Analyst Stephen Anderson suggests Dunkin’ Donuts kiosk test could boost sales 1 to 2 percent
Source: nrn.com
Dunkin’ Donuts is testing kiosks with a selection of sandwiches at some of its locations, according to a research analyst who suggested that the effort could boost sales at the coffee chain.
NRN notes that Stephen Anderson, an analyst with Maxim Group, spotted the kiosk at a Connecticut location, and that Dunkin’ confirmed the kiosk was part of a test market. Anderson estimated the effort could boost same-store sales by 1% to 2%, assuming a broader rollout “in late 2016 or 2017.” The news source writes that Dunkin’ realized a 0.8% same-store sales decline in the fourth quarter of 2015. The company is also looking to replace declining sales of packaged coffee inside its units.
“We believe that morning customers may pick up an additional item, such as a sandwich or salad, for consumption later that day, while afternoon beverage customers can pick up a snack on the run,” Anderson wrote in a note. NRN reports that Anderson also said the kiosks would help with the franchisee cost structure “because operators will have to keep prepared food on hand and the items are made at a central commissary, which keeps costs down.”