Dunkin’ Donuts, the famous American doughnut company and coffeehouse chain, is shutting down 100 US-based stores this 2015 until 2016.
According to MyNews4, parent company Dunkin' Brands made an announcement on Thursday that 100 Dunkin' Donuts stores are slated to be closed amid the company's aggressive move to expand its reach in the United States, something that competitor Starbucks also did before.
The announcement did not come with the official list on which branches are going to be affected by this move, but updates are expected to pop up whenever a lone or a pair or even a batch of Dunkin' Donuts stores get shut down.
The decision of Dunkin' Brands is expected to affect the overall revenue of the company, but KVRR has learned that with these closings, Dunkin' is seeing a long-term improvement on its revenue.
Right now, Dunkin' Brands, the same owner of the Baskin-Robbins ice cream chain, has 3,100 Dunkin' Donuts shops in 30 countries including the United States.
On Thursday's trading, the company's shares were reportedly down by 10 percent. However, it's good to note that in the recent quarter, the company revealed a sales increase of up to 1.1 percent.
Dunkin' made the closing announcement in a regulatory filing. Dunkin' Donuts U.S. and Canada president Paul Twohig expressed during the presentation that they are disappointed with the reception they are getting in the United States.
Nevertheless, Twohig said that the company is now taking necessary measures to improve its menu offerings in an attempt to boost sales.
The company has already touted Pumpkin Macchiato and Maple Bacon Square Donut as new menu offerings for its target consumers.
Twohig also reportedly pointed out that the minimum wage hikes are making the company "anxious," adding that the volatile commodity prices such as the market value of eggs continue to be a problem.
While Dunkin' Donuts is struggling in the market, Starbucks and Tim Hortons continue to report strong levels of market growth.