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FDD Talk: Dunkin’ Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review)

Last updated on July 20, 2022 by Franchise Chatter Leave a Comment
in Coffee Franchise, Donuts Franchise, FDD Talk: Food Franchises, Franchise Earnings



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In this FDD Talk post, you’ll learn the following:

  • Section I – Estimated initial investment (franchise costs) for a Dunkin’ franchise, based on Item 7 of the company’s 2022 FDD
  • Section II – Initial franchise fee, royalty fee, and marketing fee for a Dunkin’ franchise, based on Items 5 and 6 of the company’s 2022 FDD
  • Section III – Number of franchised and company-owned Dunkin’ outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD
  • Section IV – Background information on the Dunkin’ franchise opportunity, including relevant news updates
  • Section V – Presentation and analysis of Dunkin’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:
  • average gross sales by geographic region for continental U.S. freestanding Dunkin’ Restaurants (and separately, for Dunkin’/Baskin-Robbins Combo Restaurants) that have been open for business to the public for at least one year during a one-year measuring period from November 1, 2020 to October 31, 2021
  • average gross sales by geographic region for continental U.S. shopping center/storefront Dunkin’ Restaurants (and separately, for Dunkin’/Baskin-Robbins Combo Restaurants) that have been open for business to the public for at least one year during a one-year measuring period from November 1, 2020 to October 31, 2021
  • average gross sales by geographic region for continental U.S. gas & convenience Dunkin’ Restaurants that have been open for business to the public for at least one year during a one-year measuring period from November 1, 2020 to October 31, 2021
  • average gross sales by geographic region for continental U.S. drive-thru only Dunkin’ Restaurants that have been open for business to the public for at least one year during a one-year measuring period from November 1, 2020 to October 31, 2021
  • average cost of goods sold and labor costs by geographic region for continental U.S. Dunkin’ Restaurants (and separately, for Dunkin’/Baskin-Robbins Combo Restaurants) for the period from October 25, 2020 to October 23, 2021
  • Section VI – Key ratios, comparables, computations, and analyses for the Dunkin’ franchise opportunity (exclusive content for Platinum subscribers)

Section I – Dunkin’ Franchise Costs

  • Dunkin’ (Freestanding Restaurant) franchise costs, based on Item 7 of the company’s 2022 FDD:
  • Initial Franchise Fee (20-year term):  $40,000 to $90,000
  • Building Costs:  $180,000 to $600,000
  • Site Development Costs:  $13,000 to $350,000
  • Additional Development Costs:  $12,000 to $90,000
  • Equipment, Fixtures, and Signs:  $189,000 to $300,000
  • Restaurant Technology System:  $65,000 to $95,000
  • Licenses, Permits, Fees, and Deposits:  $3,500 to $5,500
  • Real Estate Costs:  Amount Not Specified
  • Opening Inventory:  $8,000 to $20,000
  • Miscellaneous Opening Costs:  $9,500 to $70,000
  • Uniforms:  $400 to $1,200
  • Insurance:  $4,500 to $16,000
  • Travel and Living Expenses While Training:  $2,000 to $35,000
  • Marketing Start-Up Fee:  $0 to $10,000
  • Additional Funds for First 3 Months of Operation:  $0 to $105,000
  • Total Estimated Dunkin’ Franchise Costs (Freestanding):  $526,900 to $1,787,700
  • Total Estimated Dunkin’ Franchise Costs (Shopping Center/Storefront):  $437,500 to $1,174,700
  • Total Estimated Dunkin’ Franchise Costs (Gas/Convenience Store Outlet):  $211,700 to $1,017,800

Section II – Dunkin’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

  • Dunkin’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
  • Initial Franchise Fee (20-year term):  $40,000 to $90,000
  • Continuing Franchise Fee:  5.9% of Gross Sales
  • Continuing Advertising Fee:  5.0% of total Gross Sales

Section III – Number of Franchised and Company-Owned Dunkin’ Outlets

Franchised

2019

America's Most Lucrative Franchises of the Year
  • Outlets at the Start of the Year:  8,091
  • Outlets at the End of the Year:  8,282
  • Net Change:  +191

2020

  • Outlets at the Start of the Year:  8,282
  • Outlets at the End of the Year:  7,790
  • Net Change:  -492

2021

  • Outlets at the Start of the Year:  7,790
  • Outlets at the End of the Year:  8,010
  • Net Change:  +220

Company-Owned

2019

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

2020

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

2021


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  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

Section IV – Background Information on the Dunkin’ Franchise

21 Things You Need to Know About the Dunkin’ Franchise

Appoints New Chief Marketing Officer

1.  In late June 2021, Dunkin’ announced the appointment of marketing veteran Rafael Acevedo to the position of Dunkin’ U.S. chief marketing officer (CMO), effective immediately. Acevedo is a brand marketing leader with deep expertise in spearheading disruptive innovation and leading high-performing teams to deliver transformational growth for the world’s leading beverages. Acevedo will report directly to Scott Murphy, head of the Inspire beverage-snack category and president of Dunkin’, and will serve on the Dunkin’ leadership team.

