Dunkin Donuts (NASDAQ:DNKN) has struck a deal to open more than 1,400 locations in China over the next 20 years. There are currently 16 locations in the country and more than 2,200 across the Asia Pacific region.
Parent company Dunkin Brands Group entered into a long-term master franchise agreement with Golden Cup Pte. Ltd.—a joint venture between Jollibee Worldwide Pte Ltd., based in the Philippines and Jasmine Asset Holding Ltd., a unit of RRJ Capital Master Fund II LP.
"We are delighted to enter into this relationship with Jollibee and RRJ, a group with a proven track record of success in the quick service restaurant industry in China and a deep knowledge of the consumer," said Nigel Travis, chairman and CEO, Dunkin Brands. "Through this franchise development agreement, the largest in our history, we believe we can significantly expand and accelerate Dunkin Donuts presence in China."
At the end of the quarter, Dunkin Donuts had about 8,000 U.S. locations. In the spring, the company announced it would open 20 new stores in Southern California under a multi-unit deal with two franchise groups. Earlier in 2014, the company said it would be seeking "non-traditional" locations in which to serve up donuts and coffee, including public libraries, casinos and hotel lobbies. Internationally, the company announced earlier this week that it would expand into Mexico.
The first new restaurant in China is expected to open in the fourth quarter of 2015.
"We are excited about the prospect of bringing Dunkin Donuts to China. Dunkin Donuts is a leading global brand in baked goods and coffee, and the China market offers a tremendous opportunity as its consumer base continues to grow in number and spending power," said Tony Tan Caktiong, chairman of Jollibee Foods Corporation.
Dunkin Donuts joins a host of retailers that announced they would expand into China in 2015. For example, Walmart (NYSE:WMT) is planning on opening seven Sam's Clubs in China over the next three years.
-See this Dunkin Donuts press release
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