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Dunkin’ plans hundreds of new locations in 2014

Dunkin’ Donuts and sister chain Baskin-Robbins expect to open 685 to 800 new locations this year.

AP File

Dunkin’ Donuts and sister chain Baskin-Robbins expect to open 685 to 800 new locations this year.

Dunkin’ Donuts and sister chain Baskin-Robbins, which have been on expansionist tear since they were bought for $2.425 billion in 2006 by a consortium of private equity firms, should open 685 to 800 net new locations during 2014, their parent company, Dunkin’ Brands Group Inc., said Monday.

Canton-based Dunkin’ Brands added that it believes it can eventually have 1,000 Dunkin’ Donuts locations in California. To date, the company has executed agreements to develop nearly 100 traditional restaurants in California. Meanwhile, the company said Monday that it is expanding its franchise recruitment efforts to Northern California. As a result, the entire state is now available for franchise development.

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At the end of 2013, the company said that there were 18,249 Dunkin’ Donuts and Baskin-Robbins locations worldwide. Most of those restaurants are owned by franchisees. Dunkin’ Donuts is known for coffee and baked goods. Baskin-Robbins specializes in ice cream.

In 2013, Dunkin’ Donuts opened 371 net new restaurants in the US and 138 net new restaurants outside the US, including restaurants in Greater London and Ho Chi Minh City, the company said.

“We are delighted with Dunkin’ Donuts’ accelerated growth across the US, which demonstrates ongoing strong demand for our brand, and we remain on track for a five percent net annual development rate for Dunkin’ Donuts US,” Dunkin’ Brands chairman and chief executive Nigel Travis said in a statement. “We are especially pleased with the solid start to our development plans in California where, to date, we have executed agreements for nearly 100 traditional restaurants.  Additional good news is that in 2013 Baskin-Robbins, which has been experiencing strong growth internationally for many years, also had positive net development growth in the US, marking a major milestone in the turnaround of the brand domestically.  All totaled, our franchisees and licensees opened 790 net new restaurants globally in 2013, and this year we expect to open 685 to 800 net new Dunkin’ Donuts and Baskin-Robbins restaurants on a worldwide basis. We believe a major contributor to our strong year-over-year growth is the disciplined approach we consistently take to improving franchisee economics.”

Shortly after Dunkin’ Brands was bought in 2006 by a consortium of private equity firms made up of Bain Capital Partners LLC, the Carlyle Group, and Thomas H. Lee Partners LP, the company disclosed plans for ambitious expansion plans for Dunkin’ Donuts. Part of that plan called for expanding from about 5,000 US locations in 2006 to 15,000 by 2020.

Chris Reidy can be reached at reidy@globe.com.
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