Monday, July 31, 2017

A KISS for Dunkin’ Donuts

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.

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