Dunkin' reflects on 'excellent year' of domestic restaurant development

by Eric Schroeder
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CANTON, MASS. — Dunkin’ Brands Group, Inc., the parent company of Dunkin’ Donuts and Baskin-Robbins, said its U.S. franchisees opened a total of 422 net new Dunkin’ Donuts and Baskin-Robbins restaurants in 2014.

“This past year was another excellent year for domestic restaurant development for both of our brands and has resulted in Dunkin’ Brands once again being one of the fastest growing companies by unit count in the Q.S.R. industry,” said Nigel Travis, chairman and chief executive officer, Dunkin’ Brands. “All told, Dunkin’ Donuts franchisees opened 405 net new domestic restaurants in 2014, including our much anticipated restaurants in Southern California, and remodeled another nearly 500 locations. Baskin-Robbins franchisees opened 17 net new locations, marking the brand’s second consecutive year of positive net development. We believe these results are directly attributable to the appeal of our two strong consumer brands and our continued focus on franchisee unit economics. For 2015 in the U.S., we expect to open between 410 and 440 Dunkin' Donuts restaurants and between 5 to 10 net Baskin-Robbins locations.”

Dunkin' Donuts opened 405 net new restaurants in 2014 in new markets such as California, Colorado and Nevada, with 97% of domestic growth coming from existing franchisees. California continued to be a focus of growth for the brand with five new free-standing restaurants opening in Whittier, Santa Monica, Long Beach, Downey and Modesto, which opened ahead of schedule. The company said it is on track with its plan to open approximately 250 new restaurants in California over the next several years, with the long-term goal of having 1,000 restaurants in total throughout the state.

Dunkin' Donuts also signed agreements in 2014 with franchisees to open new future restaurants in markets, including Northern, Central and Southern California; Oklahoma City; Louisville, Ky.; Phoenix; Greensboro, N.C.; and Wichita, Kas., among others.

In 2013, Dunkin’ Donuts unveiled new restaurant design options, and last year the company’s franchisees remodeled 482 restaurants with the new image. Dunkin' Donuts also recently announced the launch of DD Green Achievement, a green building program designed to help franchisees build sustainable, energy-efficient restaurants. By the end of 2016, Dunkin’ Donuts said it plans to have 100 new DD Green restaurants across the United States.

Dunkin’ Donuts’ 2014 development numbers include approximately 70 new restaurants in airports, colleges and other non-traditional locations. Dunkin’ Donuts currently has more than 600 non-traditional locations, including restaurants at college campuses, mass transit stations, travel centers, supermarkets, entertainment centers and military bases.

In 2015, the company expects its franchisees to add between 410 and 440 net new Dunkin’ Donuts U.S. restaurants and continues to believe that it can achieve the long-term goal of more than 17,000 restaurants in the United States, more than doubling its current number of domestic locations.
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