Dutch Bros Aims for 4,000 Stores with Faster Growth, New Menu Items

Dutch Bros, the drive-thru coffee chain known for lots of customization options and secret menu, is pouring on the growth in 2025. The Oregon-based company plans to open at least 160 new shops next year, accelerating its already rapid expansion pace.

In the third quarter alone, Dutch Bros added 38 new locations across 11 states, bringing its total footprint to 950 shops in 18 states. The company's long-term goal is to operate over 4,000 locations within the next 10 to 15 years.

"Our 2025 pipeline is strong, positioning us to accelerate new shop growth," said Christine Barone, CEO and president of Dutch Bros. "We believe our refined real estate strategy is working, as we are seeing strong new shop productivity as we have shifted our development focus and elevated our site selection process."

But Dutch Bros is focused on more than quantity - the chain began testing an expanded food menu in six shops last quarter, including more bakery items and hot options.

"Based on the early results, it is likely a more robust food venue will play a role for Dutch Bros in the future, and we will continue our testing in the coming quarters," Barone told analysts. "With food making up less than 2% of our sales right now, we clearly see the opportunity."

Consistency is key as Dutch Bros grows, says Sumi Ghosh, the company's president of operations. Ghosh, who joined Dutch Bros earlier this year after stints at Starbucks, Yum Brands and Nike, was drawn to the chain after experiencing its service firsthand.

"It was an unbelievable experience that was hard to understand," he said. "I've been in this business a very long time and to do it with a level of consistency every time, I was astonished by it."

Dutch Bros credits its signature consistency to rigorous "Broista" training and a "Dutch Love" employee culture. Over 400 people are currently waiting to open their own Dutch Bros shop.

"Our people are our magic and differentiator," Ghosh said. "It's our responsibility to make sure that magic continues."

With $2 million-plus average unit volumes and a loyalty program driving nearly 70% of transactions, Dutch Bros has a recipe for major growth on tap. The chain is projecting total 2024 revenue between $1.255 billion and $1.260 billion as it marches toward 4,000 shops.

by Alex Bailey | November 18, 2024 | SHARE