Dunkin’ Encourages Suggestive Selling

Cashiers are pushing donuts and sandwiches on afternoon customers to boost food sales.

July 28, 2014

NEW YORK – Suggestive selling isn’t a new concept for fast-food restaurants, but it is a new tactic that Dunkin’ Donuts is using to increase food sales past the morning daypart.

The Associated Press reports that Dunkin’ Brands CEO Nigel Travis said in a phone interview last week that the company is encouraging its cashiers to upsell food items such as donuts, cookies and sandwiches, to afternoon customers who are mostly coming in for a drink only.

The news source notes that as an extra temptation, some Dunkin’ stores are rolling out small cases to display sweets such as cookies and Danishes more prominently at the counter.

Travis commented to the AP that the need to upsell would be emphasized in an upcoming talk with U.S. franchisees. “Franchisees are kind of excited about it,” he told the news organization. “It’s a way to push various items.”

According to the AP, getting more customers to buy food in the afternoon daypart is critical for Dunkin’ Donuts, as more convenience stores, fast-food chains and packaged food companies are entering the breakfast space.

Dunkin’ Brands cited the increase in breakfast dollar competition as one reason for its “underwhelming sales increase of 1.8% at established U.S. locations in the latest quarter,” notes the news source.

Meanwhile, Travis told CNBC last week that although he’s disappointed in the company’s earnings miss, there is a silver lining.

"We're disappointed we missed. It doesn't hit our normal high standards," Travis said in an interview with CNBC’s Closing Bell. "But I think what was important about the quarter is despite the disappointments, we saw some very good news — we grew our transactions and we grew it in an industry that seems to have stagnated."

Weather, added Travis, also had an impact. "This is a business that is based on ritual. If people are disrupted by let's say very high storms or rain, they don't get out of the car, they don't stop off at the drive through, that disrupts their normal pattern," he said on Closing Bell.

Advertisement
Advertisement
Advertisement