Dunkin' Made a Big Change to Its In-Store Experience — Here's Why Gen Z Can't Get Enough The coffee franchise is innovating to get people in and out with their beverages faster than ever.
This story appears in the January 2025 issue of BIZ Experiences. Subscribe »
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It's been almost 20 years since Dunkin' debuted its now-iconic "America Runs on Dunkin'" slogan. Back then, Dunkin' was announcing itself as the ultimate stop for on-the-go customers. Today, that positioning continues — but with a digital twist: More than two-thirds of the company's U.S. sales now come through digital, drive-thru, or delivery, which underscores the importance of speed and efficiency for the success of each shop. "As we increase access to our brand, demand is only growing, so that's very encouraging," says Scott Murphy, the chief brand officer of Inspire Brands, Dunkin's parent company.
Operational efficiency is top of mind at Dunkin'. Between October 2023 and July 2024, the franchise added 1,000 "NextGen" locations — reaching 4,000 of these futuristic sites. These stores were designed to better facilitate modern customer preferences and the chain's increasingly broad array of iced drinks. They include digital kiosks, mobile-order pickup areas, and a beverage tap system. "The 'NextGen' store model was essential specifically for driving iced-beverage success over the last few years," Murphy explains. This attention to convenience is much of what helped Dunkin' jump three spots in the Franchise 500, from No. 6 last year to No. 3 this year.
Related: Here's how we determined the annual Franchise 500 ranking — and what we learned from the data.
As more customers shop digitally, building out the rewards program has become a more dynamic opportunity too. Dunkin' Rewards membership is growing annually, giving customers the opportunity to earn points and special bonuses for specific order types, and to earn badges — a new addition in 2024. The "Boosted Status" tier, which is awarded to those who come to a Dunkin' more than 12 times a month, has seen steady membership growth. This is especially impactful given that these customers are the most likely to increase their checks and add food to their orders. "It's not just the big moments like the Super Bowl that bring people to us; it's personalized offers and high-quality service," Murphy explains. "We spend a lot of time thinking about value — getting it right is hard, and consumers define 'value' differently."
This past year has seen a trend toward more franchisees opting to open colocations and multi-brand restaurants that feature other Inspire Brands chains, like Jimmy John's, Baskin-Robbins, and Buffalo Wild Wings. By combining two restaurants in one location, franchise owners can maximize their back-of-house space and minimize costs, while attracting more customers for different meals. "Dunkin' is the leading base brand for domestic cross-brand commitments, so I'm thrilled to see folks diversifying their own portfolios across dayparts," Murphy says.
Related: Explore the full 2025 Franchise 500 list, complete with category rankings.
