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. There are Dunkin’ Donuts stores almost everywhere in New England, and they are frequently next to one another.
On the other hand, Dunkin’ recently disclosed that it intended to close 450 locations that were housed within Speedway stores on the east coast. This implies that instead of Dunkin’s famous goods, those who are used to stopping for coffee or doughnuts while filling up their cars may have to settle with prepared doughnuts and inferior coffee from gas stations.
The president of Dunkin’ Americas, Scott Murphy, states that the company’s revenue from its gas station locations is quite little, making up “less than 0.5 percent of Dunkin’s domestic sales in 2019.” Kate Japson, the chief financial officer, strategically decided to close these locations and reroute the funds to more lucrative ones in light of this.
“By closing these locations, with little financial impact, we expect to better position ourselves to service these trade areas in the future with new Dunkin’ NextGen restaurants that offer an expanded menu,” said Japson.
She went on, “As part of a termination agreement with Speedway, we will be closing 450 limited-menu Dunkin’ Speedway owned and operated shops throughout 2020. Together, these limited-menu locations, which are lower volume units, account for less than 0.5 percent of Dunkin’s yearly systemwide sales in the United States.
With 9,600 sites throughout its chain now in operation, Dunkin’ offers plenty of chances for consumers to enjoy their coffee and fill up their cars.
However, given the current COVID-19 outbreak, Dunkin’ may face difficulties as a result of the decision to shutdown these locations. People are spending less on luxury goods like coffee, which is typically regarded as a non-essential, and instead buying their morning brew from grocery stores as a result of store closures and economic uncertainty.
In spite of this, Dave Hoffman, the CEO of Dunkin’ Brands, emphasized the company’s dedication to improving customer experiences through a variety of channels, including drive-thrus, smartphone ordering, and delivery alliances like GrubHub.
Dunkin’ hopes to continue being a comfort to people in their hour of need, especially with the new environment the virus has brought about, where people have less opportunity to leave their homes.
“Dunkin’ has been an integral part of the communities we serve, keeping America running and taking care of our guests,” Hoffman stressed for more than 70 years. We’re still here for them, and we’re doing more to provide comfort in these trying times, despite the uncertainties.
