ADVERTISEMENT

There's one huge factor shaping Starbucks and Dunkin' Donuts' 'coffee shop of the future' (SBUX, DNKN)

Smartphones are about to change coffee shops as we know them, as Dunkin' Donuts and Starbucks prepare to build the "coffee shop of the future."

null

"As we think about what that coffee shop of the future look like… the whole store will be much more focused on mobile ordering," Scott Hudler, Dunkin' Donut's chief digital officer, said at a media day on Tuesday.

ADVERTISEMENT

While Hudler said Dunkin' Donuts doesn't have any design tweaks to announce yet, both Dunkin' and Starbucks are realizing that the rise of mobile orders means that the coffee shops need to make some changes... and fast.

Currently, a little over 1% of Dunkin' Donut's orders are made via mobile devices.

At Starbucks, that figure has reached more than 8% — something that has created some problems for the chain.

ADVERTISEMENT

Some of these bigger picture changes may include reconfiguring some locations to make room for two separate lines: one for in-store orders and one for mobile orders.

In essence, both Dunkin' and Starbucks are realizing that store designs will need to fundamentally change at some point in the near future to put mobile front and center, at least in some locations.

The two chains' futuristic coffee shops likely won't be identical. Dunkin' customers are more concerned about speed, while Starbucks needs to pay closer attention to maintaining shops' welcoming atmosphere.

Coffee chains are in a unique position in the retail industry, as digital orders are crucial to the future and lack a clear precedent for stores to build upon. The retail industry demonstrates the dangers of ignoring mobile and online orders, as traditional retailers like Macy's and Sears close hundreds of locations after failing to compete with e-commerce rivals.

ADVERTISEMENT

"We've got to evolve rapidly. We've got to change," Hudler said. "Retail and really [quick service restaurants] specifically are really on the front lines on a lot of those changes."

Starbucks and Dunkin' Donuts aren't yet at the point where, if they fail to win over mobile customers, they'll be forced to shut down stores. However, as seen by Starbucks' recent struggles, it's becoming clear that the coffee shop of the future needs to fully embrace mobile — or risk losing customers as mobile orders grow.

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

From 1,500 to 52,000: The student boom reshaping UK immigration laws

From 1,500 to 52,000: The student boom reshaping UK immigration laws

Russia and China are much less sneaky than the West - DRC president

Russia and China are much less sneaky than the West - DRC president

10 countries in Africa with the worst press freedom in 2024

10 countries in Africa with the worst press freedom in 2024

FCMB Group sustains growth momentum, profit rises 192.6% in Q1 2024

FCMB Group sustains growth momentum, profit rises 192.6% in Q1 2024

DBNC 2024 impacts, sets the pace for entrepreneurs

DBNC 2024 impacts, sets the pace for entrepreneurs

Navigating success: Insights from a leading IT expert

Navigating success: Insights from a leading IT expert

US and French governments are lobbying Nigeria to host their military bases - report

US and French governments are lobbying Nigeria to host their military bases - report

Russian aid arrives in Niger amid growing bilateral ties

Russian aid arrives in Niger amid growing bilateral ties

Kentucky Derby betting sites 2024: Where to bet on the races online

Kentucky Derby betting sites 2024: Where to bet on the races online

ADVERTISEMENT