Dunkin' Donuts sales miss expectations. Dunkin' Brands CEO decides to push 'upselling.'
Dunkin鈥� Donuts sales in the US missed the mark. As a result the coffee retailer will push stores cashiers to 鈥榰psell,鈥� or encourage customers to buy more items.聽
Dunkin鈥� Donuts US sales grew 1.8 percent in the second quarter, Dunkin鈥� Brands Group, the parent company, says in its quarterly report. The sales were below expectations, CEO Nigel Travis says, but Dunkin鈥� Donuts saw sales 鈥榞radually improve鈥� as the quarter continued. Analysts polled by Consensus Metrix had expected a 3.3 percent increase,
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鈥� Donuts mobile app and the DD Perks Rewards program. Dunkin鈥� Donuts revenue also rose 4.6 percent in the second quarter to $190.9 million.
With the earnings report in mind, Dunkin鈥� Brands Group will start pushing cashiers to 鈥榰psell,鈥� . It is part of an effort to boost afternoon sales and get customers to purchase more than a coffee.聽
鈥楿pselling鈥� is also known as 鈥榮uggestive selling,鈥� 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.聽
