After two decades, Dunkin' Donuts head back to Brazil under a new franchising company.
Jeremy Vitaro, vice president of international development for Dunkin' Brands, said in an interview with The Wall Street Journal that they plan to open 150 branches around the country in the next few years. They're not just bring caffeine and donuts in the coffee-addict Brazil, too.
This time, Dunkin' Donuts opts for a different strategy in franchising, going for regional contracts instead of just one national franchisee.
The doughnut retailer signed on with a different company to manage the franchising in the country. They signed with OHL Group as the franchisee in the capital of Brazil, Brasilia, and the neighboring Goiás state. They plan to open 65 stores in the area and to launch the first one within six months.
Vitaro said that the company is also talking with possible franchisees in Rio de Janeiro and São Paulo.
The company isn't ready to divulge their plans for the menu, but Vitaro said that food specialists from Dunkin's base in Massachusetts traveled to Brazil a couple of times to understand the local palate. The executive said that they're planning for a varied menu that combines the brand's signature and the local tastes.
In India, they sell curry donuts, and in South America, they incorporate dulce de leche in their products. The company plans to develop something similar in the country.
Dunkin' Donuts ended their two-decade stint in Brazil in 2005 for several reasons including a weak supply chain in South America. Experts also said that the locals couldn't see the brand as anything but a doughnut shop instead of a restaurant that has a lot to offer. There were also problems with the franchising model.
Currently, the company has 11,000 stores in 33 countries, South Korea leading the pack outside the U.S. with about 900 stores. Colombia has the most number of stores in Latin America with 171 stores.
