Despite the ongoing pressures of inflation, Inspire Brands CEO Paul Brown conveyed to CNBC’s Jim Cramer on Tuesday that he’s noticed consumers remaining resilient.
Inspire Brands possesses a portfolio of well-known restaurant chains, including Dunkin’, Baskin-Robbins, Buffalo Wild Wings, Arby’s, Jimmy John’s, and Sonic.
“We see about 75% of Americans every year in one of our restaurants, given the breadth of our brands,” Brown remarked. “So we do see the nation, and we have been pleasantly surprised about the resiliency. There are differences based on income level, but that’s the beautiful thing about having a broad, diverse brand with multiple price points.”
Sonic’s order-ahead business surges and Dunkin’ sees success with iced beverages. Brown underscored that some of the company’s strength stems from the way its brands are “integrated around a set of shared capabilities,” enabling each brand to leverage investments in another. He likened this model to businesses in the hotel sector rather than the restaurant sector.
He particularly emphasized the robust performance of two brands: Sonic and Dunkin’. Brown noted that Sonic’s order-ahead business surged during the pandemic and continues to grow.
Additionally, Dunkin’ is experiencing remarkable success, partly due to the company’s initiative to replace coffee and beverage equipment across franchises, which bolstered its iced drink offerings.
“We’re selling more iced beverages than we are hot,” he revealed. “A franchisee in Rhode Island about 30 years ago got the bright idea of pouring coffee over ice, and then everybody liked it, and so, we went with it.”
