Just A Moment

The Birth of Munchkin Mania

8 min
Jan 12, 20263 months ago
Listen to Episode
Summary

Host Brent Menzwar tells the origin story of Dunkin' Donuts' Munchkins, tracing how a front-line employee's simple question about waste became a billion-dollar product category. He extracts a leadership lesson about staying close to operations and questioning normalized inefficiencies.

Insights
  • Innovation often emerges from operational visibility rather than executive strategy—the best ideas come from those closest to the work
  • Reframing perception through naming and positioning can transform a byproduct into a desirable product category
  • Leaders risk missing opportunities by normalizing inefficiencies and stopping questioning established processes
  • Breakthrough ideas rarely require permission; they're already happening in overlooked parts of the business
  • Distance from day-to-day operations blinds leaders to visible waste and untapped potential
Trends
Bottom-up innovation driven by frontline employees rather than top-down strategic initiativesProduct category creation from waste streams and byproductsImportance of psychological positioning and naming in consumer perceptionLeadership blind spots created by organizational hierarchy and distance from operationsImpulse purchase behavior and shareable product design in food retailQuestioning normalized business practices as a competitive advantageBuilding infrastructure around unexpected product successes
Topics
Organizational Innovation StrategyFrontline Employee EmpowermentProduct Naming and PositioningWaste Reduction and Byproduct MonetizationLeadership Visibility and Operational AwarenessConsumer Behavior and Impulse PurchasingOrganizational Culture and Process QuestioningCategory Creation in Food and BeverageChange Management Without PermissionCompetitive Advantage Through Attention to Detail
Companies
Dunkin' Donuts
Central subject of the episode; story of how Munchkins were created from donut holes and became a major revenue driver
People
Edna Demory
Dunkin' Donuts employee in Hartford, Connecticut who created Munchkins by questioning why donut centers were discarded
Brent Menzwar
Host and narrator; former touring musician, keynote speaker, and author sharing leadership insights from the Munchkin...
Quotes
"The real opportunity is rarely in the shiny new initiative. It's usually buried in the parts of the business you've labeled, that's just how it works."
Brent Menzwar
"Great leaders don't just ask, what's next? They ask, what have we stopped questioning?"
Brent Menzwar
"This innovation doesn't always look like disruption. Sometimes, it simply looks like paying attention."
Brent Menzwar
"The danger for leaders is that the farther you get from the day to day, the easier it is to confuse habit with truth."
Brent Menzwar
"What are the people closest to your work seeing that you've trained yourself not to notice anymore?"
Brent Menzwar
Full Transcript
Hi, I'm Brent Menzwar and welcome to my show Just a Moment. As a former world touring musician, turned keynote speaker and author, I've experienced my share of life altering moments that have both broken me and propelled me forward. How you leverage those moments or push through them will define your destiny. Each week on my show, I'll provide tools on how to maximize those moments, as well as interview some of the most successful entrepreneurs, entertainers and athletes on how the power of a single moment change their life. Join me to learn how to change what's possible for your life. It'll take just a moment. Okay, you gotta stay with me on this one because it sounds made up. This is one of the stories where when you hear how it started, you immediately think, no way, there's no chance that's true. But it's, and once you hear it, you'll never look at a Dunkin' Donuts box the same way again. Now listen, full disclosure, I'm a Dunkin' boy. I grew up in New England in New Hampshire, where we gave directions based on Dunkin' Donuts locations. Look, you want to go down a Cumberland Fams and you're going to bang a left down there at Dunks, go down the Diamaco and at the next Dunks just make a right. That was my life. That's how I grew up, especially in the early 1970s. You see Dunkin' Donuts in the 70s is growing fast, but most stores are still making donuts the old school way by hand every morning, batch after batch. Time to make the donuts. Remember that commercial? You see every donut has a hole, which means every donut also creates something else, a little ball of dough. And what do you do with that dough? You throw it away. No meeting, no discussion, no second thought, just trash. Because that's how donuts work, they always have. Now here's where it gets good. At a Dunkin' in Hartford, Connecticut, there's an employee named Edna Demory. She's not in corporate, she's not in marketing, she's not trying to disrupt an industry. She's just doing her job, making donuts, cleaning up, throwing away the centers, over and over. Until one day, she doesn't. And there's no dramatic reason. No big revelation, she just looks at this pile of dough and thinks, why are we throwing this out? So she does something incredibly simple. She rolls the dough into little balls. She fries them, she puts them out. That's it. No pitch, no memo, no approval, and almost immediately something happens. Rumors, don't just try one. They buy handfuls. Kids love them. Herrits love them. People who weren't even planning on getting a donut suddenly say, yeah, toss some of those in too. Within weeks, those little dough balls are making up almost 10% of that store's revenue. Some something that used to be thrown away. Now words start spreading. First around Hartford. Then a little wider. Eventually, Duncan corporate catches wind of it and says, okay, what's going on over there? They test it. At first, they call them exactly what they are. Donut holes. And weirdly, it doesn't work. People treat them like a replacement. Sales stall. So Duncan tries one more thing. They change the name. They call them munchkins after the tiny characters from the Wizard of Oz. And that's the moment everything clicks. As you see now, they're not leftovers. They're treats. They're fun. They're shareable. There's something you add, not substitute. Kids ask for them. Herons grab a box without thinking. They become an impulse buy before anyone even use that phrase. What started as scraps becomes a category. And here's the part that still blows my mind. Duncan eventually builds special machines just to make munchkins. They're not even using donut holes anymore. The waste outgrew the problem it was solving. Today, Duncan sells hundreds of millions close to a billion munchkins every single year. All because one person refused to throw something away without asking a question. And here's where this stops being a donut story and becomes a leadership story. You see, this didn't come from a vision statement. It didn't come from a brainstorm. It didn't come from someone being paid to think big. It came from someone close enough to the work to notice what everyone else had already normalized. You see, that's the danger for leaders. The farther you get from the day to day, the easier it is to confuse habit with truth. Most organizations don't fail because they lack ideas. They fail because they stop seeing what's right in front of them. The real opportunity is rarely in the shiny new initiative. It's usually buried in the parts of the business you've labeled, that's just how it works. Or it's too small to matter. Or not worth our time. You see, that's where Edna was standing. Not the top. Not in strategy. At the place where the waste was visible. You see, great leaders don't just ask, what's next? They ask, what have we stopped questioning? This innovation doesn't always look like disruption. Sometimes, it simply looks like paying attention. So here's the moment for you. What are the people closest to your work seeing that you've trained yourself not to notice anymore? Because the next breakthrough in your organization probably isn't waiting for permission. It's already happening. Right where the scraps are. Thanks for spending this moment with me. I'm Brent Menzwar. And this has been Justa Moment. Byring shows like this, visit surroundpodcast.com.