Staying on track with its strategy of expansion across United
States, Dunkin' Donuts, owned by Dunkin Brands (
), announced its entry plan for California, where it has no
presence currently. While the restaurant chain is working on
building infrastructural requirements needed to support its
operations, it won't open in the The Golden State before 2015. By
2020, the company plans to have 150 to 200 restaurants in Southern
California. The management believes they could eventually have
1,000 outlets in Southern California alone.
With the bigger business plan in mind, Dunkin' plans to double
the number of its outlets to 15,000 in the next 20 years. It opened
291 new restaurants in 2012 and plans to add another 330-360 in
See full analysis for Dunkin' Brands
In its traditional core market such as New England and New York,
Dunkin' has one store for every 10,000 people. Further establishing
presence in the eastern part of the country, in cities like
Chicago, Philadelphia and South Florida, Dunkin' already has more
than one store for every 25,000 people.
Thus, the western part of the U.S., presents a significant
growth opportunity for Dunkin' since its penetration is only one
store for one million people (as of 2011 end). Dunkin' plans to add
around 100 new restaurants in the state of Texas in the next
several years. Last year, the company signed a limited
partnership with Dallas Cowboys football club owner and General
Manager, Jerry Jones, and Hall of Fame quarterback Troy Aikman as
the brand's newest franchise partners. This venture with local
public faces will see the group opening up 50 new restaurants
throughout the Dallas/Fort Worth area in the next five years. Texas
growth plan is also part of the company's expansion goal.
Dunkin' has also developed attractive franchisee strategy to
support the growth opportunities and consumer needs of each
individual market. The company offers franchisees flexible design
concepts like freestanding stores, in line sites, kiosks and gas
stations, as well as other retail environments. Also to lure
franchisees, Dunkin' is making special incentives available,
such as reduced royalty rates initially, and a $10,000 store
marketing contribution for select franchisees.
We have a $35 price estimate for Dunkin Brands
, which is slightly lower than the current market price.
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