Retiring Dunkin’ chief executive Nigel Travis—who will continue with the company as executive chairman focused on international businesses—headed up the company’s Q2 earnings call by highlighting the accomplishments across its Dunkin’ Donuts and Baskin-Robbins brands, which saw a 4.9 percent revenue increase in the second quarter.
But Travis soon shifted the focus to how the company extended its partnership with CardFree, which will allow the company to establish 1:1 marketing technology with the aim of more satisfied customers. The payment platform’s capabilities allow Dunkin’ restaurants to process mobile ordering and mobile payments through the Dunkin’ app. However, the company’s digital strategy extends much further with future initiatives involving catering, delivery, group ordering and curbside pickup.
“I’d like to remind you that one of our strategic pillars is unparalleled convenience, and this deal will fully support this goal,” Travis said before handing the floor over to his successor David Hoffman, who stated that his top priority was to follow the blueprint for growth, which outlines how Dunkin’ is transforming into a modern and relevant brand.
Hoffman said that that the company was making key investments to accelerate two important areas:
- Improving the restaurant experience for guests and crew
- Leaning into more innovative—especially coffee—beverages
“I want to make it very clear that this is part of a unique chapter in our brand’s history. One of significant change and transformation to ensure relevance for generations to come,” said Hoffman.
Hoffman later added that “convenience is about being wherever our guests want to use us, including outside the four walls of our restaurants,” referring to branded products such as Dunkin’ Donuts K-Cups. These allow loyal customers to continue experiencing the brand outside of stores. Hoffman indicated that the company is reaching out to new customers outside of restaurant confines, although the restaurants themselves are being redesigned at the same time.
Baskin-Robbins is also evolving to become a more modern and relevant brand by emphasizing “great flavors and memorable moments.”
A prime example of the brand’s shift is with the recent “Got Me Like” campaign, which is designed to appeal to younger consumers using brightly colored GIFs, memes, videos and other media. Although BR store revenues were down 0.4 percent in Q2, Hoffman said that beverage categories especially shakes, saw significant gains for the third straight quarter, which he attributes to the Sundae Shakes offering. Additionally, delivery in partnership with Door Dash continues to expand, with “Try Me Free” offers given to first-time delivery customers throughout July to encourage trial and increase awareness.