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SERVICE OPERATION ANALYSIS

EVALUATION AND RECOMMENDATIONS OF BASKIN ROBBINS SERVICE PACKAGE

Jet Han, Angeline Leong, Yuuki Chan & Edwayne Zulkifly BASKIN ROBBINS SINGAPORE: TZ02 Y O U R FAV O R I T E N E I G H B O R H O O D I C E C R E A M STORE

S E RV I C E O P E R AT I O N A N A LY S I S
EVALUATION AND RECOMMENDATIONS OF BASKIN ROBBINS SERVICE PACKAGE
CONTENTS

Contents....................................................................i Introduction..............................................................ii Executive Summary................................................iii Distinctive Characteristics.......................................1 Customer Participation in the Service Process........1 Simultaneity.............................................................2 Perishability.............................................................2 Intangibility..............................................................2 Heterogeneity ..........................................................3 Evaluation of Service Package.................................1 Supporting Facility...................................................1 Facilitating goods.....................................................2 Information..............................................................3 Explicit services ...................................................4

Implicit Services......................................................4 Recommendations ...................................................7 Service package.......................................................7 Variants....................................................................8

References..............................................................11

I NT RO DUCT I O N

Baskin Robbins is known as the worlds largest chain of ice cream stores. The founders, Burt Baskin and Irv Robbins, came up with the concept of having one flavor for each day of the month in their ice cream parlor. Through their innovation and creativity, they led the ice cream industry. Today, Baskin-Robbins has over 6,000 stores in over 35 countries with 60 years of experience in delivering unique frozen dessert delights all around the world. In May 2011, Baskin-Robbins opened up its first outlet in Clementi and subsequently in June 2011, a second outlet in Novena. The ice cream chain tries to adhere to its mission of being Your Favorite Neighborhood Ice Cream Store by setting their outlets in one of Singapores oldest neighborhoods. Baskin Robbins is better known for its generous variety of flavors as it offers over 1,000 flavors of ice cream, including Sugar Free, Fat Free and Light choices. Its comprehensive menu also includes frozen yogurt, sorbets, sherbets, beverages, ice cream cakes and sundaes.

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E X E C U T I V E S U M M A RY

This report examines the service operation management of the worlds largest ice cream chain, Baskin-Robbins, in Singapore and recommends ways of improvement in the service package as well as possible variants to differentiate the ice cream chain from its competitors. The research draws attention to the distinctive service operation characteristics of Baskin Robbins, which includes customer participation, the simultaneity, heterogeneity, perishability as well as intangibility of the service. An on-site evaluation of the ice cream outlet in Novena reveals that the supporting facility is accessible to public due to its convenient location with transportation, and that the interior decoration appealed its target market through the establishment of an optimistic, family-orientated mood. It is also shown that the service operation utilizes a comprehensive collection of supporting equipment to produce their ice cream, in both their front and back office. Further investigations showed that the facilitating goods comprised of ice cream, toppings and wafer cones. It was apparent that all facilitating goods were consistent, and were available in a wide variety of selection and quantity. Baskin Robbins has a comprehensive database of information uploaded on the Internet, along with a welltrained service crew that is knowledgably about the flavors of ice cream. Explicit services demonstrated by Baskin Robbins include its well-trained service personnel and its availability of its services. Good implicit service is exhibited through the cheerful service crew and dcor. Customers can also enjoy there waiting time through sampling the different flavors of ice cream Baskin Robbins offer. The sense of well being in Baskin Robbins is heightened through the use of visibly placed signage of the store, and hygienic setting. Furthermore, the ice cream parlor also exercises safety precautions such as placing fire extinguishers and emergency exits to establish this sense of well-being. The report finds the prospects of the company in its current position to be positive, however the major areas of weakness require further investigation and recommendations to the service package and variants will improve its situation. To improve its service package, it is recommended that Baskin Robbins consider scheduling workforces efficiently or hiring more staff and that its menu add more forms of side products instead of ice cream flavors, give complimentary facilitating goods, utilizes open space by through alfresco dining and its pricing of ice creams to be made available on their website Possible considerations for variants to be implemented in Baskin Robbins include an innovative physical reminder of the ice cream parlor through a product called the Fortune cone as well as childrens toys, local customized ice cream flavors and entertaining its patrons who dine-in.

