Dunkin’s Sales Increase, Shift from Breakfast Daypart

    Currently, 650 units remain temporarily closed.

    Dunkin'

    Dunkin' is seeing higher sales via off-premises and digital channels.

    After weeks of sequential improvement, Dunkin’ sales have improved by 10 points in the past month, and 93 percent of stores are open.

    In the week ending May 23, same-store sales dropped 15 percent for open stores, which is an improvement from the 25 percent decline the brand saw in the final week of April. Through May 23 in Q2, comps are down 23 percent.

    The company attributed the positive movement to three factors: strong sales at drive-thrus, double-digit same-store sales growth driven by higher ticket orders during the 11 a.m.-2 p.m. daypart, and higher sales via off-premises and digital channels.

    Roughly 650 out of 9,637 domestic units are temporarily shut down after closures peaked around twice as much in April. Those that are still closed are primarily in nontraditional locations such as transportation hubs and college campuses.

    Internationally, 1,400 out of 3,531 locations are temporarily closed. Out of those closures, 1,100 are in Southeast Asia or the Middle East.

    Baskin-Robbins comps were flat in the week ending May 23, a significant improvement from its  10 percent drop in the final week of April. In the second quarter through May 23, same-store sales decreased 10.5 percent.

    About 110 of 2,518 U.S. Baskin-Robbin stores are temporarily shut down. Fifty of those closed stores are with a Dunkin’. Most of those that remain closed are in nontraditional spots. Internationally, 1,700 out of 5,640 stores are closed. About 1,300 of those are in the Middle East or Europe.

    The company said most of the restaurants are continuing off-premises business through carryout, drive-thru, delivery, and curbside. Pre-COVID, 90 percent of business was to-go. With the onset of the pandemic, the company has added curbside pickup to more than 1,000 locations and more than doubled its delivery footprint. At stores with drive-thru, 95 percent of sales come through that channel.

    Scott Murphy, president of Dunkin’ Americas, told QSR in May that Dunkin’ will reopen dining rooms at a handful of stores this month as a test. Employees will speak with consumers as they leave to learn whether the dining room felt safe and to see what improvements can be made.

    “We are monitoring the COVID-19 situations in each state and locality and are judiciously working towards re-opening restaurant dining areas where and when appropriate, with safety precautions in place and in accordance with applicable governmental regulations and guidance,” the company said in a filing. “During this process, we are continuing to act with the safety of our guests, franchisees, and their crew members as our top priority.”