Fast food giant Dunkin’ Donuts, which is a part of Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) , recently opened its new outlet inside Hard Rock Hotel & Casino Las Vegas. This marks the brand’s first ever restaurant in a Hard Rock Hotel & Casino and the 27th throughout the state of Nevada.
In fact, this new location is in agreement with franchisee Hudson Group, which currently operates over 20 Dunkin’ Donuts restaurants. The outlet will serve guests 24-hours a day, seven days a week, and forms a part of the brand’s non-traditional portfolio.
The agreement is in sync with the company’s plan to fuel growth in western U.S. In fact, the company is offering special development incentives in order to continue recruiting more franchisees.
Opportunities to Grow
Apart from foraying into domestic markets, the company is also looking to expand its footprint internationally, especially in the emerging markets of Asia and the Middle East. Currently, the company has more than 12,200 restaurants in 45 countries globally, and is on track toward achieving its long-term goal of opening 17,000 restaurants in the U.S. alone.
Interestingly, the brand’s presence includes 750 alternative points of distribution, including locations on college campuses, hotels, mass transit stations, travel centers, supermarkets, entertainment centers, and military bases.
Meanwhile, the licensing deals with Keurig Green Mountain and J.M. Smucker to sell Dunkin' K-Cup pods to retailers as well as online customers continue to expand Dunkin’s brand reach. The company’s franchised business model, various sales and digital initiatives like product launches, its loyalty program and mobile ordering service bode well too. Menu innovation and increased focus on establishing itself as a beverage leader should also aid sales, going forward.
Headwinds
Dunkin’ Donuts admits facing tough competition from McDonald’s Corporation (NYSE:MCD) and Restaurant Brands International, Inc.’s (NYSE:QSR) Burger King that have been cutting into its afternoon traffic. Competition also arises from other well-established coffee makers like Starbucks Corporation (NASDAQ:SBUX) .
Additionally, a soft consumer spending environment in the U.S. restaurants space and challenging comps growth in international markets remain potent headwinds.
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