2.  As Dunkin’ U.S. CMO, Acevedo will lead marketing, product innovation, field marketing, advertising, as well as the brand’s digital marketing initiatives. He will be responsible for developing and executing strategies that build Dunkin’s position as a leading coffee and beverage brand for today’s on-the-go consumer, and will partner closely with the operations team to drive sales.

3.  Murphy said, “Rafael is a highly-experienced, talented, strong business leader with a proven track record of building and modernizing the world’s most iconic and beloved beverage brands. With his extensive brand transformation experience, consumer-centric approach to marketing, and ability to build and inspire teams, we’re confident that he will propel Dunkin’ to the next level.”

4.  Acevedo brings more than two decades of strategy, advertising, and marketing experience to Dunkin’ from Coca-Cola North America, where he has held various senior management positions leading global marketing, innovation, and brand transformation for many of the world’s leading beverage brands. Most recently, he served as the vice president, marketing and general manager for The Coca-Cola Company’s expansive tea portfolio, and he led one of the biggest brand turnarounds in the company’s history with the relaunch of Diet Coke in 2018.

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5.  Prior to Coca-Cola, Acevedo served as a strategic planning manager at Diageo, leading key strategic initiatives such as the expanded distribution partnership with Moet & Chandon. He also served as a corporate finance consultant focused on consumer products at KPMG Consulting.

6.  Acevedo said, “Dunkin’ is part of the fabric of America, and I am thrilled to have the opportunity to join the esteemed team. I believe Dunkin’s potential is unlimited, and I look forward to working with the entire Dunkin’ team and franchise community to build and accelerate the brand’s momentum in the months and years to come.”

Continues to Propel Non-Traditional Development and Capitalize on Convenience in 2021

7.  In mid-August 2021, Dunkin’ unveiled its most recent non-traditional openings and growth plans for the year. At the time of the press release in 2021, the leading coffee company has expanded across Las Vegas at the Convention Center, LINQ Hotel, and Arizona Charlie’s Boulder Casino, as well as reopened with the unveiling of the new Virgin Hotel.

8.  Additionally, the brand opened its 12th location with Great Wolf Resorts at the Manteca, California park and further strengthened its presence in the healthcare setting with locations debuting at the Oak Hill Hospital in Brooksville, Florida and UMass Memorial Medical Center in Worcester, Massachusetts.

9.  Looking ahead towards the remainder of the year, Dunkin’ planned to continue opening non-traditional locations by focusing on airport expansion within New York’s JFK Airport in Terminal 1 and Chicago’s O’Hare Airport in Terminal 5.

10.  According to Chris Burr, director of non-traditional development at Inspire Brands, “Dunkin’ continues to modernize with convenience at the forefront. Our flexible concepts for any non-traditional format have been an essential aspect of our growth over the past decade and will remain a vital part of our future development strategy. As a new member of the Inspire family of brands, Dunkin’s strong experience in non-traditional development complements Inspire’s vision for non-traditional growth across the portfolio, bringing valuable expertise to our best-in-class shared Development team.”

11.  Despite obstacles in 2020, Dunkin’s non-traditional development continued with 27 additional restaurants, including openings throughout airports in Boston, San Antonio, St. Petersburg-Clearwater, and New York City. In addition, the brand developed retail restaurants in the Mall of America, American Dream Mall, and a Shop Rite Supermarket in New York, as well as Air Force Bases in New Mexico and Utah, and on campuses at the University of Maryland and University of Massachusetts at Dartmouth.

12.  Dunkin’s non-traditional pipeline was supported by the brand’s rapid response to the pandemic with operational modifications to sanitation and social distancing procedures, while continuing to serve guests on-the-go with a relatively contactless, entirely disposable, and modernized experience.

