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.

PROMOTED VIDEO
Sport
Wembley Stadium
footballNews follows deal with Germany
Arts and Entertainment
A spell in the sun: Emma Stone and Colin Firth star in ‘Magic in the Moonlight’
filmReview: Magic In The Moonlight
Voices
voicesApple continually kill off smaller app developers, and that's no good for anyone
Sport
A 'Sir Alex Feguson' tattoo
football

Arts and Entertainment
Ben Whishaw is replacing Colin Firth as the voice of Paddington Bear
tv

Thriller is set in the secret world of British espionage

News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
life

News
ScienceGallery: Otherwise known as 'the best damn photos of space you'll see till 2015'
Life and Style
fashion

Bomber jacket worn by Mary Berry sells out within an hour

Life and Style
tech
Sport
Andros Townsend is challenged by Vladimir Volkov
football
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

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Audit Manager Central Functions

To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...

Credit Risk Audit Manager

Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week