News

C-store's coffee sales 'substantially increase' after adding Dunkin' Donuts

June 7, 2013

Hess Corp. is the largest Dunkin' Donuts franchisee in the U.S., with 657 "Dunkin'-equipped" c-stores, 532 of which Hess also owns.

According to CSP Daily News, Hess began adding Dunkin' Donuts about five years ago after exploring strong coffee brands. Since, the chain's coffee sales have increased "substantially," according to the story.

Hess' vice president of Retail Marketing, Rick Lawlor, told the publication that the c-store chain chose Dunkin' Donuts because it wanted to jump start its coffee program.

"The only way to do that quickly was to develop with a brand that had instant credibility, a brand committed to operational excellence that was innovating itself every day," he said. Dunkin', he added, fits the c-store customer better than other major coffee brands, such as Starbucks, which is seen as more high-end.

Nontraditional competition heats up

As Dunkin' Donuts continues its Westward expansion — and its plan to double its store count — nontraditional nontraditional venues such as c-stores and airports are a big focus.

However, the c-store market is growing right now and the competition is becoming more intense.

For example, earlier this week, Seven & I Holdings Co., which operates 7-Eleven stores, announced it is planning to more than double its North American footprint.

This news prompted some analysts to raise concerns about Dunkin' Donuts' plans.

"If anyone takes a hit from the expansion of 7-Eleven in the U.S., it might be Dunkin' Brands," wrote one analyst.

Intensifying matters, 7-Eleven recently hired a senior director of fresh food innovation and put together a culinary team to develop new products.

Read more about foodservice trends.