Names Anomaly as New Creative Agency of Record

13.  In mid-November 2021, Dunkin’ announced that Anomaly New York will serve as its new lead creative agency of record. The announcement came after a competitive review that was initiated last summer. Working closely with Dunkin’s marketing leadership and existing partners, Anomaly will lead overall creative strategy and development to help Dunkin’ continue to stand apart as a favorite on-the-go stop for coffee, cold beverages, and snacking.

14.  Anomaly will have direct responsibility for national broadcast, digital video and audio, social, and out-of-home advertising development. Anomaly’s initial work for Dunkin’ is expected to debut in 2022.

15.  Rafael Acevedo, U.S. chief marketing officer, Dunkin’, said, “We were very impressed with Anomaly’s creative insights and approach to modernize the brand ethos of ‘America Runs on Dunkin” while staying true to the brand heritage and purpose, and we are excited to partner with them to write the next chapter in the history of Dunkin’. We have bold ambitions for the Dunkin’ brand and we are confident that Anomaly’s creativity and strong connection with culture will help us unlock growth and further accelerate brand momentum.”

16.  Anomaly was chosen for its strategic prowess, creative output, and successful track record in developing breakthrough campaigns to deepen relationships between customers and well-known brands, including Johnnie Walker, Dick’s Sporting Goods, Coca-Cola, and Google. The agency has distinguished itself by delivering bold creative ideas that influence culture and propel brands forward.

17.  Mike Byrne, founding partner and global CCO of Anomaly, said, “Early on in the process this became personal. We had something that we lived and breathed. It didn’t feel like work at all. It was more like we were on a mission and they were with us every step of the way.”

Company History

18.  Dunkin’ (formerly Dunkin’ Donuts) was founded in 1948 as Open Kettle by Bill William Rosenberg in Quincy, Massachusetts. The restaurant, which sold donuts and coffee, was a success. Two years later, Rosenberg renamed the company Dunkin’ Donuts. Rosenberg started franchising Dunkin’ Donuts in 1955 and the brand grew quickly over the next few decades. By the end of the 1990s, Dunkin’ Donuts had grown to over 2,500 locations worldwide.

19.  In 1990, Dunkin’ was acquired by Baskin-Robbins owner Allied Lyons (now Allied Domecq). A decade and a half later, in 2005, Dunkin’ and Baskin-Robbins (operating under the name Dunkin’ Brands) were sold to a private equity consortium of Bain Capital, Carlyle Group, and Thomas H. Lee Partners for $2.4 billion. Then, in 2020, Dunkin’ Brands and all of its assets were sold to Inspire Brands.

20.  A year before, Dunkin’ had dropped the “Donuts” from its name as it shifted toward producing a larger drink menu and other food items beyond donuts. During all of the ownership changes, Dunkin’s growth continued around the world. Today, there are Dunkin’ locations across more than 42 countries.

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21.  Dunkin’ ranked No. 11 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Dunkin’ Franchise (Item 19, 2022 FDD)

Part 1 – Single-Branded Restaurants

  • There were 7,090 single-branded Dunkin’ Restaurants (excluding Combo and Special Development Opportunity (SDO) Restaurants) operating in the Continental U.S. as of October 31, 2021, all of which franchisees owned.
  • Dunkin’ excluded 224 of them from these financial performance representations because they first opened for business after November 1, 2020 and did not operate for the full 12 months from November 1, 2020 through October 31, 2021. Dunkin’ also excluded the 107 Dunkin’ Restaurants that closed between November 1, 2020 and October 31, 2021, all of which had operated for more than 12 months before they closed.
  • The first set of tables provides financial performance representations that are actual, historical results of the remaining 6,866 single-branded Dunkin’ Restaurants in the Continental U.S. (excluding Combo and SDO Restaurants) that were open for business to the public for at least one year at the end of the one-year measuring period on October 31, 2021.
  • Dunkin’ also excluded from all of these financial performance representations the Restaurants located in Alaska or Hawaii and the Restaurants that qualify as SDOs (other than those that are Gas & Convenience Restaurants). Dunkin’ does not believe that the results of Restaurants in Alaska or Hawaii have a reasonable basis for prospective franchisees developing Restaurants in the Continental U.S., and Restaurants that qualify as SDOs have sales and cost structures that vary widely from one location to another. Similarly, Dunkin’ does not make any financial performance representation for a prospective franchisee developing a Restaurant in Alaska or Hawaii or a Restaurant that qualifies as an SDO.
  • The site types listed in the following tables are defined as follows:
  • Freestanding: A Restaurant, either newly constructed or an existing structure (to be retrofit), that does not share any common walls with any third party.
  • Shopping Center/Storefront: A Restaurant that shares a common wall (or walls) with third parties. The Restaurant could be an anchor (endcap) or inline tenant space in a strip center, or it could be a location in a high density, multiple level construction (typically urban/downtown office building setting), sharing common wall and ceiling/floor construction with any third party.
  • Gas & Convenience Restaurants: A Restaurant that is a sub- or shared tenancy within a Gas & Convenience host environment.
  • Drive-Thru Only: A Restaurant that does not have any indoor seating, but allows customers to drive up to the structure to place orders. In some cases, there may be a walk-up window or front counter. Drive-Thru Only Restaurants may be Freestanding, Shopping Center/Storefront, or Gas & Convenience but are typically smaller than their counterparts with indoor seating.
  • The term “Sales” in this Item 19 means Gross Sales, which means all revenue related to the sale of approved products and provision of services (including direct delivery, catering, and/or delivery services through third parties) through the operation of the Restaurant, but does not include money received for the sale of stored value cards and deposited into a central account maintained for the benefit of the System; taxes collected from guests on behalf of a governmental body; or the sale of approved products to another entity franchised or licensed by Dunkin’ for subsequent resale.
  • The average length of time that the standalone Dunkin’ Restaurants in the first set of tables has been in operation is 16.1 years.

