Baskin Robbins 2011 Annual Report Download - page 17

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Our brands
Our brands date back to the 1940s when Bill Rosenberg founded his first restaurant, subsequently renamed
Dunkin’ Donuts, and Burt Baskin and Irv Robbins each founded a chain of ice cream shops that eventually
combined to form Baskin-Robbins. Dunkin’ Donuts and Baskin-Robbins share the same vision of delivering
high-quality beverage and food products at a good value through convenient locations.
Dunkin’ Donuts—U.S.
Dunkin’ Donuts is a leading U.S. QSR concept, with leading market positions in each of the coffee, donut, bagel,
muffin and breakfast sandwich categories. Since the late 1980s, Dunkin’ Donuts has transformed itself into a
coffee and beverage-based concept and is the national leader in hot regular coffee, with sales of over 1 billion
servings of coffee annually. From the fiscal year ended August 31, 2001 to the fiscal year ended December 31,
2011, Dunkin’ Donuts U.S. systemwide sales have grown at an 8.7% compound annual growth rate. There can be
no assurance that such growth rates will be sustained in the future. Total U.S. Dunkin’ Donuts points of
distribution grew from 3,613 at August 31, 2001 to 7,015 as of December 31, 2011. Approximately 85% of these
points of distribution are traditional restaurants consisting of end-cap, in-line and stand-alone restaurants, many
with drive-thrus, and gas and convenience locations. In addition, we have APODs, such as full- or self-service
kiosks in grocery stores, hospitals, airports, offices and other smaller-footprint properties. We believe that
Dunkin’ Donuts continues to have significant growth potential in the U.S. given its strong brand awareness and
variety of restaurant formats. For fiscal year 2011, the Dunkin’ Donuts franchise system generated U.S.
franchisee-reported sales of $5.9 billion, which accounted for approximately 71.0% of our global franchisee-
reported sales, and had 7,015 U.S. points of distribution (including more than 3,100 restaurants with drive-thrus)
at period end.
Baskin-Robbins—U.S.
Baskin-Robbins is the #1 QSR chain in the U.S. for servings of hard-serve ice cream and develops and sells a full
range of frozen ice cream treats such as cones, cakes, sundaes and frozen beverages. While our Baskin-Robbins
U.S. segment has experienced decreasing comparable store sales in three of the last four fiscal years and the
number of Baskin-Robbins stores in the U.S. has decreased in each year since 2008, Baskin-Robbins enjoys 92%
aided brand awareness in the U.S., and we believe the brand is known for its innovative flavors, popular
“Birthday Club” program and ice cream flavor library of over 1,000 different offerings. We believe we can
capitalize on the brand’s strengths and generate renewed excitement for the brand. Baskin-Robbins’ “31 flavors”,
offering consumers a different flavor for each day of the month, is recognized by ice cream consumers
nationwide. For fiscal year 2011, the Baskin-Robbins franchise system generated U.S. franchisee-reported sales
of $496 million, which accounted for approximately 5.9% of our global franchisee-reported sales, and had 2,457
U.S. points of distribution at period end.
International operations
Our international business is primarily conducted via joint ventures and country or territorial license
arrangements with “master franchisees”, who both operate and sub-franchise the brand within their licensed area.
Our international franchise system, predominantly located across Asia and the Middle East, generated franchisee-
reported sales of $1.9 billion for fiscal year 2011, which represented 23.1% of Dunkin’ Brands’ global
franchisee-reported sales. Dunkin’ Donuts had 3,068 restaurants in 31 countries (excluding the U.S.),
representing $636 million of international franchisee-reported sales for fiscal year 2011, and Baskin-Robbins had
4,254 restaurants in 48 countries (excluding the U.S.), representing approximately $1.3 billion of international
franchisee-reported sales for the same period. From August 31, 2001 to December 31, 2011, total international
Dunkin’ Donuts points of distribution grew from 1,581 to 3,068, and total international Baskin-Robbins points of
distribution grew from 2,231 to 4,254. We believe that we have opportunities to continue to grow our Dunkin’
Donuts and Baskin-Robbins concepts internationally in new and existing markets through brand and menu
differentiation.
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