Geller to bring Dunkin’ Donuts back to St. Louis Thursday

Kelsey Volkmann of the St Louis Business Journal Reports that Dunkin’ Donuts will officially return to the St. Louis market after a 10-year absence with the opening of a store Thursday in Kirkwood.

Michael Geller plans to open the first of his dozen planned St. Louis stores at 5 a.m. at 1210 South Kirkwood Road.

Geller, who until recently lived in New York, said he’s long wanted to return to the St. Louis area and bring the Dunkin’ Donuts brand with him.

He is a Washington University law and business school alumnus who hails from a family with a 20-year history of operating Dunkin’ Donuts on the East Coast.

“My mother and aunt have operated Dunkin’ Donuts in New Jersey, where Dunkin’ Donuts has a major presence, for more than 20 years,” he said in a statement. “I grew up with it, always loved the business and always loved the products.”

The last Dunkin’ Donuts in St. Louis closed about a decade ago. But the chain has been working with Pace Properties since late 2007 tore-enter the market.

Franchisee Milan Patel of OHM Concession Group LLC plans to open a unit at Lambert-St. Louis International Airport’s East Terminal next week.

Last year,the company signed a deal with Jay Patel, managing partner of Dunkin’ Development of Greater St. Louis, for 10 stores in St. Louis. Patel owns multiple convenience stores and gas stations in St. Louis as well as six Subway restaurants in Philadelphia. He is also the president of Accurate Personnel Services.

To cut costs and better access financing, some Dunkin’ franchisees are shifting away from new construction and toward retrofits of existing space. Under that plan, stores will require about$400,000 to $500,000in investment — half the cost of a new stand-alone building.

Each store will employ about 20 to 30 people. Company guidelines suggest franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000 per unit.

Read more at: St Louis Business Journal 

Related Story at DDIFO.org: Dunkin’ Donuts Sweetens to St Louis Again Under New Plan

Burger King Lets Franchisees Have it Their Way on Soda Rebates

Janet Sparks reports at BlueMauMau that the National Franchisee Association, representing over 90 percent of all Burger King franchisees in the US, has settled two class action lawsuits with franchisor Burger King Corp. (NYSE: BKC) and its two soft drink distributors, Coca Cola and Dr Pepper.

The litigation was over Burger King Holding’s unilateral decision to appropriate a substantial percentage of soft drink rebates for the franchisor’s designated use. Franchisees have received the “restaurant operating funds”, or ROFs, for the last decade based on the amount of syrup they purchased from the drink companies. The burger chain had hoped to start taking 40 percent of the soda rebate money this year as a way to increase its national marketing efforts.

NFA Chairman William Harloe Jr. made this statement yesterday to members: “We are pleased to report that we have been successful in negotiating a joint stipulation that memorializes [Burger King's] decision to cancel the implementation of the reallocation of ROF and preserves your rights in the event the ROF issue emerges in the future.”

Burger King was served with federal lawsuits, filed in the Southern district of California, on the opening day of its grand annual convention on May 4, 2009. Since that time, the franchisor has been dealing with negative press resulting from its tensions with franchise owners over the soda litigation and it requiring its franchisees to discount certain menu items. Another lawsuit filed by the franchisee association last year challenged Burger King’s promotion of its $1 Double Cheeseburger, which franchisees claim costs more than a dollar to make.

The franchisor recently acquiesced, saying that it will raise the menu price for the double cheeseburger to $1.19.

D.A. says Kainos CFO Skimmed $429K

NBC New York reports that a Long Island businessman was really raking in the dough — allegedly stealing nearly a half-million dollars from a corporation that owns a string of Dunkin’ Donuts, prosecutors said today.

Christopher Cortese, 54, of Rockville Centre, has been charged with grand larceny for allegedly siphoning $429,000 from the company where he was employed as the chief financial officer.  He used the money to finance trips, car payments, gift cards and payments to two girlfriends that he hired as “consultants” to the company, Nassau County District Attorney Kathleen Rice said today.

