Dunkin’ Rewards program coming to California before national launch

Dunkin’ is revamping its loyalty program and free doughnuts, coffee and breakfast sandwiches will be up for grabs.

Driving the news: The new program, Dunkin’ Rewards, debuts Tuesday in California before launching nationwide later this year, the chain shared exclusively with Axios on Monday.

• Dunkin’ Rewards will replace the chain's longtime loyalty program DD Perks.

The big picture: As food inflation continues to creep up and coupons disappear, customers have been flocking to reward and loyalty apps that places like McDonald's, Starbucks and Taco Bell say are helping drive digital sales.

Details: With the new program, the company says Dunkin’ Rewards members will be able to “earn points twice as fast as they did with DD Perks, earning 10 points for every $1 spent, as compared to 5 points.”

• DD Perks only offers free drink rewards for 200 points while the new program gives members more choice in redeeming points with rewards ranging from 150 to 900 points.
• 150 points equal one espresso shot added to a drink, a three-count of Munchkins or six-count hashbrowns.
• Get a free classic doughnut with 250 points.

Yes, but: Members will need to collect more points to redeem a free drink reward, which will range from 400 points for tea to 900 points for frozen drinks or signature lattes.

Meanwhile, Dunkin’ Rewards adds a new loyalty tier — “Boosted Status” with "1.2X more points for every dollar spent" — when members make 12 or more qualifying visits in a calendar month, the company told Axios.

Between the lines: Not counting bonus points opportunities, a DD Perks member earns a free drink after spending $40.

• With Dunkin’ Rewards, a member spending the same $40 will earn 400 points, which is enough to redeem for a free hot or iced tea.
• A member has to spend $50 for a 500-point free coffee and up to $90 to get a free signature latte or frozen drink for 900 points, not including Boosted Status or bonus opportunities.

What they’re saying: Dunkin’ President Scott Murphy told Axios that the new Dunkin’ Rewards program brings a “more dynamic and flexible loyalty program,” which allows members to earn rewards faster than ever before.

• "When we set out to improve DD Perks, we asked our members what they wanted to see in a new program,” Murphy said. “They told us three things: flexibility, variety and recognition.”

What’s next: Dunkin’ loyalty members who are already a part of DD Perks and have a California ZIP code in their profile will automatically be converted to Dunkin’ Rewards.

• New members who live in California can join by downloading the Dunkin’ app and enrolling on the app or website with their California ZIP code.

Our thought bubble: It makes sense to join free loyalty programs to earn freebies and get deals on purchases you were already making. Dunkin' also allows for ordering ahead with its app.

Go deeper: Restaurant reward programs driving sales amid food inflation