Are Dunkin Donuts closing stores? Dunkin’ Donuts has declared plans to shutter roughly 1,500 stores in 2020. This news came after the pandemic struck the US restaurant industry. This was the biggest news to arise once Dunkin’ deleted the donut from its title. As a result, Dunkin’ will have more minor ranks similar to those of Starbucks and McDonald’s, both of which closed many stores. Many Dunkin’ Donuts locations are still open, so we don’t need to worry.
As of February 13, 2023, there were 9,376 Dunkin’ Donuts locations nationwide. With 1,418 locations, or 15% of all Dunkin’ Donuts outlets in the US. New York is the state that has the most Dunkin’ Donuts sites. Let us view in detail about this retail chain in this article.
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What happened to Dunkin Donuts?
Dunkin’ Donuts is one of the world’s giant donut and coffee shop chains. It has been a mainstay of American breakfast culture for more than seven decades. The company’s primary breakfast offerings include bagels, coffee, donut holes, sandwiches, and scones. These are its most prominent features. Bill Rosenberg started it in 1950 in Quincy, Massachusetts. Later, Baskin-Robbins’ parent company acquired it in 1990.
But the well-known doughnut shop started opening outlets in 2018 that only used “Dunkin.” This led the general public to believe the business was preparing to change its name. Dunkin’ Donuts stated in September 2018 that it planned to change its name to Dunkin’ by January 2019. New establishments, logos, cups, and goods would reflect the name.
Are Dunkin Donuts closing locations?
Dessert restaurant businesses, like those specializing in ice cream or yogurt-related items, have shown themselves similar to most other food chains. The epidemic had an impact on each company’s operations. Today, it is crucial to take critical steps to resume past profits.
During the initial wave of closures, only Speedway gas stations (on the East Coast) and smaller-than-average Dunkin’ Donuts stores with limited menus were at risk of closing. Although the closures were first rumored, Dunkin’ has confirmed them. These outlets generated less than 0.5 percent of the chain’s revenues in the United States in 2019. This is according to Kate Jaspon, the chief financial officer of Dunkin’.
The chain underwent a significant transformation following Dunkin’s second-quarter financial results in 2020. It was decided that 350 more locations would close forever. By the end of 2020, 800 stores in the United States may have shuttered due to the combined total. But some good news: 96% of Dunkin’ Donuts stores were open for business as of July 25, 2020. Additionally, sales have gradually increased ever since.
With around 3 million daily visitors, the outlook has been highly optimistic since the closures. Their $1.25 billion in 2020 revenues were enough to place them on RestaurantBusinessOnline.com’s Top 500 list. Later in 2021, things followed the same pattern.
The company and economists predicted higher revenues in 2022. It is expected to do so due to the pandemic’s transition into a new, less-restrictive phase. Also, the effects of the discontinued cash drain are indicated by the failed 2020 closures.
Closure of a Dunkin’ Donuts franchise partner
In October 2020, Dunkin’ Brands announced it was in talks to sell the business to Inspire Brands, a private-sector organization. On October 31, 2020, Inspire Brands said they would buy Dunkin’ Brands Group for $11.3 billion. This includes the debt that Inspire Brands would assume from Dunkin’ Brands. Each share of Dunkin’ Brands would get $106.50 in cash from Inspire.
Inspire Brands acquired Dunkin’ Brands on December 15, 2020. Dunkin’, Baskin-Robbins, and the Mister Donut brand became part of Inspire Brands then.
Jollibee Foods Corp. will stop operating in Beijing in November 2022. The deal for Dunkin’ Donuts stores operating in some regions of the Chinese mainland, as well as in Hong Kong and Macao, has been canceled. This is according to a November 9 report from Jollibee. It had a franchise contract with Dunkin’ Donuts through its subsidiary, Jollibee Global Pvt. Ltd.
The franchise contract was signed on January 5, 2015. Golden Cup Pvt. Ltd., based in Singapore, and Dunkin’ Donuts Franchise LLC have agreed to collaborate on opening new outlets in specific regions. Seven stores are part of this in Beijing.
Dunkin’ has already failed to establish itself in the Chinese capital—the first being in the late 1990s. In 2016, Dunkin’ made a comeback in Beijing due to the Jollibee franchise agreement. People were overjoyed to taste their 18 different doughnut varieties after their return to the capital.
It appears that Jollibee will now focus on making a third attempt to enter the Beijing market. It stated in its official statement that it will “focus on developing its business in China.” As a result, it intends to do so through the larger enterprises in the area.
Conclusion
Dunkin’ remains the top retailer of doughnuts in the United States despite operating in only a few states. They assert that they sell 2 billion cups of coffee annually and more than 2.9 billion doughnuts. There are a lot of donuts there!
According to most signs, Dunkin’ appears to be in good financial condition. There have been no other closures announced, and growth is predicted.