Baskin Robbins 2012 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2012 Baskin Robbins annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Growing Our Brands Globally
There are significant growth opportunities for both our brands outside the U.S. Baskin-Robbins is a
meaningful contributor to our growth today and will be for the long-term. We continue to put the
foundation in place for Dunkin’ Donuts to become a medium- to long-term growth driver.
In 2012, we added 299 net new Baskin-Robbins restaurants outside the
U.S., for an impressive 7 percent growth rate. This past January, we
announced we had signed five new franchise agreements to greatly
expand the Baskin-Robbins presence in China. The new franchise
agreements include plans to open 249 additional Baskin-Robbins shops across
China over the next 10 years, more than tripling our presence in the country.
Baskin-Robbins U.S.: On a Path to Growth
In 2012, Baskin-Robbins U.S., which has been a flat business, began to evidence signs that it was
positioned for future growth.
Our focus on three key areas is driving this change: getting back to the basics on operations,
refining and enhancing marketing, and optimizing the store base. While we’ve made great
progress in all three areas – as evidenced by the six straight quarters of positive
comp store sales – I’d like to point out that we’re nearing the end of the store
optimization initiative and will likely complete it during the
course of 2013, which would mark the beginning
of the brand’s slow growth trajectory.
In keeping with our international development strategy, we are
focusing our efforts and resources on developing our brands in
high potential markets, such as India, where we had 7 Dunkin‘
Donuts restaurants at the end of 2012. Another market that we
believe presents a great opportunity for both our brands is
Vietnam. We opened 13 Baskin-Robbins restaurants in Vietnam
last year with a new franchisee, and recently signed a franchise
agreement to develop Dunkin’ Donuts in that country as well.
We are approaching our international development as we are
in the U.S. – with an intense focus on franchisee profitability.
It’s not about the number of countries we are in; it’s about being
in the right countries with the right franchise partners and offering
our customers the best global experience.