Dunkin Donuts’ New Mobile App

by Raymond Pucci 0

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2 Creams, No Sugar. Starting June 6, you can order your Dunkin Donuts fix in advance via their new mobile app. Branded “On-the-Go” will utilize the app’s mobile wallet and be integrated with the store’s loyalty program, as the following article relates.

Now your morning coffee and donut are just a click away.

On Monday, Dunkin’ Donuts will roll out a mobile ordering feature nationwide, allowing DD Perks rewards program members to order before they arrive and skip lines. It also allows cashless payments by taking from members’ Dunkin’ Donuts cards in the mobile app.

“I think it’s going to be a difference maker,” Dunkin’ Brands CEO Nigel Travis told CNBC. “It’s the biggest change to our delivery system.”

While Travis said the investment in the new feature, called On-the-Go, has been “pretty low,” he said he thinks it will attract new customers to become DD Perks rewards members.

Dunkin’ Donut’s move is designed to stay competitive with other chains’ breakfast offerings. In April, coffee competitor Starbucks revamped its mobile app to create a more personalized experience for the more than 17 million customers that use it. Dunkin’ is also trying to challenge Starbucks by expanding a line of espresso-based drinks and testing new donuts, sandwiches and fruit teas in Boston.

Starbucks isn’t Dunkin’s only competitor in the breakfast space. McDonald’s launched a successful all-day breakfast last fall and has been testing new items like the Chicken McGriddle sandwich in certain locations.

Fast food retailers have discovered consumers’ appetites for mobile order and pay, so Dunkin’s new program will satisfy that need, especially for time-strapped customers. While Dunkin and rival Starbucks generally have two distinct target demographics, Dunkin will probably win over some disgruntled Starbucks customers. The Seattle based chain’s recent transition to a spending-based loyalty program has left many of their customers with a sour taste. Nonetheless, Starbucks’s mobile order and pay works very smoothly and enjoys a high participation rate. That has set a high bar for Dunkin to meet, especially given their ever expanding menu and order combinations. Let the competition begin.

Overview by Raymond Pucci, Associate Director, Research Service at Mercator Advisory Group

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