A Dunkin worker throws his coffee out the window through gloves and a mask as the coronavirus continues to spread in 2020. March 17 Norvele, Massachusetts.
MediaNews Group | Getty images of the Boston Herald
When a pandemic struck the U.S., closing large and small restaurants across the country, Dunkin ‘Brands chose its on-the-go model and quickly made decisions to meet evolving consumer attitudes. CEO Dave Hoffmann says quick thinking and cutting red tape that could stop change in big business has led to the collection of sidewalks now at 1,400 seats and delivery to more than 5,000 stores.
Today, 96% of Dunkin and Baskin-Robbins locations are open nationwide, and customers are increasingly taking advantage of contactless and mobile devices.
The coffee company continues to upgrade its locations and may close about 800 of its malfunctioning stores. However, traffic challenges remain across the industry, with the number of Covid-19 cases increasing across the country, disrupting daily lives and preventing consumers from distancing themselves.
“We believe there are two key forces we will take action on: health and safety… and access to the brand,” Hoffmann said in an interview on Thursday. “Making quick decisions based on the best information available is what our team actually learned during the crisis.”
Gone are the lost or at least paused breakfast wars that have plagued the restaurant and fast food industry for a long time, as morning routes are disrupted in the near future as so many Americans work from home during a pandemic.
Hoffmann said the Dunkin breakfast and snack menu is right for consumers throughout the day. Businesses have a good chance of competing on beverage innovations, from espresso to Matcha and Refreshers, which attract younger women.
“We think the industry is currently in combat mode and we are preparing for such a fight,” Hoffmann said. “We’re very far from decorating a big victory flag, but we like that our offer goes into the fall and winter seasons.”
The company has just announced that second-quarter revenue earned on the top and bottom line, while sales at the same store fell 18.7% in the U.S. Sales were boosted slightly by higher ticket averages, a trend seen across the industry. At the height of the April pandemic, sales at the same stores fell 32 percent, then in May. – 17 percent, in June. – 9%, and now until July 25. This key metric is low at single-digit speed.
Despite this progress, Dunkin shares traded at lower prices on Thursday, up nearly 4 percent recently. Shares with a market value of $ 5.7 billion have fallen more than 9% since the start of the year.
During the early coronavirus outbreaks in the two main markets in Boston and New York, the company learned a second wave, with 90% of transactions taking some form of takeover against Covid.
“We learned a lot during the quarter about how to act during a pandemic,” said Scott Murphy, president of Dunkin ‘Brands Americas. “Whether it’s the engine, the sidewalk, the delivery, or the mirror shields, we’ve done a lot of research and it turns out people feel safe coming to Dunkin.”
The company is also financially stable, Hoffmann added, given that Dunkin has recovered its quarterly dividends.
He added that digital commerce will be a major focus and has had 4.2 million on its digital platforms in the last 90 days. Active users. Recently, Duncin added Philip Auerbach as chief executive of digital affairs and strategy to further grow this part of the business, and Auerbach is in the digital, IT and data science circle.
“Our entire portfolio of digital assets accounts for 21% of transactions today,” Hoffmann said. “Ordering and picking up mobile phones accounts for 7% of traffic … All we’ve done is to give customers the safest possible use of our brand on their terms.”