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Dunkin' Donuts to Close?

Discussion in 'Area Restaurants, Dining and Food' started by Rubble099, Dec 22, 2009.

  1. Rubble099

    Rubble099 New Member

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    I was in there Friday before the snow and one of the cashiers (who I see all the time) told me they aren't breaking even.

    It took 4 years to open this place, and it's going to close in ~6 months?

    C'mon people, get out there and support this place! I just can't go back to Starbucks coffee and pastries and overpriced Maggie Moos ice cream...

    Can anyone corroborate this information?
     
  2. Chsalas

    Chsalas Active Member

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    As much as I love DD, and as much as I don't need it, I have gone there several times to buy whole bean coffee and other stuff I like. They never have it in stock or "just ran out". I stop by often, and usually just buy a coffee (I love the donuts though but see first sentence) and go. DD, you better figure out your stock level issues or talk to your staff about making sure they report the inventory correct to not mis a sell or sells opportunity. Just a though.
     
  3. hornerjo

    hornerjo Senior Member

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    Aren't even breaking even? Wow, thats a shock. I've been a lot and have always had to wait in line at the drive thru. Course I've only gone in the mornings, maybe its dead rest of the day. I bet business picks up come spring when it gets warmer too.
     
  4. vacliff

    vacliff "You shouldn't say that."

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    I'm not sure I would believe everything a cashier says reflects the reality of the situation.
     
  5. Ken

    Ken Member

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    I've seen egregiously mismanaged businesses collapse, even with many steady streams of revenue. This could be one of them.
     
  6. redon1

    redon1 aka Aphioni

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    this is the absolute TRUTH. waste and mismanaged resources, constatnt turnover- those can kill any biz, even with high traffic. i don't know if that's happening at DD- I've never been unable to get what i want there and the service has been really friendly- same guys in drive thru for weeks...

    hope they stay open- it's convenient and i dig those little wraps!
     
  7. Jess86

    Jess86 New Member

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    I love their coolatas, but the machine is ALWAYS broken. It gets old after a while.
     
  8. redon1

    redon1 aka Aphioni

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    i stand corrected- took The Boy and his friend for a donut and hot chocolate after sledding at around 1pm 'Christmas Eve- NO DONUTS. completely out. :(
     
  9. decalr

    decalr Member

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    The boss indicates that DD will stay open.
     
  10. Mr. Linux

    Mr. Linux Senior Member & Moderator Forum Staff

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    What time were they closing on Christmas Eve, and did you see many customers? Since they were going to be closed on Christmas Day, I would understand if they had limited inventory of donuts a few hours before closing time the eve of a holiday; no sense making donuts just to throw them out...
     
  11. Ken

    Ken Member

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    Your rhetorical question doesn't make any sense to me. I don't understand why any business would have its doors open without any product available to sell. Without shelves adequately stocked, a business is wasting money on utilities, salaries, and whatever else is being consumed while the store is open to the public.

    If they're of the mind that it's not worth making donuts just to throw them away, then they should have locked up and went home. Instead they wasted money for nothing and left at least one customer unsatisfied. I can understand fast food restaurants having this mentality, and it makes a lot of sense as most foods can be quickly prepared at, say, a McDonald's.

    If you did the math, Dunkin Donuts likely, at worst, would have broken even if they maintained a decent inventory on Christmas Eve.
     
  12. redon1

    redon1 aka Aphioni

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    Duuno know what time they were closing, no one behind the counter offered that info and I didn't check. but iw was one of several disappointed customers in the place.
    Stuff happens. Not a big deal, but at least now I know what others have experienced...
     
  13. Mr. Linux

    Mr. Linux Senior Member & Moderator Forum Staff

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    My scenario was that if they were planning to close within a couple hours, why should they stock up on say 6 different flavors of donuts, at a dozen donuts per 'flavor/sled'? Keep in mind they make different 'flavors' of donuts, so they would have to make multiple batches to satisfy the 'needs' of potential customers. If past historical data for their shop showed that very few people came in to purchase donuts late-afternoon on a Friday, and assuming an even greater drop in demand due to it being Christmas Eve, doesn't it make sense for them to concentrate on 'on demand' items rather than put money into inventory that 'statistically' would have to be thrown out?

