Dutch Bros Eyes Major 2025 Expansion Following Mobile Order Success
Dutch Bros just opened its 1,000th store in Orlando, Florida this February after adding 151 new shops in 2024. The company plans to open at least 160 more locations in 2025, growing by 16%. This expansion comes as the drive-thru coffee chain reports strong financial results.
"We believe our brand is resonating with customers, as we delivered 2.3% system same shop transaction growth, the largest year-over-year increase in over two years," said Dutch Bros president and CEO Christine Barrone. "Our efforts to develop our foundational transaction drivers - innovation, paid media, and our Dutch Rewards loyalty program - are working."
Mobile ordering has become a key part of Dutch Bros' success. By December, rewards members placed 5.4 million mobile orders. These loyal customers now make up 71% of all transactions.
"Customers who use mobile order increase their frequency and mobile order penetration is more than twice the level of our overall system in some of our newer markets," Barrone said. Mobile ordering is especially popular during morning hours.
Unlike competitor Starbucks, which is changing its mobile ordering to reduce crowding, Dutch Bros sees benefits from its system. Mobile orders help move customers through more quickly and balance out production, especially when stores have enough workers.
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The company is also testing a food program in eight stores. Currently, food makes up less than 2% of total sales. Barrone noted, "Food makes up less than 2% of our total sales and we are likely missing morning beverage transactions from would-be customers who are not satisfied with our current food offerings."
Dutch Bros reported total revenue jumped nearly 35% to $342.8 million in the last quarter of 2024. For the full year, revenue grew to $1.28 billion, up from $965.8 million in 2023.
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Looking ahead, Dutch Bros expects 2025 revenue between $1.555 billion and $1.575 billion, higher than analyst estimates. The company believes it could eventually grow to 4,000 locations across the country.
