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Baskin-Robbins takes ‘Express’ route to speed service, grow sales

Baskin-Robbins takes ‘Express’ route to speed service, grow sales

Mass. CANTON —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Called BR Express, the 200-square-foot units are designed for use in on-site venues, such as airports and college campuses, as well as in shopping centers, said Srinivas Kumar, chief brand officer for the 5,800-unit ice cream chain. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

In a departure from Baskin-Robbins’ traditional 31 flavors, the express units feature vanilla soft-serve ice cream, a menu item Baskin-Robbins introduced last year, with six to eight flavor ribbons available for mixing in on a rotating basis, as well as a variety of mix-ins. Menu prices range between $1.95 and $2.25 for a small cone or cup, compared to $2.25 to $2.50 for the same amount of hard-scooped ice cream. The chain’s signature beverages also are available for purchase. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

“The category has been lethargic so we thought, ‘How can we make it exciting using 31 flavors while taking the complexity of dipping out?’” Kumar said. “That’s when the ‘wow moment’ came. We went into test 26 days after putting it on the concept board.” —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

The units are currently in test in New York, Florida and Wisconsin, with plans to target the Southeast, Kumar said. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Baskin-Robbins is not the only ice-cream-centric concept to roll out express units. In December, Wilbraham, Mass.-based Friendly’s Ice Cream Corp. said it would begin testing a fast-casual express prototype of its family-dining restaurants this year in Boston, Springfield, Mass., and Providence, R.I. The units will offer a reduced menu focusing on the core items served at the brand’s full-service restaurants. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Express units are a smart move given the current real-estate market, said foodservice industry consultant Malcolm M. Knapp. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

“There probably are some opportunities in smaller spaces to capitalize on,” he said. “Ice cream is an impulse purchase that is grab-and-go and fits into high-traffic patterns. If you do it in the right place, you can capitalize on that impulse traffic and [score] high sales. It makes a lot of sense; it’s about getting the best return for the investment.” —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Baskin-Robbins’ Kumar said the investment for the BR Express units “is around $20,000 to $35,000, brand-new,” compared with the $180,000 to $200,000 for a traditional store [build-out]. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

He noted that while the credit market “within the last three months certainly has dried up, I am very confident the steps the government is taking will loosen up liquidity,” which would allow for more franchisee participation. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

“If we go back [and look] at the last three recessions, the greatest spike in franchising has been right after those recessions,” he said. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Kumar said, however, that he is hopeful franchisees will maintain a “diverse portfolio” of stores that include both traditional shops and express units. He said he expects a little less than 10 percent of franchisees to convert their stores into the express units. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Franchisees said they are enthusiastic about the new express option. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

“I see this attracting new franchisees to the business because it is an easier entry point financially than a full-service store,” said Mitch Cohen, owner of More-Dough LLC, an 11-unit Baskin-Robbins franchisee based in Bayshore, N.Y. “They’re very excited right now because they’re looking for the best way to economize our business and get the brand into everyone’s hands [at the same time]. This gives us the opportunity to offer more choice for everyone—consumers, franchisees and prospective franchisees.” —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Baskin-Robbins’ officials also are hoping that the recession boosts consumers’ desire for comforting, affordable treats, Kumar said, noting that sales of ice cream and ice cream cake tend to increase when the economy sours. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

While no hard data exists to substantiate that belief, anecdotal evidence abounds, said Lynda Utterback, executive director of the National Ice Cream Retailers Association. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

“While I don’t have any hard data to support this, I can tell you it is true,” she said. “Ice cream is a comfort food, and during troubled or tough economic times, people certainly seek comfort. It’s enjoyable, still affordable and costs less than it does to go to a movie.” —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

According to the International Dairy Foods Association, ice cream and related frozen desserts are consumed by more than 90 percent of American households. Consumers spent $13.9 billion on away-from-home frozen-dessert purchases in 2006, the most recent year for which data is available, according to the group. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Soft-serve ice cream is particularly popular, according to the National Ice Cream Retailers Association, which ranks it as the No. 1 frozen dairy treat among consumers. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

Kumar said the 63-year-old chain, a division of Canton, Mass-based Dunkin’ Brands Inc., introduced soft serve last year in an attempt to revitalize the Baskin-Robbins brand. The chain had domestic sales of approximately $553.5 million for the fiscal year ended December 2007, compared with $554 million the year earlier, according to data compiled for Nation’s Restaurant News’ latest Top 200 company census. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

In addition to BR Express, Baskin-Robbins also is moving forward with plans to grow Cafe 31, the fast-casual ice cream concept it debuted in Foxborough, Mass., last August. The concept features a high-end dessert bar and gourmet ice cream products, and most menu items are priced between $3.65 and $5.95. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

The chain also has unveiled two new products: a brownie à la mode ice cream cake that serves six and is priced at $9.99; and a kid-friendly, soft-serve Magic Sprinkles cone that changes colors from red to blue when licked. Looking to appeal to more health-conscious consumers, Baskin-Robbins in December introduced BR Choices, a line of fat-free, dairy-free, no-sugar-added and light ice cream choices, all of which contain no more than 140 calories per 2.5 ounces. —Looking to boost sales and broaden possible venues for expansion, Baskin-Robbins is testing a smaller and lower-cost version of its stores with plans to roll the prototype out in 2009.

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