Dunkin’ Donuts Announces It Is Closing Stores For Good

For years, Dunkin’ Donuts has been expanding its footprint across the United States, akin to Starbucks, providing locals with a convenient spot to satisfy their caffeine cravings on almost every street corner. In New England, Dunkin’ Donuts outlets are nearly ubiquitous, with multiple locations often found in close proximity.

However, Dunkin’ recently announced plans to shutter 450 establishments located within Speedway stores along the east coast. This means individuals accustomed to grabbing donuts or coffee while refueling their vehicles might have to settle for lower-quality gas station coffee and prepackaged donuts instead of Dunkin’s signature offerings.

The Dunkin’ branches situated within gas stations have contributed only minimally to the company’s revenue, accounting for “less than 0.5 percent of Dunkin’s domestic sales in 2019,” according to Scott Murphy, the president of Dunkin’ Americas. In response, Kate Japson, the chief financial officer, made the strategic decision to close these locations and redirect resources into more profitable outlets.

Japson explained, “By discontinuing these sites, with minimal financial repercussions, we anticipate positioning ourselves better to serve these trade areas in the future with new Dunkin’ NextGen restaurants that offer an expanded menu.”

“We will be closing 450 limited-menu Dunkin’ Speedway owned and operated locations throughout 2020, as part of a termination agreement with Speedway. These limited-menu sites represent lower volume units, collectively making up less than 0.5 percent of Dunkin’s U.S. annual systemwide sales.”

Currently, Dunkin’ operates 9,600 locations across its chain, providing ample opportunities for customers to enjoy their coffee and refuel their vehicles.

However, closing these outlets may pose challenges for Dunkin’ amidst the ongoing COVID-19 pandemic. As store closures and economic uncertainties impact consumer behavior, individuals are scaling back on non-essential expenses like coffee, often considered a luxury item, and opting to purchase their morning brew from grocery stores.

Despite this, Dunkin’ Brands’ CEO, Dave Hoffman, underscored the company’s commitment to enhancing customer experiences through various avenues such as drive-thru locations, mobile ordering, and delivery partnerships with platforms like GrubHub.

Given the evolving landscape spurred by the virus, where people have fewer opportunities to venture outside their homes, Dunkin’ aims to remain a source of comfort for individuals in their times of need.

Hoffman emphasized, “For over 70 years, Dunkin’ has been an integral part of the communities we serve, keeping America running and taking care of our guests. Amidst the uncertainty, we’re continuing to be there for people by taking additional measures to offer comfort during these challenging times.”