Dunkin' Donuts Targeting Southern California

Published in CSP Daily News

Part of push for up to 360 net-new restaurants nationwide, including in nontraditional venues

CANTON, Mass. -- Dunkin' Donuts has announced that it is expanding to Southern California. The company is recruiting multi-unit franchisees for Los Angeles, Riverside, San Diego, San Bernardino, Ventura and Orange counties and expects restaurants in these markets will begin to open in 2015. The company is also interested in identifying qualified foodservice operators for a wide range of nontraditional venues including colleges and universities, casinos, military bases, supermarkets, airports and travel centers.

Coffee and quick-service restaurant (QSR) chain Dunkin' Donuts has been strategically expanding in contiguous markets across the country with a long-term goal of having more than 15,000 Dunkin' Donuts units in the United States alone. In addition, the company will continue to open new units in existing markets.

Dunkin' Donuts also announced the opening of 291 net-new locations in the United States in 2012, a net new unit growth rate of 4%. In 2013, the company said it plans to open 330 to 360 net new restaurants in the United States with growth coming from both new and existing markets, representing an increase of 4.5% to 5%.

"This past year was an exciting one for Dunkin' Donuts' growth in the United States, and we are delighted to begin 2013 with the long-awaited announcement that Dunkin' Donuts will be opening restaurants in California, where there is already incredible passion for our brand," said Nigel Travis, CEO of Dunkin' Brands and president of Dunkin' Donuts U.S. "Expansion to California has always been part of our plan to grow Dunkin' Donuts' presence in the U.S. We have maintained our disciplined approach to expand steadily while focusing on initiatives to improve restaurant economics and franchisee profitability. These initiatives include our recent agreement with our franchisee-owned and operated distribution and procurement facility, which ensures the same cost of goods to franchisees in both established and new markets by 2015."

He continued, "In addition to California, we believe we have incredible domestic growth opportunities for Dunkin' Donuts, both east and west of the Mississippi. On a global basis, we remain committed to our long-term development goal, which calls for us to accelerate to approximately a 5% net new annual development rate for Dunkin' Donuts and Baskin-Robbins combined."

In 2012, Dunkin' Donuts signed multi-store agreements in 32 U.S. markets, including Green Bay and Milwaukee, Wis.; Birmingham, Ala.; Denver; and Austin, Houston and Dallas/Fort Worth, Texas. Additionally, in 2012 more than 600 Dunkin' Donuts restaurants were remodeled across the country.

According to Grant Benson, vice president of development for Dunkin' Brands, "For our expansion into California, we are looking for qualified, multi-unit franchise candidates with foodservice, operations and real estate experience to become part of a nationally established restaurant concept with more than 60 years of franchising experience and 95% brand recognition. Additionally, they will receive the benefits of a multi-million dollar national advertising plan, world-class training and ongoing support, among many other benefits."

In an effort to keep the brand fresh and competitive, Dunkin' Donuts offers franchisees flexible design concepts including freestanding stores, end caps, in-line sites, kiosks and gas stations, as well as other retail environments. Dunkin' Donuts has aligned its development strategy to support the growth opportunities and consumer needs of each individual market. In addition, for a limited time, it intends to make special development incentives available, including reduced royalty fees in the early years and a $10,000 local store marketing contribution by the company for qualifying franchisees, it said.

Dunkin' Donuts offers an all-day menu including iced coffee, flavored coffees, lattes, Dunkin' Donuts K-Cup Packs, Coolatta frozen drinks, muffins, bagels, breakfast sandwiches, and a DDSMART menu featuring "better-for-you" items. The company has more than 10,000 restaurants in 32 countries worldwide. For the full-year 2011, Dunkin' Donuts' restaurants had global franchisee-reported sales of approximately $6.4 billion. Based in Canton, Mass., it is part of the Dunkin' Brands Group Inc. family of companies.