For years, Dunkin’ Donuts has been expanding across the United States. Dunkin’ Donuts, like Starbucks, is a coffee shop and bakery that provides a caffeine fix for locals on every corner. In New England, Dunkin’ Donuts may be found practically everywhere. Sometimes two locations are only a short walk apart.
However, Dunkin’ Donuts has now announced that it will close 450 shops inside Speedway stores around the east coast. That implies that those who enjoy picking up donuts or coffee while filling up their gas tank may have to settle for a cheap gas station coffee and packaged donut rather than the wonderful stuff that Dunkin’ Donuts can provide.
The Dunkin’ Donuts shops in the petrol station generate little revenue for the company. They account for “less than 0.5 percent of Dunkin’s domestic sales in 2019,” according to Scott Murphy, president of Dunkin’ Americas.
Kate Japson, chief financial officer, made the decision to shut down those locations and shovel all the upkeep money into locations that are more profitable.
“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 said.
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.
Dunkin’ currently has 9,600 locations across the entire chain. That’s a lot of places for people to get their coffee and fuel up.
However, Dunkin’s may regret having made the decision to shut down so many locations. Because the COVID-19 pandemic is already shutting down stores, people are holding off on spending money on items like coffee, which are often considered luxury items, and instead of grabbing their morning Joe from the grocery store.
Nonetheless, Dave Hoffman, CEO of Dunkin’ Brands, stated, “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’ Donuts, bringing you something familiar and comforting in the midst of so much change.”
Because the virus is changing the landscape of America, people no longer have a place to go outside of their homes. This has put a lot of strain on families. Some families enjoy the extra time together. Others feel that it is just too much to bear.
But Dunkin’ hopes to be there for you in your time of need.
Hoffman said, “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.”
