Dunkin Donuts is a widely known coffee and bakery shop that competes well with other large coffee chains. Throughout the past 70 years of Dunkin Donut’s existence, they have made quite the name for themselves as leaders of America’s coffee business. While Dunkin Donuts is loved by many across the nation, the company has recently announced that it will be closing around 450 locations around the east coast of America. The locations closing will be those that are located inside Speedway gas stores. This decision impacts many customers who are accustomed to grabbing their daily coffee or snack while getting their gas at Speedway. These consumers will no longer be able to keep their coffee runs in the same stop as their daily gas runs. While these Dunkin Donuts locations inside gas stations offered restricted menus, they have still become routine for many customers.
The decision to close these stores is due to the fact that these locations do not generate much profit for the company as a whole. This huge decision was made by Kate Japson, who serves as the chief financial officer for the global chain. It is estimated that the Dunkin Donuts storefronts that are located inside gas stations generate less than 0.5% of the company’s sales as a whole. This is based on a figure of the company’s sales from 2019. By closing down these less profitable locations, Dunkin Donuts is able to use extra funds for the locations that are more profitable throughout the nation. Stand-alone locations require funds for the upkeep of their storefronts; these extra funds will be able to make these stores more profitable. While Dunkin is closing 450 of its Speedway locations, there still remain over 9,000 locations to provide coffee stops to loyal Dunkin Donuts customers.
It is unknown the impact that closing these locations will have on overall profits for the chain. Due to the COVID-19 pandemic, many consumers have chosen to limit their spending on coffee. Because of the economic hardship that the COVID-19 pandemic brought, consumers are routing their funds and money to more necessary products, rather than luxury items, such as coffee. Because of this shift, many Americans are opting to buy coffee from grocery stores and make their morning drinks at home, rather than spend money on the experience that a coffee shop may offer. However, there are still countless customers who value their routine in the mornings. Dunkin Donuts remains committed to providing a familiar feel, setting, and experience to its consumers, even in the midst of a changing global pandemic. Just as Dunkin Donuts has been there for their customers in the past, they hope to continue being a source of community and joy for those that they serve.