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DISTINCTIVE CHARACTERISTICS CUSTOMER PARTICIPATION IN THE SERVICE PROCESS

Customer participation in the service process refers to the presence of customers on-site. Therefore, it is important for firms to pay attention to design and environment of the service facility. Baskin Robbins is a chain of ice cream stores, which are the front offices of the service facility. Baskin Robbins has placed high importance on establishing a fun and inviting atmosphere. Through colorful interior decor, comfortable furniture, homestyle layout, it influences the customers perception towards what it intends to be; a neighborhood gathering for families and friends.

Fig. 1.1 Baskin Robbins outlet

Customers however do not get to participate in the back office of Baskin Robbins, where the ice cream is manufactured in a factory-like environment. In Baskin Robbins, the customer places the order directly from the limited menu displayed at the store, they are also allowed to sample the ice cream flavors before making a decision on which order to purchase. As soon as the customer places his or her order, the service crew member would then carry out the order by scooping the ice cream onto its cone, or dispense their sundaes through the machine while they are allowed to have a visible view of the crew doing so. This is done so to assure customers of its quality of it services and products, customers are allowed to watch as their ice cream is being scooped onto their cones as well as the dispensing of their sundaes through the open kitchen concept of Baskin Robbins.

The customer participation influences the performance of the service system. As the customer participates in the service process, the customer can gain knowledge and experience in the service operation.
SIMULTANEITY

As services are usually created and consumed simultaneously, they cannot be stored. Therefore, companies are unable to rely on inventories to deal with fluctuations in demand. Baskin Robbins, as a service company, does not have an inventory to deal with changes in customers demand for its services. The only way decoupling can be achieved is through waiting or queuing. While simpler orders such as a single scoop of Chocolate Chip ice cream would be easy and take less time to fulfill, a complex order such as a Classic Banana Split might take a longer time to make. Also, during the weekends or at peak hours, Baskin Robbins might see an increase in the number of customers. These might result in a queue, causing customers to wait in line to have their orders taken. Dinein customers, who order items that take a longer time to make, are allowed to wait at their tables. Once their item is ready, it will be sent to them. This way, Baskin Robbins can reduce the queue and provide the most efficient service to its best capabilities.
PERISHABILITY

A service is perishable and cannot be stored. Fluctuations in customer demand, along with the perishability of services, make it important for services to manage their capacity in order to fully utilize it. At Baskin Robbins, the weekends and peak periods such as dinnertime might bring about an increase in the number of customers and demand for its services. To deal with this, Baskin Robbins, hires part-timers and schedules them to work shifts to match the workforce needs according to the demand. This increases the service capacity and allows Baskin Robbins to efficiently cope with the increase in demand. Baskin Robbins also allows dine-in customers to wait at the comfort of their tables to smooth demand. Once the customers orders are ready, the staff will send them to their table.
INTANGIBILITY

Baskin Robbins has secured the benefits of a service operation through franchising its firm to preempt any competitors as well as expand the company. The company started out in the US and then expanded to other states followed by various countries around the world. Over the years, Baskin-Robbins developed over 1000 ice cream flavors along with other novelties like milk shakes, smoothies, cakes, and has opened 6000 stores in 35

countries. Through franchising, Baskin Robbins can sell its service concept and idea to its local entrepreneur, thus preserving capital while retaining control and reducing risk. The intangible nature of services leads to an ambiguity in the standard of the service operation. Baskin Robbins must rely on its reputation of its service to promote its business. Its reputation can be secured in forms such as registration, licensing, and regulation by the government. Examples of such guaranteed acceptable service performance are the Food Shop license that Baskin Robbins has to acquire before setting up a store in Singapore and re-new its license annually. These measures will assure consumers that the training and test performance of Baskin Robbins meet certain standards.
HETEROGENEITY

The customer participation in the service delivery system results in the variation of service from customer to customer. At Baskin Robbins the customer participates through giving the order for their ice cream. The customer can have the choice of 35 different flavours of ice cream and may choose to have special orders of different toppings such as chocolate rice, peaches and strawberries. Depending on the customer-contact service, the resulting output would differ accordingly. Baskin Robbins also uses automated machinery in order to standardize the quality of its outputs. Examples of such machinery would be the ice cream freezer and mixer to attain a sufficiently firm consistency. The automated dispenser that is used to dispense sundaes and create its signature shape is also standardized throughout its 6000 outlets worldwide. The development of standards and training of employees in Baskin Robbins before they are work at the outlets also contribute as a factor for ensuring consistency of service among all customers. It is imperative that all customers receive fair and equal standards of service. Aside from that Baskin Robbins also has included in a Guest Satisfaction Survey on its website which explores the customers satisfaction of the service at the ice cream parlor and uses it as an indicator for their performance. This is a measure used by the firm to maintain quality control - through feedback from its patrons.

