Stephen Anderson suggests kiosk test could boost sales 1 to 2 percent
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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.
Stephen Anderson, analyst with Maxim Group, said Dunkin’ is testing “Ready-to-Go Choices” kiosks in some markets. The kiosks, placed near the front of the ordering line inside units, include various sub and sandwich items, like an Italian Sub for $5.49 or a Fruit-and-Cheese Platter for $6.29.
Anderson spotted the kiosk inside a unit in Connecticut, and said the company confirmed the kiosk was part of a market test. He estimated the effort could boost same-store sales by 1 percent to 2 percent, assuming a broader rollout “in late 2016 or 2017.”
“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 on Monday. He also said the kiosks would help with franchisees’ 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.
Dunkin’ Donuts parent company, Dunkin’ Brands Group Inc., did not respond to requests for comment.
The Canton, Mass., chain has more than 11,000 units worldwide, but is looking at efforts to boost sales following a 0.8-percent same-store sales decline in the fourth quarter ended Dec. 26.
Dunkin’ Donuts is also looking to replace declining sales of packaged coffee inside its units. Packaged coffee sales declined by 1.2 percent in the quarter, and Anderson said grab-and-go items could offset that decline.
Contact Jonathan Maze at [email protected]
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