• Ad Age, Tuesday, December 13, 2005 12:17 PM

Dunkin' Brands, which includes the Dunkin' Donuts, Baskin-Robbins and Togo's chains, is about to get bigger. The company was recently bought by three private equity firms for more than $2.4 billion in cash, and the group said it is planning "an aggressive expansion program across the U.S. and throughout the world."

There are currently more than 12,000 Dunkin' franchise restaurants worldwide, with some 6,500 Dunkin' Donuts shops in 29 countries, 5,600 Baskin-Robbins worldwide and 400 Togo's in the U.S. The coffee and donut chain has 4,400 stores in 36 states, mainly clustered in New England, its stronghold. But now there will be even more, with all of them expected to follow the company's strategies of putting more emphasis on its coffee than donuts, and positioning the brand as a relief for Starbucks-haters and working-class java drinkers.

With its coffee costing anywhere from 20 percent to 50 percent less than Starbucks, Dunkin' Donuts is well positioned for growth, said Bob Goldin, executive vice president at Technomic. "Their donuts are almost becoming less important in the mix. It's a beverage shop that sells baked goods." He said the biggest opportunity for growth is out west. The company probably will create more franchises in that region, but don't expect it to stop there. "With our new owners ready to support us in our growth efforts, a strong management team on board and continued excellent franchisee relationships, Dunkin' Brands is well-positioned for global expansion," said Dunkin' Brands CEO Jon L. Luther

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