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Dunkin’ ditches gas station locations — the fancy-fication hits a bold new level

Snacks / Wednesday, July 08, 2020
_Dunkin's fancy new attitude_
_Dunkin's fancy new attitude_

Ditching styrofoam cups wasn't enough... Dunkin' (dropped the 'Donuts') just hit a new extreme in its fancy-fication quest. Dunkin' will close 450 locations in Speedway gas stations by the end of the year. These smaller in-station spots offer a limited menu — you hit 'em up mid-tank fill and order just "coffee."

  • Not fancy enough: Dunkin' doesn't think they fit in with its fanceh chic vision (less gas pumps, more Louboutin pumps).
  • From a Dunkin spokesperson: "By exiting, we will be better positioned to serve these areas with Dunkin’s newest Next Generation restaurant design."

Stirring the (coffee) pot... Over the past few years, Dunkin' has inched toward this "Next Gen" vision — but it risks alienating OG fans as it fancy-fies. Dunkin' wants:

  • More Quality: It's investing $120M in fancy new brewing systems. It also gave the espresso recipe a glow up, and trained employees to be 'espresso certified.'
  • More Options: Beyond Coolattas and crullers. Dunkin now offers cold brew, oat-milk lattes, and Beyond Meat breakfast sandwiches. The Speedway locations don't offer these.
  • More Future: Think mobile ordering and sleek interiors. Dunkin's doing this all because...

Dunkin' wants to change its brand perception... That's because it makes more $$$ from premium drinks and alt-meat sandwiches than $2 cups of joe and glazed donuts — Espresso now makes up 10% of Dunkin's sales mix. The Speedway locations account for a small fraction of Dunkin's sales (less than 1%), but they have a big impact on its brand perception. Dunkin' is crushing the lowest part of its brand identity: Speedway Dunkin-ettes.

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