The change affects Speedway sites with Dunkin’ franchises as the donut shop eyes a newer concept
By NACS Online // July 08, 2020
CANTON, Mass.—Dunkin’ will shut down 450 stores in Speedway gas stations by the end of the year, Today reports. The permanent change comes after the coffee chain severed its partnership with Hess, which Speedway acquired in 2014.
“These [Speedway] points of distribution are lower volume units, in total representing less than 0.5% of Dunkin’ U.S. annual systemwide sales in 2019,” said Kate Jaspon, Dunkin’s chief financial officer. By shedding these stores, Dunkin’ will be able to direct more support to its standalone cafes, she said.
Dunkin’ franchises inside gas stations, which are mainly on the East Coast, are smaller than typical solo locations and have more limited menus. “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 said. “We also remain committed to growing our presence in gas and convenience locations, as well as other non-traditional locations, including airports, universities, travel plazas and military installations.”
The coffee chain noted that the locations would be closing by December 31, 2020, but that most Speedway Dunkin’ stores were still open. “Very few of the approximately 450 Speedway owned and operated limited menu Dunkin’ locations have closed to date,” Dunkin’ said.