Table 1 – Continental U.S. Dunkin’ Single-Branded Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021) – Freestanding Type

Northeast – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  1,650
  • Average Sales:  $1,540,558

Northeast – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  401
  • Average Sales:  $1,034,893

Midwest – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  326
  • Average Sales:  $1,446,287

Midwest – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  14
  • Average Sales:  $971,991

South – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  675
  • Average Sales:  $1,294,909

South – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  42
  • Average Sales:  $965,916

West – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  68
  • Average Sales:  $1,517,461

West – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  4
  • Average Sales:  N/A

Total Continental U.S. – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  2,719
  • Average Sales:  $1,467,695

Total Continental U.S. – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  461
  • Average Sales:  $1,027,870

*N/A means that Dunkin’ has not included information for this site type in this region due to sample sizes of less than 10 Restaurants, but such Restaurants are included in the Total Continental U.S. row.

Table 2 – Continental U.S. Dunkin’ Single-Branded Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021) – Shopping Center/Storefront Type

Northeast – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  461
  • Average Sales:  $1,402,276

Northeast – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  996
  • Average Sales:  $822,403

Midwest – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  230
  • Average Sales:  $1,184,162

Midwest – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  107
  • Average Sales:  $611,861

South – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  489
  • Average Sales:  $1,265,384

South – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  223
  • Average Sales:  $776,357

West – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  95
  • Average Sales:  $1,374,400

West – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  31
  • Average Sales:  $1,051,806

Total Continental U.S. – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  1,275
  • Average Sales:  $1,308,351

Total Continental U.S. – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  1,357
  • Average Sales:  $803,467

Table 3 – Continental U.S. Dunkin’ Single-Branded Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021) – Gas & Convenience Site Type

Northeast – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  412
  • Average Sales:  $1,168,978

Northeast – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  299
  • Average Sales:  $666,414

Midwest – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  112
  • Average Sales:  $1,041,298

Midwest – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  37
  • Average Sales:  $492,169

South – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  147
  • Average Sales:  $1,099,551

South – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  43
  • Average Sales:  $550,080

West – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  2
  • Average Sales:  N/A

West – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  2
  • Average Sales:  N/A

Total Continental U.S. – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  673
  • Average Sales:  $1,131,996

Total Continental U.S. – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  381
  • Average Sales:  $634,942

*N/A means that Dunkin’ has not included information for this site type in this region due to sample sizes of less than 10 Restaurants, but such Restaurants are included in the Total Continental U.S. row.

Table 4 – Continental U.S. Dunkin’ Single-Branded Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021) – Drive-Thru Only

Northeast

  • Total Number of Restaurants in Sample:  24
  • Average Sales:  $1,113,215

Midwest

  • Total Number of Restaurants in Sample:  4
  • Average Sales:  N/A

South

  • Total Number of Restaurants in Sample:  6
  • Average Sales:  N/A

West

  • Total Number of Restaurants in Sample:  1
  • Average Sales:  N/A

Total Continental U.S.

  • Total Number of Restaurants in Sample:  35
  • Average Sales:  $1,137,554

*N/A means that Dunkin’ has not included information for this site type in this region due to sample sizes of less than 10 Restaurants, but such Restaurants are included in the Total Continental U.S. row.

