Dunkin’ may close 800 US stores, amid 21% drop in revenue

Business

(AP Photo/Gene J. Puskar)

CANTON, Mass. (News Nation) — Dunkin’ Brands Group, the parent company of the doughnut shop chain and Baskin-Robbins, announced it may close 800 stores in the United States, as the pandemic continues to deliver challenges to the restaurant industry.

In its earnings report released Thursday morning, Dunkin’ said sales across the globe declined 20.8% in the second quarter. The company attributed it to sales declines and store closures during the pandemic.

CEO Dave Hoffmann said the chain was able to introduce new menu items for people coming later in the day and relied on digital platforms as stores reopened.

“We are extremely proud of our great franchisees who kept the vast majority of our restaurants open during the quarter and really stepped up with a sense of urgency and grit to keep their team members employed, our guests served, and their communities running,” he said in a statement.

The closures represent 8% of the Dunkin’ stores in the country.

The company didn’t release a list of the closures but said the 800 locations include 450 “limited-menu” locations at Speedway gas stations, which was previously announced in February.

The closures bring the company a “goal of setting the U.S. system up for continued strong, profitable future growth,” according to the earnings report.

The closed stores would account for approximately 2% of 2019 Dunkin’ U.S. sales, according to the company.

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