Coffee and doughnut maker
Dunkin' Brands Group Inc.
) has inked three multi-store development deals with new as well
as existing franchisees to expand its footprint in the
flourishing Southern California market. The move is consistent
with the goal of the owner of Dunkin' Donuts and Baskin-Robbins
brands to double its presence in the U.S. over the next 20
The company has penned the first deal with its longtime
partners, Harry Patel and Parag Patel to unveil 18 Dunkin' Donuts
restaurants across North Orange County and the Central Inland
Empire in California. Per the deal, the first outlet is slated
for a 2015 opening.
Patels already operates 11 Dunkin' Donuts/Baskin-Robbins
locations in Baltimore, Maryland and three Baskin-Robbins units
in Orange County, California. The franchisee group's proven track
record as a Dunkin' Donuts franchisee and its superior knowledge
of the local market helped it to clinch the new deal.
The restaurateur entered into the second agreement with new
franchisees - Jeff Shady and Jordon DiBiase - for opening eight
Dunkin' Donuts outlets in North Inland Empire, California. The
first unit is expected to open in 2015.
Dunkin' Brands also partnered with the owner of Embassy Suites
San Diego hotel in California to open a Dunkin'
Donuts/Baskin-Robbins combination restaurant in the hotel
premises. The outlet is expected to come up in 2014. This opening
will increase the visibility of the company's new Dunkin'
Donuts/Baskin-Robbins combo format.
Dunkin' Brands has been eying on the California market for
quite some time now and has a long-term plan of opening more than
70 units in the region. Moreover, in keeping with the company's
agenda to further expand in the markets of Los Angeles,
Riverside, San Diego, San Bernardino, Ventura and Orange
counties, it signed its first agreements with four franchise
partners in July to open 45 restaurants in these areas.
We believe, the latest alliances reflect Dunkin' Brands'
intent to make California one of the prime states for expansion
considering its potential to generate about $67.4 billion in
restaurant sales in 2013, as per the National Restaurant
Association. Further, expanding into an existing market will
provide the company with support infrastructure and an improved
distribution model which, in turn, is expected to facilitate
supply chain management.
DUNKIN BRANDS (DNKN): Free Stock Analysis
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