The Largest Dunkin’ Franchisee in NY Metro Area Has Been Sold. Here Are the Details

The largest Dunkin’ franchisee in the New York metropolitan area has been sold. Metro Franchising, one of the biggest Dunkin’ franchisees in the system with 105 locations in the New York metro area, has received funding from Beach Point Capital Management LP. In collaboration with Beach Point, Stuart Cohen, the company’s CEO and co-founder, and Paul Waltzer, the president and co-founder, will keep their positions as stockholders. Metro Franchising’s prior sponsor was Quilvest Capital Partners. Here are the details.

Dunkin’ Franchisee Sale Is Part of a Larger Private Equity Trend

Established in 1998, Metro Franchising is the biggest franchisee in the New York City metro area and among the biggest in the Dunkin’ franchise system. Franchisees of Dunkin’ operate in the quick service restaurant market, serving baked goods, coffee, doughnuts, and other snacks.

“The partnership with Beach Point represents a new chapter for Metro Franchising, and we are confident that with their support, we will be able to accelerate our growth locally and in new markets,” said Stuart Cohen, CEO of Metro Franchising, in a statement accompanying the press release announcement. “Beach Point’s deep understanding of our business and the franchising landscape is exactly what we need to further our expansion goals.”

This private equity investment in a large Dunkin’ franchisee is part of a broader trend, according to some experts. Rob Lauer, franchise partner at Haynes Boone, suggests that Americans will be seeing the investment of more private equity into franchises like Dunkin’ to keep faltering brands afloat.

“There are more restaurant brands operating today than ever before, and there seems to be an endless supply of new brands trying to gain a foothold in an extremely competitive market,” Lauer said to RetailWire. “Not all will succeed, and that provides private equity lots of opportunities to swoop in, especially if they have more available cash due to rate decreases.”

He continued: “We are also at a stage in PE involvement with the restaurant industry generally that many new(er) restaurant founders went into this business with dreams of cashing out to private equity sooner rather than later, and so I think there are many more brands open to PE than ever before (whereas in the past I know some old school founders were philosophically opposed to private equity involvement in ‘their’ brand).”

New Partnerships

For its part, Dunkin’ nationwide has continued with its strategic partnerships.

Earlier this month, the doughnut giant and BARK celebrated five years of partnership with its latest round of customized dog toys. Raising money for the Dunkin’ Joy in Childhood Foundation, this line of limited-edition dog toys is “inspired by Dunkin’s fall flavors and designed from a dog’s perspective by BARK’s in-house design team” and is sure to delight both dog parents and their pets. Simply donate a specified amount to the foundation online at bark.co/Dunkin or specific in-person locations, and Dunkin’ patrons will receive one of these toys.

The companies have raised more than $10 million for the Dunkin’ Joy in Childhood Foundation since announcing their relationship in 2020. This fifth year, puppies can play with the popular fall sweets from the coffee chain for the first time. A news release regarding the partnership claims that these four toys, which are inspired by fall, can keep pet pals occupied for hours:

• Dunkin’ Signature Latte Toy: This fluff-packed squeaker toy with a crazy crinkle and a tuggable T-shirt rope is for dogs who love PSL season just as much as their human does. It is available with a $15 donation.
• Dunkin’ Snackin’ Bacon Dog Toy: This multi-part toy with two squeakers is perfect for pups craving a crispy, crackling good time. It is available with a $13 donation.
• Dunkin’ Pumpkin Donut Dog Toy: This toy features a hidden surprise inside — a pumpkin pie-scented Super Chewer donut made with natural rubber. It is for dogs who play tough and is available with a $15 donation.
• Dunkin’ Mocha Latte Dog Toy: For dogs who prefer more traditional coffee flavors, this toy features a crazy crinkle, a tuggable T-shirt rope, and a surprise toy inside. It is available with a $15 donation online only.