Cortese, 54,was working for Kainos Partners Holding Company, LLC, a corporation that owns and operates Dunkin Donuts franchises. Prosecutors began investigating Cortese last year after his expenses ran a little high — including $53,500 for a home office, $60,000 in gift cards, and more than $100,000 in trips, meals, and other expenses.

In addition, Cortese “hired” two girlfriends as consultants, funneling $110,000 to one woman for information technology services that were never performed, the D.A.’s office said in a statement.

“The level of this defendant’s deception, arrogance and sheer greed is shocking,” Rice said.

Cortese was terminated by Kainos in 2009 and he faces up to 15 years in prison if convicted.

Dunkin’ Brands To Gobble Up Kainos Franchise Shops

BlueMauMau reports that Dunkin’ Brands has announced its intent to purchase some of the stores of troubled Kainos Partners Holding Company, a master franchise of 56 Dunkin’ Donuts shops located in New York, South Carolina and Nevada. Dunkin’ will acquire the franchisee’s stores to be owned and run by the franchisor, and then refranchise them later.

In an email sent out to Dunkin’ franchisees, CEO Nigel Travis explained the franchisors intent to buy the company. “Kainos has been unable to emerge from bankruptcy and has filed a motion seeking an order authorizing bidding procedures to be employed in connection with the proposed sale of their Dunkin’ Donuts restaurants and related assets,” Travis wrote. “Dunkin’ Brands has submitted a bid to purchase a substantial portion of the assets and business operations.”

Travis went on to write, “Kainos will continue to operate its Dunkin’ Donuts restaurants in Buffalo, NY, Greenville, SC, and Las Vegas, NV until the conclusion of the sale process.”

Attorney Adam Seigelheim, chair of Stark & Stark franchise group elaborates. “The implication from Nigel’s email is that Kainos is not going to put forward a plan to come out of Chapter 11,” the franchise attorney explains of last Wednesday’s deadline by the court to file a plan and the company’s missing of that deadline. “They’ll remain in chapter 11 but will move to sell off their assets in the ordinary course of business,” says Seigelheim.

Refranchising bankrupt Dunkin’ stores

“Dunkin’ submitted a proposed order to acquire the assets of Kainos under a 363 sale, which is the code section for selling stuff through bankruptcy,” says Jim Balis, who is both chief executive officer and chief financial officer of Kainos Partners.

A “363″ sale refers to a sale of a company’s assets who is undergoing bankruptcy, as in a Chapter 11 reorganization. It refers to the bankruptcy code that regulates the procedure, 11 USC §363.

“I think the order will be entered on Monday (March for that proposed 363 sale, says Balis. “Over the next month, we will be marketing units to see if anybody else is interested to buy the assets of Kainos, the debtor.”

“It looks like they are going to sell off their assets through a liquidated chapter 11,” explains franchise attorney, Adam Seigelheim.

Michelle King, director of global public relations for Dunkin’ Brands, adds, “Other buyers will have an opportunity to purchase the assets of Kainos subject to bankruptcy court approval. Although a final date has not yet been set for completion of the sale, we believe it to be in early April. In the meantime, Kainos will continue to operate in all markets.”

One year’s high flyer crashes the next

Kainos’ Balis says that the original franchise agreement that Dunkin’ required was for Kainos to commit and build over a hundred units in various states. Kainos received development money when credit was flowing from private equity investor Palisades Capital and senior secured lender CIT.

The master franchise quickly built some 56 stores in New York, South Carolina and Nevada since 2005.

Dunkin’ was happy.

Dunkin’ Donuts honored New York-based Kainos Partners as “developer of the year” in July, 2008, meant to have the way it grows emulated by others. In a toast given at a ceremony for its award winners, Jon Luther, who at the time was chairman and chief executive officer of Dunkin’ Brands, Inc., said: “This room is filled with an accomplished and elite group of leaders from all around the world who represent the very best of the Dunkin’ Brands system. I applaud the values and dedication you all bring to this company.”

But a year later, Kainos was filing Chapter 11 for bankruptcy protection.

