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How Dunkin' Plans to Win the Coffee Wars

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The coffee and breakfast segment of retailing has been getting crowded for some time, with Starbucks, Dunkin' Donuts and McDonald's all looking to gain market share in the profitable niche. Most recently, Starbucks has been making strides in recapturing its coffee-selling leadership position, even planning to open hundreds of new stores for the first time in several years.

But Starbucks' main competitor Dunkin' Donuts also has some strategic moves in mind, including plans to double its store portfolio by 2032. And Nation's Restaurant News just published an interview with Dunkin's senior director of franchising Jeremy Vitaro about what the chain looks for when planning to open new locations.

For example, Dunkin' prefers to sign franchise agreements with several multi-unit groups at once so that they can develop a number of stores in adjacent markets simultaneously, rather than building the stores one by one. And while the chain likes its franchisees to have restaurant operating experience having franchise agreements with McDonald's is a no-no, since they are a direct competitor.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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