The three Baton Rouge Dunkin’ Donuts locations have been celebrating National Coffee Day, which was Tuesday, all week by giving customers a free cup of coffee. But the promotion is about more than just coffee: It’s about elevating the brand’s profile in the market as the new owner of the local stores prepares to expand.
Tampa, Florida-based franchisee Vik Patel acquired the three Baton Rouge Dunkin’ Donuts locations from two franchisees in early August and is planning to open two new stores in the market early next year. He has been scouting locations and has several possible sites in the southeast portion of the parish.
“We’ve kicked around six or seven deals near LSU, Siegen Millerville, all over Baton Rouge,” says Patel, who in three years has grown the number of Dunkin’ Donuts stores in the Tampa market from 45 to 160. “We’re far enough along with a couple of sites we’re confident we’ll have a deal or two signed by the end of the year.”
The local donut market has become increasingly competitive in recent years with the expansion of market leader Mary Lee Donuts, which recently opened its 20th store, and the entrance of several independent specialty donut shops like Mr. Ronnie’s Famous Hot Donuts and Tiger Deaux-Nuts. But Patel believes there’s plenty of room for Dunkin’ Donuts, which is a Massachusetts-based chain that has never really penetrated the Louisiana market.
Patel believes they key for Dunkin’ Donuts to make inroads locally is through its sales of beverages, iced and hot coffee. In his Florida locations, beverage sales account for more than 40% of total revenues, while donuts make up another 40% and breakfast sandwiches comprise the rest.
“You begin by building the coffee habit,” he says. “Typically people don’t eat donuts every morning. So the coffee builds the ritual and the frequency of the visits.”
Patel says he’s hoping to open an additional four or five stores locally in 2016 and that he eventually would like to expand into the New Orleans market.
“I’ve driven around and feel good about the traffic patterns,” he says. “I’ve been with the brand for nine years and seen it grow here in Tampa. I feel Baton Rouge and Louisiana can become that type of market.”
—Stephanie Riegel
