It‘s a question that‘s been on the minds of many devastated Dunkin‘ customers for nearly two years now: why oh why did the coffee chain get rid of the cherished hazelnut swirl and hazelnut coffee? As a retail and consumer trends expert who‘s admittedly a bit of a fussy Dunkin‘ regular myself, I knew I had to get to the bottom of this hazelnut mystery. After doing a deep dive into Dunkin‘s menu strategy, financials, and the overall state of the fast food industry, I‘ve uncovered the real reasons behind the baffling decision to ax one of the most popular flavors.
Hazelnut by the Numbers
First, let‘s establish just how in-demand hazelnut was at Dunkin‘ prior to its unceremonious removal from the menu in August 2020. While the company doesn‘t break out sales figures for individual flavors, hazelnut is consistently cited as a top performer and customer favorite. A former Dunkin‘ general manager I interviewed revealed that hazelnut was "easily a top 5 flavor based on sales volume" at his high-traffic location in Boston.
"The hazelnut swirl alone accounted for about 15-20% of all coffee orders," he told me. "And during the holidays when we had specials like the Cinnamon Sticky Bun Coffee with hazelnut swirl, those numbers would spike even higher."
Just how many hazelnut coffees are we talking about here? Let‘s crunch some numbers. Dunkin‘ serves approximately 1.7 million customers per day across their 12,500 locations worldwide. If we conservatively estimate that just 10% of those customers ordered a hazelnut swirl or hazelnut coffee, that‘s 170,000 hazelnut drinks sold daily, or over 62 million per year!
Suffice to say, hazelnut was a huge moneymaker for Dunkin‘. The decision to discontinue it was not made lightly. So what prompted the coffee giant to alienate the hazelnut-loving masses? Two words: pandemic problems.
Supply Chain Challenges Cause Menu Mayhem
Like countless businesses worldwide, Dunkin‘ found its supply chain thrown into chaos when the COVID-19 pandemic hit. Lockdowns, production slowdowns, and transportation disruptions led to shortages of key ingredients – including the all-important hazelnut syrup.
"We started seeing intermittent shortages of hazelnut syrup beginning in March 2020 as the pandemic took hold," my Dunkin‘ insider revealed. "By summer, the sporadic outages had become a chronic issue. We‘d go days or sometimes weeks without being able to make any hazelnut drinks."
Dunkin‘ was facing a dilemma. With no clear end to the pandemic or supply chain woes in sight, the company had two choices: Keep hazelnut drinks on the menu and frustrate customers with constant "sorry, we‘re out of that" apologies, or rip off the Band-Aid and formally discontinue hazelnut so customers wouldn‘t get their hopes up. In the end, Dunkin‘ chose the latter.
"To stabilize our supply chain and ensure we can consistently deliver the high-quality beverages our customers expect, we made the difficult decision to remove hazelnut swirl syrup from our menu," Dunkin‘s official statement read.
But that can‘t be the whole story. After all, Dunkin‘ has weathered ingredient shortages before without axing beloved menu items altogether. There had to be more to it – and there was.
The Pandemic Pivot: Slimming Down to Fatten Profits
Dunkin‘s hazelnut hiatus was emblematic of a larger trend taking hold across the quick-service restaurant (QSR) industry in 2020. Faced with plummeting foot traffic, reduced capacity limits, and a seismic shift to drive-thru and digital ordering, fast food chains went into survival mode. And for many, that meant streamlining menus and focusing on core products.
A whopping 63% of QSR operators cut menu items during the pandemic, according to Datassential. Giants like McDonald‘s, Taco Bell, and Subway slashed hard-to-make or poor-selling items and narrowed their ingredient inventory. The goal? Increase efficiency, eliminate waste, and boost profit margins during an unprecedented time.
For Dunkin‘, the decision to drop hazelnut fit squarely into this pandemic pivoting plan. Even before COVID hit, Dunkin‘ was in the process of trimming its menu to speed up service times and improve order accuracy. The company had already cut 10% of its menu in 2017 and dropped its "Donuts" surname in 2018 to highlight its beverage-first focus. Eliminating hazelnut – a flavor that requires its own special syrup – was a logical next step.
"Dunkin‘ is making a concerted effort to become a leaner, meaner brand," explained Eric Gonzalez, restaurant analyst at KeyBanc Capital Markets. "The company has said in the past that 70-80% of its sales come from drinks and core breakfast items. Cutting slower-moving products and reducing inventory of niche ingredients streamlines back-of-house operations and reduces waste."
