After an 18 year “vacation,” Dunkin’ Donuts is returning to California. The Canton, Massachusetts-based company has already opened ten coffee shops in the state, has just announced nine in the Bay Area, and expects to eventually have 1,000 stores in California. 
In the late 1990s, Dunkin’ Donuts closed 15 stores in California due to saturation of the Donut’s market with wide number of Cambodian donut shops. According to commenter Bulavinka on Chowhound, “the donut market was flooded by these mostly immigrant/family-run operations, thereby crowding out just about any competitors whose operating margins were higher than these mom & pop businesses.”
According to a press release, Dunkin’ Brands Group Inc. entered into a new franchising agreement with Shiva Developments to a build nine locations in San Francisco. It also agreed with existing franchisee Aharon Aminpour to develop 17 restaurants in Fresno and the surrounding cities, including Clovis, Visalia and Tulare. Aminpour currently owns and operates one Dunkin’ Donuts restaurant in Encino, and last November signed a development agreement for 10 new restaurants throughout the San Fernando Valley.
The doughnut chain opened its first California location in Santa Monica last September area and was flooded with “Munchkin” lovers that were willing to stand in long lines. With just 10 stores opened so far, Dunkin has announced that it intends to have more than 1,000 restaurants in California “over the long-term,” according to Eater consultants.
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