---
title: "Investor’s Business Daily: Minimum-Wage Hikes Slow Dunkin’ Donuts Franchise Growth"
url: https://burnaze.com/article/300b80af-7c27-47e6-8e8b-6ce7e0b3a1a2
source: "1851 Franchise"
original_url: https://1851franchise.com/investors-business-daily-minimum-wage-hikes-slow-dunkin-donuts-franchise-growth-6765
category: "Coffee & tea"
industry: "Restaurants"
segment: "Coffee & tea"
published: 2016-10-21T14:09:10.000Z
modified: 2026-11-01T04:11:05.659Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/2945c151b8c571582e1174965af7413f1495.jpg
---

# Investor’s Business Daily: Minimum-Wage Hikes Slow Dunkin’ Donuts Franchise Growth

**TL;DR:** Dunkin' Brands expects to open 430 stores this year, down from a target of 460, due to franchisees waiting on minimum wage debates and election outcomes. The chain's franchise growth has slowed, with 61 stores opened in the third quarter, compared to 91 in the same quarter last year.

*originally published in 1851 Franchise on 2016-10-21. [Read the original](https://1851franchise.com/investors-business-daily-minimum-wage-hikes-slow-dunkin-donuts-franchise-growth-6765).*

## Story

Dunkin’ Donuts is seeing slow franchise growth this year. According to a recent Investor’s Business Daily article, Dunkin’ Brands says franchisees are waiting to open new stores depending on the outcome of the election and higher minimum wage debates.

Days after a survey with McDonald’s franchisees found growing tensions as wage pressures continue and sales growth has slowed, the doughnut and coffee chain announced they expect a lower target number of stores to open this year at 430 instead of 460. Compared with the 91 stores opened in the third quarter of last year, this year only 61 stores were opened in the same quarter.

Quick-service chains are having a hard time adapting to the suggested higher wages as majority of revenue for the chain comes from royalties paid by the franchisees.

Dunkin Brands and Wendy’s both reported incidents of hesitation in the New York area in terms of growth. CEO of Dunkin Brands Nigel Travis mentioned once the law to raise minimum wage to $15 an hour was passed, a second location for one New York franchisee was soon put on hold. Uncertainly and regulation were stated to be the reasoning behind the decision.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- franchise growth (topic)
- McDonald's (company)
- Wendy's (company)
- qsr industry (topic)
- Dunkin' Donuts (company)
- minimum wage (topic)
- election outcomes (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/investors-business-daily-minimum-wage-hikes-slow-dunkin-donuts-franchise-growth-6765). Summarized by Burnaze (https://burnaze.com/article/300b80af-7c27-47e6-8e8b-6ce7e0b3a1a2).