Dive Brief:
- Dunkin’ will open its first locations in Puerto Rico next year through a partnership with Fusion Restaurant Group, an operator based on the island, according to a Monday press release.
- The chain will share more information on its future locations as expansion progresses.
- The deal marks Dunkin’s return to the U.S. territory more than a decade after the brand pulled back its presence on the island.
Dive Insight:
Dunkin’s prior presence on the island could ease its return, since a number of consumers there already have a relationship with the chain, and may be nostalgic for its products.
“Puerto Rico represents a compelling opportunity to expand Dunkin’s presence in a market where the brand already enjoys strong awareness and affinity,” said Michael Haley, Inspire Brand’s president and managing director, international.
Haley said Dunkin’s international strategy focuses on finding experienced restaurant operators with significant local experience in the market where they will develop Dunkin units’.
Last year, Dunkin’ hit the 10,000-store mark in the U.S. Its American store system comprises the vast majority of the chain’s roughly 14,200 units. Now, the chain said it has momentum to start building out the next 10,000 stores. While Puerto Rico is controlled by the United States, and its inhabitants are American citizens, the island is sometimes treated as an international market by restaurant brands.
A number of major brands are expanding their presence on the island. In 2024, Chick-fil-A announced it would build 15 restaurants in Puerto Rico by 2030. Restaurant Brands International’s subsidiaries Burger King and Popeyes are both investing significantly in Puerto Rican development. Earlier this year, Dairy Queen said it would enter the market and develop 20 restaurants.
Inspire Brands said earlier this year that it was planning to pursue an initial public offering. Finding development whitespace for its major brands, like Dunkin’, could help bolster the company’s valuation and long-term outlook.
