Randolph, Mass. (September 1, 2004) -- Dunkin' Donuts, the world's largest coffee and baked goods chain, is beginning a major wave of expansion in the Cleveland market, expected to result in more than 90 new shops in the next six years. The growth initiative officially begins today with the announcement of a significant development agreement with Couche-Tard, who owns Circle K, Mac's, and Dairy Mart convenience stores.
The agreement paves the way for Couche-Tard to open 66 new Dunkin' Donuts stores in the next six years as a Dunkin' Donuts franchisee. About 12 stores are expected to open in the first year. Approximately a dozen of the shops will be built within existing premium gas and convenience store locations operated by Couche-Tard; the remainder will be freestanding shops. The agreement also calls for the development of at least three stores with both Dunkin' Donuts and Baskin-Robbins under the same roof. These stores are expected to open at Couch-Tard-owned locations within the next year.
Dunkin' Donuts is recruiting additional franchisees to develop other locations in the Cleveland area. The company has made the franchising opportunity especially compelling by introducing a new franchising initiative that includes special financial incentives, dedicated initial corporate staffing support, and advertising support for the next three years. The agreement with Couche-Tard is the first under this new initiative.
"Dunkin' Donuts sells more coffee by the cup than any other retailer in America. We achieved this leadership by understanding our customers needs for convenience, quality and speed. Couche-Tard is committed to these same values, which is why we're thrilled to work with them in Cleveland," said Tom Wyczawski, New Market Entry Officer of Allied Domecq QSR, of which Dunkin' Donuts and Baskin-Robbins are a part. "We're beginning our expansion in Cleveland with a winning combination -- Dunkin' Donuts best-selling coffee and baked goods, combined with Couche-Tard's strong market presence and superb reputation."
The first Couche-Tard-owned Dunkin' Donuts shop, in Warrensville Heights, Ohio, is scheduled to open by the end of September and other locations will open in the coming months.
"At Couche-Tard we are always looking to strategically differentiate and improve our product offer," said Michel Bernard, vice president Midwest Operations, Couche-Tard. "The new partnership with Dunkin' Donuts is key to our food service development. Within the next 12 months Couche-Tard will invest $8 million in the Cleveland area to improve our current stores and to build new ones."
This agreement follows an earlier deal between Dunkin' Donuts and Alimentation Couche-Tard, Inc. in August 2003. Under the terms of that agreement, Dunkin' Donuts granted master franchise rights to the Quebec-based company for the Dunkin' Donuts brand in Quebec. Under that agreement, Couche-Tard is slated to develop more than 100 new Dunkin' Donuts stores over a five-year period, almost doubling the brand's presence in the region.
Dunkin' Donuts has had a presence in the Cleveland market for more than 35 years and currently has 23 stores in the area. The company is actively seeking franchisees interested in development opportunities throughout Greater Cleveland, as well as Akron and Canton, Ohio. For more information on franchising opportunities with Dunkin' Donuts, interested potential franchisees should visit http://www.dunkin-baskin.com.
About Dunkin' Donuts
Founded in 1950, Dunkin' Donuts is the number one retailer of coffee-by-the-cup in America, selling 2.7 million cups a day, nearly one billion cups a year. Dunkin' Donuts is also the largest coffee and baked goods chain in the world and sells more donuts, coffee, bagels and muffins than any other quick service restaurant in America. Dunkin' Donuts has more than 5,800 stores in the United States and 29 other countries. Based in Randolph, MA, Dunkin' Donuts is a wholly-owned subsidiary of Allied Domecq PLC. For more information, visit www.dunkindonuts.com.
About Alimentation Couche-Tard
Alimentation Couche-Tard Inc. is the leader in the Canadian convenience store industry. It is the fourth largest convenience store operator in North America and the second largest independent convenience store operator in North America. The Company currently operates a network of 4,886 convenience stores, 3,070 of which include motor fuel dispensing, located in three large geographic markets in Eastern, Central and Western Canada, as well as 23 American states. Some 34,000 people work at Couche-Tard's head office and throughout the network.
