- Sharp decline in sales forces major fast food and coffee chains to shutter 1,400 locations
- Revenues fall as much as 38 percent during COVID-19 pandemic
- Companies plan investments in models allowing better response to future pandemics
It sometimes feels like there’s a Dunkin’ on every block in New England, but the coffee chain’s orange and purple facades will soon be considerably scarcer. The company recent announced that it will close 800 locations, or about 8 percent of its retail sites, due to a 20 percent second quarter decline in sales during the COVID-19 pandemic.
Other food service chains are experiencing a similar decline. McDonald’s will close 200 locations following a 30 percent drop in revenue, while Starbucks plans to cease operations at 400 sites after its revenues shrank by 38 percent. Starbucks has also announced that it will invest more in offerings such as mobile pickup orders to guard against future pandemic-related restrictions.
The restaurant industry as a whole has been particularly hard-hit by the COVID-19 pandemic. The Independent Restaurant Coalition, which formed in March, has warned that up to 85 percent of independent eateries could close permanently if they do not receive financial relief.