When asked why the master franchise failed and whether the high number of store locations spread out in such a diverse geography had caused the company’s downfall, CEO Balis replied, “Unfortunately, I cannot comment on that.”

Dunkin’ has been caught up in the coffee wars, a war over the menu price among McDonald’s, Starbucks and others over cups of coffee. Meanwhile, competitors are increasing breakfast offerings to raise revenues in the tough economy. “It is a challenging market,” says Balis over his firm’s decline. “It didn’t help that some of our competitors are advertising very aggressively in the breakfast segment.”

Kevin McCarthy, current chairman of Dunkin Donuts Indepedent Franchise Owners association and a former vice president of real estate and operations at Dunkin’ Donuts, thinks that it is a problem of franchisor Dunkin’ not understanding the chain’s traditional strengths. Speaking strictly on behalf of himself, McCarthy thinks misconceptions caused Dunkin’ to use the wrong development strategy.

He stresses that Dunkin’ is largely a mom & pop franchise chain. It should grow organically, rather than using large area developers. “Nothing replaces a franchise operator who is on premise,” declares McCarthy. He stresses a slower but more steady growth is by opening a store to get it profitable, and then open another in a fairly contiguous neighborhood that the owners know well.

Read More at: BlueMauMau

South River Celebrates Arrival of Dunkin’ Donuts

The Sentinel in New Jersey reports  that the town of South River celebrated the grand opening of a Dunkin’ Donuts store Feb. 12, describing it as a landmark occasion in the borough.

The Dunkin’ Donuts is not only the first South River location for the franchise, it is also the first restaurant with a national presence that has chosen to set up shop in the borough. Officials expressed hope that the new operation, located at the corner of Thomas and Main streets, would draw more local residents to the downtown area.

“Whenever a new business opens in the borough, it is good news,” Mayor Ray Eppinger said. “The owners did a great job renovating this location and it really looks good. Everyone hopes that this store does well and helps the neighboring businesses too by increasing foot traffic in the area.”

The Dunkin’ Donuts is located on a site that previously housed an insurance agency, pharmacy and bank. The building there had long been vacant.

Councilman John Krenzel said that, when campaigning last year, he and Councilman John Trzeciak were repeatedly asked when the Dunkin’ Donuts was opening.

“It has finally opened and South River is all the better for it,” Krenzel said. “The store is a clean and bright addition to the downtown area.”

Krenzel said he hopes the shop will serve as an anchor, helping to bring visitors to other downtown stores.

Both he and Eppinger attended the grand-opening ceremony, along with franchisee Igor Zak, who will operate the store, according to a press release from communications firm RF Binder, on behalf of Dunkin’ Donuts.

“As a small business owner with many years of experience with Dunkin’ Donuts, I am excited to bring my passion and enthusiasm to South River,” Zak said. “I see this store as an excellent opportunity to reinvigorate South River, and we’re confident that our presence here will drive more traffic to the other businesses in the area as well.”

Eppinger said he was honored to be able to cut the ribbon.

“It is nice to know that this property is being revitalized without the use of eminent domain,” he said.

Dunkin’ Donuts Franchisees to award 100 scholarships in Connecticut

Dunkin’ Donuts is seeking applicants for a scholarship program in which the chain’s franchisees will award 100 $1,000 scholarships to college-bound high school seniors.

Dunkin’ Donuts franchisees are partnering with Scholarship America to administer the program and the selection progress.

This is the seventh year of the program, which has donated more than $600,000 to Connecticut students to date.

“We understand the challenges families encounter today when financing their child’s college education,” Michael Batista, a Connecticut franchisee, said in a statement. “The franchisees of Dunkin’ Donuts are excited to give back to the local families who support us every day.”

Applications are due March 15 and are only available online, at www.dunkindonuts.com/scholarship.

The awards will be given to high school seniors who intend to enroll as full-time undergraduates at an accredited two-year or four-year college, university or vocational-technical school.

Recipients will be chosen based on “well rounded” character, their academic record, demonstrated leadership, commitment to school and community activities and experience in the work environment.

