Dunkin’ Donuts has been a ubiquitous presence across the United States for years, akin to Starbucks, offering locals a place to satisfy their caffeine cravings on nearly every street corner. In New England especially, Dunkin’ Donuts seems to be everywhere, sometimes with multiple locations within close proximity.
However, Dunkin’ recently made headlines by announcing the closure of 450 locations inside Speedway stores along the east coast. This decision means that patrons accustomed to grabbing a donut or coffee while refueling may now have to settle for a more basic gas station fare instead of Dunkin’s signature offerings.
The Dunkin’ outlets located within gas stations have not been particularly lucrative for the company. According to Scott Murphy, President of Dunkin’ Americas, these locations accounted for “less than 0.5 percent of Dunkin’ domestic sales in 2019.”
Chief Financial Officer Kate Japson spearheaded the move to close these underperforming locations, redirecting resources towards more profitable ventures.
“By exiting these sites with minimal financial impact,” Japson explained, “we believe we can better serve these areas in the future with new Dunkin’ NextGen restaurants offering a wider menu.”
“We will be closing 450 limited-menu Dunkin’ Speedway owned and operated locations throughout 2020,” she added, “as part of a termination agreement with Speedway. These limited-menu sites collectively represent less than 0.5 percent of Dunkin’ U.S. annual systemwide sales.”
Currently, Dunkin’ boasts a total of 9,600 locations nationwide, providing ample opportunities for customers to get their coffee fix and more.
However, Dunkin’ may face regrets over closing so many outlets, particularly as the COVID-19 pandemic continues to force store closures nationwide. Many consumers are cutting back on discretionary spending, including coffee purchases, opting instead to brew at home.
Despite these challenges, Dave Hoffman, CEO of Dunkin’ Brands, emphasized the company’s commitment to enhancing customer convenience through measures like drive-thru service, On-the-Go ordering via the Dunkin’ app, curbside pickup, and delivery through platforms like GrubHub.
“As the virus reshapes American life, restricting movement outside the home,” Hoffman noted, “families are experiencing varying degrees of strain. While some cherish the extra time together, others find it overwhelming.”
Nonetheless, Dunkin’ remains dedicated to providing a comforting presence during uncertain times.
“For over 70 years, Dunkin’ has been integral to the communities we serve, keeping America running and caring for our guests,” Hoffman affirmed. “We deeply appreciate the commitment of our franchisees and crew members who uphold our brand’s reputation daily. During this period of uncertainty, we continue our tradition of being there when people need us most.”
