Commentary

Dunkin' Launching National Ad Campaign To Attract 25,000 Workers

Dunkin’ is looking to add 25,000 jobs nationwide this summer, the company said yesterday, and it’s letting everyone know it is doing so with a “Dunkin’ Runs on You” advertising campaign.

“Canton, Mass.-based Dunkin’, which has about 90% of its restaurants open, said new jobs include front-of-counter to managerial roles at restaurants and added that it was committed to diversity and inclusion,” Reuters’ Praveen Paramasivam writes.

“Dunkin’ would also launch a national advertising campaign in Spanish and English for the recruitments and said it would partner with Southern New Hampshire University to offer low-cost online college education to its employees,” Paramasivam adds.

“A source close to the matter said the hiring and education efforts have been in the works prior to the social unrest sweeping the country following the senseless murder of George Floyd by Minnesota police,” Brian Sozzi writes  for Yahoo Finance.

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“Dunkin’ is committed to keeping America running and working. We are proud to support our franchisees who offer much-needed job opportunities, in a welcoming environment where people can feel appreciated and rewarded for serving both customers and their communities during this critical time,” said Stephanie Lilak, Dunkin’ Brands senior vice president and chief human resources officer, in a statement cited by Sozzi.

“Fast-food chains are bouncing back from the pandemic faster than other segments in the restaurant industry. Dunkin’s own sales have been improving, although the shift to working from home means that many workers are still making coffee and breakfast at home as well,” CNBC’s Amelia Lucas writes.

“As of May 23, same-store sales at open Dunkin’ locations had fallen 23% quarter to date. During the week ended May 23, same-store sales fell 15% at open restaurants, an improvement from declines in late April. More than 90% of its locations are open with modified operations,” Lucas adds.

The performance earned an overweight rating from KeyBanc Capital Markets.

“The accompanying research note explained the rating by saying: ‘Dunkin has executed well during the pandemic -- providing franchisee assistance while leveraging its off-premise/digital capabilities to stabilize trends. These efforts should drive momentum in the short term as key markets reopen and over the medium term with the help of national advertising.’ Dunkin's flexibility seems to have allowed it to bounce back quickly following the worst of the pandemic,” Rhian Hunt writes  for The Motley Fool.

“We believe trusted brands like Dunkin’ with advertising scale, digital ordering, and strong customer loyalty will be in the best position to recoup guest counts as the country reopens,” said KeyBanc Capital Markets analyst Eric Gonzalez, Benzinga’s Jayson Derrick writes on Yahoo News.

“Dunkin Brands' stock is down around 9% since the start of 2020 and trading at a three-turn P/E discount to its peers at 22 times next year's P/E and this valuation gap should improve, according to KeyBanc,” Derrick adds.

“There were 9,630 Dunkin' outlets in the U.S. as of the end of last year, according to a company regulatory filing. The hiring announcement comes on the heels of surprisingly strong employment numbers on Friday, when the government reported employers added 2.5 million jobs in May,” Kate Gibson points out  for CBS News. 

“Since its peak in February, total employment in the restaurant industry has decreased by 4.7 million,” Haley Victory Smith writes  for The Washington Examiner.

“Unemployment in the industry has increased from 5.7% to 32.3%, a rate almost three times the national average. That trend appears to be reversing, with the sector adding 1.4 million jobs in May. Other fast-food chains are hiring, including Taco Bell, which plans to add 30,000 workers to its ranks this summer,” Smith adds.

Indeed, Irvine, California-based Taco Bell said on May 21 that is was not only filling vacant jobs at its more than 7,000 restaurants but also adding “new safety-focused and cleaning jobs to help limit the spread of the coronavirus,” as Dave Flessner reported  for the Chattanooga Times Free Press.

“The newly created positions are intended to keep the drive-thru running smoothly, to manage delivery, curbside pickup and mobile app orders, and to maintain industry-leading sanitation and cleanliness practices,” the company stated in a news release.

Kelly McCulloch, Taco Bell's chief people officer, said “Taco Bell is providing workers masks and other personal protection equipment recommended by federal health officials. In April, Taco Bell began employee temperature checks and started using a tray to pass sealed food to customers in cars, adding contactless credit card payment at the drive-thru and providing employees masks,” Flessner writes.

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