DUNKIN THOSE LABOR COSTS

Written by  ,     January 5, 2018     Posted in Announcements, Background, Business, In real life, Restaurant

Maybe 3 years ago, Kathy and I sat WAY too long in a pick-up window line at DD aka Dunkin Donuts, maybe dropping the “Donuts”, aka Dunkin Brands and I started a rant.  “What’s wrong with Dunkin Donuts?  How do they expect to manage sandwiches and donuts and cappuccinos and get people through the line…”  Three years ago, easy.

I just wanted a damned, simple cup of coffee for the road.  (And don’t act like going inside would be quicker!)  I could almost hear the dude in the car (3) cars ahead of me…

“I’ll have Mochalottayadda smoothie, and um, a dozen donuts, let’s see…hmm..2 Boston cream, and ahhh…2 jelly and, a bagel, toasted, with–can you put the cream cheese on one half?….and, what did you say you wanted sweetie?…a strawberry what?…”  AAARRGH.  (Channeling Charlie and Lucy…)  What the fuuuu…

Fast forward to 2018 where DD US President has decided that the menu has become “too unwieldy” and has announced that they have been experimenting with a smaller menu and….  Hell-O!

“The Canton-based chain is jettisoning varieties of bagels, muffins, and flavor shots — and its entire afternoon sandwich lineup. After years of expansion, it’s time for “menu simplification.” The official rollout, the most sweeping menu change Dunkin’ has seen in decades, starts in New England on Monday.  This bold move is all about efficiency. 

Say what?  Mid afternoon ham sandwiches don’t move so well at Dunkins?  Shocking.

Guess what the article is NOT saying–but trust me.

They can’t find enough staff.  To properly staff their donut and coffee shops with enough well-trained and skilled-enough people to also manage croissants, and egg white sandwiches, and smoothies, and specialty coffees to compete with Starbucks, costs a ton in labor–especially as minimum wage continues to grow and they have to fund health care.  It’s actually less  about the actual money and more the waste and burden relative to the lack of motivated, competent, responsible, smart-enough staff.  So, do the math.  Less menu items, less staff, less payroll.

Because YOU won’t pay $5.00 for a cup of DD coffee and ‘they’ surely won’t when DD expands to the center of the country.

What’s next?  The donuts?

 

 

Comments

2 Responses

  1. Brian says:

    Which Dunks were you at? I’ve noticed an inverse relationship in Dunks worker talent in relation to access to low-skill labor. In other words Dunks in Lowell are much better run, being close to low-skill labor, than say a Dunks in Needham, where workers have to carpool in from Brockton.

    Moreover the Dunks absentee ownership model doesn’t lend itself to a passionate and loyal workforce. That said Lowell could use more locally owned Donut Shacks and Brewd Awakenings than Dunks franchises. Places worthy of waiting in line for.

  2. Thanks for sharing. I read many of your blog posts, cool, your blog is very good.

Leave a Reply

Your email address will not be published. Required fields are marked *