Dunkin' Brands Adds Political Activism to its Agenda
The restaurant company's new director of state and government affairs is laying the foundation for Dunkin' to influence public policy.
By Maya Norris, Managing Editor -- Chain Leader, 6/23/2008 9:00:00 AM
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| Director of Federal and State Government Affairs Cicely Simpson is addressing issues such as menu labeling and immigration for Dunkin' Brands. |
Why did Dunkin' Brands create this position? Had they had someone before committed to government affairs?
Before I arrived our legal team handled some of the legislative and regulatory issues facing the company and the industry as a whole.
Why now and why bring somebody in solely dedicated to this function is because there is an increased amount of activity at the local, state and federal levels regarding legislative and regulatory activity affecting the restaurant industry. It's a range of issues at all three levels going on right now. And so the company, Jon Luther, our CEO, felt the need to really have a dedicated function to make sure that we are engaging and providing solutions to the topics that are coming up.
What does your job entail?
One, it's engaging with those elected officials at the local, state and federal levels on issues and matters that are important to Dunkin' Brands. It's truly an outreach-type position to [employees and franchisees], but it's also working with our legal team and some other people at Dunkin' to make sure that we're aware of what's taking place on the legislative and regulatory sides.
And we want to be a thought leader for the industry. We want to be helpful, to provide solutions to the issues that are coming up. And we want to make sure that we are being proactive and engaging with these elected and regulatory officials on those matters.
So my job is basically twofold. It's, one, engaging with the elected officials, but then, two, making sure we're working internally as well as externally to really be a proactive leader in the restaurant industry.
What are some of the legislative issues that are top priority?
Top priority would be menu labeling. You probably have heard what has taken place in New York City, San Francisco, Kane County, Wash.. There are several others that follow in that list of cities and localities or even states that are considering menu-labeling ordinances. That by all means is probably first and foremost right now.
But, you know, not to the exclusion of other matters such as environmental ordinances dealing with Styrofoam cups vs. paper cups.
At the federal level, we have been working for a while on immigration. We're also engaged in some labor and employment matters that are coming up before the Congress, some matters affecting the restaurant industry in terms of obesity legislation that has been proposed over the past 18 months of this Congress.
What do you think will be key or most effective in getting Dunkin' Brands' voice heard in these issues and ultimately influence public policy?
Good question. I think telling our story. Dunkin' Donuts and Baskin-Robbins are doing some great things that we just need to get the word out to people that we're doing. For example, we're complying with the federal laws that have come down on immigration.
We've already been providing nutritional information to our customers for a number of years. Dunkin' Donuts and Baskin-Robbins made the decision to go trans-fat-free a couple of years ago, before any mandate ever came out of any cities or the state level. Dunkin' in being responsible in providing information to their customers is actually rolling out new menu items later on this year that will meet the changing needs that consumers want in terms of meal choices.
Dunkin' and Baskin both are doing a lot of good things, and I think that's why we have such loyal customers. But it's getting that message out to elected officials and to our external audiences as well as our franchisees [saying], hey, we're being responsible here, and we want to be seen as a leader. So we're taking these steps before these mandates or regulations ever come to us. We are doing this on our own.
Do you plan on partnering with other groups or professional associations?
We are a founding member of the International Franchise Association, which was founded in 1960. We are a member of the National Restaurant Association, the National Council of Chain Restaurants, the U.S. Chamber of Commerce. So there are a number of associations and restaurant partners that we have been partnering with for some time.
So obviously those industry partnerships come in play but also nonindustry partnerships. We have a nutrition advisory board that is comprised of health-care professionals as well as people from Dunkin' who talk about how do we make our menu items more nutritious? How do we offer our consumers more options? And we have several nutritionists who serve on our nutrition advisory board and academics, folks from academia who study these kinds of matters as well. So we're reaching out beyond the restaurant industry besides the folks that we already partner with.
Dunkin' Brands has stores all across the United States. How do you address issues on a state and local level when, for example, one state may be focused on menu labeling while another may be looking at a minimum-wage increase?
One, we reach out to our franchisees and let them know what's going on through constant communication with them to say, this is what's going on in this state or this is what's going on in this state. Because obviously it's going to vary for our franchisees who are in Nevada vs. our franchisees who are in Massachusetts. So we watch all of that legislative and regulatory activity and keep them informed, so they can contact their elected officials and let them know how it's affecting them.
But we also work with those industry partners and nonindustry partners that I talked about who are also located in all the states and what are they hearing and how can we work together. So it's a combination of things because obviously we're all over the place and they are as well. So we leverage those associations to help us watch what's going on around the country.
Large restaurant companies like Yum Brands, Darden, McDonald's and now Dunkin' Brands have a person or team dedicated solely to government affairs and lobbying. But many restaurants companies simply don't have the resources or time to dedicate themselves to legislative issues, and many will say that's why we have the National Restaurant Association lobbying on our behalf. Why should more restaurant companies get involved in political activism and government affairs?
That's a good question. I think it's simply they want to be engaged and should be engaged whether it's by themselves or through the restaurant industry because it impacts. Some of the regulations and some of the laws that are being passed affect their business. It affects their livelihood.
And I think it's a good point you bring up. It's not just the big chains. It is the folks from the local levels. Restaurants are such an engine of economic development and livelihood for so many people, not only consumers but also the restaurateurs. So I think it's important that they know that X resolution that's being considered is going to impact your restaurant, your consumers and your family. As you well know, we are in tough economic times right now, and some of the things that are being passed in terms of resolutions and laws have a real impact on the hard-working franchisees and restaurateurs around the country, so it's important that they know and engage the laws that are being passed.
What are some of the goals you'd like to accomplish by the end of the year?
We're still in the building stages of this government-affairs function. So I think one thing with working with [Chief Global Communications & Public Affairs Officer] Steve Caldeira, my boss at Dunkin' Brands, and others is to, one, educate our employees and our franchisees about what is taking place in terms of legislative and regulatory matters and letting them know what the government-affairs function is all about.
And really just having the building blocks in place so that when we hit 2009 and there's a new Congress and new president and some states and localities, new mayors and new state legislatures, that we will have our government affairs shop set up so that we can actively advocate on behalf of the company and our franchisees. So between now and the end of the year, I am simply just in an education process [learning about the restaurant industry], not only internally but externally, and really just building the foundation of this government-affairs function.
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