Similar to Starbucks, Dunkin’ Donuts has been growing its footprint across the country for years as a bakery and coffee shop that gives locals a handy place to sate their caffeine demands on every corner. In New England, there are almost always Dunkin’ Donuts locations nearby, and there are frequently several.
On the other hand, Dunkin’ has announced plans to close 450 locations within Speedway shops around the east coast. This implies that people accustomed to obtaining doughnuts or coffee while filling up their cars may have to settle for lesser-quality coffee from a gas station and premade pastries.
According to Scott Murphy, president of Dunkin’ Americas, the revenue generated by the Dunkin’ branches housed inside gas stations accounted for “less than 0.5 percent of Dunkin’s domestic sales in 2019.” Kate Japson, the chief financial officer, strategically decided to close these facilities and divert the resources toward more lucrative businesses in light of this.
We anticipate better positioned ourselves to service these trade areas in the future with new Dunkin’ NextGen shops that provide a larger menu by closing these sites, according to Japson, who added that doing so will have modest financial consequences.
She continued, “As part of a termination agreement with Speedway, we will be closing 450 limited-menu Dunkin’ Speedway owned and operated shops throughout 2020. These limited-menu locations are smaller volume operations, accounting for a total of less than 0.5 percent of Dunkin’s systemwide yearly sales in the United States.
Dunkin’ currently runs 9,600 outlets across its system, giving customers plenty of options to enjoy their coffee and refill their cars.
Yet, given the current COVID-19 outbreak, Dunkin’ may face difficulties as a result of the decision to shutdown these locations. People are cutting back on non-essential expenses like coffee, which is frequently regarded as a luxury item, and choosing to get their morning brew from grocery shops as store closures and economic concerns affect consumer behavior.
Despite this, David Hoffman, CEO of Dunkin’ Brands, emphasized the company’s dedication to improving customer experiences through a variety of channels, including drive-thru locations, mobile ordering, and delivery collaborations with services like GrubHub.
Dunkin’ hopes to continue to be a place of solace for people in their times of need given the altered landscape brought on by the virus, when people have less opportunity to leave their homes.
Hoffman noted that “Dunkin’ has been a vital component of the communities we serve for more than 70 years, keeping America running and looking after our visitors. We’re still here for them, and we’re doing more to provide comfort in these trying times, despite the uncertainties.