Full- and part-time employees of Dunkin’ Donuts franchisees who meet the eligibility requirements may apply.

Brunswick Area Poets Find a Dunkin’s to Share Prose

Brian Lisik at Cleveland.com writes that the words are part Bob Dylan-dada, part Andy Warhol soup-can pop-art stream-of-conscious, complete with a cast of characters ready for their 21st Century close-up.

They spill from the poet’s lips, piling atop one another with scurrilous abandon, catching the small crowd of listeners up in a hypnotic rhythm and subtle shock reminiscent of Jack Kerouac’s finer road hymns and the unflinching simplicity of Charles Bukowski.

“I don’t want to be Barack the rock star,” poet John B. Burroughs, aka Jesus Crisis, read from one of his self-published poetry “chapbooks” last week at a gathering of the Brunswick Art Works’ poetry reading group at Dunkin’ Donuts on Center Road. “Hilary Clinton/John McPalin/Cheech and Chong/ Kennedy Nixon/Mason Dixon/K-Fed, A-Rod, Brangelina, Britney or Bono/Or do I?”

Still, the almost maniacal flow and off-the-cuff casualness of Borroughs’ lyrical imagery is, for all its outward bombast, the kind of chillingly introspective insight that comes only after very long bouts of isolation. And while the Elyria native has been writing since childhood, it was isolation of the most chilling sort that allowed him to both expose his art to the public more than a decade ago, and support himself with it today.

Of course that was all before it led him to a tiny doughnut shop on a bone-numbingly cold Thursday night, joining roughly a dozen other Brunswick Art Works members and reading from one of his latest – and more lengthy – poems, “Identity Crisis.”

Read more at:  Cleveland.com

Dunkin’ Donuts To Expand Throughout Missouri

QSR Magazine reports that franchise owner  Sai Jitta signed a multi-unit store development agreement for three new Dunkin’ Donuts in Blue Springs and Independence, Missouri. The first location is anticipated to open in 2011 and the remainder by 2013.

Dunkin’ Donuts development in greater Kansas City, Missouri, is part of a steady and strategic growth strategy, which includes expanding in existing markets while entering new cities across the country to help drive the coffee and bakery chain’s growth.

Jitta is a certified project manager with more than 12 years of information technology experience in the insurance, automotive, health care, and pharmaceutical industries. He has worked for IBM for nearly a decade.

“I am excited to expand Dunkin’ Donuts presence in greater Kansas City and play an important role in the daily lives of people who live and work here,” Jitta says.

In addition to the development agreement mentioned above, Dunkin’ Donuts is still seeking new and existing franchisees to develop restaurants in greater Kansas City and the surrounding areas. Opportunities also exist throughout Florida, Georgia, Washington, D.C., Illinois, and Michigan, among other states.

To drive its expansion efforts, Dunkin’ Donuts has aligned its strategy to support the growth opportunities and consumer needs of individual markets. As a result, the company continues to expand with single and multi-unit opportunities with no minimum unit requirements.

Ideally, franchisees should possess a minimum net worth of $1.5 million and liquid assets of at least $750,000, but financial qualifications will vary based on the opportunity available by market. This evolution of Dunkin’ Donuts’ franchise sales effort enables the brand to expand in markets more aggressively, while balancing its market penetration and maturity.

“Dunkin’ Donuts is excited to expand its footprint in Blue Springs and Independence with Sai Jitta,” says Grant Benson, CFE and vice president of franchising and market planning for Dunkin’ Brands Inc. “Our secret to success is our passionate franchisees that provide a high level of customer service to our customers every day, and we’re confident Sai and his team will grow and prosper in the community.”

Dunkin’ Donuts Announces Seven New Restaurants

The chain has signed a multi-unit store development agreement with Roadrunner Markets for seven new restaurants in Tri-Cities, Tenn., and the surrounding areas of northeast Tennessee and southwest Virginia.

