Dunkin' Donuts Opens First-Next Generation Concept Store

Dunkin’ Donuts, which is part of Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) , opened its first next generation concept store in Quincy, MA. The company plans on opening 30 or more new and remodeled Dunkin' Donuts restaurants that will test variations of this new concept in 2018.

The latest store is modeled in a modern way, equipped with innovative technologies and designs. To make the ambience more approachable and energetic, the interiors flaunt light-color materials, natural lighting and an open layout.

Re-imaging stores has been a key strategy for the company to attract customers. This helps create an appealing and differentiated concept that boost the brand value and enhance client experience.

Focus on Digital Ordering

Technological innovation at restaurants has become imperative to counter the troubles plaguing this space over the past few quarters. In fact, the company has been increasing its usage of digital technology through DD card, DD mobile app, DD Perks rewards program, On-the-Go ordering and delivery.

The company has deployed an exclusive On-the-Go drive-through facility in the concept store. This allows Dunkin' Donuts’ DD Perks Rewards Program members, who order in advance using Dunkin's Mobile App, to skip queues and head straight to the pickup lane.

On-the-Go, which is available nationwide, allows the company to drive customer loyalty, efficiency as well as speed of service at its restaurants. The company believes that getting customers to use the DD Card, then enrolling them as Perks members will make customers accustomed to the convenience, thereby making it easier to retain customers.

Moreover, to enhance the digital experience, the company will be offering fully-integrated digital kiosks, wherein customers will be able to order with or without the assistance of a restaurant member. Also, the company has kept aside an area for mobile pickups, a facility to allow members of the DD Perks Rewards program placing advance orders through Dunkin's Mobile App, to get in and out of the restaurant faster than before. Customers will also be able to track their order status through a new digital order status board.

Innovation to Tackle Challenging Sales

In order to navigate a challenging sales environment, Dunkin is continually striving to innovate on the menu front to cater to the ever-changing palates of customers.

The new store will serve the company’s signature cold beverage through an innovative tap system, serving eight consistently cold beverages such as coffees, iced teas, cold brew coffee and nitro infused cold brew coffee. There will also be a single-cup machine to provide the option of grinding and brewing select coffee varieties, one cup at a time.

Also, as consumers are increasingly showing their preference for fresh, organic and nutritious, the store will have a “Grab & Go unit,” which will consist of healthy food items that complement the new store’s menu.

Bottom Line

Dunkin' Brands is one of the well-established global quick service restaurant brands. Notably, its shares have outperformed its industry over the past year. While the stock has returned 25.3%, the industry gained 19.9%.

Dunkin' Brands’ focus on re-imaging stores, strong digital initiatives and aggressive expansion strategies are expected to drive the company’s performance.

However, the company faces tough competition from food & beverages giants like McDonald’s Corporation (NYSE:MCD) , Starbucks Corporation (NASDAQ:SBUX) and YUM! Brands, Inc. (NYSE:YUM) that intend to adopt similar strategies.

Dunkin' Brands has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>