Dunkin' Donuts CEO: Breakfast Is a Growth Story

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July 24 (Bloomberg) –- Dunkin Brands Chairman and CEO Nigel Travis discusses the company’s earnings miss, domestic growth and health considerations of consumers. He speaks on “Street Smart.” (Source: Bloomberg)

Do miss?

I think it's a number of rings.

We see a much tighter restaurant market today and some numbers came out that showed 61 billion visitors in the last year was at a level below the level before the recession.

The restaurant market has clearly gotten tighter and we are in a growth segment which is great or us and we have newcomers coming into the category making it much more competitive.

Having said that, with those visits down, we saw a growth in transactions.

We don't like our slightly disappointing compton we don't like having to take our guidance down but we feel good about the health of our business and what's particularly good about it is the health of our franchisee margins that we are totally focused on as a franchise business.

I love doughnuts, i love dunkin' donuts, but most people try to be careful -- thank you for all the doughnuts.

He needs dinner?

The problem is people are increasingly health conscious.

I try to eat doughnuts sparingly and i think a lot of people are trying to move away from some of these swedes.

How does a business like yours succeed when so many people are that health conscious?

Great question and we have a very simple answer.

It's a bit like a barbell.

Let's call it the big and toasty sandwich.

We have our good for you, lower calorie menu, that has been on our menu several years and has been very successful.

We keep introducing new products will stop consumers these days are looking for something different.

They are not looking necessarily for a meal or a snack will stop so the two have merged together and we have lots of products for people like you and people who are on the go.

For instance, the grilled chicken flat red sandwich has started well.

We also brought our apple sausage sandwich.

That did very well in the second quarter.

The sandwiches are very low in calories compared with some other sandwiches, so we are giving people all a choice and it is the clear answer to your question.

Ask how do you keep people coming in the store past 11 a.m.? people don't necessarily think of dunkin' donuts as the place they are going to go to grab a sandwich on the go.

That was a great success in the quarter.

We got them to come back after 11:00 and i think we did it through two things will stop one is the perks program that we launched and it's very successful.

We started to and send people to come back after 11:00. if they come at 11:00, we are in sending them to come back in the afternoon.

The second thing, we had a very successful series of what we called coffee breaks.

These are offers that get people to come back into the restaurant in the afternoon.

The challenge for us to be honest is to get more of those customers to take more of our food in the afternoon and increase the check will stop part of that is suggestive selling, part of it is the use of our menu board, part of it is merchandising at the counter, so how can we build on that traffic which was a major success in the quarter and our customers to spend more dollars?

I see some pretzels here, so

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


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