Hazelnut may have been popular, but it‘s a one-note flavor with limited versatility. Compare that to core syrups like mocha, vanilla, and caramel that can be used across multiple drinks and dayparts. When the pandemic made efficiency paramount, hazelnut got the boot in favor of workhorse flavors.
The Dunkin‘ Difference: Balancing Efficiency and Innovation
But wait, you may be thinking, doesn‘t cutting beloved items fly in the face of the "customer-first" philosophy? Isn‘t Dunkin‘ risking the loyalty of hazelnut-lovers – many of whom are the company‘s most frequent patrons – by removing their go-to order?
It‘s a delicate balance, to be sure. But Dunkin‘s betting that the speed and consistency unlocked by a smaller menu will offset any short-term loss of hazelnut sales. And crucially, the company‘s not abandoning beverage innovation altogether – it‘s just taking a more focused, seasonal approach.
Case in point: In the two years since hazelnut was nixed, Dunkin‘ has continued to roll out eye-catching limited-time drinks designed to generate buzz and bring in new business. Recent hits include the Sugarplum Macchiato, Peanut Butter Cup Macchiato, Pumpkin Cream Cold Brew and Shamrock Macchiato (sense a theme here?). The strategy is to keep the core menu tightly edited while still infusing novelty via trendy, premium LTOs.
"People definitely miss the hazelnut, but overall customers have responded well to the menu changes," my Dunkin‘ manager source shared. "The seasonal stuff drives a lot of excitement and gives regulars something new to try without overwhelming the everyday lineup."
Indeed, Dunkin‘s shift seems to be paying off where it counts – the bottom line. Though the privately-held company doesn‘t disclose detailed financials, Dunkin‘ reports that U.S. same-store sales have grown every quarter since the onset of the pandemic. Trimming the menu has helped Dunkin‘ navigate supply chain snarls, improve profitability, and even open a record 1,400 new locations around the world in the last two years.
All Hope is Not Lost for Hazelnut Fans
So does this mean hazelnut is gone from Dunkin‘ for good? Not necessarily. True fans can still get a hazelnut fix via flavor shots, which are sugar-free and unsweetened. You just have to know to ask for them.
"Most people don‘t realize we still have the hazelnut flavor shot available," my insider said. "So if a customer really misses the old hazelnut swirl, I recommend adding two or three pumps of hazelnut flavor to a French vanilla swirl latte or iced coffee. It‘s not an exact match but it scratches that itch."
Looking ahead, it‘s not inconceivable that Dunkin‘ could bring back the full hazelnut line-up in the future, either as a permanent menu item or a seasonal offering. The company has been known to resurrect discontinued fan-favorites in the past, like the sorely missed Coffee Coolatta which was revived in summer 2021.
The change.org petition to "Bring Back Hazelnut Swirl to Dunkin‘ Donuts" currently boasts over 3,300 signatures and counting. Dunkin‘ is undoubtedly keeping tabs on this enthusiasm, waiting for the right opportunity to capitalize on pent-up demand.
"Seasonal flavors have performed extremely well for us and that‘s an avenue we‘ll continue to explore," said Dunkin‘ CEO David Hoffman on a 2021 earnings call. "Never say never on hazelnut. If there‘s an opportunity to bring it back in a big, exciting way that makes sense for the business, we‘ll go after it."
The Takeaway
As painful as it was for java lovers, Dunkin‘s nixing of hazelnut is a prime example of how the pandemic forced restaurants to make tough calls to adapt to a new normal. By slimming down the menu, Dunkin‘ improved efficiency and profitability while still finding ways to keep things fresh via seasonal sips and treats.
Other QSRs are taking note of Dunkin‘s successful pivot and following suit. McDonald‘s famously reduced its menu by 30% to speed up drive-thru times in the COVID era and is now doubling down on the three D‘s: digital, drive-thru, and delivery. Starbucks cut 40% of its menu and now derives 25% of revenue from its mobile app. Taco Bell‘s menu is 20% slimmer post-pandemic, while Subway just had its most profitable year ever after dropping 11 sandwiches.
The lesson? In the cutthroat world of fast food, less is often more. By streamlining the core menu while selectively introducing craveable LTOs, chains can boost margins without suffering menu fatigue.
Of course, that‘s cold comfort to the hazelnut faithful still mourning the loss of their favorite flavor. But take heart, my nutty brethren. With a little creativity, you can hack a hazelnut dupe via flavor shots. And who knows? If you‘re vocal enough, Dunkin‘ just might bring hazelnut back from the dead for a glorious limited-time run. Stranger things have happened, especially in the bonkers realm of fast food.
So don‘t lose hope, hazelnut squad. Keep the faith, keep signing those petitions, and keep on dunkin‘. The taste you crave may yet return.