E VA L U AT I O N O F S E RV I C E PA C K A G E SUPPORTING FACILITY

Location Baskin Robbins is located at Velocity@Novena Square, Singapore. The area is easily accessible via various forms of public transportations: 1. Mass Rapid Transport (MRT) Trains Directly below Novena square lies Novena MRT station that is along the North South MRT line. 2. Bus Several buses traverse the Novena area, as it is a very central location. The bus service that goes to Velocity@Novena Square is: Bus Services: 21, 54, 56, 124, 131, 143, 162, 166, 851, 980 3. Taxi Velocity@Novena Square houses 2 taxi stands for the public, one at the front of the mall and one at the back of the mall. Other than these taxi stands patrons of the mall can even walk out a little to the main road and hail a cab from there as well. 4. Bicycles The designers of Velocity@Novena Square took into consideration the probability of customers riding bicycles to the mall. With that in mind, Velocity@Novena Square houses 10 bicycle parking racks, which are conveniently located on the first floor behind the KFC for all the public. The racks are available on a first come first serve basis Central location It is above Novena MRT Station and Tan Tock Sheng hospital is located behind it. United Square, a mega shopping mall is just 5 minutes drive away. Additionally St. Joseph Institution Junior (school) is located a similar distance away. Lastly the store is in between two major Expressways (CTE and PIE), which suggests easier accessibility from all parts Singapore, especially Orchard road (Central shopping district of Singapore) being 15 minutes drive away.

Interior decorating The pink, blue and purple walls of Baskin Robbins greet customers to portray the causality and coziness. This effect is amplified with neon lights placed around the ice cream parlor and Words are painted on the walls of the shop like Love Cookies & Cream & Waffles. The sofas, high tables and chairs help to establish the mood in the shop because of its color coordination and design. Colors of the furniture are mostly matched with the company logo and the use of sofas and high tables epitomize a causal and relax atmosphere. Supporting Equipment BR78 display freezer Vita Mix blenders Spindle milk shake blenders Hot toppings dispenser Flash freezer Chairs and tables Dipping cabinets Walk-in freezer Tub cutter Various spoons (flat wooden spoon, Plastic spoons etc) Stainless steel scoops Malt cups Sanitizing cup, 6ft. long METRO shelves Electronic register Syrup pumps Acrylic waffle cone racks Waffle cones maker Menu board Paper towel dispensers Cone holders & lid holder
FACILITATING GOODS

Consistency Jamocca Almond Fudge, cookies and cream, very berry strawberry are some examples of ice creams from Baskin Robbins that signifies its consistency in product served. In terms of taste, texture and presentation, cones that are served are more often than not hot and crispy, however some are served soft and soggy. Sometimes the ratio of ice cream to ice in a milkshake is inconsistent, thus making it too bland (too much ice). The hand packed ice cream for Baskin Robbins are usually packed in the same amount as they have markings in the ice cream tub that indicate when they have been packed enough.

