Global entrepreneur Teja Chekuri, restaurateur behind Microbrewery Ironhill India that is popular for local-flavoured craft beer, has acquired nine franchisees of American coffee and food chain Dunkin’ through his company Golden Horn Group.
Chekuri, along with his business partner Mitesh Patel, both of whom own Golden Horn Group, bought nine of what was formerly known as Dunkin Donuts’ franchisees in Sharon, Hanover, Weymouth, Braintree, Quincy in Massachusetts for $18million, the company told VCCircle. These franchisees will be operated by OM Network LLC, a part of Golden Horn Group.
“This is a historic move for our company because getting a Dunkin’ franchisee is really tough. They have set an impressive benchmark of growth in the industry which when achieved enhances progress,” Chekuri, President, Golden Horn said.
The procedure to acquire the franchisee–which involves approvals, background checks among other things–took almost two years for Golden Horn. Further ownership transfer is expected to be completed in the six-eight months.
“We wanted to get into QSR, because it is easier to manage compared to a full-scale restaurant,” Chekuri said, adding that the company was particularly eyeing the coffee space over food. “Profit margins, at least for us (where Dunkin sells mostly coffee), are better. Cost is (relatively) less for coffee.”
The company is in the process of bolstering its backend systems to support its plans for expansion. It has retained the staff, but aims to work on the technology system to boost growth. “We start with 9 Dunkin stores in and around Boston, Massachusetts today and intend to reach 150 outlets in five years across several cities in the US,” Chekuri added.
The Massachusetts-headquartered company, founded by Bill Rosenberg in 1950, sells donuts, bagels, coffee, and donut holes in more than 13000 franchisees around the world.
“While getting into the system is tough, once you become a part of it, Dunkin supports you in financial growth,” said Chekuri. The company does not plan to expand into other QSR chains for now.
Chekuri is also the owner of multiple other restaurants including Godavari Group of Restaurants in the US, launching brands like Madras Dosa Co, 1947 -Truly Indian , Vaanga in the US and Canada. In India, he launched craftbeer Prost in 2012, followed by microbrewery Ironhill India in 2017 in multiple Indian cities.
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