Dunkin' Brands, the parent company of Dunkin' and Baskin-Robbins, exceeded expectations in its most recent earnings report with delivery sales doubling.
Dave Hoffmann, Dunkin' Brands CEO, told Cheddar on Friday, that before the coronavirus outbreak, the company was heading towards its best quarter since 2013 already, but once the pandemic began it focused on adapting.
"We really worked on streamlining the operations for our franchisees to make the restaurants as flexible as possible with limited hours, limited menu. We called our limited menu Essentials," Hoffman said.
Luckily, 90 percent of the chain's transactions were some form of takeout prior to the crisis, according to the CEO, so it wasn't hard for them to pivot entirely in that direction.
"Our fleet of restaurants, 70 percent are drive-thrus, we've added 1,000 curbside locations to those non-drive thru sites as well. Our delivery footprint has nearly doubled during this, from 2,000 stores to 4,000," he said. "Our loyalty program has continued to increase. About one out of every five transactions is from a loyalty member."
Dunkin' Brands is 100 percent operated by franchisees and has almost 90 percent of its business open amid the pandemic. Hoffman said the company supported franchisees early on by making sure their liquidity was protected and took safety precautions at all locations so that workers feel protected.
"We got into this very early. We put our reputation aside and we talked about, you know nobody is going to remember an overreaction, but people will definitely remember an underreaction," he said.
Life after the pandemic is still unpredictable for most people, including business owners. The CEO said Dunkin' is taking it one day at a time and will continue to follow the guidelines from the Centers for Disease Control and Prevention.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
