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Dunkin’ Donuts expands into Southern California, adds more stores nationally

January 16, 2013
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Canton, Mass.-based Dunkin’ Donuts announced its plans to expand into Southern California. The quick-service restaurant chain says it 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, it says.

In Southern California, the company currently is recruiting multi-unit franchisees for Los Angeles, Riverside, San Diego, San Bernardino, Ventura and Orange counties and expects restaurants in these markets to begin to open in 2015. Dunkin’ Donuts also is interested in identifying qualified foodservice operators for non-traditional venues including colleges and universities, casinos, military bases, supermarkets, airports and travel centers.

“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," said Nigel Travis, chief executive officer of Dunkin’ Brands and president of Dunkin’ Donuts U.S., in a statement. “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.”

Dunkin’ Donuts also announced the opening of 291 new locations in the United States in 2012, which results in a unit growth rate of 4 percent, the company says. It also plans to open 330 to 360 new restaurants in the United States this year, with growth coming from both new and existing markets, representing an increase of 4.5 percent to 5 percent, it says.

In an effort to keep the brand fresh and competitive, Dunkin’ Donuts offers franchisees flexible design concepts including free-standing stores, end caps, in-line sites, kiosks and gas stations, as well as other retail environments. In addition, for a limited time, the company will offer special development incentives including reduced royalty fees in the early years and a $10,000 local store marketing contribution by the company for qualifying franchisees, it says.
 

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