450 Speedway locations will be closed by Dunkin’ Donuts as part of a strategic realignment.
American coffee icon Dunkin’ Donuts has revealed plans to close 450 of its shops within Speedway gas stations on the East Coast. The action is a component of a larger plan to optimize processes and concentrate resources on endeavors that will yield higher returns. Less than 0.5% of Dunkin’s domestic sales come from these Speedway stores, so their closure will have a minimal effect on overall revenue but will be a major step in realigning the brand’s future growth.
Putting Dunkin’ NextGen Restaurants Front and Center
The closures are in line with Dunkin’s plan to focus on growing its more recent Dunkin’ NextGen locations. Aiming to attract a younger, more diversified audience, these NextGen locations have modern décor and a wider menu that includes plant-based foods, espresso-based drinks, and luxury snacks. By concentrating its efforts on these cutting-edge, full-service restaurants, Dunkin’ intends to improve the in-store experience while also taking advantage of the changing demands of modern customers.
Shifting Consumer Behavior in the Face of New Obstacles
The choice was made in light of the significant changes in customer behavior over the past few years. Coffee sales have decreased as a result of shifting work-from-home patterns and a decrease in in-store foot traffic. Previously, coffee sales were supported by commuters stopping for a quick cup on their way to work. As a result, Dunkin’ has shifted its focus to digital and practical solutions, including curbside pickup, mobile ordering, drive-thrus, and home delivery. These choices have grown in popularity, particularly in view of the pandemic’s lingering concerns.
Dave Hoffman, the CEO of Dunkin’ Brands, has stressed the company’s dedication to adjusting to these developments while carrying on offering its clients a dependable, safe experience. Hoffman emphasized the brand’s commitment to helping communities in trying times, saying, “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.”
An Emphasis on the Future
In spite of the difficulties brought about by the changing habits of consumers, Dunkin’ is strengthening its commitment to satisfy consumer demands with convenience and innovation. This new focus is reflected in the Speedway stores closing, which allows the firm to reallocate resources to where they will have the greatest impact—new technologies and services that will enable Dunkin’ to remain competitive in a congested industry.
The company is preparing itself for long-term success by investing in Dunkin’ NextGen locations and improving its location strategy, meeting the needs of contemporary consumers while continuing to be a reassuring presence in their everyday lives.
Dunkin’ sticks to its heritage despite the times, offering great coffee, delectable sweets, and a comforting feeling of familiarity in uncertain times.
