Domecq buys sandwich chain

Allied Domecq yesterday announced plans to expand further its fast food business in the US by paying $50m (pounds 30m) in cash for Togo's, a chain of 200 franchised sandwich shops in California with an annual turnover $120m.

The Togo's chain will be enlarged to 1,000 outlets across the US, mainly in locations close to Allied Domecq's existing fast food outlets. It operates 3,370 Dunkin' Donuts coffee shops and 2,600 Baskin' Robbins ice-cream parlours in the US alone, and the three businesses will be managed as a single operation.

"The addition of Togo's will enable us to expand out customer offer with Dunkin' Donuts drawing customers primarily in the morning, Togo's primarily at lunchtime and Baskin' Robbins in the afternoon and evening. This complementary brand offering ensures that our locations can be productive throughout the day and provide our franchisees with improved returns," Stephen Alexander, chief executive of Allied Domecq Retailing, said yesterday.

Dunkin' Donuts is the world's largest coffee and donut chain, selling 4 million donuts daily. It is largely a breakfasttime and morning business, making half its daily sales before 10am. Baskin' Robbins is the world's largest ice-cream franchise serving 10 million people a week, but 65 per cent of its sales are made between 3pm and 9pm each day. There are already 164 "Combo Stores" offering both Dunkin' and Baskin' brands on the same site.

Togo's caters largely for the lunchtime market for office workers. It offers a range of 30 different sandwiches, which are prepared in front of the customer in the US style.

Annual turnover of the 200 existing outlets is around $120m, and the average sales of $600,000 ranks the outlets among the largest in the sandwich industry. Roughly half the business was takeaway and half was eat-in, and the customers were almost equally divided between men and women, a spokesman said yesterday.

In the next five years Togo's will be rolled out as a national chain of outlets with a planned 1,000 outlets across the rest of the US. The UK is also a target market and the brand could be brought into the UK within the next two years.

Togo's founder and former owner Mike Cobler, who set up the business 25 years ago, will stay on with the group.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

MBDA UK Ltd: Indirect Procurement Category Manager

Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee
World War Z author Max Brooks honours WW1's Harlem Hellfighters in new graphic novel

Max Brooks honours Harlem Hellfighters

The author talks about race, legacy and his Will Smith film option to Tim Walker
Why the league system no longer measures up

League system no longer measures up

Jon Coles, former head of standards at the Department of Education, used to be in charge of school performance rankings. He explains how he would reform the system