Coffee Apps: Convenience At The Cost Of Consumer Data – CoffeeTalk

As companies order their workers back to the office, queues at coffee shops in London are getting longer and more expensive. To save time and money, coffee apps are becoming increasingly popular, offering “skip the queue” click and collect ordering. Every chain from Greggs to Gail’s Bakery now has its own app, allowing users to pre-order and pay for a coffee on their way into work, then sail to the front of the queue and grab the cup with their name on it from the collection point when they get there.

The convenience of these apps is also complemented by huge competition in the “to go” sector, meaning most apps have the added bonus of loyalty points, cut-price offers, and the occasional freebie to entice returning office workers. The answer to which deal might be right depends on the strength of your love for various coffee brands and your love of a bargain.

The “free lunch” for coffee chains is all the customer data they collect. All of the apps I signed up to asked me to enable notifications and location services (even if this was only used to find nearby stores while the app is open). If you want all the offers, you must opt into marketing communications. Setting up an account to order ahead, pay and collect points requires providing personal data including an optional date of birth (most chains offer a free birthday treat).

Incentivizing customers to pre-order in designated time slots will help stagger demand and inform staffing models. There’s nothing worse than idle hands in tight-margin businesses like hospitality and retail, as there’s the recent rise in employers’ national insurance costs.

To avoid execution risk, chains must invest in decent technology. Forgo the convenience of ordering ahead and taking a reusable cup still nets discounts of £1 at Pure, 50p at Pret and M&S Cafes; 45p at Black Sheep and 25p at Starbucks and Greggs. Both Costa and Caffè Nero will give you an extra loyalty stamp, meaning your sixth coffee is on the house.

If chains get it right, the grail is customer retention. Greggs says its rewards app is now used for one in five transactions, and users visit much more frequently.

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