The FINANCIAL — Wissol Group will bedeveloping 35 (thirty five) Dunkin’ Donuts restaurants in Georgia. The highlevel of awareness of the Dunkin’ Donuts brand assures the management of WissolGroupoffuture success of its new venture. The wide variety of items on themenu and correspondingly very much reasonable prices will makeDunkin’ Donutsrestaurantsaccessibletoalllevels of the population. Furthermore, by using some local ingredients at Dunkin’ Donuts restaurants, prepared by one of the leading supermarket chain Smart,the group willsupportimport substitution policy as well as help local agricultural growth.
Dunkin’ Donuts is an American global baked goods and coffee chainthat was founded in 1950. Since its foundation, the company has grown to become one of the largest coffee and baked goods chains in the world with over 11, 000 restaurants in 31 different countries. The chain has grown to include over 1,000 items on their menu, including a big variety of sandwiches, croissant based fish and meet products, bagels, over 100 different doughnuts, other baked goods, and a wide variety of hot and iced beverages.
After Moscow,Russian Federation, Georgia will be the second post-Soviet countrywhere Dunkin’ Donuts will be developed.
“Dunkin’ Donuts is the legendary, one of the most popular American brands. There was no other company in this industryatthe time of its foundation. Securing franchise contract with Dunkin’ Donuts is the major step in establishing successfulcompany. Now with a very significant experience of Wissol Group in retail industry and restaurant management will undoubtedly insure success story for Dunkin Donuts in Georgia” SosoPkhakadze, President of Wissol Group, told The FINANCIAL.
Dunkin’ Donuts is the second American restaurant brand for Wissol Group, which previously successfully introduced Wendy’s to the Georgian market. The group has been discussing franchise opportunity with Dunkin’ Donuts for 3 years.Pkhakadzesummarisedthis period as quite hard and difficult process during which the Wissol Grouphad to convince Dunkin’ Donuts to enter the Georgian market.
There were only three countries where Dunkin’ Donuts expanded its businessin 2014. In general, Dunkin’ Donuts is looking to recruit highly qualified, well-capitalized multi-unit franchisee groups with deep foodservice operating experience to develop the brand across the country. Ideal franchisee candidates should have strong financial backgrounds, knowledge of their local consumers, a proven track record of success in the restaurant industry, and a desire to develop a minimum of 20-25 Dunkin’ Donuts restaurants in their market in the coming years.
“We are proud that Georgia became one of them, together with Austria and Sweden.This new franchise agreement is not only a success for our group. This is good for the whole country. International brands are the first thing that people look for while traveling in foreign countries. The existence of well-known, multinational brands is a very good indication for all investors and underscores stable environment and favourable business climate in the country. We plan to open 35 restaurants of Dunkin’ Donuts during the next 5-6 years. Appearance of 35 Dunkin’ Donuts stores will mean a lot to Georgia,” said Pkhakadze.
“I honestly did not expect that we would reachan agreement in three years. There are many countries with larger populations and bigger economies that are waiting for the entrance of Dunkin’ Donuts. According to this criteria Georgia is not even in the top ten. However, with our passion, patience, enthusiasm and experience we managed tosecure this deal. There were lots of issues that Dunkin’ Donuts had to study on our country. Finally,it was decided thatGeorgia is a right place and Wissol Group is a right and strong partnerfor Dunkin’ Donuts,” Pkhakadzetold.
In Pkhakadze’swords, the franchise brings experience, business knowledge and know-how to his team. The company has started to host representatives of Dunkin’ Donuts frequently who come to share their experience. On the other side, Wissol Group sharesitsinnovative and creative approaches and new business ideas. “As a result, we can offer numerous innovations to customers. Those who have already visitedtoDunkin’ Donuts abroad will find pleasant surprises in our Georgian chain and they will witnessunlimited level ofcreativity.”
According to Pkhakadze, the level of awareness of the Dunkin’ Donuts brand in Georgia is extremely high. “We received unexpected feedback from customers after initially posting on social networks about our plans to open Dunkin’ Donuts in Georgia. It isvery popular global brand and brand awareness was alreadyvery high in Georgia. Surprisingly, a great deal of Georgians isnow waiting foropening”.
“Last few years, we have seen many remarks here and there from many people asking why nobody was bringingDunkin’Donutsto Georgia that gave us additional stimulus,” Pkhakadze added.
The first 2 (two) restaurants of Dunkin’ Donuts will be opened in Tbilisi in December.They will be fully functionalrestaurants with a wide range of menu items, includinglots of sandwiches, salads, fish, chicken and meat croissants, bagel, doughnuts and coffee products and other beverages.
In addition there is a wide range of hot, iced and frozen beverageson the menu. The frozen coffee Coolatta is one of the favourite flavours with Donuts’ customers. Pkhakadze is sure that local customers will also love it.
“We insisted that Georgiawould be the only countryoutside of the U.S. where the whole range of the American assortment of menu items would be available. 3 additional products have been added from the European menu. In few months after opening we will add several Georgian products as well, so some menu items of Dunkin’ Donuts will be tailored to Georgian tastes,” said Pkhakadze.
“We will offer locally-sourced products from the very 1-st day of its opening. The croissants will be baked daily by our supermarket chain Smart,” he added.
Dunkin’ Donuts is not an expensive restaurant, said Pkhakadze,adding that it will be accessibleto all segments of the local society. “To serve everybody is extremely important for us,” he added.
In terms of how consumers have become more aware of healthy and low fat foods, Pkhakadze believes that Dunkin’ Donuts will be one the best eateries for this segment of health-conscious people as well.
“Most of products at Dunkin’ Donuts are absolutely healthy and low fat. As for the doughnuts themselves, the issue is simply to control the amount eaten. Aswith any other food, you should know the limit. The very good variety of products in the menu offered by the restaurant will attract all customers, including those who pay special attention to how many calories they consume,” he said.
In the U.S. the largest flow of customers at Dunkin’ Donuts is during breakfast time. Meanwhile, Georgians are more prone to visit eateries at lunchtime and in the evening. “If something does not yet exist in Georgia though, it doesn’t mean that it never will. Among other strengths, Dunkin’ Donuts is also the leader in terms of serving breakfasts. A big assortment of food and beverages makes Dunkin’ Donuts the best stop for breakfast. Therefore, we will gradually be able to establish a culture of going out for breakfast. As time passeswe will see more and more customers comingto Dunkin’ Donuts for breakfast. Meanwhile the concept of Dunkin’ Donuts in Georgia will be ALL DAY DUNKIN which means that consumers will be visiting Dunkin’ Donuts restaurants for breakfast, launch and dinner” said Pkhakadze.
“We are steadily becoming the part ofglobal economy. So, the penetration of multinational brands is a natural and constant process. It is hard to imagine ever that by creating a Georgian, local burger joint could compete with Wendy’s and other multinational burger restaurants. Not only Georgians,but no one else would manage to do this, with absolutely rare exceptions. Dunkin’ Donuts has almost 65 years’ of experience in operational excellence, unified standards, salesand service skills, etc. Hence, it’s very hard to believe that one can manage to replicate their success by creating local brand in the same industry,” Pkhakadze explained.
“Sourcingof local ingredients is very important for us. We are working hard to minimize the amount of goods that are imported and instead use local products. This is a very good way to develop Georgian economy. We are blending international standards and the highest brand equity withlocal ingredients in the menu items thatguarantee unique proposition to our customers. We are not simply copying foreign experience. With the great support of our foreign partners and franchisorswe are adapting their brands to the Georgian reality and consumer preferences,” SosoPkhakadze told The FINANCIAL.
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