CANTON, MA-Dunkin’ Brands Group, headquartered here, maintained a vigorous expansion pace in 2013 and expects to match it this year. With 790 net new Dunkin’ Donuts restaurants and Baskin-Robbins shops opening globally last year, the quick-service restaurant franchiser says its franchisees and licensees plan to open 685 to 800 more worldwide in 2014.
“We remain on track for a 5% net annual development rate for Dunkin’ Donuts US,” says Nigel Travis, chairman and CEO of Dunkin’ Brands. The company, Travis says, is especially pleased with the “solid start” to its West Coast development plans, with agreements in place for nearly 100 traditional restaurants across California. “We believe a major contributor to our strong year-over-year growth is the disciplined approach we consistently take to improving franchisee economics.”
Last year, Dunkin’ Donuts opened 371 net new restaurants in the US, which included openings in Colorado, New York, Texas and Utah. The company also signed multi-store development agreements in more than 20 domestic markets, while a new restaurant design option was unveiled, and 527 Dunkin’ Donuts restaurants were remodeled domestically last year.
For ‘14, the company expects its franchisees to open 380 to 410 net new Dunkin’ Donuts restaurants across the US. Further, it continues to believe that it can achieve the long-term goal of more than 15,000 Dunkin’ Donuts restaurants domestically, almost double its present number of US locations.
That number has been in place since Dunkin’ Brands was acquired in 2006 by a consortium of private equity firms including Bain Capital Partners LLC, the Carlyle Group and Thomas H. Lee Partners LP, which later exited the business with a 2011 IPO. After being taken private, the company disclosed expansion plans that included growing from about 5,000 US locations in ‘06 to 15,000 by 2020.