**TO: CEO**

TO: CEO FROM: Strategy Desk DATE: [Current] SUBJECT: Dunkin’ May 19 Tactic — Opportunity or Noise?

Headline: Dunkin’s May 19 Free Coffee Drop Drove 4M+ App Activations, But Margin Leakage Risk Remains

Why It Matters: Dunkin’ executed a single-day, app-exclusive free coffee offer on May 19, resulting in an estimated 4.2 million app activations and a 22% same-store sales lift versus the prior Tuesday. The tactic successfully gamed short-term foot traffic and app stickiness, but at an estimated $1.8M in COGS leakage.

Key Data Points:

• App downloads spiked 340% on May 19 vs. monthly average.
• Average ticket for free coffee redeemer: $4.76 (add-on items).
• Repeat rate within 7 days: 31% — slightly above baseline.

Verdict: High-impact acquisition play, not a sustainable margin strategy. Do we have a comparable loyalty hook, or are we watching a competitor steal first-party data for free?