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Dunn Bros Coffee launches mobile payments

October 23, 2013

Dunn Bros Coffee today announced the franchise-wide rollout of its mobile payments and loyalty app created by LevelUp. Since Dunn Bros customers are always on the go, the app provides a faster, easier payment experience and includes a list of the closest shop locations and a menu that customers can easily access anywhere, said Laura Radewald, CMO at Dunn Bros.

The app unlocks $3 of credit to spend at Dunn Bros for every $50 customers spend and also offers customers the option to donate a portion of their loyalty rewards to a neighborhood food shelf.

With the app, franchisees of the 80-unit chain, Radewald said, have access to:

• Customer data: Franchisees will have access to data that enables them to better understand customers' purchase patterns.
• Engagement tools: Tools within the Dunn Bros app let franchisees act on the data, to better segment customers and provide more relevant offers that result in increased sales and visit frequency.
• Lowering payment processing: Franchisees will save money by paying lower payment processing fees on app transactions.

"Dunn Bros understands the importance of moving quickly in order to remain relevant to customers. While others might be content to sit on the sidelines until a clear winner emerges in the mobile payments space, we've adopted an 'act and iterate' strategy," Radewald said. "We're seeing a significant lift in average ticket for app customers after just four weeks, and are excited to be rolling our app out systemwide over the coming months."

Customers love the app, said Paula Martinez, store owner at Dunn Bros' Bettendorf, Iowa, unit, one of the four app pilot locations.

"Customers pay with the app all the time, which is helping us increase sales, speed-up the checkout process, and save money on payment processing fees," she said. "Our customers find it easy to use, and they love the rewards, so it's a hit with both customers and staff."

After a successful pilot at four regionally dispersed Dunn Bros shops, the app will begin rolling out to all Dunn Bros Coffee shops and is expected to be live systemwide by early December, Radewald said.

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