Dunkin’ Donuts US sales grew 1.8 percent in the second quarter, Dunkin’ Brands Group, the parent company, says in its quarterly report. The sales were below expectations, CEO Nigel Travis says, but Dunkin’ Donuts saw sales ‘gradually improve’ as the quarter continued. Analysts polled by Consensus Metrix had expected a 3.3 percent increase, according to Reuters.
The less-than-ideal sales performance was due to weather-related and other economic struggles consumers face, Mr. Travis says. However, the company remains confident in having long-term growth, especially with the Dunkin’ Donuts mobile app and the DD Perks Rewards program. Dunkin’ Donuts revenue also rose 4.6 percent in the second quarter to $190.9 million.
With the earnings report in mind, Dunkin’ Brands Group will start pushing cashiers to ‘upsell,’ Travis says in an Associated Press interview. It is part of an effort to boost afternoon sales and get customers to purchase more than a coffee.
‘Upselling’ is also known as ‘suggestive selling,’ a common practice where cashiers ask if customers would like to purchase additional items, according to AP. "People tend to be in a slightly different mode in the afternoon," Travis says. "In the afternoon, they tend to be more relaxed."
The company has also began displaying bakery items like cookies and Danishes more prominently in small cases, as reported by AP.