Dunkin’ Donuts holds a special place in the hearts of Americans. Similar to Starbucks, Dunkin’ serves as a coffee shop and bakery, offering a cozy spot to satisfy your caffeine cravings. In fact, Dunkin’ has become such an integral part of New England that it seems there’s a location on nearly every corner, sometimes even two within a stone’s throw from each other.
However, news has broken that Dunkin’ will be closing 450 of its stores located inside Speedway gas stations along the east coast. This decision may disappoint those who enjoy grabbing a donut or a cup of coffee while refueling their vehicles. Instead, they might have to settle for a lesser quality gas station coffee and packaged donuts rather than the delicious offerings Dunkin’ is known for.
It’s important to note that these gas station locations account for only a small fraction of Dunkin’s domestic sales, less than 0.5 percent in 2019 according to Scott Murphy, the president of Dunkin’ Americas. Keeping this in mind, Kate Japson, the chief financial officer of Dunkin’, made the call to close these stores and allocate the funds towards more profitable locations.
Japson explained, “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.” She emphasized that the closure of these limited-menu Dunkin’ Speedway stores, representing less than 0.5 percent of Dunkin’ U.S. annual systemwide sales, will take place throughout 2020.
Despite this strategic move, Dunkin’ may face some regret due to the impact of the ongoing COVID-19 pandemic, which has already prompted the closure of numerous businesses. People are now cutting back on discretionary spending, including indulgences like coffee, and opting to make their mornings brighter with a cup of Joe from their local grocery stores instead.
However, Dave Hoffman, the CEO of Dunkin’ Brands, assured customers that they are focused on ensuring a seamless experience, whether it’s through their 5,300+ drive-thru locations, On-the-Go ordering and curbside pickup via the Dunkin’ app, or even delivery through GrubHub and other providers. Hoffman added, “Rest assured, we are committed to providing a safe, secure experience at Dunkin’– offering you something familiar and welcoming amid so much change.”
Amidst the changing landscape caused by the virus, people are finding themselves confined to their homes, which can be challenging for families. While some families embrace the extra time together, others may feel overwhelmed. In such times, Dunkin’ hopes to be there for its customers.
Hoffman expressed, “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.”
Dunkin’ Donuts remains committed to being a source of familiarity and comfort in these uncertain times.
