RICHMOND, Va. -- Dunkin' Donuts has returned to the Richmond, Va., area.
About 10 stores now operate in the market, including one that opened in Petersburg, Va., in late December and one in eastern Henrico County earlier this month, according to a report in the Richmond Times-Dispatch.
More openings are planned for 2008. One might be in downtown Richmond if a site can be found, Richard Contessa, CFO and partner in CDG Virginia LLC, one of the local franchise owners, told the newspaper. CDG Virginia LLC has much of the Richmond [image-nocss] market as a territory.
"This is a huge doughnut market," he said. "People have been excited about us coming."
For several years, Dunkin' Donuts didn't operate here. The company began a big expansion plan for the Richmond area in 1994, when it opened a central bakery in the area to supply the locations. But the central bakery closed in 1997, and stores closed after that.
Contessa and his partners operated a Dunkin' Donuts inside a convenience store in Chesterfield County more than a decade ago, and he said it was successful. But that location closed when the others did.
The chain decided a couple of years ago to return to Virginia. A first shop opened in 2003, and two others opened in 2005, by other franchise operators.
Contessa and his partners jumped at the chance of owning a franchise territory.
Their agreement with Dunkin' Donuts calls for at least 25 new stores by 2014 in their territory, which roughly extends from Fredericksburg to Petersburg, Va.
"The goal is four a year," Contessa said. The locations will range from inside convenience stores to free-standing buildings with drive-thru windows.
Sales have been strong in the other locations opened this year, Contessa said. About 50% to 70% of sales at those units come from doughnuts. But in Dunkin' Donuts' core market of New England, 70% of sales come from beverages, he said.
Dunkin' Donuts is more than just a place to get a doughnut and a cup of coffee, he said. The chain has a variety of drinks, sandwiches and pizzas.
"It is an evolving brand," Contessa said. "The direction they are going, it is more of a fast-food restaurant and not just a doughnut shop."
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