Size of the toppings/sprinkles on ice creams and waffles are consistent in shape, size and quantity. Possibly due to there improvised unit of measurement that they have developed (topping spoon). Waffles that are served are also almost always hot and crispy. Not to mention they are consistent with their presentation of it. Quantity In order from the smallest to the largest cone size. There are Junior (2.5oz), value (4oz) , regular (2.5oz + 2.5oz), large (4oz + 4oz), king ( 2.5oz + 2.5oz + 2.5oz) and giant (4oz + 4oz + 40z) scoops. Baskin Robbins sells them in Pint, quart, half-gallon and value cut sizes too. Their sundaes come in 2 sizes, Regular & large. In addition their ice cream cakes comes in five different sizes, singular slices, mini, 6 round, 9 round and full sheet. The rest of their menu comes in a standardized size such as their waffles, beverages. Selection Baskin Robbinss menu comprises of various desserts such as ice cream, waffles, sundaes, ice cream cakes and beverages. Baskin Robbins is unique because it allows its customers to customize almost every item on its menu to their liking. It comes in preset flavors like very berry shakes, mint chocolate chip shakes and the customers could choose their very own flavours from the ice cream that is served by Baskin Robbins as the flavour for their cake/shake, turning it into their ideal cake/shake. Customers of Baskin Robbins have a large selection of frozen dessert to choose from (Yogurt, ice cream, sherbets & sorbets), the total number of flavors: 31. Included in these 31 flavors are flavors like the Rotators - which is an ice cream, made out of a multiple of flavors (E.g. Love potion#31, Chocolate chips, cups and Raspberry). There are even ice cream flavors that cater to those who are health conscious such as the low fat ice cream flavors like Raspberry Chip and also no sugar ice cream flavors like Cotton Candy. Additionally, Baskin Robbins added a unique touch to their waffles, allowing customers to add a maximum of 2 flavors of ice cream into their waffles.
INFORMATION

Usefulness The FAQ that is provided is useful for both customers and entrepreneurs who are willing to start up a franchise in another country. It is also useful for customers who are planning social events like birthdays, providing relevant contact information, prices and itinerary. The menu that is on the website is both comprehensive and extensive, enabling the customer to make an informed decision before going down to the store itself to purchase an ice cream. It provides explanations and information on the nutritional section of the ice creams for concerned customers who are looking out for their diets.

EXPLICIT SERVICES

Training of service personnel The service crew is trained extensively as they are expected to provide information about the products served in Baskin-Robbins to its customers. Fruits of their training can be seen when they hand out samples of their ice cream flavors and give a detailed description on the ingredients that is in the ice cream. Their knowledge on the ice cream is readily observable by the consumers and shows the positive explicit service BaskinRobbins provides. Availability Baskin Robbins operates daily (inclusive of public holidays and Sundays) opening hours are from 10 am to 10 pm, suggesting customers can get their product for a large part of the day. A lack of information has never been a problem, with a comprehensive website and friendly staffs, Baskin Robbinss information can be found easily. Should there be further doubts, a hotline is also available for customers to speak directly to the Baskin Robbinss personnel. Home delivery service is available in other Baskin Robbins stores in other countries such as the United States. Given that this Singapore store has only since been recently opened. There is no delivery service as of yet however with time, it is a viable option that Baskin Robbins would possibly provide to add additional value to its service.
IMPLICIT SERVICES

Attitude of service Baskin Robbins was founded with an ideal to create a cozy neighborhood ice cream parlour. This tradition has remains true till today. When entering Baskin Robbins, Crew staffs affectionately displays a cheerful pre-disposition by greeting the customers warmly with a smile. The crew staffs were very attentive to the needs and wants of the customers, going the extra mile of personalizing their service, as well as inquiring about the customers well being. Staff at Baskin Robbins recognizes the need to not just be simply polite but to make the ordering process/dining experience pleasant. Baskin Robbins offers customers to sample these flavors and customization of their desserts, which would be confusing without the patience and help of the service crew. Atmosphere Customers at Baskin Robbins dine under an array of playful colors like pink, purple, white and blue. The color scheme is complimented by neon lighting that dots the restaurant. With high tables and chairs in the restaurant, it illustrates a trendy and young feel to the restaurant. Catering to the families that frequent the joint, large sofas are placed around the shop and countless colorful balloons are decorated at the ice cream bar. Thus, with the bulk of its customers that frequent this restaurant, it makes the restaurant feel very cozy and vibrant.

