Room for 15,000 Dunkin' Donuts: Dunkin' Brands CEO

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Dec. 18 (Bloomberg) -- Dunkin' Brands Group CEO Nigel Travis discusses the company's growth plans on Bloomberg Television's "In The Loop." (Source: Bloomberg)

The chairman and ceo brought us those goodies this morning.

People have asked this -- why expand out to the west coast now?

We have got so many stores east of the mississippi.

We can still build another 3000 east of the mississippi.

You have over 10,000 now?

Globally, 10,500. in the united states, 7,598. we are traditionally an east coast brand.

We announced we were going to expand to california.

We sold out southern california.

You won't see the story -- stores until 2015. it takes a while to build.

Obviously, a lot more about -- internationally.

Do you have a number for next year?

The top end of our range.

360. next year, i would expected to be higher.

It is a fairly fast pace.

This is an interesting fact.

You have 515 stores here in the big apple.

That is almost double what starbucks as here in new york city.

We always think there is a starbucks on every corner.

There is almost double -- we had the 500th store back in july.

We think we can have a lot more.

Manhattan we think we are under- stored.

You're not oversaturated?

We think just about every borough in new york we could have more stores.

Our franchisees have done a very good job in new york.

We are very happy.

You will see a lot more store.

As you were signing new franchisees on the west coast, what do you see in a successful franchise partner?

You want people who have operated in this kind of business before.

Multiunit retailing.

Clearly, the right resources.

It is all about operations.

If there was one thing i am proud about in the last five years it is that we have improved our operations capability of both our franchisees and/or corporate staff enormously.

Cash our corporate staff -- our corporate staff enormously.

Our scores have gone up year by year.

We are really pleased with the percentage increase in those scores.

My first job was working at a dunkin' donuts.

Was it?

Should you have disclosed that?

Are you biased?

Must not up in such a great job since you aren't still there.

[laughter] it was my first job.

What i remember when i was there, the morning was the busiest time.

How much has that mix changed?

How much more do you rely on coffee sales?

How much more do you rely on sandwiches?

Beverages keeps going up.

Morning business keeps going up.

We have opened up our afternoon sales on the back of bakery sandwiches.

Great margins for our franchisees.

We do want to keep expanding the rest of the day.

We are focused on the pm -- taking it into the evening.

We are going to launch our new loyalty program next year and that will enable us to leverage morning traffic and move it to the rest of the day.

Loyalty program.

We will incentivize you to go different times of day.

I am on the paley a thing -- paleo thing.

Talking about loyalty programs -- they have not always been successful in your industry.

I am picturing a line of homer simpsons.

I think it is true in one respect.

Usr is behind -- qsr is behind retail.

We are one of the leaders in the field.

We launched our mobile up and we're hoping that everyone will use the mobile app to send gifts.

It is a dunkin card by mobile.

We have taken the mobile app and we are building in loyalty behind it and we believe that will improve our frequency, average ticket.

But you are right.

This industry has not been in the whole digital place.

The ceo of mcdonald's admitted that they have been way behind on digital.

When you look at a company like that and how they have fallen behind, what is the reason for that?

Why is this industry not as quick?

I think it is the way it is served.

I used to work at blockbuster and papa john's. we knew everything about every customer, because you had to rent out a video were deliver a pizza.

You had the name address and all that.

This industry has never had to do that.

Every consumer was just another person.

We have got to get beyond that.

We have got to get into the world of one-to-one marketing.

Your costs will take a real big increase i would expect.

It is not really rg and a -- our g&a. we do this with our franchisees.

The trick to all of this -- we installed new surveillance systems -- our franchisees agreed -- we are adding this digital technology.

It comes out of our advertising funds that are franchisees pay into and they see this as an important way of marketing in the future.

Why mcdonald's? why your entire industry has had this -- it has to be a partnership with an incredibly disparate group of franchisees.

It comes down to relationships.

It is a world-class relationship.

If you get that right, everything will work out.

Why are you closing in china?

We did not get it right.


We didn't get the model.

We over localized.

I was in the u.k. yesterday -- opening our first store their.


the model we have in the u.k. is similar to the u.s. we over localized in china.

We did not get the -- give sufficient income and dedicated support.

The crew is descending on the donuts right now.

It will get ugly.

[laughter] make you for stopping by.

Chairman and ceo of dunkin brand.

This text has been automatically generated. It may not be 100% accurate.


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