Dunkin’ Will Permanently Close 450 Locations

Dunkin’ is set to permanently close 450 locations throughout the US by the end of this year. The stores, however, are all located in Speedway gas stations. The closure announcement follows the termination of the coffee chain’s partnership with Hess, which was acquired by Speedway in 2014.

According to a Dunkin’ statement, the move will help support the chain’s efforts to focus on its larger standalone cafes.

“These points of distribution are lower volume units, in total representing less than 0.5% of Dunkin’ U.S. annual systemwide sales in 2019,” Kate Jaspon, Dunkin’s chief financial officer said. The dissolution of the partnership between the coffee chain and gas station company was first made public during an earnings call in February.

Dunkin’ locations housed inside the gas stations (which are mainly located on the East Coast) are much smaller than typical standalone stores and also have 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 continued. “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.”

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