Current Events > Dunkin Donut's new strategy to increase sales is to have fewer donuts.

(+) Yeah! (+)

https://www.cbsnews.com/news/dunkin-donuts-reducing-spice-up-sales/

Dunkin' Donuts is testing out a "less is more" strategy in about 1,000 locations out of its 9,000 U.S. stores. The streamlined stores will sell a minimum of what it calls 18 "core donuts," down from about 30 varieties. Dunkin' Donuts said in a statement that, depending on how customers respond, it may pare down its selection nationwide.

The revamped menu comes as parent company Dunkin' Brands Group (DNKN) tries to take on Starbucks as a contender for consumers' favorite coffee chain, which may explain a smaller emphasis on doughnuts. It's also testing a Pasadena, California-based store bearing the shortened name "Dunkin,'" which omits any mention of doughnuts. The company has said it might roll out the new branding to more stores next year.

Limiting doughnut options "will provide a more consistent experience from store to store, and in some cases will actually increase both the variety and quantity of donuts available to our guests," Dunkin' Donuts said in an emailed statement to CBS MoneyWatch. "We will assess the results of the test before making any determination about a possible national rollout."

This is obviously how it works. Reduce the amount of donuts and you increase the amount of donuts. Genius.

Though it sounds like Dunkin Donuts just wants to be another Starbucks.

As it shifts toward a smaller doughnut lineup in some stores, Dunkin' Donuts is putting more emphasis on its coffee. The company is trying to win over customers from Starbucks with its own pumpkin-flavored hot and iced coffees and lattes, as well as a maple pecan-flavored coffee and lattes. Perhaps not coincidentally, Starbucks debuted a maple pecan latte this fall.

I don't think it'll go well for them.
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They better not get rid of Strawberry frosted donuts :(
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Idk man a lot of people drink their coffee
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While I get what their reasoning is, it'll take a few months to actually pan out properly and the initial backlash can hurt badly even if it's just test locations.
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This is what Gordon Ramsay does on Kitchen Nightmares.

He trims the menus and simplifies them
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I like Krispy Kreme better

Reduces the ordering cost and leftover items so yeah it makes sense

it's been proven by science having too much choice is actually make people purchase less
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drunkmuggle posted...

Idk man a lot of people drink their coffee

Their coffee is elite, I don't go to dunkin donuts for donuts
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Tmaster148 posted...

https://www.cbsnews.com/news/dunkin-donuts-reducing-spice-up-sales/

Dunkin' Donuts is testing out a "less is more" strategy in about 1,000 locations out of its 9,000 U.S. stores. The streamlined stores will sell a minimum of what it calls 18 "core donuts," down from about 30 varieties. Dunkin' Donuts said in a statement that, depending on how customers respond, it may pare down its selection nationwide.

The revamped menu comes as parent company Dunkin' Brands Group (DNKN) tries to take on Starbucks as a contender for consumers' favorite coffee chain, which may explain a smaller emphasis on doughnuts. It's also testing a Pasadena, California-based store bearing the shortened name "Dunkin,'" which omits any mention of doughnuts. The company has said it might roll out the new branding to more stores next year.

Limiting doughnut options "will provide a more consistent experience from store to store, and in some cases will actually increase both the variety and quantity of donuts available to our guests," Dunkin' Donuts said in an emailed statement to CBS MoneyWatch. "We will assess the results of the test before making any determination about a possible national rollout."

This is obviously how it works. Reduce the amount of donuts and you increase the amount of donuts. Genius.

Though it sounds like Dunkin Donuts just wants to be another Starbucks.

Actually that does make total sense... that's how business works. Attempting to cut costs/overhead by eliminating unnecessary products in order to increase net profits from the products that sell well.

Changing the name to Dunkin is the dumbest idea ever tho. Not cause I have any soft spot for DD as a name, but Dunkin just doesn't work.

drunkmuggle posted...

Idk man a lot of people drink their coffee

just got it this morning

plus now that i think about it, if they didnt have 300 different types of donuts behind the counter maybe id be more inclined to buy one once in a while. i go up to the counter and dont want to spend time reading all the labels for every type of donut since there are 10 people in line behind me, so i end up just getting coffee and leaving

TheDarkCircle posted...

Changing the name to Dunkin is the dumbest idea ever tho. Not cause I have any soft spot for DD as a name, but Dunkin just doesn't work.

tbh most people in my area just call it Dunkin, only my mom calls it DD
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Though it sounds like Dunkin Donuts just wants to be another Starbucks.

It's been looking this way for a long time, tbh.

First they did everything in their power short of actually rebranding to rebrand themselves as "Dunkin'," dropping the "Donuts" completely. They bagged up their coffee and sold it on store shelves and introduced breakfast sandwiches (which rule).

I mean it's really no secret that "coffee shop with complements" is their endgame.
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TheDarkCircle posted...

Actually that does make total sense... that's how business works. Attempting to cut costs/overhead by eliminating unnecessary products in order to increase net profits from the products that sell well.

This is just a move to increase profits, but they are trying to sugarcoat as a move to benefit consumers which just sounds kinda dumb. I'm not really that surprised Dunkin' Donuts is having issues that they would need to make changes.

Just removing variety won't increase variety.
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Just another case of mimicking what is popular at the moment. Not sure if this trend got stared after Starbucks introduced the Horchata Frappuccino, but I'm starting to see Horchata in places that typically didn't carry it before.

Also, McDonald's and Burger King went the same route when they introduced their own Fraps. In the end, it's about luring Starbucks customers (or new ones) into their own establishment.
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As someone that lives in southern california

I like that there's a dunkin donuts,krispy kreme,yum yum donuts and winchell's donuts all close by to each other
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TheDarkCircle posted...

Actually that does make total sense... that's how business works. Attempting to cut costs/overhead by eliminating unnecessary products in order to increase net profits from the products that sell well.

This.
That one guy who's pissed that mango-strawberry-cola got discontinued, is more than made up for by no longer having to toss the other eleven mango-strawberry-cola doughnuts into a dumpster.

Chances are good that guy will just buy a different doughnut anyway.

Volkswagen_Bros posted...

Just another case of mimicking what is popular at the moment. Not sure if this trend got stared after Starbucks introduced the Horchata Frappuccino, but I'm starting to see Horchata in places that typically didn't carry it before.

Also, McDonald's and Burger King went the same route when they introduced their own Fraps. In the end, it's about luring Starbucks customers (or new ones) into their own establishment.

There's nothing really wrong with business trying to copy what's successful. It's what happens when business compete.
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dolomedes posted...

people go to DD for cheap coffee and sometimes grab a doughnut as an afterthought, it seems to me.

any time i've been in a DD the doughnut selection is ridiculous and i'm not interested in anything past glazed or chocolate frosted...

The coconut and buttermilk donuts are good
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No one goes to DD for their doughnuts anyway
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There's also the choice paradox, wherein having way too many options makes it much more difficult for people to actually purchase what they want
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yeah I think this will work in their favor tbh due to what @Romulox28 said, the variety while nice is just a bit overwhelming when you're in your morning rush

but people aren't going to stop buying their coffee lol, that's been a main draw for them for years
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TheDarkCircle posted...

Actually that does make total sense... that's how business works. Attempting to cut costs/overhead by eliminating unnecessary products in order to increase net profits from the products that sell well.

Agreed this is a good move, selling donuts isn't enough and they likely have a lot of waste because of all the crazy style donuts that hardly sell.
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I always found it annoying that every DD I go to has different donuts. I mean, the basic 5-6 are always there, but it's never consistent beyond that.
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That explains why my dunkin closed for renovation
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good for DD now the masses will like them even more
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