interrelated public policy environment and seek to engageederal, state and local policymakers to advocate on behal

    o our ranchisees and our brands. We are also engaged in

    legislative and regulatory matters in our international markets.

    Our advocacy eorts are both direct and indirect, utilizing

    strategic tools such as a Political Action Committee as well

    as memberships in national and regional restaurant and retail

    associations.

    PAC & Direct Political ContributionsPolitical Action Committee and Lobbying Disclosures can be

    located at www.ec.gov

    Trade Ass oci ati onMemberships

    NationalRestaurantAssociation

    InternationalFranchiseAssociation

    NationalCouncilofChainRestaurants

    U.S.ChamberofCommerce

    InternationalCouncilofShoppingCenters

    CaliforniaRestaurantAssociation

    MassachusettsRestaurantAssociation

    NewYorkStateRestaurantAssociation

    NationalCoffeeAssociation

    SpecialtyCoffeeAssociationofAmerica

    CoffeeQualityInstitute

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    130 Royall StreetCanton, MA 02021

    781-737-3000www.dunkinbrands.com