Dunkin’ Donuts Announces It Is Closing Many Stores For Good

A mainstay of the American coffee and bakery industry, Dunkin’ Donuts plans to close 450 of its locations inside Speedway shops on the east coast. Despite the fact that Dunkin’ restaurants are almost universal in New England, Scott Murphy, the president of Dunkin’ Americas, has determined that these specific gas station sites are not commercially significant, accounting for less than 0.5 percent of Dunkin’s domestic sales in 2019.

The choice to close these particular locations is a calculated attempt to reallocate funds to other lucrative endeavours. Chief financial officer Kate Japson clarified that Dunkin’ intends to better position itself for the future by closing existing limited-menu locations and opening new Dunkin’ NextGen locations with a larger menu.

According to Japson, “As part of a termination agreement with Speedway, we will be closing 450 limited-menu Dunkin’ Speedway owned and operated locations 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 locations throughout its network, Dunkin’ presently offers plenty of options for customers to enjoy their coffee and food. The corporation may face difficulties as a result of the decision to close these locations, especially in light of the current COVID-19 outbreak. Consumer behaviour has been impacted by store closures and economic uncertainty, which has caused people to spend less on non-essential goods, such as coffee, which is frequently regarded as a luxury good. Instead, some people are choosing to purchase their morning brew from grocery stores.

Despite these obstacles, Dave Hoffman, the CEO of Dunkin’ Brands, reaffirmed the company’s dedication to improving customer experiences through a variety of channels, including drive-thrus, mobile ordering, and delivery partnerships with GrubHub.

Dunkin’ wants to continue being a comfort to people in their hour of need in light of the pandemic’s changing landscape, which has made it harder for people 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 emphasised for more than 70 years. We’re still here for people in spite of the uncertainty, and we’re taking extra steps to provide comfort in these trying times.