Rising Coffee, Milk Costs Boost Prices at Dunkin' Donuts, Baskin-Robbins
CANTON, Mass. -- Dunkin' Donuts and Baskin-Robbins are increasing prices in response to the rising costs of coffee and milk, according to nrn.com.
In the company's second quarter conference call, Nigel Travis, chief executive of Dunkin' Brands Inc., the chains' parent company, revealed that some Dunkin' Donuts franchisees raised prices in the second quarter due to high coffee prices. However, he pointed out that the increases were "on our more differentiated products," such as iced beverages and breakfast sandwiches.
Baskin-Robbins would also likely hike prices in the third quarter, said Travis, who noted that the parent company would work to lower costs by using different suppliers and negotiating new contracts.
The company, which began trading publicly last week, saw its income slip slightly to $17.2 million, from $17.3 million in the year ago period, due partly to higher charges and expenses, including increased commodity prices, the company said.
Revenue was up 4.4 percent to $157 million in the period ended June 25, compared with $150.4 million in the second quarter of 2010.