Strategy: Dunkin' Delis Make Some Togo's Go Away

- Kenneth Hein

Looking for a slice of the lunch market, Dunkin' Brands is expanding its Dunkin' Donuts menu to include toasted sandwiches and pizzas.

Forty-five of the company's Togo's sub shops east of the Mississippi that were attached to Dunkin's Donuts locations are being renamed as Dunkin' Delis. Togo's, which counts 357 locations in the West, will retain its identity there.

Moving forward, existing franchisees will have the option of adding the delis as will new store owners that come on board as part of Dunkin' Donuts aggressive westward expansion designs. The chain plans to surge from 6,000 to 15,000 locations by 2020.

"Things are ramping up. There will be managed expansion once we get the model straightened out," said Bob Kufferman, manager of brand marketing for "all day" at Dunkin', Canton, Mass.

Based on the higher-end Togo's model, the original Dunkin' Deli offerings were labor-intensive sandwiches. The chain "Dunkin'-ized" the deli concept, switching to toasted sandwiches that "were more efficient without sacrificing quality," Kufferman said. Choices include "classics" like ham and cheese, "fav-orites" (steak and cheese), "cravings" and 7-inch Pizzettas.

Late last year the chain tapped Stan Frankenthaler, author of The Occidental Tourist, as Dunkin' Brands' first-ever executive chef/director-culinary development to help develop the deli line-up and other food offerings.

The deli items will be touted via FSIs, Val-Pak and street teams "until we get scale," Kufferman said. Togo's, which opened in 1968, was acquired by Dunkin' in 1997. Its sales were down slightly to $166 million in 2005, making it No. 10 among sandwich chains, per Technomic, Chicago.