Dunkin, formerly known as Dunkin’ Donuts, plans to shut 800 locations by the end of the year. The chain announced the news on Thursday.
The company revealed the changes in its second-quarter earnings released this week. Dunkin describes the closures as “real estate portfolio rationalization.”
The upcoming closures include 450 locations within the convenience store and gas station chain Speedway. In a statement, Dunkin says the 800 locations represent roughly 8% of all of the chain’s locations. Furthermore, the stores account for around 2% of the company’s 2019 US sales, according to Business Insider. Dunkin also mentions that 350 locations “may permanently close” outside the U.S.
A rep for Dunkin released a statement regarding the closures. “Most of these locations (that are closing) are also unprofitable for the franchisees and are well below average for both sales and profitability,” said the rep.
The rep continued by adding: “More importantly, for many of these franchisees, closing these restaurants will enable them to invest in remodels, new restaurants, and potentially relocate some to higher-traffic areas, or to areas where they can add a drive-thru. We expect most of these closings will take place this year and will position us and our franchisees for more profitable future growth.”
Like most companies in the food industry, Dunkin’s sales took a big hit during stay-at-home orders. However the company managed to offset major losses by customers placing bulk orders and purchasing pricier drinks.
As of July, 96% of Dunkin locations reopened amid the coronavirus. According to the company, the locations that remain closed are primarily located within transportation hubs, college campuses, and sports venues.
[H/T Business Insider]
