Dunkin Brands Group, the parent company of Dunkin and Baskin-Robbins, has confirmed that it has held preliminary talks that are to be taken over by Inspire Brands.
Dunkin & # 39; Brands Group, a franchisor of fast food restaurants that offer hot and cold coffee and baked goods, said there was no certainty that a deal could be reached. At the end of the second quarter of fiscal 2020, the 100 percent franchise business model included more than 13,000 Dunkin restaurants and around 8,000 Baskin-Robbins restaurants. In total, the company has more than 21,000 sales outlets in more than 60 countries worldwide
The company said it would not comment on the discussion with Inspire until a transaction is agreed or the discussions ended.
Chris Pappas, vice director of the Net Lease Division of Marcus & Millichap, told GlobeSt.com that Dunkin & # 39; s executives have taken several steps to strengthen the brand. That includes the Donuts dropping their name to compete more directly with Starbucks and investing heavily in their online and app capabilities in 2016 by introducing mobile ordering on the go and introducing a 2,200-square-foot store concept with double Passage in 2018.
"They used one of the drivers for online orders," says Pappas. “People could get their drink and go. At the same time, they announced that 75% of their new businesses would have future passages. "
Once COVID-19 was hit, those movements paid off even more. "They were lucky enough to have done all these things a few years ago that were optimal for this pandemic," says Pappas. "Of course they hadn't planned a pandemic, but all they did was enable them to thrive in this environment."
According to Randy Blankstein, president of the Boulder Group, Dunkin is one of many retailers and restaurants that have migrated into independent stores.
"Net rental benefits because people are looking for free-standing buildings"Said Blankstein in a previous interview with GlobeSt." They see Panera, Starbucks, Dunkin Donuts and such brands leave strip centers they don't like and find their own buildings. "
Regardless of whether Dunkin is sold, Pappas believes it will continue to be viewed as a strong tenant.
"It's going to be a very desirable asset," says Pappas. “In general, the prices in the Dunkin stores are low. So you have a wider base of buyers interested in acquiring these types of assets. Going forward, transit will be vital for net rental investors and how safe they feel as these stores can stay open during a health crisis or pandemic. And they are generally in areas with favorable demographics. "