Dunkin ‘to Close 800 US Stores Because Pandemic Hurts Sales

CANTON, Massachusetts (AP) – Dunkin ‘Brands Inc. expects to close as many as 800 underperforming stores in the United States this year as it tries to shore up its portfolio after the coronavirus pandemic.

The company had previously announced the closure of 450 stores within Speedway service stations. But the company said Thursday it is targeting 350 additional stores, most of which are unprofitable. Closing the restaurants would allow its franchisees to reinvest in newer stores in higher-traffic areas, Dunkin ‘CFO Katherine Jaspon said during a conference call with investors.

Jaspon said the 800 stores represent 8% of Dunkin’s American footprint but only 2% of its sales.

International franchisees are also evaluating their stores and could close 350 low-volume stores abroad by the end of this year, Jaspon added.

Dunkin ‘, based in Canton, Massachusetts, said Thursday that its sales fell 20% in the second quarter to $ 287 million. Sales in US stores open at least one year fell 19% from the April-June period of the previous year.

Dunkin ‘is not the only chain targeting underperforming restaurants. McDonald’s said earlier this week that it will close 200 American restaurants this year, about half of which are inside Walmart stores.