Dunkin’ Donuts to Permanently Close Stores, Signaling the End of an Era
Dunkin’ Donuts, a longstanding fixture in the American coffee and bakery landscape, is set to undergo a strategic transformation with the announcement of the closure of 450 outlets located within Speedway stores along the east coast. While Dunkin’ Donuts has become synonymous with coffee culture in New England and beyond, the decision to shutter these particular branches is part of a broader effort to streamline operations and focus on more lucrative ventures.
The Dunkin’ branches within Speedway stores, although convenient for those refueling their vehicles, have contributed minimally to the company’s overall revenue. Scott Murphy, the president of Dunkin’ Americas, revealed that these Speedway locations accounted for “less than 0.5 percent of Dunkin’s domestic sales in 2019.” In response to this, Dunkin’ is opting to close these outlets, redirecting resources to enhance profitability in other areas.
Kate Japson, the chief financial officer, clarified the rationale behind this decision, stating, “By discontinuing these sites, with minimal financial repercussions, we anticipate positioning ourselves better to serve these trade areas in the future with new Dunkin’ NextGen restaurants that offer an expanded menu.” The move is part of a termination agreement with Speedway, affecting a total of 450 limited-menu Dunkin’ Speedway owned and operated locations throughout 2020.
Despite these closures, Dunkin’ remains a significant player in the coffee and fast-food industry, operating a total of 9,600 locations across its chain. The closure of less profitable outlets, however, comes at a challenging time for Dunkin’ as the ongoing COVID-19 pandemic continues to impact consumer behavior and spending patterns.
As store closures and economic uncertainties prompt individuals to tighten their belts and cut back on non-essential expenses, Dunkin’ is navigating this landscape by focusing on enhancing customer experiences through various channels. Dave Hoffman, Dunkin’ Brands’ CEO, highlighted the company’s commitment to adapting to the current environment. He emphasized the importance of drive-thru locations, mobile ordering, and delivery partnerships with platforms like GrubHub in meeting the evolving needs of customers.
Amidst the shifting landscape, where people have fewer opportunities to venture outside their homes, Dunkin’ aims to remain a source of comfort for individuals during challenging times. Hoffman stated, “For over 70 years, Dunkin’ has been an integral part of the communities we serve, keeping America running and taking care of our guests. Amidst the uncertainty, we’re continuing to be there for people by taking additional measures to offer comfort during these challenging times.” The company’s commitment underscores its determination to remain a reliable and adaptive force in the face of current market dynamics.
