☕ Morning Beverage Brief

Edition: January 2025 | Dunkin' Gift Card Market Intelligence

Your quick-read morning update on all things Dunkin' and gift card commerce

---

📊 TODAY'S TOP LINE

Dunkin' gift card sales hit all-time January record

The orange and pink empire reported exceptional gift card performance entering 2025, with January sales 14% above prior year. Cold brew-focused promotions and strategic DD Perks integration drove gains.

---

⚡ QUICK HITS

» Market Position: Dunkin' holds 23% of the quick-service beverage gift card segment, trailing only Starbucks (48%) but growing faster (+14% vs. +8%).

» Digital Surge: Mobile gift cards now represent 67% of Dunkin' gift card transactions, up from 54% just two years ago.

» Average Load: $22.50 per card (up $1.80 from 2024), with $25 denominations leading at 38% of sales.

» Geographic Hotspot: Northeast Corridor remains Dunkin' gift card stronghold, representing 44% of national volume.

---

🔔 TREND ALERT

The "Coffee Budget" Phenomenon

Dunkin' gift cards increasingly function as personal coffee budgets. Consumer surveys reveal:

"I load $50 on my Dunkin' card at the start of each month—it's my coffee allowance. When it's gone, I make coffee at home." — Survey respondent, 28, Boston

What This Means: Self-purchased Dunkin' gift cards now equal gift-given cards in volume—a remarkable shift from the traditional 70/30 gift-to-self ratio seen elsewhere in the industry.

---

📈 BY THE NUMBERS

Metric	Value	Change
Annual Gift Card Revenue	$720M	+14% YoY
Active Cards in Market	18.2M	+11% YoY
Avg. Redemption Visits	3.2	+0.4 vs 2024
Digital Card Share	67%	+13 pts
Breakage Rate	5.8%	-0.3 pts

---

🎯 SEGMENT SPOTLIGHT

Who's Buying Dunkin' Gift Cards?

Morning Commuters (34%) → Weekday purchases, mobile app reloads → Peak activity: Sunday evening (pre-loading for the week) → Favorite: $25 e-gift auto-reload

Gift Givers (28%) → Holiday and birthday occasions dominate → Peak activity: December, May (Mother's Day) → Favorite: $15-20 physical cards with festive designs

Coffee Enthusiasts (22%) → DD Perks power users → Peak activity: Promotional bonus point periods → Favorite: $50+ reloads for point maximization

Corporate Buyers (16%) → Employee rewards and client gifts → Peak activity: Q4, Q1 (fiscal year end/start) → Favorite: Bulk $10 cards for staff recognition

---

🏪 DISTRIBUTION CHANNEL UPDATE

Where Americans Buy Dunkin' Gift Cards:

In-Store at Dunkin'     ████████████████░░░░ 38%
Dunkin' App            ██████████████░░░░░░ 31%
Grocery/Retail         ██████████░░░░░░░░░░ 18%
Third-Party Digital    █████░░░░░░░░░░░░░░░  9%
Corporate/B2B          ██░░░░░░░░░░░░░░░░░░  4%

Channel Insight: In-app purchases finally surpassed grocery channel in 2024, reflecting successful mobile strategy and DD Perks incentives.

---

🆕 WHAT'S NEW

Recent Dunkin' Gift Card Developments

1. Contactless Card Activation New tap-to-activate technology rolling out to 2,000 locations, reducing checkout friction for physical card buyers.

2. Group Gifting Feature Multiple contributors can now add funds to a single digital gift card—ideal for office collections and group presents.

3. Subscription Integration DD Perks members can now apply gift card balances toward the $2.99/month Dunkin' Rewards+ subscription.

4. Seasonal Designs Winter 2025 collection features six new physical card designs, with "Ice Ice Baby" cold brew theme proving most popular.

---

💡 INDUSTRY INTELLIGENCE

Competitive Landscape Notes

vs. Starbucks: Dunkin' gift cards show higher velocity (faster spend-down) but lower average initial load. Value positioning attracts budget-conscious coffee consumers.

vs. Local Cafes: Independent coffee shop gift cards struggle against Dunkin's convenience factor. 78% of consumers cite "location availability" as top Dunkin' advantage.

vs. McDonald's McCafé: Dunkin' maintains premium perception despite comparable price points. Gift card average value runs 35% higher than McDonald's beverage-focused gift cards.

---

📱 MOBILE METRICS

Dunkin' App Gift Card Usage

App Users with Gift Card Balance: 4.2 million Average Balance per User: $14.80 Balance Check Frequency: 6.3x per month Auto-Reload Adoption: 23% of digital card holders

Conversion Insight: App users who add gift card balances show 67% higher 90-day retention compared to payment card-only users.

---

🗓️ UPCOMING CATALYSTS

January 29: National Coffee Day promotion (expected gift card purchase spike) February 14: Valentine's Day limited edition cards launch March 1: DD Perks double-points week begins Q2: Anticipated announcement of enhanced gift card features

---

☕ BREW ROOM CHATTER

What Industry Insiders Are Saying

"Dunkin's gift card program punches above its weight. They've figured out how to make gift cards feel like membership, not just stored value." — Restaurant technology analyst

"The Northeast loyalty is remarkable. In Massachusetts, Dunkin' gift cards are practically currency." — Regional QSR consultant

"Watch their corporate sales team. They're quietly building serious B2B gift card business that rivals specialty providers." — Incentive industry executive

---

📊 REGIONAL ROUNDUP

Northeast: Dominant performance continues. Boston metro alone represents 8% of national Dunkin' gift card sales.

Southeast: Fastest-growing region (+22% YoY). Florida expansion driving adoption.

Midwest: Steady gains despite Starbucks competition. Chicago suburbs showing particular strength.

Southwest: Under-penetrated but improving. New locations in Texas and Arizona adding gift card points of sale.

West Coast: Smallest market share but highest average transaction value ($28.40 vs. $22.50 national average).

---

🔮 MORNING FORECAST

Short-term (Q1 2025): Strong continued performance expected. Valentine's Day and late winter weather traditionally boost hot beverage gift card sales.

Medium-term (2025): Digital penetration likely to exceed 75%. Auto-reload features expected to drive subscription-like behavior.

Long-term (2026+): Potential integration with broader Inspire Brands (parent company) gift card ecosystem could unlock cross-brand value.

---

📝 BRIEFING NOTES

Remember: Dunkin' operates over 12,500 U.S. locations, providing unmatched convenience for gift card redemption.

Key Stat to Know: Average Dunkin' gift card holder visits 3.2 times per card, spending $7.03 per visit.

Conversation Starter: Dunkin's "self-budgeting" gift card use pattern suggests consumers view the cards as financial tools, not just gifts.

---

Morning Beverage Brief is published for informational purposes only. Data sourced from industry reports, public filings, and consumer surveys.

Next Brief: February 2025 Edition | Post-Valentine's Market Assessment