The US-based ice-cream and doughnut franchiser as well as coffee brand Dunkin Brands is set to be launched in South Africa.
This was revealed by Grand Parade Investments (GPI) which said that it had concluded all necessary agreements with Nasdaq-listed Dunkin’ Brands to open as many as 250 Dunkin’ Donuts and 70 Baskin Robbins stores in SA.
The brands, which were founded in 1950 by William Rosenberg in Quincy, Massachusetts, has more than 11,500 Dunkin’ Donuts restaurants in 40 countries and about 7,600 Baskin-Robbins outlets in nearly 50 countries, and is set to develop more than 250 Dunkin’ Donuts and 70 Baskin-Robbins outlets in the country over the coming years, with a focus on Cape Town and Johannesburg.
Dunkin Brand also said that their agreement with GPI also called for the introduction of Baskin-Robbins ice cream products to supermarket chains and convenience stores in South Africa over the next several years. The brand saw no much competition in the hard-scoop ice cream and ice cream cake markets in South Africa, as ice cream is primarily known within the confines of supermarkets.
The arrival of Dunkin’ Donuts’ followed that of Domino’s Pizza and global doughnut company and coffee retailer Krispy Kreme, which opened an outlet in Rosebank, Johannesburg last November. Others like NYSE-listed Starbucks, the maker of caramel macchiatos and pumpkin-spice lattes, are equally expected to open coffee shops in SA this year.
Explaining their aim for inviting the Dunkin brand into SA, GPI’s executive chairman Hassen Adams said they aimed at giving satisfaction to South African consumers. “At GPI, we work with world-class partners to develop brands that will resonate with South African consumers, which is why we’re thrilled to bring Dunkin’ Donuts and Baskin Robbins to the market,” he said as the company is ready to offer South African consumers a locally designed regional menu to cater to the domestic market
Interestingly, out-of-home consumption has been largely dominated by Famous Brands’ Steers and Milky Lane chains, while KFC and McDonald’s also offer a range of popular ice creams. At the premium end, Häagen-Dazs has about five stores across the country and its ice creams are sold at retailers and garage forecourts. But with the arrival of Dunkin brand, the result will definitely be different.
Not only would the south African people enjoy the crispy and tasty products of the Dunkin brand, the country’s economy also will; especially as the company is known to have shares of about 2.5 percent at $38.76 in late morning trading on Thursday January 21 2016.
The deal is still subject to approval from the Reserve Bank’s Financial Surveillance Department, and outlets are planned to be both corporate-owned and franchise-modeled.