Saturday, November 21, 2015

Can Dunkin’ Donuts and DoorDash Dent Starbucks, McDonald’s, and Burger King’s Delivery?

Let the fun begin.  Dunkin’ Donuts came out with competitive guns this past week targeting Starbucks, McDonald’s, and Burger King’s delivery programs. Dunkin’ Donuts began its tests of food and beverage delivery, and order-and-pay mobile order taking, both of which could heighten competition in the fast growing breakfast day-part.

Breakfast competitors Burger King, McDonald’s and Starbucks already offer delivery service and each has been testing order-and-pay.  Dunkin’s program testing will start with a single-market test of an order-and-pay-ahead system. Patrons in Portland, Maine, will be able starting this week to order beverages and food from the nearest Dunkin’ unit up to 24 hours ahead of time and pay for it simultaneously via an app on their smart phone. By now we all know that Starbucks’ set-up allows customers to skip the line and grab their coffee and food from a pickup station within the store saving customers valuable time. 

Dunkin’s delivery test is broader-based.  It will start in Dallas and spread to Los Angeles, Chicago, Atlanta and Washington, D.C., the franchisor said.  The DoorDash third-party delivery service is promising a delivery time of no more than 45 minutes.

The chain is a relative late entrant into delivery. In addition to Starbucks, McDonald’s, Taco Bell, KFC and Panera Bread Co. are also testing arrangements with third parties to bring orders to customers’ homes and offices.  Have your competitors left you behind in the marketplace?  

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