Table 5 – Continental U.S. Dunkin’ Single-Branded Restaurants, Average Cost of Goods Sold and Average Labor Cost Stated as a Percentage of Total Sales (for the Period October 25, 2020 to October 23, 2021)

Northeast

  • Total Number of Restaurants in Sample:  4,154
  • Average Cost of Goods Sold:  24.8%
  • Average Labor Cost:  25.9%

Midwest

  • Total Number of Restaurants in Sample:  812
  • Average Cost of Goods Sold:  26.6%
  • Average Labor Cost:  24.3%

South

  • Total Number of Restaurants in Sample:  1,527
  • Average Cost of Goods Sold:  27.7%
  • Average Labor Cost:  23.3%

West

  • Total Number of Restaurants in Sample:  190
  • Average Cost of Goods Sold:  26.2%
  • Average Labor Cost:  26.1%

Total Continental U.S.

  • Total Number of Restaurants in Sample:  6,683
  • Average Cost of Goods Sold:  25.7%
  • Average Labor Cost:  25.1%

Part 2 – Combo Restaurants

  • There were 1,170 Combo Restaurants (excluding SDO Restaurants) operating in the Continental U.S. as of October 31, 2021.
  • Dunkin’ excluded 37 of them from these financial performance representations because they first opened for business after November 1, 2020 and did not operate for the full 12 months from November 1, 2020 through October 31, 2021. Dunkin’ also excluded the 2 Combo Restaurants that closed between November 1, 2020 and October 31, 2021, both of which had operated for more than 12 months before they closed.
  • This second set of tables provides financial performance representations that are actual, historical results of the remaining 1,133 Combo Restaurants in the Continental U.S. (excluding SDO Restaurants) that were open for business to the public for at least one year at the end of the one-year measuring period on October 31, 2021.
  • The average length of time that the Combo Restaurants in the second set of tables has been in operation is 14.3 years.

Table 6 – Continental U.S. Combo Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021) – Freestanding Type

Northeast – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  70
  • Average Sales:  $1,902,958
  • Average Sales – Dunkin’:  $1,747,886
  • Average Sales – Baskin-Robbins:  $155,072

Northeast – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  67
  • Average Sales:  $1,273,874
  • Average Sales – Dunkin’:  $1,130,022
  • Average Sales – Baskin-Robbins:  $143,852

Midwest – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  193
  • Average Sales:  $1,632,472
  • Average Sales – Dunkin’:  $1,418,921
  • Average Sales – Baskin-Robbins:  $214,664

Midwest – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  19
  • Average Sales:  $936,420
  • Average Sales – Dunkin’:  $794,277
  • Average Sales – Baskin-Robbins:  $142,143

South – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  226
  • Average Sales:  $1,426,781
  • Average Sales – Dunkin’:  $1,282,137
  • Average Sales – Baskin-Robbins:  $150,986

South – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  15
  • Average Sales:  $967,904
  • Average Sales – Dunkin’:  $826,780
  • Average Sales – Baskin-Robbins:  $141,124

West – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  14
  • Average Sales:  $1,343,256
  • Average Sales – Dunkin’:  $1,101,316
  • Average Sales – Baskin-Robbins:  $241,939

West – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  1
  • Average Sales:  N/A
  • Average Sales – Dunkin’:  N/A
  • Average Sales – Baskin-Robbins:  N/A

Total Continental U.S. – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  503
  • Average Sales:  $1,569,647
  • Average Sales – Dunkin’:  $1,394,627
  • Average Sales – Baskin-Robbins:  $178,502

Total Continental U.S. – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  102
  • Average Sales:  $1,163,895
  • Average Sales – Dunkin’:  $1,020,169
  • Average Sales – Baskin-Robbins:  $143,725

*N/A means that Dunkin’ has not included information for this site type in this region due to sample sizes of less than 10 Restaurants, but such Restaurants are included in the Total Continental U.S. row.

