Dunkin' Donuts Announces Plans To Enter Southern California
Company also announces opening 291 net new Dunkin' Donuts U.S. locations in
2012, making Dunkin' Donuts, once again, one of fastest growing QSR concepts
In 2013 Dunkin' Donuts plans to open 330-360 net new U.S. restaurants
CANTON, Mass., Jan. 16, 2013
CANTON, Mass., Jan. 16, 2013 /PRNewswire/ --Dunkin' Donuts, America's
all-day, everyday stop for coffee and baked goods, and one of the fastest
growing quick service restaurant (QSR) brands based on unit growth, announced
today that it is expanding to Southern California. 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 restaurants in the
United States alone. In addition, the company will continue to open new
restaurants in existing markets.
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Specifically, 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 food service operators for a wide
range of non-traditional venues including colleges and universities, casinos,
military bases, supermarkets, airports and travel centers.
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 percent. In 2013, the
company says 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 percent to 5 percent.
"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, Chief Executive
Officer, Dunkin' Brands and President, 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."
"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 percent net new annual
development rate for Dunkin' Donuts and Baskin-Robbins combined,"continued
In 2012, Dunkin' Donuts signed multi-store agreements in 32 U.S. markets,
including Green Bay and Milwaukee, Wisconsin; Birmingham, Alabama; Denver,
Colorado; Austin, Houston and Dallas / Fort Worth, Texas. Additionally, in
2012 more than 600 Dunkin' Donuts restaurants wereremodeled across the
According to Grant Benson, CFE, Vice President of Development, 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 free-standing 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, we intend 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.
According to The NPD Group / CREST®, Dunkin' Donuts restaurants serve the most
hot regular, decaf, flavored and iced coffee in America, selling 1.7 billion
cups of hot and iced coffee every year. Dunkin' Donuts was ranked number one
in customer loyalty in the coffee category for the sixth consecutive year by
the 2012 Brand Keys Customer Loyalty Engagement Index. In addition to coffee
and Fair Trade Certified™ espresso beverages, Dunkin' Donuts offers guests
high-quality food and beverages served all day, including oven-toasted Bakery
Sandwiches, breakfast sandwiches and Wake-Up Wraps, bagels, donuts and
MUNCHKINS®, muffins, Coolatta® frozen drinks, and a DDSMART® menu featuring
better-for-you items. Dunkin' Donuts restaurants also offer K-Cup® packs for
use with Keurig® single cup brewers.
For more information about Dunkin' Donuts franchising, visit
To learn more about Dunkin' Donuts, visit www.DunkinDonuts.comor follow us on
Facebook (www.facebook.com/DunkinDonuts) and Twitter
Certain statements contained herein are not based on historical fact and are
"forward-looking statements" within the meaning of the applicable securities
laws and regulations. Generally, these statements can be identified by the use
of words such as "anticipate," "believe," "could," "estimate," "expect,"
"feel," "forecast," "intend," "may," "plan," "potential," "project," "should,"
"would," and similar expressions intended to identify forward-looking
statements, although not all forward-looking statements contain these
identifying words. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. These risk and uncertainties include,
but are not limited to: the ongoing level of profitability of franchisees and
licensees; our franchisees' and licensees' ability to sustain same store sales
growth; changes in working relationships with our franchisees and licensees
and the actions of our franchisees and licensees; our master franchisees'
relationships with sub-franchisees; the strength of our brand in the markets
in which we compete; changes in competition within the quick-service
restaurant segment of the food industry; changes in consumer behavior
resulting from changes in technologies or alternative methods of delivery;
economic and political conditions in the countries where we operate; our
substantial indebtedness; our ability to protect our intellectual property
rights; consumer preferences, spending patterns and demographic trends; the
success of our growth strategy and international development; changes in
commodity and food prices, particularly coffee, dairy products and sugar, and
other operating costs; shortages of coffee; failure of our network and
information technology systems; interruptions or shortages in the supply of
products to our franchisees and licensees; the impact of food borne-illness or
food safety issues or adverse public or media opinions regarding the health
effects of consuming our products; our ability to collect royalty payments
from our franchisees and licensees; the ability of our franchisees and
licensees to open new restaurants and keep existing restaurants in operation;
our ability to retain key personnel; any inability to protect consumer credit
card data and catastrophic events.
Forward-looking statements reflect management's analysis as of the date of
this press release. Important factors that could cause actual results to
differ materially from our expectations are more fully described in our other
filings with the Securities and Exchange Commission, including under the
section headed "Risk Factors" in our most recent annual report on Form 10-K
and in our quarterly report on Form 10-Q for the quarter ended June 30, 2012.
Except as required by applicable law, we do not undertake to publicly update
or revise any of these forward-looking statements, whether as a result of new
information, future events or otherwise.
About Dunkin' Donuts
Founded in 1950, Dunkin' Donuts is America's favorite all-day, everyday stop
for coffee and baked goods. Dunkin' Donuts is a marketleader in the hot
regular/decaf/flavored coffee, iced coffee, donut, bageland muffin
categories. Dunkin' Donuts has earned the No. 1 ranking for customer loyalty
in the coffee category by Brand Keys for six years running. 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., Dunkin' Donuts is part of
the Dunkin' Brands Group, Inc. (Nasdaq: DNKN) family of companies. For more
information, visit www.DunkinDonuts.com.
Contact: Michelle King
SOURCE Dunkin' Donuts
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