Dunkin' Donuts will soon open the first of 20 planned stores in Russia after an 11-year absence. The first restaurant in Moscow, located on Novy Arbat Street, one of the city's most prestigious and historic areas, will open to the public May 11. This opening marks Dunkin' Donuts' plans to expand steadily throughout Russia and Ukraine over the next several years.
Donuts Project LLC, Dunkin' Donuts' franchise partner in Russia, is set to open between 10 and 20 Dunkin' Donuts restaurants in Moscow and the Moscow region in 2010. Konstantin Petrov, founder of Donuts Project LLC, brings years of experience and expertise as a successful businessman within the region's restaurant and catering industry.
"We are extremely excited to open our first Dunkin' Donuts restaurant in Russia and to begin our steady and strategic expansion throughout the region," said Anthony P. Pavese, COO for Dunkin' Donuts International, in a news release. "Russia is experiencing significant growth, and the pace of everyday life is becoming faster. We believe Dunkin' Donuts will offer Russian consumers a quick, convenient place to stop, throughout their hectic days, for great coffee, baked goods and high-quality snacks that will help keep them running.
"Dunkin' Donuts is one of America's most beloved brands, and we believe the Russian people will embrace this restaurant concept as well," said Konstantin Petrov, founder of Donuts Project LLC. "I am proud to be Dunkin' Donuts' local partner in Moscow and the Moscow region, with the total population exceeding 20 million, and I look forward to introducing the high-quality coffee and baked goods of this brand throughout the market."
The Dunkin' Donuts restaurant in Moscow offers a complete menu of Dunkin' Donuts' internationally recognized coffee, lattes, donuts and bakery goods. The restaurant will also serve items customized with flavors adapted to suit local taste preferences, such as donuts filled with scalded cream or raspberry, which tastes similar to a traditional raspberry jam. The restaurant will provide a welcoming environment for customers to enjoy Dunkin' Donuts' food and beverages in a friendly and fun atmosphere.
According to the Wall Street Journal. Dunkin' Donuts hopes to match the success of rival Starbucks. However, Dunkin' Brands CEO Nigel Travis said that the chain expects beverage sales to be 30 percent of the mix, about half of what it is in the United States.
Dunkin' Donuts' entry into Russia comes on the heels of the brand's expansion throughout Europe and the Asia-Pacific market. In Europe, the company has approximately 70 Dunkin' Donuts restaurants in Germany, Spain and Bulgaria. Last year, the company opened its first two restaurants in Shenzhen, Guangdong Province, and has secured agreements to open a total of 480 shops in Mainland China over the next 10 years. Today, the company has nearly 1,800 Dunkin' Donuts shops in the Asia Pacific region, including more than 12 in China, 800 in Korea, 600 in the Philippines and 260 in Indonesia. Dunkin' Donuts currently has more than 9,000 restaurants on four continents around the world.
Dunkin' Brands, parent company of Dunkin' Donuts and Baskin-Robbins, already has established a successful and growing presence in Russia. Baskin-Robbins, the world's largest chain of ice cream specialty shops, has nearly 150 shops in the region and recently opened its first shop in Sochi, home of the 2014 Olympic Winter Games. The company recently signed an agreement to develop more than 150 additional shops over the next several years in Russia and the pre-Soviet republics. In January, Baskin-Robbins was awarded the title of "Official Purveyor to the Moscow Kremlin." As part of this exclusive honor, Baskin-Robbins will feature the Kremlin logo prominently in-store and on all of its packaging in Russia.
Emerging market
Dunkin' Donuts is one of several quick-service brands that have targeted Russia for growth as its middle class continues to grow. Yum! Brands identified the country in its latest quarterly earnings call as one of several emerging markets it is targeting in 2010 and beyond.
According to a Euromonitor International special report, Russia has one of the highest per capita annual disposable income levels among emerging markets. Per capita disposable income in Russia fell 6.1 percent in 2009 due to the financial crisis but was still higher than other countries, including China, India and Indonesia.
McDonald's recently celebrated its 20th anniversary in Russia, and Burger King opened its first store in the country in January.
