Mexico City - Dunkin' Donuts is betting on the millennial market as it plans to open 100 doughnut and coffee shops in Mexico by 2024.
The Massachusetts-based chain already operates 5 franchises in Mexico City (in Polanco, Tecamachalco, Santa Fe, Parque Hundido and Miguel Ángel de Quevedo), and new stores will open in CDMX, Morelos, Hidalgo, Querétaro & Jalisco by the end of 2018.
The next opening is scheduled for July, when a 1-million-peso ($48-million USD) outlet will open its doors near the Condesa district of the country's capital.
Guadalupe Sánchez, the company's operations manager in Mexico, explained that 85% of a coffee shop's clientele visits during breakfast hours, a fact the company is relying on for its Mexican expansion. "We're betting strongly on 100% Mexican coffee, from the Chiapas region to target all types of markets, but we believe that the millennials (the generation born between the 1980s and the early 2000s) are our potential clients."
Dunkin' Donuts' six-year expansion plan follows the market's trend: there are currently 2,658 coffee shops and cafes in Mexico, 11.5% more than five years ago. Euromonitor International estimates that the figure will be nearly 3,000 by 2021.
With a market share of 45.4%, the domestic landscape is currently dominated by Starbucks, operated as a franchise in Mexico by Alsea.
For its part, the Dunkin 'Donuts brand operates stores in 30 countries, where they sell 30 cups of coffee per second.Sources: Forbes • Mexico News Daily