Regular readers of this blog have heard it time and
time again KISS (Keep It Simple Stupid). Tacoma, WA based Foodservice Solutions® Grocerant
Guru® Steven
Johnson has found another company that is getting back to basics. That company is Dunkin’ Donuts.
Last week Dunkin’ announced that it will simplify menus
across system restaurants. Dunkin’ was faced with stagnant same-store sales and
traffic. So Dunkin’ Donuts is turning to
a multi-year plan to differentiate itself through convenience and simplification.
When they posted U.S.
same-store sales increase of 0.8 percent for the second quarter of this year,
driven by an average ticket increase offset by a decline in traffic they knew
it was time to do something. The bright
spot for Dunkin’ was breakfast sandwich sales which increased due to Dunkin’s
wake-up wraps and core sandwiches with egg and cheese offerings.
On the beverage side sales
were driven by the iced coffee and ice tea categories, as the brand has
experienced an increase in cold brew sales and launched its fruited ice tea and
frozen coffee. What does simplification mean?
Customers can expect less new menu items and a focus on convenience and
broad accessibility.
Dunkin’ will simplify
menus across system restaurants, removing items such as afternoon sandwich
selections and bakery items like danish and cookies, in an effort to reduce
operational complexities at locations
David Hoffman,
president of Dunkin’ Donuts U.S. and Canada, said during the conference call that
the brand is beginning a multi-year plan to “transform Dunkin’ into a
beverage-led, on-the-go brand.” Hoffman said the brand believes this
simplification can reduce labor turnover and allow operators and employees to
focus on the basics of customer service. The streamlined menu will roll out to
restaurants in two waves beginning in August, with a goal to reach 1,000
locations through October.
Hoffman continued “Simplification
will continue to be a cultural mindset for our system,” It was clear to the team at Dunkin’ the brand need
to focus on customers offering “unparalleled convenience,” through initiatives
like curbside delivery and mobile ordering, third-party delivery, and an
increase in drive-thru’s.
Success does leave clues www.FoodserviceSolutions.us is the global leader in grocerant niche
business development. We can help you
identify, quantify and qualify additional food retail segment opportunities. Has your company had a Grocerant ScoreCard
completed, Grocerant Program Assessment, or new Grocerant niche product
Ideation? Want one? Call 253-759-7869 Email: Steve@FoodserviceSolutions.us
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