WACO, TX-Following its success in Dallas and Austin, Dunkin Brands Group is pushing for more Dunkin Donuts locations locally and in Houston. To that end, the Canton, MA-based company is actively recruiting franchisees for these markets, as well as for cities in Colorado, Nebraska, New Mexico and Oklahoma.
Grant Benson, Dunkin Brands’ vice president of franchising and market planning, says that with the company’s rollout in Dallas and Austin, other opportunities in Texas presented themselves. There are three units in Houston, he notes, and growth in San Antonio as well. “Looking at how well these markets align with each other, Waco made a lot of sense,” he says.
Waco, like other Dunkin Brands’ targeted locations such as Colorado Springs, CO; Omaha, NE; Albuquerque, NM and Oklahoma City, is a secondary city. But Benson says the company doesn’t distinguish between primary or secondary cities.
“We tend to think of the markets like a hub-and-spoke,” he tells GlobeSt.com. “There are the bigger markets, such as Dallas, which is a hub market.” The smaller markets, he goes on to say, such as Oklahoma City and Waco, are spokes, though fairly large ones. “We’re seeing solid interest in all these areas,” Benson says. Other targeted cities for expansion are Denver, Lincoln, NE, Tulsa, AK and Santa Fe, NM, and Dunkin Brands would like to see units up and running in these areas by early 2013.
Though "America runs on Dunkin" according to the company’s ad campaigns, not everyone can be a Dunkin franchise. Benson says an ideal candidate is one who has had previous restaurant experience, who is familiar with working in franchise systems and who knows how to build a business and a team. If that individual also has a commitment to the Dunkin brand, “we’re ready to have a serious conversation with that entity,” Benson says.
Franchisees have access to flexible designs such as free-standing stores, end-caps, in-line sites, kiosks, gas stations and other retail environments. In an attempt to sweeten the deal for franchisees, Dunkin Brands is offering special development incentives in the targeted markets including reduced royalty fees and an extra $10,000 in local in-store marketing.
Benson declined to discuss future expansion plans, though he acknowledges there is plenty of opportunity for growth. “The public is seeing it, both on the consumer and franchisee candidate size,” he remarks. “Every time we announce an expansion, we receive a lot of interest from potential franchisees.”
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