Waiting Dividers are clearly placed and set up along the ice cream bar strategically to prompt customers to line up in an orderly fashion. Generally waiting time is approximately 2 minutes long per customer. As a benefit, Baskin Robbins offers waiting customers the opportunity to sample their many flavors of ice cream while queuing in hopes to aid them in their final buying decision. Status The service personnel at Baskin Robbins require a minimum education level of GCE N Levels and age of 16 before they are allowed to work as a service crewmember. This requirement is set so that the management can be ensured that the service crew would have the basic conventional skills and a certain degree of maturity that is required of a service oriented job. By doing so, the customers can sense, although vaguely, the extrinsic features of the service. Sense of well being The restaurant and the ice cream bar are well lit. Menus and any other signs such as company logo are placed strategically so that is it is very visible to oncoming human traffic. Hygiene and well being of its customers are matters that Baskin Robbins takes very seriously. Floor, tables and chairs of the interior are cleaned regularly and thoroughly, after each customer is done eating at the table, service crew would wipe the table to clear any foreign object. No smoking sign ensures that customers are in a safe and smoke free environment as well as the wet floor sign placed visibly to ensure no one meets with an accident. Lastly the store is well equipped to fight any potential threats of fire, as a fire extinguisher with the Quality Assured sticker hangs on the walls of Baskin Robbins Privacy and security Being an ice cream parlor where ice cream is usually consumed either on the go or on small on small high tables, it enables Baskin Robbins to serve a large number of customers. As such space isnt much of a luxury in the restaurant, as ideally business would use up as much space putting tables as they can. Therefore the space between one table to another is relatively small. Furthermore Security camera monitors activities at the store at all times, this signifies further losses in privacy but it is definitely necessary for security reasons. Since it is located in a shopping centre, security at the bar is at a minimum as the shopping centre itself has its own security. Employing guards to stand around the store makes no business sense, as it would only disrupt service operations further. (Less space to move about) Lastly, during closing, metal rails are pulled down to keep shop safe. Convenience The area is quite accessible via public transport. With a train station underground and several buses that traverse the area, it is accessible to everyone. The ice cream bar has its own door that is right across the bus stop, which allows anyone to come in straight from

the outside. For those that come via private transports like cars and bikes, parking lots are available beneath the shopping mall. Also included are bicycle parking lots and the two taxi stands situated at the front and back of the mall.

R E C O M M E N D AT I O N S SERVICE PACKAGE

Scheduling workforces efficiently As Baskin Robbins attracts a high traffic of customers, it is evident that the franchise at Novena is understaffed in ratio to the number of customers dining there. The server at the counter is also acting as the cleaner, which leads to a conflict in the duties of the job. The server can either serve the customers ice cream or clean up the shop at any one time, but cannot do both simultaneously. The staffing of crew members in this way would lead to inefficient labor. An observable impact of the inefficient scheduling of workers can be seen from the numerous ice cream cups, spoons and tissues left behind by previous patrons on the seats and tables of the shop. This may result in the decline of the reputation and perception of standard of service in Baskin Robbins, as the newer patrons of the shop did not manage to find a clean seat. A recommendation to handle the challenge of conflicting duties with the service crew would be to schedule their crew members between the task of cleaning the shop and serving. Through doing this, Baskin Robbins can maintain a clean environment as well as serve its customers conductively. Ultimately, the implicit service and psychological benefits that Baskin Robbins have on consumers will improve, leading them to believe that Baskin Robbins is a world-class ice cream parlor. Addition of variety to side orders Baskin Robbins has a wide variety of ice cream flavors and cakes, however, it is lacking in the amount of side orders to go together with its main product. Additional side orders can complement and facilitate their ice cream products as well as bring in a profitable medium of revenue to their company. In Baskin Robbins, there is only a focus placed on the ice creams sold. The only facilitating goods that the shop provides are the type of wafer cones used to hold the ice cream. Examples of side orders are apple pie, brownies and cookies, which go well together with ice cream. Drinks are a possible form of side orders as well. Complimentary facilitating goods There are no complimentary goods in Baskin Robbins for customers. Baskin Robbins can follow the service package of local ice cream parlor, Island Creamery, in the way where free water is provided for their patrons to drink while eating

