Dunkin’ to close up to 1,150 underperforming restaurants in 2020
Same-store sales still down, but improving each month
Bret Thorn, Nation's Restaurant News
Jul 30, 2020
In what Dunkin’ Brands CEO Dave Hoffmann called “a good scrubbing of the portfolio,” the parent company of Dunkin’ and Baskin-Robbins said they would close up to 800 underperforming Dunkin’ locations in the United States and up to 350 locations abroad.
The company said in its second-quarter earnings announcement Thursday that it had closed 229 net locations of both brands in the three months ended June 27. That included 180 international Baskin-Robbins units and 40 domestic Dunkin’ points of distribution, of which 10 were part of the 450 self-service locations at Speedway gas stations that Dunkin’ had previously said it would close.
On top of those units, chief financial officer Kate Jaspon told investors that they could close as many as 350 other locations in the United States, mostly non-traditional “alternative points of distribution.”
She said that, although the closures of the 800 locations would represent 8% of the total number of Dunkin’ restaurants in the country, it would just count for around 2% of sales.
She said most of the locations they were considering closing were unprofitable for franchisees, with average weekly sales about ¼ of the nationwide average.
“We believe these closures position us and our franchisees for on-strategy, more profitable future growth,” she said.
Hoffmann told investors that during this slower business period...