Dunkin' Donuts, the popular alternative to Starbucks, is making a move to the West Coast. On Wednesday, the Canton, Massachusetts-based company announced that it had plans to return to the Southern California market by opening 150 stores in two years. Eventually, the goal is to have 1,000 locations statewide.
The Los Angeles Times reported that while analysts believe there are many obstacles for the coffee company to overcome, it could easily establish itself in the Golden State, as it has elsewhere in the nation.
The news source added that Dunkin' Donuts had previously set up shop in California in the early 1990s, but withdrew their few dozen franchises. Now, the coffee giant hopes to adequately compete against other breakfast and donut companies in an already crowded market.
"Growth just never comes easy; expectations have to be set appropriately," Conrad Lyon, an analyst at B. Riley & Co, told the news source. "When you go into a new territory, there's a nice honeymoon period where sales tend to be strong out of the gate, but then they slow down and could take years, if not decades, to build back up."
According to the company website, by 2015 franchisees plan to have the 150 stores open in Los Angeles, Riverside, San Diego, San Bernardino, Ventura and Orange counties. It added that it hopes to eventually cross the border and expand into Nevada.
When companies decide to break ground, it's important for business owners to keep many factors in the forefront of their minds. Having a comprehensive California contractors insurance policy is important for organizations building new structures. That way, throughout the entire construction process, employees and bystanders are protected.
Additionally, working with commercial insurance specialists can help companies find California business insurance, which will be necessary for once the doors officially open for customers.