the ice cream. This is a good complimentary good because of the sweetness of the taste of ice cream, which occasionally needs to be diluted with a sip of water. Baskin Robbins can also give free toppings such as milo, hollicks, chocolate powder, chocolate sauce. These facilitating goods are placed at the corner of the shop where customers are allowed to use through self-service. Not only are they free, they are useful accompaniments to the products sold in the ice cream parlous. The facilitating goods make the entire dining experience more pleasant as it enhances the flavour of the ice cream. By providing these complimentary facilitating goods, the patrons of the ice cream parlor also feel a sense of benefit and ultimately, increase the quality of the implicit service of the shop. Alfresco Dining Baskin Robbins that is located at Novena Square has a open space behind its facility to increase the amount of customers served. Baskin Robbins could utilize the open space and turn it into an alfresco dining area for its customers. By doing this, they will be able to serve more customers and at the same time increase revenue generated. The atmosphere and ambiance will be replicated through the use of similar styled furniture and lighting. Baskin Robbins can implement its plastic molded furniture that they have in their facility, as well as using an umbrella to shelter the customers from the weather conditions they might experience while dining outdoors. Pricing to be displayed on website Although Baskin Robbins has developed a comprehensive website and Facebook page for their ice creams and to educate consumers about their unique flavors, they do not show the exact pricing of all their products; from varying ice cream sizes to waffles and cakes. It is recommended that Baskin Robbins should list their pricing for their products in a clear and visible manner, so that customers are duly informed about the information of their products before they visit the actual store and purchase their products.
VARIANTS

Fortune cone A possible variant to implement in the company is to implement a fortune cone as a product. A fortune prediction in the form of a paper can be found at the bottom of the cone used to contain their ice cream. Thus, customers can enjoy their ice cream and discover a note, which tells their fortune at the end for light-hearted entertainment. These fortune notes will include optimistic messages targeted to enhance the readers day. This will improve their dining experience by leaving them an impression of their dining experience in Baskin Robbins. The fortune note serves as a physical reminder of their

purchase at Baskin Robbins, providing a means of promotion of Baskin Robbins as well as a unique variant to make Baskin Robbins outstand from their competitors. Normal ice cream cones do not have this specialty, and they often leave the customer with no tangible impression of their experience in the ice cream parlor. With this fortune cone, customers will associate the product with the company, leaving an impressionable mark on the customers mind. Moreover, the prediction would have a positive effect on the customers psychological well-being and, the customer would henceforth, associate Baskin Robbins positively. Entertaining the customers The staff can perform a simple song and dance routine while serving the ice creams for entertainment for the customers as they wait. A clown can also be hired to entertain the children through giving out balloons. The customers attention is no longer directed at the waiting time, but at the entertainment that is provided by the service crew, making the wait more bearable. A special birthday performance routine can be introduced for customers who visit Baskin Robbins on their birthday. Customers will be treated to a free scoop of ice cream of their choice and at the same time, the service crew can also perform the routine for their customers. This will make the customer feel special and valued by Baskin Robbins. Baskin Robbins can establish their reputation as a customer-orientated company. Customers who have had a positive experience at Baskin Robbins will be more inclined to recommend and promote the ice cream parlor to their friends and family. Customizing their menu The addition of customized flavors such as chenndol, Milo, Teh Tarik, Bandung will allow the integration of local culture and product adaptation for the customers of Baskin Robbins in Singapore. These unique flavors will appeal to the local public as well as intrigue the consumers from its unconventional fusion of Eastern and Western cuisine, ice cream with local flavors. More people would be attracted to Baskin Robbins as a result, and their customer base will expand due to its unique offering of flavors. Introduce ice cream meals with toys Baskin Robbins can implement the concept of giving a toy with childrens meal purchased with them. The toys will serve as an attraction for children to keep them coming to the ice cream parlor. Moreover, it will also be a physical reminder of their purchase at Baskin Robbins. Each toy would have the companys name imprinted on it. The toy not only promotes the ice cream parlor, but also acts as a complimentary item to the company.

The toy may also bring more children to the ice cream parlor, as children may be attracted to these complimentary facilitating goods. Children may even patronize the ice cream parlor specifically for these toys.

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REFERENCES

Baskin-Robbins Singapore | Facebook. (2011, May). Retrieved July 8, 2011, from Facebook website: www.facebook.com/BaskinRobbins.SG Baskin-Robbins Your Neighborhood Ice Cream Store. (2011, May). Retrieved July 8, 2011, from Baskin Robbins website: www.baskinrobbins.com/ Baskin-Robbins - Wikipedia, the free encyclopedia. (2011, July). Retrieved July 8, 2011, from Baskin Robbins website: en.wikipedia.org/wiki/Baskin-Robbins Baskin Robbins Clementi. [Online image] Available http://3.bp.blogspot.com/_pE3JLh4SlY/SUUayy4AklI/AAAAAAAABRk/sF5WqS1mIk8/s400/PB150193A+(Large).jpg, July 5, 2010.

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