America's Favorite Coffee Shop Chain Is Closing 800 Locations For Good
Dunkin' has announced the closure of about 800 of their locations, which are set to take place by the end of this year.
However, there's no need to panic just yet. The coffee giant, which operates more than 8,500 stores across the U.S. and another 3,200 international locations, isn't going away any time soon. In a statement, Dunkin' said that the 800 locations that are closing up shop for good make up about 8% of all Dunkin' locations in the U.S. (For more on Dunkin', don't miss these 30 crazy Dunkin' facts.)
"We are assessing our real estate portfolio and working with our franchisees to permanently close off-strategy, low volume sales locations," Dunkin' said to Newsweek.
As previously announced, 450 of the current closures come as part of the chain's ending partnership with Speedway gas stations. The company announced that move will help refocus the brand on larger, standalone coffee shop locations. Dunkin's locations housed inside Speedway gas stations are typically much smaller satellite locations, which offer reduced menus, and account for a mere 0.5% of the chain's annual U.S. sales, according to CFO Kate Jaspon.
"By exiting these sites, we are confident we will be better positioned to serve these trade areas with Dunkin's newest Next Generation restaurant design that offers a broader menu and modern experience," Jaspon told TODAY. However, there's still a bit of time to grab a Dunkin' coffee to go as you stop for gas—most of the locations set to close are still open and will remain open for a while longer.
It's no secret that the coronavirus pandemic has hit every aspect of the restaurant industry hard, and even well-known chains like Dunkin' aren't immune. And with fewer people commuting to work and the fact that most cities were under stay-at-home orders, the beloved coffee chain took a big hit. Dunkin' reported that same-store sales fell by 18.7% in the most recent quarter, and that's not even factoring in the losses that occurred because of the locations that were temporarily closed. The company says that sales have been improving week-over-week, though.
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