Gotta get your caffeine fix from Dunkin'? So does the rest of the world. And now, luckily for those among us who prefer not to greet the outside world without a caffeine boost, Grubhub and Dunkin' have partnered for nationwide delivery. And as a result, Grubhub shares have leapt to the tune of a not-inconsequential 4 percent.
The jump happened on Monday morning (June 17) after Dunkin' Brands broke the news that it would soon be delivering coffee and donuts throughout the country as part of a newly minted partnership with the online delivery service.
Grubhub's stock already has quite the impressive market value of $6.7 billion, but it was down 38% as compared to last year, losing ground to other similar delivery services like Uber Eats and DoorDash. But it appears Dunkin' chose GrubHub for its exclusive partnership, and consumers definitely feel strongly about that.
New England (and much of the rest of the country) is particularly fascinated with Dunkin' coffee over Starbucks, so much so that coffee preferences in the U.S. basically come down to either Starbucks and Dunkin', with West Coasters preferring Starbucks and those on the East Coast typically gravitating toward Dunkin' — though both are suitable options for anyone looking to get particularly wired.
According to market data, however, it appears that New England coffee fanatics are way more invested in their favorite brand. According to data from a Seattle Times investigation, around 47% of Boston adults surveyed claimed to have gone to a Dunkin' in the previous 30 days. And while the chain is available in 41 states and 36 countries, the shop inspires some particularly intense regional pride. Compare these numbers to 34.4% of Seattle citizens who had frequented a Starbucks in the same time period, and you can see how intense the loyalty goes.
Dunkin' delivery will be available across 400 different New York City locations via Seamless, Grubhub's New York-centric brand. And if you're not lucky enough to live in the Big Apple, you can expect to see the privilege extended to cities like Boston, Chicago, and Philadelphia. Dunkin' first began testing delivery with Grubhub in February, and it's only recently that the company decided to take its products even further out onto the road. When caffeine and sugary snacks are on offer and you barely have to leave your bed to get them, it's a safe bet that people are going to be interested in anything that facilitates this.
But while Grubhub is absolutely benefitting from their new collaboration, in stark comparison, Dunkin's own shares were relatively unchanged by the partnership announcement. The company's stock, with a market cap of $6.6 billion, only rose less than 1 percent. People are still hungry for donuts and coffee, but clearly Dunkin's reputation is doing more for Grubhub's than vice versa, if the numbers are any indication.
So if you're struggling to get out of bed one chilly New England morning and you have to make the decision to have coffee and breakfast delivered, are you going to opt for Dunkin'? Now that the option is available, it's going to be even harder to talk yourself out of it.