Dive Brief:

• Peet's Coffee app users will now enjoy expanded Order Ahead options including coffee, food and beans on-the-go, according to a company press release. The items will be completed at a participating coffee bars, and the service will be rolled out throughout the year.
• Users can also pay through the app using a digital Peet's Card that also provides rewards through their loyalty program that offers free beverages for points accrued, the first check-in and birthdays.
• The app can also help Peet's fans find one of its store locations, including places that offer the Order Ahead feature, as well as each location's menu offerings and hours.

Dive Insight:

Consumer demand for convenience is only escalating, and Peet's is hoping to capture new customers and deepen loyalty with existing fans by making their coffee experience as seamless as possible. Expanding rewards programs to allow customers to place their food and drink orders ahead of time is becoming an industry standard.

Starbucks has been leaning heavily on its mobile payments, which acounted for one-third of its transactions in 2017. It has more mobile transactions than Apple Pay, Google Pay and Samsung Pay, and is expected to maintain its lead into 2022. Because of Starbucks' dominance in mobile payments, offering expansive online ordering options — especially one attached to a rewards program — will be key to any coffee house's success. 

Order ahead service is also becoming a common feature at coffeehouses with regional or smaller footprints. The Coffee Bean & Tea Leaf, Philz and Caribou Coffee also have order ahead services.

It’s easy to see the logic behind allowing online ordering, especially with the boon of e-commerce and food delivery options sweeping the grocery and restaurant spaces. Considering that almost everyone has a smartphone in his or her pocket, mobile apps are becoming one of the primary ways that retailers are targeting promotions, loyalty programs and other initiatives. Gone are the days where coffee customers had to carry loyalty cards from different chains in their wallets — assuming they remembered to have the barista stamp it each time you purchased your items.

Even mom and pop shops are hopping on the pre-order bandwagon. A third-party mobile app service called Joe Coffee allows independent coffee retailers to offer something similar. It specifically targets indie coffee shops, which can grow cult followings in certain neighborhoods, leading to even longer lines and wait times. Smaller stores may not have the resources to develop an app in-house, making this an attractive option. Users can also use the app at any participating coffeehouse, which further expands their options and the incentive to download it.