Dunkin’ opens new Western Pa. locations
Dunkin’ made news last week with word that it plans to close 800 locations in the United States this year, but the coffee-and-doughnut chain isn’t slowing down much on openings either — especially in Western Pennsylvania.
Local franchisee Heartland Restaurant Group, which owns 57 Dunkin’ locations in the area, opened a new restaurant for the brand in Wilkins last Monday, with plans for another to open in Mount Pleasant on Aug. 10. Overall, the group has plans to open 10 new restaurants this year, said Anthony Braun, its chief operating officer and chief financial officer.
Part of the reason for the 800-location closure, Mr. Braun said, is that 450 of those locations are Dunkin’ restaurants inside Speedway gas stations. Gas stations have been hit hard by the pandemic, as fewer commuters and vacationing drivers on the roads have led to lower demand for gas.
Speedway is being acquired by Irving, Texas-based conveniencestore chain 7-Eleven in a $21 billion deal that the acquirer said will bring 3,900 locations in 35 states. Marathon Petroleum, which agreed to the sale, reported a second-quarter loss of over $800 million.
Dunkin’ has managed to adapt to the changes necessitated by the pandemic in ways that consumers have responded to, according to Mr. Braun, who said the popularity of drive-thru ordering has grown exponentially since the onset of social- istancing requirements, even as the locations have opened and closed indoor facilities.
“We go back and forth with the capacity in our dining rooms, but we still have guests when permitted,” he said.
Mr. Braun noted that beverage orders have gone up, especially as customers gravitate toward using the Dunkin’ remote ordering system or making other changes in their routine.
“Everyone in business right now has a crystal ball, or we think we do, and I think what we’ve learned in the past four or five months is that our guests have adapted to having their Dunkin’ experience through the drivethru,” he said.
But the overall Dunkin’ business hasn’t been unscathed by the pandemic. The company’s second-quarter financial filings released on July 30 show that the brand’s revenue dropped 20% from the same time last year, from $359.3 million to $287.4 million, and net income fell even more — close to 40%, from $59.6 million in 2019 to $36.5 million in 2020.
U.S. comparable store sales for the company — that is, sales at stores that were open in the previous year — went down by 18.7%.