Dunkin' Brands Inks Supplier Deal

Canton, MA: Dunkin' Brands Group Inc. has signed a long-term deal that makes the Dunkin' Donuts franchisee-owned cooperative the exclusive supply chain provider for all Dunkin' Donuts shops in the US.

Dunkin' Brands, which owns Dunkin' Donuts and the Baskin-Robbins ice cream chain, said the deal with National DCP LLC will provide franchisees in new markets with the same product costs as franchisees in established Dunkin' Donuts markets. That, in turn, will help its expansion plans, the Canton, MA, company said.

Dunkin' Brands has previously used franchisee-owned regional distribution centers to supply products to its domestic Dunkin' Donuts franchisees since the 1970s. Supply costs would vary depending on the number of restaurants and other distribution requirements.

The deal with National DCP means uniform costs will eventually be charged across the core distribution area, so franchisees in locations with fewer restaurants won't pay a premium compared with franchisees in locations with more restaurants.

Uniform product costs will be phased in over three years starting in 2012, the company said.

There are nearly 7,000 Dunkin' Donuts locations in the US, and the company plans to more than double that number over the next 20 years.

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