Business

This is when Dunkin’ Donuts is launching in South Africa

Staff Writer

 ·13 Sep 2016

Grand Parade Investments is set to bring the Dunkin’ Donuts and Baskin-Robbins franchises to South Africa in the fourth quarter, the company said on Tuesday.

GPI is the group which brought popular fast food outlet Burger King back to South Africa in 2013.

The listed company told BusinessTech that there are currently 69 Burger King outlets in South Africa, while plans are in place to launch Baskin Robbins and Dunkin’ Donuts in Q4 2016.

In January Grand Foods acquired the South African master franchise licences for Dunkin’ Donuts and Baskin-Robbins, from the Dunkin’ Brands group.

According to the Dunkin’ Brands group, under the agreement, Grand Parade would develop more than 250 Dunkin’ Donuts restaurants and more than 70 Baskin-Robbins shops in South Africa over the coming years, with an initial focus on Cape Town and Johannesburg.

Dunkin’ Donuts is one of the world’s leading coffee and bakery chains with over 11,500 restaurants in 40 countries. The terms of the Dunkin’ Donuts licence requires that GPI open 80 corporate-owned restaurants and 210 franchised restaurants over 10 years.

Baskin-Robbins is the world’s largest chain of specialty ice cream shops with 7 600 outlets in 50 countries. The terms of the Baskin-Robbins licence requires that GPI open 71 corporate-owned shops over a 10-year period.

The master franchise licences of both Dunkin’ Donuts and Baskin-Robbins gives GPI a right of first refusal to enter Namibia, Botswana, Zambia and Mauritius.

GPI said in a statement on Tuesday that it increased revenue by 54% to R772.3 million for the full year, ended 30 June 2016, as it ‘intensified execution of its strategy in the food industry’.

GPI chief executive Alan Keet said the group showed a pleasing return to profitability with headline earnings per share from continuing operations of 1.99 cents (against a loss of 10.17 cents per share in the prior year) as a result of significant improvement in the operating performance of the food related investments, in particular, Burger King.

The group reported a profit of R192.5 million from continuing operations after tax, a 448% increase from the R55.2 million loss reported in the prior period.

The group noted that its acquisition of the master franchise licences for Dunkin Donuts and Baskin-Robbins cost of R12.3 million.

Food’s contribution to the group’s headline earnings improved by 55%, amounting to a loss of R33.8 million (compared to a loss of R75.0 million in 2015) as a result of improved operating performances by Burger King.

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