Article
Q&A: Dunkin' Brands CEO discusses Baskin-Robbins strategy
Nigel Travis says the chain is focused on in-fill growth and refining co-branded units.
February 16, 2010
Of the two chains in Dunkin' Brands portfolio, big sister chain Dunkin' Donuts certainly grabs much of the spotlight. But that doesn't mean Baskin-Robbins doesn't have big plans.
Dunkin' Brands CEO Nigel Travis wants to improve operations as well as store and franchise operations at both chains. He also is working to improve franchisee relations.
Today, QSRweb.com talks to Travis about what's ahead for Baskin-Robbins. Later this week, look for an article on how franchisees are welcoming his new approach.
Responses have been edited for brevity and clarity.
QSRWeb.com: What are the strengths and weaknesses of Baskin-Robbins?
At Baskin-Robbin, we're clearly No. 1 when it comes to hard-scoop ice cream. Like Dunkin' Donuts, we have a heritage that is second to none, and that's very much based on the 31 flavors (served daily in stores). But in our library we have way over 1,000.
I think both businesses have very entrepreneurial franchisees who want to do the rightt thing for their customers.
Probably a weakness on the Baskin-Robbins side is that we're across the country, but we have big gaps that we're currently trying to fill.
How is the new concept, BR Express, being received?
We're still in the early days on the Express. BR Express is basically a soft serve (concept) option that captures the brand, and we see the opportunity to roll more of those out this year.
One thing I'm kind of confident about is for 2010 we've got a renewed focus on our combos (cobranded stores). We've got 1,200 co-branded Baskin-Robbins and Dunkin' Donuts. I'm kind of excited that our new focus — and the new operational support we've put into place for those combos — is going to be beneficial for our franchisees. Job no. 1 in everything we do is improve the franchise economics. If we can get the combos really cranking up, we see that as a great economic opportunity for our franchisees. I think if we can do that — which we will — I think you'll see more combos.
On the Baskin-Robbins side, we've focused very much on building cake (sales). During my first three weeks, I visited California, where we've got 500 stores, and they told me we needed cake advertising for the first time in years. We launched that, and we had a very successful campaign, which was probably highlighted by the song Ice Cream & Cak. That was well noted in all the media. It helped our business on the cake side dramatically.
We need to continue pushing cakes as we go into 2010. So that's been our focus, but last year we also introduced the soft serve in a number of units.
What are you most proud of in your first year with the company?
I'm most proud of that we've developed a strategy that I'm excited about. I think I'm pleased with our focus on unit economics. I'm very pleased with the relationship we have with our franchisees, and most of all I'm pleased I'm here.
I've got two great brands. 2009 was a tough year economically, and I think considering that, we did very well. I'm very excited about what's happening this year and into the future.
Headquarters: Canton, Mass. Parent company: Dunkin Brands Inc., which is owned by a consortium of global private equity firms, including Bain Capital Partners LLC, The Carlyle Group and Thomas H. Lee Partners L.P. Sister chain: Dunkin' Donuts Stores: Systemwide – 6,207, U.S. – 2,597, Baskin-Robbins International – 3,610, BR Express - 13 Sales fiscal year 2009: $5.6 billion Menu: Hard-scoop ice cream, soft-serve vanilla ice cream, ice cream cakes and pies, frozen novelties and a full line of beverages including shakes, smoothies, floats and the Cappuccino Blast, a line of blended coffee and ice cream drinks. Recent innovations: Launched vanilla soft serve nationwide in May 2009 as well as a variety of line extensions using the new product, such as shakes with blend-ins and Fruit Creams — soft serve with real fruit puree;Double-Header cone, featuring a scoop each of hard-scoop ice cream and vanilla soft serve successful "Ice Cream & Cake" promotion.QSR brand rivals: A number of chains and independents in a highly competitive market, most notably Ben & Jerry's (hard-scoop); slab-turned concepts Maggie Moo's Ice Cream Treatery, Cold Stone Creamery and Marble Slab Creamery; and soft-serve concepts with a focus on ice cream cakes Dairy Queen and Carvel Ice Cream.
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