    To put it simply, it might make better 'financial' sense for them to lose 3-4 donut sales rather than making a bunch that would get thrown away. Redon indicated that she went in for a couple donuts and hot cocoa for the kids after sledding, so they potentially lost the profit on a few donuts, rather than tossing a few sleds of donuts.

    Now, throw in the 'customer satisfaction' curveball and you have a totally different scenario. What value this particular DD puts on customer satisfaction (ie always have donuts on hand for any customer walking into their store in order for them to walk away happy) is an unknown variable. All in all, seeing that this was Christmas Eve and probably very close to closing time for them, you can't blame them for having limited inventory on perishable items...
     
  14. GeauxTigers

    GeauxTigers Member

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    Not that it changes your logic, but aren't the donuts made off site at a local master bakery and shipped in? If this is the case then fixing a low supply may not be a quick turnaround.
     
  15. KTdid

    KTdid Well-Known Member

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    Then they should have closed on Christmas Eve if they already accounted for light traffic. That "unknown variable" called customer satisfaction can mean the difference between staying in business or shutting down for good.
     
  16. PowerPlay

    PowerPlay Member

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    If we follow your logic, then all the grocery stores should close down after they sell out of milk and bread right before a large snow storm is announced because customers are not satisfied.
     
  17. redon1

    redon1 aka Aphioni

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    not that same- you could go to the grocery store for something OTHER than bread and milk. a bread and milk store that's out of bread and milk should likely shutter up for the day if they are out, but a grocer? too many other products.

    i don't think they should have CLOSED b/c they were outta donuts at 1pm in the afternoon unless they were already close to closing time, and i don't know what time they planned to close. but there were plenty of kids out sledding, plenty of people out and about... who knows. it's hit or miss that ppl are going to pop in on Christmas Eve.

    we ended up getting our fat fix at taco bell... i still regret it. :eww:
     
  18. flynnibus

    flynnibus Well-Known Member Forum Staff

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    Managing their supply has been a problem since day one. Either they are trying to run razor thin on those margins of error - or their demand is all over the place. Either way - the end goal of being able to walk in and buy product is affected and the business is failing in that regard.

    The business needs to figure out how to satisfy it's customers with product and do so profitably. Failing to do both of those will lead to it's closing. That's why opening a business is a challenge, not a cake walk :)
     
  19. Ken

    Ken Member

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    I think your conclusion is built on some false premises.

    First, I think you're making the judgment that the profit margins on donuts aren't adequate enough to keep a fresh inventory when there's a chance you might have to waste some. I don't think this is the case. This page says it's about 600-700% for a regular donut shop; I'd imagine Dunkin Donuts is probably around 1000% per donut, but let's go with the bottom line. A donut in this scenario costs approximately 10 cents to make if it sells for 60-70 cents. If they had to throw out 100 donuts, they'd lose $10.00. Is that really not worth making them and leaving selves empty? What if they had to throw away 200 donuts? $20.00? Redon1 would likely have spent more than $10.00, which would have made up for them throwing out 100+ donuts. Like I said before, if they weren't interested in selling product, they should have gone home for the day.

    Your second incorrect assumption is that it's only one customer who was affected by this. redon1 mentioned other unsatisfied customers. There are other posters here who are corroborating inventory issues with this particuar store's inventory. So, it's not just redon who was affected. There were others that day. I'm affected; I'm reading the posts. Look at the original post of the thread: where there's smoke...
     
  20. Ken

    Ken Member

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    I think this depends on the individual store. Some Dunkin Donuts have a bakery attached and make their own donuts on the premises. Some have them brought in several times through the day.
     

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