UPDATE 1-Grand Parade to close Dunkin', Baskin Robbins in South Africa [Reuters (UK)]
DUNKIN BRANDS GROUP (DNKN)
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Source: Reuters
UPDATE 1-Grand Parade to close Dunkin', Baskin Robbins in South Africa | Reuters 2 Min Read (Adds background) JOHANNESBURG, Feb 15 (Reuters) - South Africa’s Grand Parade Investments (GPI) Ltd plans to close its loss-making Dunkin Donuts and Baskin Robbins franchises in the country after failing to find a buyer, and will focus on its Burger King outlets, GPI said on Friday. GPI signed a franchise agreement with Dunkin’ Brands Group Inc, which owns Dunkin’ Donuts and ice cream company Baskin Robbins, in 2016, betting that South African demand for snacks and drinks from international chains would hold up, despite pressures on disposable incomes. But a recession in 2018, elevated household debt, higher fuel prices, the introduction of sugar tax and an increase in value-added tax from 14 percent to 15 percent has squeezed consumer spending and hit earnings and margins at the chains. “The decision to exit Dunkin Donuts and Baskin Robbins was made following sustained losses in these busines
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