For years, Dunkin’ Donuts has been popping up all across the United States. Much like Starbucks, Dunkin’ has become the go-to spot for countless folks looking to grab a cup of coffee and a tasty treat. Especially in New England, you can hardly go a block without finding one. In fact, sometimes you’ll stumble upon two locations within just a short walk.
Well, there’s some news that’s bound to change your pit-stop routine: Dunkin’ has announced it will be shutting down 450 locations inside Speedway stores along the East Coast. So, if you’re someone who likes to pick up a donut or coffee while refueling, you might soon find yourself settling for a basic gas station coffee and a packaged donut instead of your Dunkin’ favorites.
Apparently, these Speedway Dunkin’ locations haven’t been pulling their weight financially. According to Scott Murphy, President of Dunkin’ Americas, these spots accounted for “less than 0.5 percent of Dunkin’s domestic sales in 2019.”
Chief Financial Officer Kate Japson made the call to close these underperforming locations and redirect those resources to more profitable spots.
“By exiting these sites, with minimal financial impact, we’re confident we’ll be better positioned to serve many of these trade areas in the coming years with new Dunkin’ NextGen restaurants that offer a broader menu,” Japson stated.
She added, “We will be exiting 450 limited-menu Dunkin’ Speedway owned and operated locations throughout 2020, closing under a termination agreement entered into with Speedway. These limited-menu locations are lower volume units, in total representing less than 0.5 percent of Dunkin’ U.S. annual systemwide sales.”
Even with these closures, Dunkin’ still boasts a hefty 9,600 locations across the country—plenty of places for folks to get their coffee and breakfast fix.
That said, the decision to close so many locations could be coming at a challenging time. With the COVID-19 pandemic, people are not just cutting down on non-essential outings, they’re also spending less on what can be considered luxury items, like that morning coffee run. More people are making their own coffee at home instead of stopping by their favorite café.
Despite these challenges, the CEO of Dunkin’ Brands, Dave Hoffman, reassures patrons that the company is focused on enhancing the customer experience. “We’re focused on making your experience as frictionless as possible, whether through our 5,300+ drive-thru locations, On-the-Go ordering and curbside pickup through the Dunkin’ app, or delivery through GrubHub and other providers. Rest assured, we are committed to providing a safe, secure experience at Dunkin’—offering you something familiar and welcoming amid so much change.”
The pandemic has undeniably altered the way we live, stripping us of many ordinary activities and putting a strain on families. Some folks relish the extra family time, while others might feel it’s a bit much to handle.
But Dunkin’ wants to be there for everyone through these turbulent times. Hoffman concluded, “For more than 70 years, Dunkin’ has been at the heart of the communities we serve, keeping America running and taking care of our guests. We are grateful for the dedication of our franchisees and crew members who make our brand stand tall every day. We’re continuing our legacy of being there when people need us most by taking these additional steps to be your place of comfort during all of this uncertainty.”
