Dunkin’ Donuts to Focus on Convenience, Quality, Speed

The coffee chain revealed its three-year strategy to bolster afternoon coffee and donut sales.
February 12, 2018

CANTON, Mass. – Days after revealing its plan to jettison foam cups, Dunkin’ Donuts shared its growth strategy over the next three years, CNBC reports. The plan emphasizes convenience, quality and speed to entice customers to buy doughnuts and coffee in the afternoons.

Increased pressure from Starbucks, Burger King, McDonald’s and other sources of coffee and snacks, such as convenience stores, has pressured Dunkin’ to branch out beyond doughnuts. Over the past few months, the coffee chain has slowed expansion plans, trimmed its menu and promoted digital ordering.

“2018 will look a lot like 2017 in terms of performance,” David Hoffmann, president of Dunkin' Donuts U.S., told investors. The company will continue to keep a close eye on morning sales, but will also add to its frozen beverage and premium tea lines, and espresso products, in an effort to bring in more afternoon traffic.

While fewer donuts are on the menu, the chain will still debut new breakfast sandwiches, including some with bacon, this year. Menu additions soon-to-appear include deluxe crème-filled Munchkins, frozen and iced lemonade, and Brown Sugar Cold Brew.To coincide with its menu changes, Dunkin’ is introducing a new restaurant design to simplify ordering.

Dunkin’ will still open more than 275 new U.S. locations this year, with 1,000 net new stores by the end of 2020, with 90% of those stores being outside of the Northeast. In addition, 75% of all new locations will have a drive-thru. Dunkin’ also plans to offer mobile order drive-thru lines at other locations; currently, on a concept store in Quincy has that option.

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