Dunkin’ Donuts Faces Strategic Restructuring: Multiple Store Closures Marked for Permanence

“Dunkin’ Donuts, a longstanding player in the American coffee and bakery industry, is set to close 450 of its locations housed within Speedway shops on the East Coast. Despite Dunkin’s widespread presence in New England, Scott Murphy, the President of Dunkin’ Americas, has determined that these specific gas station sites contribute minimally to the company’s commercial success, making up less than 0.5 percent of Dunkin’s domestic sales in 2019.

The decision to shutter these particular locations is part of a strategic effort to reallocate resources to more lucrative endeavors. Chief Financial Officer Kate Japson explained that Dunkin’ aims to enhance its positioning for the future by closing existing limited-menu locations and launching new Dunkin’ NextGen locations featuring a broader menu.

Japson clarified, “As part of a termination agreement with Speedway, we will be closing 450 limited-menu Dunkin’ Speedway owned and operated locations throughout 2020.” Combined, these lower-volume units represent less than 0.5 percent of Dunkin’s annual systemwide sales in the United States.

With a network of 9,600 locations, Dunkin’ still offers ample options for customers, but the decision to close these outlets may pose challenges, particularly amid the ongoing COVID-19 pandemic. Store closures and economic uncertainty have altered consumer behavior, leading to reduced spending on non-essential items like coffee, often considered a luxury. Some individuals are opting to purchase their morning coffee from grocery stores instead.

Despite these challenges, Dunkin’ Brands CEO Dave Hoffman reaffirmed the company’s commitment to enhancing customer experiences through various channels, including drive-thrus, mobile ordering, and delivery partnerships with GrubHub.

In the face of the pandemic’s evolving landscape, which has made leaving homes more challenging, Dunkin’ aims to continue being a source of comfort. Hoffman emphasized, “Dunkin’ has been an integral part of the communities we serve, keeping America running and taking care of our guests for more than 70 years. We’re still here for people despite the uncertainty, and we’re taking additional steps to provide comfort in these trying times.”