Industry News

Dunkin’ Donuts to enter Southern California

Dunkin’ Donuts, Canton, Mass., is expanding to Southern California. The company 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.

Specifically, Dunkin’ Donuts is recruiting multiunit franchisees for Los Angeles, Riverside, San Diego, San Bernardino, Ventura and Orange counties and expects restaurants in these markets will begin opening in 2015. The company also is 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.

In addition, Dunkin’ Donuts announced the opening of 291 net new locations in the United States in 2012, a net new unit growth rate of 4 percent. This year, 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 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,” says Nigel Travis, CEO, 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 5 percent 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 and remodeled more than 600 of its restaurants.

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