Industry News | August 7, 2008

Dunkin' Donuts Expands in Houston

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Dunkin' Donuts, the world's largest coffee and bakery quick-service restaurant chain, announced today the signing of two multi-unit store development agreements for 107 new restaurants in Houston. The Kainos Partners Holding Company, LLC agreement includes the opening of 75-units throughout Houston with 10 scheduled to open in 2009. Southern Donuts, LLC plans to open 32 units with six scheduled to open in 2010. Site selection will begin soon for both franchisees.

Kainos Partners Holding Company, LLC is a Dunkin' Brands' franchisee currently developing more than 150 new Dunkin' restaurants in New York, South Carolina, and Nevada. Kainos Partners, LLC was formed in May 2005 and has already completed the opening of 42 locations--16 in Buffalo, New York, 13 in the upstate of Greenville, South Carolina, and most recently opened its 13th of 41 planned restaurants in Las Vegas, Nevada. Kainos Partners Holding Company, LLC plans to open an additional 20 stores in the Buffalo, South Carolina, and Las Vegas markets over the balance of 2008.

Kainos Partners Holding Company, LLC received Dunkin Brands Rising Star of the year award for 2006 and Developer of the Year for 2007 at its recent Annual Enterprise Awards Banquet.

Southern Donuts, LLC owners Mike Kevlin and Mike Riley, both residents of Flower Mound, Texas, bring a diverse background to the Dunkin Donuts team, including corporate and franchise restaurant experience with Wendy's, Dairy Queen, and Starbucks, as well as the management of office and retail development projects valued at over $100 million.

"Dunkin' Donuts is excited to welcome Kainos Partners Holding Company, LLC and Southern Donuts, LLC to the Houston market," says Lynette McKee, CFE, vice president of franchising, Dunkin' Brands Inc. "Dunkin' Donuts' development of Houston and the state of Texas is part of an aggressive national growth strategy, which includes expanding in existing markets while entering new cities across the country to help direct the company's future growth."

In addition to the two store development agreements totaling 107 units mentioned above, Dunkin' Donuts' is still seeking new and existing franchisees to purchase a minimum of 20 restaurants in the Greater Houston area north of the city.

Dunkin' Donuts has recently experienced explosive growth across the state of Texas including the sale of a couple hundred units in Dallas, Austin, and San Antonio. In addition, market development opportunities still exist in Dallas and San Antonio, and the rest of Texas is expected to be released soon for market development.