Dutch Bros, the fast-growing drive-through coffee chain, opened its first walk-up-only location in November near the University of Southern California in Los Angeles. The location, featuring three windows for ordering, pickup, and mobile orders, had the highest sales volume of any Dutch Bros shop until May. CFO Josh Guenser said the company is considering similar walk-up shops in other densely populated areas to test new real estate strategies.
Dutch Bros, founded in southern Oregon in 1992 and based in Tempe, Ariz., operated 1,225 shops as of June 30, up 17% from last year, with a goal of 2,029 shops by 2029. Revenue for the quarter ended June 30 was $550.9 million, up 32% year-over-year, and profit rose 46% to $37.4 million. The company acquired 20 locations from Clutch Coffee in the Carolinas for about $20 million to accelerate growth.
Known for colorful drinks, energetic service, and its "broista" baristas, Dutch Bros focuses on customer experience and affordable luxury. Analysts note increasing competition from 7 Brew and Starbucks, with some doubting the 2029 shop goal will be met. Long-term, Dutch Bros aims for up to 7,000 drive-through locations nationwide, though the impact of walk-up windows on market reach remains uncertain.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing