Franchisees Can Play More Than A Tactical Role, If You Let Them.

David Farkas writes at  Chain Leader that some years ago, a MaggieMoo’s franchisee in Columbus, Ohio, wanted to make a few bucks peddling coffee in the morning. Seemed like a good idea; he didn’t sell his first ice-cream cone until 11 a.m. yet paid rent for the entire day. He bought point-of-purchase displays and equipment, got franchisor approval and fired up his pots.

“I don’t think it worked, as I recall, and I probably could have told him that,” remembers then-CEO Richard Sharoff, now a franchise consultant in Annapolis, Md. “But if a guy has passion for something, why not let him try it? It sends a good message to the franchise system.”

Under current economic circumstances, sending an all-ideas-are-welcome message might seem like a good idea. Franchisees are a chain’s boots on the ground and therefore a likely source for operations best practices. But are they also a strategic resource?

Strategic Error

Right off the bat Sharoff can think of plenty of reasons why franchisees should not be a part of the strategic process. “Generally speaking, a franchisee is focused on what’s happening within the four walls of a store and not looking at the big picture,” he says, citing a recent KFC lawsuit as “a perfect example.”

In January, KFC franchisees asked a judge to rule that the franchisee-controlled advertising council have final say in directing ad spending. They claim franchisor Yum Brands promotes grilled chicken at the expense of better-selling fried chicken. (The franchisor dubbed the lawsuit “baseless.”)

“When a franchisor tries talking about changing the menu for the long-term benefit of the system, the franchisee is thinking, ‘What’s it going to cost me today in the store?’” Sharoff explains. “That makes it difficult to seek strategic input because the franchisee is thinking about how much his revenue is going to be today or tomorrow.”

Then again, not all franchisees are created equal. Just ask John C. Metz, who franchises 33 Denny’s; he is also a franchisee of Dairy Queen and Marriott. Last year, Metz became the franchisor of 30-unit Hurricane Grill & Wings. “I’m unique insofar as I bridge the gap better between corporate and the franchisee than other franchisees,” says the veteran operator, citing his M.B.A. from Cornell University’s Johnson School.

Metz, founder and president of RREMC Restaurants in West Palm Beach, Fla., believes he should have been elected to Denny’s board of directors last year, largely because he’s done “a variety of innovative things” and because current management isn’t entrepreneurial enough to solve the chain’s looming problems. “McDonald’s has taken big chunk out of breakfast business, and Starbucks out of coffee,” Metz declares. “And a lot of chains have taken it out of the late-night business.”

Tim Flemming, Denny’s general counsel, says there were too many potential conflicts of interest to make a franchisee a director. One is whether Metz would be an independent or an inside director. Public companies are required to have a specified number of independent board members. Metz believes he is one; management disagrees.

“I think franchisors that don’t consult or don’t listen to franchisees, and especially large successful franchisees, are making a grave mistake,” says Metz, who is testing Denny’s Fresh Express concept in one of his restaurants. The concept, which debuted at California State University, San Bernardino, features Denny’s menu and espresso beverages in a quick-casual format.

Read More at: Chain Leader

March Members Meeting Impresses, Energizes Attendees

Throughout its 20-year history, the DDIFO has always held meetings for its members, giving franchise owners the chance to get together and catch up. But as the organization has grown and evolved so have these meetings, taking on additional relevance and importance.

From focused content that gives attendees access to the most current developments at the Brand and legislative levels, to highly relevant and informative outside speakers and to sponsors offering advantageous products and services, today’s DDIFO Members Meetings are powerful and compelling events designed to keep members informed and demonstrate opportunities to maximize efficiency and profits.

The latest New England regional meeting on Thursday, March 4, was no exception.

“I thought the meeting was very informative, and the exhibiting sponsors were practical and useful,” said Kristina Sampalis, a franchise owner in Rhode Island. “Since Jim Coen has come on as DDIFO president, there have been a lot more relevant topics and speakers at these meetings. The topics and presentations are things we really need to be aware of and that benefit us as franchisees.”

Another franchisee remarked, “We have gotten more out of these last two DDIFO meetings than all the meetings I have attended in 10 years.”

More than 100 DDIFO members representing over 1,200 Dunkin’ Donuts shops gathered at the Doubletree Hotel in Westborough, Massachusetts. Prior to the official start of the meeting, franchise owners spent an hour mixing and mingling and interacting with the 15 DDIFO sponsors exhibiting at the meeting.

Two vendors that came on board as DDIFO sponsors just prior to the Mid-West Members Meeting in December also exhibited at this meeting. Jamie Gersten of Comcast Business Services and Larry Dunning of Payless ShoeSource both had positive reactions. “It’s valuable for me to talk with franchisees directly and see what they need. Many people here today seem to have multiple stores and seem interested in what we have to offer them in terms of their telecom options,” Gersten said. “For me personally, it’s great to finally put faces with names, plus interacting with the other sponsors and building relationships with them. I really appreciate that these regional meetings are large enough to meet a lot of people but small enough to really connect with everyone.”

Dunning agreed, “Especially since we’ve just started our relationship with Dunkin’ Donuts, these events give us the chance to meet new franchise owners and make them aware of our slip-resistant footwear products and how important they are to their business.”

In the official opening remarks from DDIFO President Jim Coen, he spoke with guarded optimism about the changes at Dunkin’ Brands and his hope for improved relations and collaboration between the Brand and franchisees. “I believe we will look back and see this time frame as a pivotal period for improved relations with franchisees and Dunkin’ Brands. I’m not suggesting we break out the champagne and celebrate anything just yet, but there is real optimism out there,” said Coen. “The management team of the Brand today appears to be taking Dunkin Donuts in a new and very welcome direction. Plus, the franchisees have a BAC that is made up of empowered and engaged franchisees with 14 out of the 26 BAC members also being DDIFO members.”

Coen discussed a change in the editorial direction of DDIFO communications with a stronger focus on stories about franchise owners, their interests and their commitments to local communities. One method for spreading this message, Coen suggested, is by publicizing owners’ charitable endeavors. He stressed that in order to do this, the DDIFO communications team needs to hear from franchisees directly. Any owner with a story to tell should contact Jim directly at jim@ddifo.org.

Coen also addressed government affairs. “Our Government Relations Coordinator Joe Giannino is working hard to help each and every legislator on Beacon Hill understand that every franchise owner is a small business operator investing in his/her community. One of the key drivers to accomplishing our goals on Beacon Hill is the Dunkin’ Donuts Franchise Owners Massachusetts Political Action Committee. If you walk out of here today with one thing, I tell you to contribute to the PAC, because we can make great things happen with your support.” said Coen. “You may say, ‘My stores are in Rhode Island. How does someone on Beacon Hill help me?’ Well, first of all the Brand is headquartered in Massachusetts and secondly, Massachusetts is considered one of the bellwether states for cutting edge legislation. Thirdly, I will help you in your state. I am here to help you gain influence in your state any way I can.”

During his turn at the mic, Giannino acknowledged the DDIFO continued emphasis on government relations. “Over the past year, because of Jim (Coen) and the DDIFO’s efforts, Beacon Hill knows who runs Dunkin’ Donuts shops.” He said that while the DDIFO has had some noteworthy successes in the areas of menu labeling and tip pooling, the DDFO MassPAC raises the game by speaking in one voice on behalf of 1,400 shops employing more than 25,000 individuals. In addition to encouraging financial support the DDFO MassPAC, Giannino urged franchise owners to make sure legislators know who you are. “Remember, all politics is local. Introduce yourself to your legislators. Connect with them. Make it personal. Put a face on your store. You all have wonderful stories to tell. Tell them.”

Featured speaker Marc Slutsky, Chief Operating Officer of Street Fighter Marketing, spoke about making advertising and marketing more cost-effective with a grassroots approach and “guerilla” style tactics. “Street fighting is an attitude that helps you break through the clutter of commercial messages,” said Slutsky. “It’s all about creatively promoting your business on the community level.” Throughout his presentation, Slutsky was lively and humorous, keeping attendees riveted with real-life examples of successful “street fighter” schemes–including cross-promotions with local non-competitive merchants and “low liability” community involvement/fundraising–and with interactive exercises that required audience members to identify targets and sketch out ideas that they could take home and implement with ease. In every aspect, Slutsky stressed the importance of innovative thinking that keeps the best interests of customers at the forefront.

Peter Bergeron, Vice President of Client Services for Projections, Inc. gave a stirring presentation–Union Organizing 101—that provided information about the state of the union movement in America, current law versus legislation now being considered (i.e., the Employee Free Choice Act [EFCA] which would eliminate union elections), the potential dangers of unions and how you can union-proof your business. Of organizers, Bergeron said, “They’ll work any angle they can.” He went on to supply actual examples of union campaigns and materials, outlining early warning signs that your business may be in the sights of union organizers and citing valuable ideas for taking the initiative to enhance employee relations. “Get proactive now and think strategically about how you conduct your business in terms of communicating with your employees.”

