For Dunkin' Brands, the parent company of Dunkin' and Baskin Robbins, mobile order and pay “is a winning proposition,” said CEO David Hoffman.
Dunkin’s On-the-Go ordering posted an average weekly sales increase by more than 30%.
In a recent earnings call with analysts, Hoffman detailed Dunkin' U.S.’s tech initiatives, including enhancements to its mobile app and its planned expansion of delivery and multi-tender.
“Mobile order and pay … enables guests to get in, get out and get on their way,” explained Hoffman. “Nearly half of quarterly active Perks member use it today and there is still significant opportunity to grow.”
Dunkin’s On-the-Go ordering through its mobile app posted an average weekly sales increase by more than 30%, 30% year-over-year, and made up 4% of total transactions in Q2.
At locations without a drive-thru, mobile order ahead represented “more than 7% of transactions, and in many urban areas, mobile orders actually exceed 25% of transactions during peak hours,” Hoffman added.
Consistency and convenience is key. “We’re making the Dunkin’ experience as frictionless as possible, in our restaurants, at the drive-thru, through our mobile app and other digital channels,” he said.
The brand is gearing up for a rollout its Dunkin' Delivers to major U.S. markets by year’s end. In June, Dunkin’ Delivers, in partnership with Grubhub, began delivery in New York City. A key feature: the delivery orders are integrated into the POS.
Integrated Third-Party Delivery
Dunkin’ Delivers “doesn’t involve significant costs for our franchisees, creates operational efficiencies across the restaurants, and delivers an overall better experience for customers,” said Hoffman.
In April Dunkin' added Multi-Tender to its mobile app, which allows customers to earn loyalty points regardless of how they pay. Dunkin' also plans to roll out Multi-Tender to all U.S. stores by year’s end. The program, available at 1,000 or so locations, is driving incremental enrollments. About 13% of its sales are from its 11.7 million loyalty members, Hoffman explained. “With Multi-Tender, we believe we can grow that number in a meaningful way by expanding the membership funnel and driving incremental sales through one-to-one marketing.”
Its next gen stores, currently around 300 locations, is expected to top 500 units by 2020.
For Dunkin’ U.S., Q2 results included 4.7% system-wide sales growth and 1.7% same-store sales growth. A full earnings report is available here.
Dunkin’ U.S. performance was driven by double-digit espresso growth, national value offerings and consumer reception to its better-for-you Power Platform of breakfast bowls. Menu innovations include its Beyond Meat plant-based breakfast sausage, which recently made its debut in NYC stores.
“These results clearly reflect that the blueprint for growth, our long-term strategy to modernize the brand is working,” said Hoffman.