Restaurants and Institution Magazine reports that Dunkin’ Donuts, America’s favorite every day, all-day stop for coffee and baked goods, announced today the signing of a multi-unit store development agreement with Roadrunner Markets for seven new restaurants in Tri-Cities, TN and the surrounding areas of Northeast Tennessee and Southwest Virginia. The first two locations are anticipated to open in 2011 and the remainder by 2015. Dunkin’ Donuts development in Tri-Cities is part of a steady and strategic growth strategy, which includes expanding in existing markets while entering new cities across the country to help drive the leading coffee and bakery chain’s growth.

Roadrunner Markets currently operates 90 convenience stores under the Shell, BP, Chevron and Sunoco brands. The principals of the company have extensive experience in the development, acquisition, construction and operation of convenience stores in the states of Tennessee, Virginia, North Carolina and South Carolina. In addition, they have negotiated contracts, developed space and acted as landlord for 16 fast food franchises.

“We are excited to expand our portfolio to include Dunkin’ Donuts and look forward to playing an important role in the daily lives of people who live and work in the Tri-Cities community,” said Ryan Broyles, president, Roadrunner Markets.

This development agreement sells out Tri-Cities for future franchise sales, however, franchising opportunities are still available in a variety of cities in the U.S. within the Midwest, Mid-Atlantic and the Southeast. Opportunities also exist throughout Florida, Georgia, Washington, DC, Illinois and Michigan, among other states.

To drive its expansion efforts, Dunkin’ Donuts has aligned its strategy to support the growth opportunities and consumer needs of individual markets. As a result, the company continues to expand with single and multi-unit opportunities with no minimum unit requirements.

Ideally, franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000, but financial qualifications will vary based on the opportunity available by market. This evolution of Dunkin’ Donuts’ franchise sales effort enables the brand to expand in markets more aggressively, while balancing its market penetration and maturity.

“Dunkin’ Donuts is excited to expand its footprint in Tri-Cities with Roadrunner Markets,” said Grant Benson, CFE, vice president of franchising and market planning, Dunkin’ Brands, Inc. “Our secret to success is our passionate franchisees that provide a high-level of customer service to our customers everyday, and we’re confident Ryan and his team will grow and prosper in Tri-Cities.”

Building a solid network of stores within a market enables Dunkin’ Donuts to invest in a distribution model that provides a consistent, high-quality product customers expect “in the way and on the way” of their daily routines. In an effort to keep the brand fresh and competitive, Dunkin’ Donuts offers flexible concepts for any real estate format including free-standing stores, end caps, in-line sites, gas and convenience, travel plazas, universities, as well as other retail environments.

According to Benson, “Dunkin’ Donuts is proud to energize Americans and keep the honest, hard-working, value-driven people of this country running every day. Our recent and ongoing menu enhancements meet the needs of today’s on-the-go consumers, moving Dunkin’ Donuts beyond breakfast with high-quality food and beverage items available all day.”

Historically a doughnut and hot coffee chain, Dunkin’ Donuts has expanded its offering to include frozen and iced beverages, a full bakery assortment including bagels and muffins, breakfast sandwiches, and an all-day Oven-Toasted menu which includes flatbread sandwiches, hash browns and buttermilk biscuits. The new platform marks the most significant change to Dunkin’ Donuts product lineup since the company launched espresso-based beverages in 2003.

Car Crashes into Dunkin’ Donuts in Boynton Beach

A car plowed into the front of a Dunkin’ Donuts in suburban Boynton Beach Friday afternoon.

“Boom, and I think he start to break he put just the car and it go right through.  It just took a second,” a witness said.

The accident happened at 10114 South Military Trail in the Applegate Plaza on Military Trail near Boynton Beach Boulevard.

The Palm Beach County Sheriff’s Office says 86 year old Seymour Zayon was attempting to park when his foot slipped off he brake and onto the gas pedal.

His silver Hyundai lurched over a curb and into the store’s front window, colliding with three tables.

Watch the Video from WPTV Channel 5.

Three people were injured and transported to a nearby hospital. One of the injured may even be a hero.

A witness says she pushed a lady out of the way when the accident happened. The extent of their injuries is not known.

Both Seymour and his wife declined to speak on camera.

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