A Q&A session with BAC Co-Chair Jim Allen followed. One franchise owner had this reaction: “Allen did a very good job. He proved that being a DDIFO member is not perceived negatively by the Brand. Fourteen of the 26 BAC Leaders are DDIFO members. That is an important message for potential DDIFO members. There is now no reason not to join DDIFO. You can’t blame not joining on the brand anymore. So, franchisees, it’s time to step up and join DDIFO.”

The day concluded with more sponsor interactions and giveaways. Andrew Weiner, a franchisee in Burlington, was the big winner of the day walking away with an iPod Touch from WDFA Marketing and a golf putter from Paris Kirwan. Other winners included: Timothy Lott with a $50 gift card from Payless ShoeSource, Richard D’Angelo with an iPod dock from Comcast Business Services, Joe Cadette with a golf umbrella and golf balls from Paris Kirwan, and Octavio Carvallo with a stuffed duck from Aflac.

In addition to having one heck of a lucky day, Weiner was duly impressed with the meeting itself. “The speakers all addressed important issues that we need to know about as franchisees, and it was exceptional to have Jim Allen (BAC Co-Chair) speak,” he said. “Having the vendors here was great, too, especially for those of us who are in the midst of remodels. It’s nice to have the chance to see the new technologies and other products and services available. Overall, I think this was a strong meeting.”

Coen said was pleased with the meeting as well and felt it hit the mark. “The primary objective in staging a DDIFO Members Meeting is to offer members as much information as possible at one time in one place–a smorgasbord of information related to being a Dunkin’ Donuts franchise owner,” he said. “This includes access to sponsors, access to experts on a variety of topics and access to franchisee leaders who can help put brand relations into a meaningful perspective. I thank the speakers, the sponsors, the BAC Leaders and most importantly the members for taking the time to attend.”

The next two Members Meetings will take place May 5 in the Chicago area and June 3 in New Jersey. Keep your eyes peeled for announcements and details about all five remaining 2010 meetings.

Dunkin’ Donuts Franchisees Help Raise Money for Muscular Dystrophy

Sixteen local Dunkin Donuts shops in the South Shore area are celebrating St. Patrick’s Day early by selling Shamrocks Against Dystrophy mobiles. 

Employees at Dunkin Donuts are plastering the walls with green and gold shamrocks and have raised more than $1,500 in a little over one week. Customers donate $1 to get their name on a green one or $5 for the gold shamrock, which are then displayed throughout the store to create a festive display for St. Patrick’s Day.

Participating Dunkin Donuts are located in East Bridgewater, East Weymouth, Hanson, Hull, Norwell, Scituate, Whitman and Cohasset. Franchise owner Carol Porter is once again coordinating this charitable effort. “We all get very excited each year and would like to thank our generous customers for making this so successful for the MDA.”

Shamrocks Against Dystrophy is the nation’s largest benefit event associated with St. Patrick’s Day. Proceeds will help children and adults in the South Shore area who are affected by neuromuscular diseases. Muscular Dystrophy Association provides free hospital clinic visits, orthopedic appliance loaner equipment and repairs, support groups, flu shots and a week at summer camp for children ages 6 to 17.

The Muscular Dystrophy Association is a voluntary national health agency also dedicated to finding treatments and cures for over 40 different muscle diseases by funding research grants throughout the country.

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

Dunkin’ Donuts has announced the result of its most recent Brand Advisory Council (BAC) election with 26 franchise leaders representing five regions.

Chain Leader, reports that Dunkin’ Donuts, America’s all-day, everyday stop for coffee and baked goods, has announced the result of its most recent Brand Advisory Council (BAC) election with twenty-six franchise leaders representing five regions.

The members serve a two year term, providing strategic advice and guidance on brand initiatives. They attend regular meetings with the senior leadership team at Dunkin’ Brands corporate headquarters in Canton, Mass. This group represents the entire franchise community and serves as a forum to exchange ideas, provide feedback, observations and suggestions.

