Dunkin’ Donuts plans to open a “next generation” store in Morton Grove later this year where doughnuts will be displayed in cases much closer to consumers, instead of the behind the counter.
The new location, one of just a handful of test stores Dunkin’ Donuts is opening in the United States, will feature a brighter, more modern design, more grab-and-go options and more espresso-based drinks. The new stores also test the popularity of Dunkin’s cold beverages — including cold-brew and nitrogen-infused coffee — on tap, similar to what’s more commonly found in more upscale, hipster-type coffee shops.
But the prominent display of the doughnuts may be the most notable change.
“People love that, because instead of leaning over and pointing for their doughnuts, they can see them right in front of them,” said Dunkin’ Brands CEO Nigel Travis, who was in at La Rabida Children’s Hospital on Chicago’s South Side Monday for a charity event.
Since Travis took over as CEO in 2009, the Canton, Mass.-based company has increased its Chicago-area Dunkin’ Donuts locations from about about 450 to 690 — a figure that includes combination locations with Baskin Robbins, which is also a Dunkin’-owned business.
Dunkin’ is opening 20 new locations in the Chicago area this year, Travis said, and continues to see the market as ripe for growth.
For context, New York is Dunkin’s largest market, followed by the Boston area, said Travis, who declined to say where exactly Chicago ranks among the company’s top markets. Dunkin’ says it has nearly 1,500 stores in the state of New York and almost 1,200 in Massachusetts. The company’s restaurants are all franchised.
“When I arrived in the company in 2009, Chicago was seen as an area where we could do better. And we’ve done better. I have to compliment the franchisees who have really put their back into making this a great market,” Travis said.
Travis believes the company could double the number of its locations, particularly in the western U.S. where Dunkin’ has less of a presence. Dunkin’ has about 11,300 locations globally, about 8,500 of which are in the U.S.
As the company continues to grow, its focus will be on expanding its espresso-based drinks without slowing the speed of service that customers have come to expect at Dunkin’, Travis said.
More than half of Dunkin’s sales in the United States come from beverages; doughnuts are “far less,” he said.
“We are a beverage business, despite the fact that we’re called Dunkin’ Donuts,” Travis said. “I feel we’ve done a pretty good job of maintaining our share of coffee. I think espresso is something we can do even better.”
Dunkin’ reduced its food menu, including some flavors of doughnuts, by about 10 percent last year as it prepares to ramp up drink offerings, Travis said. The “next gen” stores also feature high-volume brewing machines that aim to speed up the process, he said.
The cold drink taps at the Morton Grove store will also include drinks like iced black and green teas, as well decaffeinated coffee. There’s no guarantee that Dunkin’ will roll out the concept to all of its stores, but so far, customer reaction has been favorable, he said.
Twitter @GregTrotterTrib
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