Table 7 – Continental U.S. Combo Restaurants, Average Restaurant Sales (for the Period November 1, 2020 to October 31, 2021) – Shopping Center/Storefront Type

Northeast – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  16
  • Average Sales:  $1,668,812
  • Average Sales – Dunkin’:  $1,550,750
  • Average Sales – Baskin-Robbins:  $118,063

Northeast – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  232
  • Average Sales:  $1,036,960
  • Average Sales – Dunkin’:  $925,140
  • Average Sales – Baskin-Robbins:  $111,820

Midwest – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  67
  • Average Sales:  $1,379,673
  • Average Sales – Dunkin’:  $1,238,354
  • Average Sales – Baskin-Robbins:  $145,668

Midwest – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  45
  • Average Sales:  $957,933
  • Average Sales – Dunkin’:  $839,425
  • Average Sales – Baskin-Robbins:  $121,202

South – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  108
  • Average Sales:  $1,406,295
  • Average Sales – Dunkin’:  $1,242,584
  • Average Sales – Baskin-Robbins:  $163,711

South – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  43
  • Average Sales:  $998,636
  • Average Sales – Dunkin’:  $868,454
  • Average Sales – Baskin-Robbins:  $130,182

West – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  14
  • Average Sales:  $1,281,825
  • Average Sales – Dunkin’:  $1,039,930
  • Average Sales – Baskin-Robbins:  $260,502

West – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  3
  • Average Sales:  N/A
  • Average Sales – Dunkin’:  N/A
  • Average Sales – Baskin-Robbins:  N/A

Total Continental U.S. – Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  205
  • Average Sales:  $1,409,583
  • Average Sales – Dunkin’:  $1,251,414
  • Average Sales – Baskin-Robbins:  $160,518

Total Continental U.S. – Non Drive-Thru Restaurants

  • Total Number of Restaurants in Sample:  323
  • Average Sales:  $1,017,917
  • Average Sales – Dunkin’:  $902,084
  • Average Sales – Baskin-Robbins:  $116,193

*N/A means that Dunkin’ has not included information for this site type in this region due to sample sizes of less than 10 Restaurants, but such Restaurants are included in the Total Continental U.S. row

Table 8 – Continental U.S. Combo Restaurants, Average Cost of Goods Sold and Average Labor Cost Stated as a Percentage of Total Sales (for the Period October 25, 2020 to October 23, 2021)

Northeast

  • Total Number of Restaurants in Sample:  379
  • Average Cost of Goods Sold:  25.1%
  • Average Labor Cost:  26.4%

Midwest

  • Total Number of Restaurants in Sample:  312
  • Average Cost of Goods Sold:  26.2%
  • Average Labor Cost:  23.8%

South

  • Total Number of Restaurants in Sample:  376
  • Average Cost of Goods Sold:  28.3%
  • Average Labor Cost:  23.4%

West

  • Total Number of Restaurants in Sample:  29
  • Average Cost of Goods Sold:  29.5%
  • Average Labor Cost:  27.4%

Total Continental U.S.

  • Total Number of Restaurants in Sample:  1,096
  • Average Cost of Goods Sold:  26.6%
  • Average Labor Cost:  24.7%
  • “COGS” means the cost of goods sold, including food, beverages, and items served or associated with the food or beverage, such as cups, napkins, straws, bags, plastic utensils, and wrapping paper.
  • A restaurant’s COGS will vary based on, among other things, the owner’s operational ability (including experience with managing quick service restaurant operations), experience building and managing an organization, and commitment to training staff.
  • Many of the Restaurants have been open and operating for several years and may have lower cost percentages due to years of experience managing costs.
  • Factors affecting COGS include the price of raw materials; the ability to manage and implement proper controls of waste, ruin, loss, theft, and the portion sizes served to the public; regional differences; temporary shortages; the mix of food and beverage items sold; whether the restaurant purchases finished products manufactured at another location; fluctuations in the price of coffee and certain other items and ingredients; seasonal and weather fluctuations; and fluctuations due to periodic marketing and advertising programs. Additionally, freight charges may be higher in some areas and are impacted by the cost of gasoline.
  • “Labor costs” means the salaries and wages paid to the Restaurant’s store manager and crew members. It does not include any other amounts associated with employing the Restaurant’s workers, like training wages and costs, payroll taxes, worker’s compensation insurance, bonuses and other employee benefits, or costs to maintain payroll services.
  • Labor costs also do not include any salaries, wages, or other expenses associated with multi-unit leaders or managers or other personnel who provide services to multiple Restaurants within an organization.
  • A Restaurant’s Labor costs will vary based on, among other things, the owner’s operational ability (including experience with managing quick service restaurant operations), experience building and managing an organization, and commitment to training staff.
  • Many of the Restaurants have been open and operating for several years and may have lower cost percentages due to years of experience managing costs.
  • Factors affecting Labor costs include the local labor market and any applicable federal or state minimum wage law; healthcare legislation; employee turnover and the ability to train and retain employees; owners’ compensation rates that may be included in labor, which varies among franchisees; salary and benefits programs; and scheduling.
  • Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

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