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After 11 years, Dunkin' Donuts returns to Russia

Dunkin' Donuts is coming back to Russia after leaving the country in 1999. It will open its first of 20 planned stores in Moscow. The move comes 11 years after the donut chain pulled out of Russia because of years of losses. The issue of declining profits was worsened by poor relations with a franchisee who used the shop to sell liquor and meat peas alongside Dunkin' Donuts products.

From the Wall Street Journal:

The move by the Dunkin' Brands Inc. unit will intensify a battle among coffee-shop chains in Russia, a tea-steeped culture that is fast getting hooked on coffee. Restaurant sales of coffee in Russia surged to an estimated $575 million in 2009 from $13 million in 1999, according to Euromonitor International. During the five years ended in 2008, total revenue in the category increased 362%. Dunkin' is hoping to match the success of rival Starbucks Corp. of Seattle. Less than three years after opening its first store in Russia, Starbucks boasts 31 locations whose sales make it the third-largest coffee-shop chain in the country... according to Euromonitor.

Dunkin' Donuts has more than 9,000 locations worldwide., including about 6,400 franchisees in the U.S. At the end of 2008, there were 2,440 international Dunkin' Donuts shops in 31 countries. Find some international locations here.

About the author

Daryl Paranada is the associate web producer for Marketplace overseeing all daily website content and production, as well as producing multimedia features -- including the popular economic explainer series Whiteboard -- and special projects. Follow him on Twitter @darylparanada.

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