| US

Dunkin’ targets resorts, universities and airports for store growth

US Donut and coffee chain outlines strategy to open more stores at hotels, hospitals and airports and underlines ‘non-traditional’ store locations as ‘vital’ to the brand’s future development

Non-traditional locations have been an “essential aspect” of Dunkin's growth over the last decade, according to parent company Inspire Brands | Photo credit: Dunkin' 



Dunkin’ has outlined its commitment to opening more stores at non-traditional locations across the US. In a press release, the donut and coffee chain said it would target new store openings across hotels, hospitals, education campuses and travel hubs, describing the locations as ‘vital’ to the brand’s growth strategy.
 
Highlighting the opening of 12 stores at Great Wolf Resorts locations in California, Dunkin’ said it had also ‘further strengthened its presence in the healthcare setting’, opening stores at medical facilities in Florida and Massachusetts.
 
Looking towards the remainder of 2021, Dunkin’ said it planned to focus on airport expansion, opening stores at New York’s JFK and Chicago’s O’Hare airports. 
 
“Dunkin’ continues to modernise with convenience at the forefront. Our flexible concepts for any non-traditional format have been an essential aspect of our growth over the past decade and will remain a vital part of our future development strategy,” said Chris Burr, Director of Non-Traditional Development at Dunkin’ parent company Inspire Brands.
 
“As a new member of the Inspire family of brands, Dunkin’s strong experience in non-traditional development complements Inspire’s vision for non-traditional growth across the portfolio, bringing valuable expertise to our best-in-class shared Development team,” added Burr.
 
Inspire Brands acquired Dunkin Brands, which controlled the Dunkin’ and Baskin Robbins businesses, for $11.3bn in late-2020. Its non-traditional location strategy signals confidence in the recovery of sites that have been hard hit by Covid-19 lockdowns, trading restrictions and reduced footfall.
 
Diversification could open another competition front for Inspire Brands in the increasingly crowded US branded coffee shop market, where market leader Starbucks operates more than 15,000 stores. Luxembourg-based JAB Holdings also continues increase its influence through prominent coffee chains including Panera Bread, Peet’s Coffee and Krispy Kreme.
 
However, Dunkin’ concession stores have not always proved profitable. In July 2020 Dunkin’ announced it would close 450 petrol station concession stores in the US after ending its partnership with Speedway, revealing the locations contributed to ‘less than 0.5%’ of annual sales in 2019.

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