Here’s Why Dunkin’ Brands’ “On-The-Go” Strategy Can Give It A Competitive Edge

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DNKN: Dunkin' Brands Group logo
DNKN
Dunkin' Brands Group

As restaurant companies struggle to grow traffic at their stores with decreasing foot falls in malls, Dunkin’ Brands (NASDAQ:DNKN) is looking at convenience to customers as one of its key growth drivers. In its most recent earnings call, the company emphasized that its goal is to be agnostic on how guests use Dunkin’ – allowing them several ways of ordering its products, convenient payment and food delivery options. The company is increasing its focus on drive-thrus and in 2017 it aims to have this option in 85% of its restaurants compared to 70% five years ago. Dunkin’ Brands is aiming to make its drive thru experience the best in the industry and this is one of the ways it is trying to distinguish itself as the leading “On-The -Go” beverage brand.  Relying heavily on technology through its mobile orders and Perks loyalty programs, Dunkin’ Brands hopes to leverage customer data to make its restaurant experience extremely convenient consequently driving customer traffic.

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Technology, Door Delivery, Faster Pick Up – Key Pillars To Drive Convenience

Dunkin’ Brands is looking to differentiate itself in the restaurant industry by providing “unparalleled convenience”  to its customers. To achieve this goal, the company is providing the curb-side delivery option to all its franchise partners allowing customers to get their orders delivered to their cars. It is also expanding its delivery program via its partnership with Door Dash and piloting a catering test on its website.

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The company’s mobile ordering system is a key initiative in offering customer convenience. Dunkin’ Brands has linked its loyalty program “Perks” with its mobile ordering platform and the company is seeing steady increase in its Perks members. In Q2 2017, the company added 500,000 new Perks members taking the total number to 7 million. Mobile ordering is increasing the loyalty of its customers and the company has a 70% retrial rate in customers using this platform. Effective use of technology has enabled Dunkin’ brands to expand its loyal customer base.

As the restaurant industry witnesses a slow-down, Dunkin’ Brands is struggling with declining traffic. As the retail landscape changes with customers preferring the convenience of online shopping, mall traffic is witnessing a decline and restaurant companies are not immune to this trend. Dunkin’ Brands’ focus on convenience and establishing itself as a leading “On-The-Go” brand should help the company to tide over this slow down and drive sales in the long term.

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