Dunkin' Donuts is bringing its jelly-filled pastries, Munchkins and Arnold Palmer Coolattas to California with its first traditional restaurants in the state in 12 years, the company announced on Tuesday.
The bakery and coffee giant said it will open establishments in Downey, Long Beach, Modesto, Santa Monica and Whittier for starters with a development agreement for nearly 200 places coming soon. Dunkin' Donuts said it hopes to "eventually have as many as 1,000 restaurants throughout the state."
"We are pleased with the solid start to our California development plans, and today's announcement of the locations of our first new traditional Dunkin' Donuts restaurants represents development that is ahead of schedule due to the strong interest of prospective franchisees and consumers across the state," Paul Twohig, president of Dunkin' Donuts U.S. and Canada, and Dunkin' Donuts & Baskin-Robbins Europe and Latin America said in a statement.
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According to Reuters, Dunkin' Donuts' move back into California – it's last traditional restaurant in the state closed in 2002 – sets up a head-to-head battle with Starbucks and the companies coffee brands. Starbucks is dug into the Golden State, with 2,500 establishments, more than it has in any other state, notes Reuters.
McDonald's and Krispy Kreme, which also have a large presence in California, could also be gearing up for a fight along with small chains Peet's Coffee & Tea, Coffee Bean & Tea Leaf and Winchell's Donut House.
Steve Rafferty, senior director of U.S. franchise operations for parent company Dunkin' Brands Group Inc., told the
San Jose Mercury-News that the company expects a challenge not only from competition but in finding quality locations.
"A lot of the other coffee competitors and quick-serve restaurants are already there," Rafferty told the newspaper, pointing out the expense of real estate there. "We're the last ones in. And we know there are drive-through restrictions in certain towns and it will be a little more challenging for us to get the best corner."
Reuters reported that Dunkin' Donuts has three "non-traditional" stores in the state already on a U.S. Marine base near San Diego, inside a San Diego hotel and in a travel center in Barstow.
"We are especially happy to be partnering with such experienced and passionate franchise groups as we begin opening traditional Dunkin' Donuts restaurants in California," Twohig said. "We look forward to keeping Californians running on our brand's high-quality coffee, sandwiches and baked goods."
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