Dunkin’ Brands: Menu, marketing drive 3Q sales growth


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Expected expansion

Pointing out that Dunkin’ Donuts does not have a strong presence across the United States, Travis said the opportunity to expand separates it from competitors and that it plans to expand to contiguous territories, radiating from “hub cities to spoke markets.” The franchisor has been actively recruiting in Texas, Oklahoma, Colorado, Nevada and Nebraska, he said, although units in those states would likely not open until early 2013.

The chain added 57 new franchised locations in the United States during the third quarter, and more than 70 percent of those were outside the chain’s core markets, Travis said. He narrowed its projection of new openings for the year to between 220 and 240. Previously the target had been between 200 and 250, he said.

Additionally, 135 units had been remodeled with an updated image, and Travis said they were on track to remodel more than 500 stores this year.

Travis said he expected international growth to exceed domestic growth. He said he saw particular potential for growth in Spain, Germany, India and Latin America. He said Chinese and Taiwanese franchisees were currently repositioning themselves and localizing their offerings more. He said the company’s partners in South Korea had already done “a very good job in this repositioning,” and was focusing more on beverages.

Baskin-Robbins closed a total of 18 units in the United States, but sees growth possibilities overseas. Travis called Baskin-Robbins’ international division, which accounts for about 15 percent of total revenues, a “real jewel in the crown,” with potential for “significant growth both in the near and longer term.”

New products were being introduced in those markets, including snowman cakes and scoops in the Middle East and South Korea. Moon cakes had been introduced to China with the first-ever television campaign in that country. Moon cakes are a stuffed Chinese pastry traditionally eaten during a mid-Autumn festival.

Revenue from Baskin-Robbins International totaled $28.1 million, compared with $25.3 million in the year-ago quarter. A net 83 units opened in the quarter.

Contact Bret Thorn at bret.thorn@penton.com.
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