For 2010-2011, eleven new representatives were elected to the Dunkin’ Donuts Brand Advisory Council by their colleagues from a slate of candidates for each respective region. They include:

* Nick Apostoleres (Florida)
* Rob Branca (Shrewsbury, MA)
* Mark Cafua (North Andover, MA)
* Jim Cain (Norwalk, CT)
* Dan Costa (Acton, MA)
* Jason Duffy (Phoenix, AZ)
* Barkat Gillani (Chicago, IL)
* Sid Mody (New Brunswick, NJ)
* Parth Patel (Clayton, NC)
* Vipul Patel (Chicago,IL)
* Vishal Shah (Chicago, IL)

The new franchise leaders will serve alongside returning members, Jim Allen (co-chairman). Danny Bouzianis (Biddeford, ME), Scott Campbell (Great Neck, NY), Neal Faulkner (Upton, MA), Lou Garcia (Manasquan, NJ), Ram Javia (Westminster, MD), Dinart Serpa (Beverly, MA), Perry Shah (Philadelphia, PA), Dave Sisson (Cleveland, OH), Clayton Turnbull (Boston, MA), Rod Valencia (Woodhaven, NY), Mike White (Atlanta, GA), Ed Wolak (Scarborough, ME), George Zografos (South Yarmouth, MA) and John Justo (Providence, RI).

“It is a privilege and honor to serve on the Brand Advisory Committee again this year to represent the Dunkin’ Donuts franchise community,” said Dunkin’ Donuts BAC co-chairman, Jim Allen of Lexington, MA. “I look forward to working with my fellow franchisees and senior management to help address many of the topics that are important to the Dunkin’ Donuts network.”

“We are always working towards building a stronger franchise system and the BAC plays a critical role in providing senior management with thoughtful and valuable advice and worthwhile perspectives to further strengthen the business,” said Nigel Travis, Dunkin’ Brands CEO and Dunkin’ Donuts President. “We look forward to the contributions of our newly appointed members who join a strong group of dedicated franchise leaders that takes its commitment to Dunkin’ Donuts seriously.”

Dunkin’ Donuts senior leadership consults with the Brand Advisory Council on a wide variety of topics, including the brand’s strategic direction, marketing strategies, menu innovation, operations, technology issues, education and training needs, regional and national meeting agendas and more.

The Dunkin’ Donuts Franchise Advisory Council system has been in place for more than three decades and includes operators located in 35 United States across the country.

Tim Hortons Plans Menu Expansion to Compete with Starbucks, Dunkin’ Donuts

The New York Daily News reports that Tim Hortons is brewing up a fresh strategy to take on Starbucks and Dunkin’ Donuts.

The big Canadian coffee chain said Friday it would open hundreds of new cafés, including in New York City, that break the mold of Tim’s iconic coffee shops north of the border.

Tim Hortons already has 11 shops in the city – nine in Manhattan and two in Brooklyn.

As part of a plan to open 900 stores in North America over the next three years, the company said it will build 300 more outlets in the U.S. That will increase its total of U.S. stores by more than 50%.

Rather than sticking with a format that has become a part of Canadian culture, Tim’s said it would open what it described as “redesigned upscale café/bake shops” that feature a menu that differs from the Canadian fare, including pastries baked on premises.

“The bottom line is that the Tim Hortons you know today will be dramatically different in four years from now,” CEO Don Schroeder said.

The company told industry analysts Friday it would locate the 300 new cafés in parts of the U.S. in which it already had a presence – mostly in New York, Ohio and Michigan.

“They are making the right move by targeting current markets. You just can’t continue to throw more stores out there. It’s like throwing bad money after bad money,” Edward Jones analyst Brian Yarbrough told Reuters.

Tim Hortons currently has 3,015 shops in Canada and 563 in the U.S. Those numbers pale compared with Starbucks, which has more than 11,000 outlets in the U.S. alone, and Dunkin’ Donuts, which has 6,400 in its home market.

Also for 2010, the company expects sales at stores open for at least a year to increase by 3% to 5% in Canada and by 2% to 4% in the U.S.

Read More:  New York Daily News

Dunkin Donuts’ Not Hurting from Coffee Price Wars

Convenience Store News reports The fast-food coffee wars have yet to dent Dunkin Donuts’ bottom line very much, one of the chain’s owners said this week.

Despite efforts by McDonald’s Corp to undercut competitors on price, Dunkin’s market share in coffee is steady and growing, Mark Nunnelly, managing director at Bain Capital, said Monday at the Reuters Private Equity and Hedge Funds Summit in New York.

“The big hurt has not been Dunkin to McDonald’s, or McDonald’s to Dunkin. It’s been Dunkin and McDonald’s to your local fill-in-the-blank convenience store,” he said.

Nunnelly, whose firm is one of three private equity owners of the doughnut chain, said Starbucks Corp. has been hurt the most by the price war and the weak economy, noting that more consumers are trading down from expensive drinks to cheaper plain coffee rather than switching among the various outlets.

“The higher-priced players at $4 or $5 for a latte have obviously had the toughest year through the crisis,” Nunnelly said. “The more accessible price point players like Dunkin and McDonald’s have fared better through that period.”

Read more at: Convenience Store News

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