Baskin-Robbins Aims To Open 1,600 Stores In Next 4 Years; Company Actively Recruiting Franchisees To Compete With Coldstone Creamery

March 30, 2007 by Mark | 1 Comment

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Baskin-Robbins has a scoop for you: The ice cream chain hopes to open 1,600 new shops in the next four years.

With rival Coldstone Creamery rapidly gaining ground, Baskin-Robbins is stepping up its efforts to recruit new franchisees in the U.S. and abroad.

The chain, owned by Canton-based Dunkin’ Brands Inc., hopes to add about 400 shops a year over the next four years.

The bulk of the growth will occur outside the U.S., where Baskin-Robbins already has 3,000 of its 5,600 stores.

Last year it added 150 new shops in Japan, one of its fastest-growing markets. But James Franks, Baskin-Robbins’ director of franchising, said there’s plenty of room for growth within the U.S., as well.

‘‘We’re going in the neighborhoods, where the people are,’’ Franks said.

Although Baskin-Robbins has shops in virtually every major metropolitan area, most of the metro areas have potential to support more shops, Franks said.

According to Chicago-based restaurant industry researchers Technomic, Baskin-Robbins had sales of $590 million in the U.S. last year, up 6.5 percent from 2005. During the year Baskin-Robbins added 47 new stores.

But Coldstone sales rose 16 percent to $471 million as the Scottsdale, Ariz.-based chain opened 145 new stores.

Just as Baskin-Robbins’ ‘‘31 Flavors’’ slogan was designed to top rival Howard Johnson’s 28 varieties, Coldstone promotes its ‘‘custom creations’’ of ice cream paired with dozens of toppings including fruit, nuts, cake and candy.

Baskin-Robbins was overdue for a challenge in the once-stagnant frozen dessert category, and Coldstone Creamery’s gourmet-style ice cream has generated excitement among consumers, said Joseph Pawlak, a Technomic vice president.

‘‘They’re a new name and they position themselves as a higher super-premium ice cream product,’’ Pawlak said.

Baskin-Robbins has responded by updating its store architecture, adding a ‘‘sundae bar’’ where employees assemble frozen desserts.

In Franchising in USA and/or Canada, News

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