Baskin-Robbins plans to expand its 31 flavors throughout the area with more than 35 stores

Date AddedAugust 12, 2009 06:01:19 AM

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Baskin-Robbins plans to open more than 35 new stores in the Washington area, the ice cream giant known for its 31 flavors said Monday.
The move is part of the ice cream company's new growth campaign that will try to increase its U.S. presence by creating new concepts like high-end dessert bars and drive-through shops.

The company, which owns 86 stores in the Washington area, will sell franchises for free-standing stores, kiosks, soft-serve-only stores and drive-through stores.

"We have the ability to cater to [multiple] kinds of investors," said Salman Siddiqui, vice president of global business development. "If you really peel the onion, you won't find too many franchise organizations with 65 years of history."

Despite the recession, ice cream sales continue to do well, National Retail Federation spokeswoman Ellen Davis said.

"I think in times like this everyone wants to splurge a little, but no one wants to do too much," Davis said.

While families may stop spending money on going out to dinner or a movie, they are more likely to go out for ice cream after a dinner at home, Davis said.

"People are really taking advantage of small indulgences," she said. "People will spend two, three, four dollars instead of 20 to 30."

Siddiqui said he hoped the diversity of franchising options would lead to a successful expansion.

Ice cream production has remained fairly consistent over the past few years, said Cary Frye, vice president of regulatory affairs for the International Dairy Foods Association.

The industry noticed an increase in both dollar sales and the volume of private label or "store brand" ice cream in 2008.

Additionally, frozen yogurt production and sales rose.

Last year, the U.S. produced 1.54 billion gallons of ice cream products such as hard ice cream, novelty items and frozen yogurt, slightly off 2007 figures, according to data provided by the dairy group.

While more District residents may be licking ice cream cones because they're all they can afford, they simply may be looking for a cool treat.

"It might just be the hot weather, and frozen treats might just be on everybody's mind right now," Davis said.