Dutch Bros is one of the most popular coffee chains in the United States.
With its signature drinks and friendly staff, it’s no wonder why people love to visit Dutch Bros locations for a pick-me-up or just to hang out.
Just seeing the windmill logo on the side of a cup instantly brings joy and nostalgia to many customers.
With so many Americans loving Dutch Bros, it’s no surprise that some people have considered opening their own franchise.
Franchising is an excellent way to start a business while also leveraging a brand name and support system that can help ensure success.
But does Dutch Bros offer franchise opportunities? In this guide, we’ll cover everything you need to know about franchising with Dutch Bros and the other options available.
About Dutch Bros
Dutch Bros is a drive-through coffee chain that is known for its friendly services and flavorful drink combinations.
Founded in 1992 in Grants Pass, Oregon, Dutch Bros has grown to become the largest privately held drive-through coffee chain in America.
The chain is well known for its signature drinks, such as the “Dutch Latte” and “Dutch Freeze,” which are both creamy espresso drinks topped with whipped cream.
Other classic drinks include chai, ice-blended coffees, and mochas. In addition to these signature drinks, Dutch Bros also serves smoothies, teas, and Italian soda.
Dutch Bros prides itself on its friendly employees, or Bro-vistas as they’re called, who provide prompt service with a smile to all customers.
The company’s mission is to make a difference in the lives of its customers by providing a smile in every cup.
As a company that values customer service above all else, Dutch Bros stands out with its commitment to making sure customers leave satisfied every time they visit.
All employees at Dutch Bros go through extensive customer service training to ensure that each guest receives the same level of excellent service.
This combination of quality products and friendly staff have made Dutch Bros one of the most popular drive-through coffee chains in the country.
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Dutch Bros History
Dutch Bros has grown significantly since its humble beginnings in Grants Pass, Oregon.
Founded by brothers Dane and Travis Boersma, of Dutch descent, in 1992, the business started as a pushcart selling espresso drinks.
With only $12,000 saved from running a Dairy Queen franchise, Dane financed the venture, and the brothers named the business Dutch Bros to honor their immigrant grandparents.
The Boersmas quickly added more pushcarts and opened their first drive-through location in 1994.
By 2000, they began franchising and had 61 coffee shops open from Northern California to Willamette Valley by the end of 2004.
Today, there are over 760 Dutch Bros locations nationwide, with many more on the way.
Every year in May, Dutch Bros holds its annual “Drink one for Dane” fundraiser in honor of the late Dane Boersma, who passed away from ALS in 2009.
During this event, Dutch Bros donates all the proceeds from drinks purchased that day to ALS research.
Dutch Bros Franchise Model
| Initial Investment | N/A |
| Franchise | NO |
| Franchise Fee | N/A |
| Estimated Outlets | 760+ |
How Much Does It Cost To Open a Dutch Bros Franchise
Opening a franchise with Dutch Bros can seem like an attractive business opportunity due to the brand’s strong reputation and loyal customer base.
Unfortunately, Dutch Bros no longer offers franchise opportunities, as the company has decided to focus solely on corporate-owned stores.
This means that the average cost and income of a Dutch Bros franchise are unknown.
However, while total cost and income remain unknown, we do know that opening a Dutch Bros drive-thru requires a much smaller capital investment than other franchises.
This is because most Dutch Bros locations are drive-throughs with no seating, and they also do not require a full-service kitchen.
Although owning a Dutch Bros franchise may not be possible anymore, those interested in entering the coffee business should still explore other franchising opportunities related to coffee shops or cafes.
By researching various franchising options, you can find which one best suits your goals and budget before investing any money into the business.
Why Doesn’t Dutch Bros Offer Franchising?
Dutch Bros does not offer franchising as a business model anymore.
In 2008, the company transitioned to an internal franchising model, where potential franchisees had to have worked for Dutch Bros for at least three years before they could become a franchisee.
This led to an impressive 97% continuity rate among Dutch Bros franchises.
In 2017, Dutch Bros stopped franchising altogether and began opening exclusively company-owned stores.
They also have a history of buying out franchisees who do not meet their standards and expectations.
Today, regional operator positions are available only to those already within the company who have exhibited excellent performance and exemplify the culture of Dutch Bros.
This decision was made in order to maintain the quality of customer service that Dutch Bros customers have come to expect over the years.
As a company that values customer service above all else, they strive to ensure that customers leave satisfied each time they visit by providing extensive training on customer service skills for all employees.
By keeping a tight grip on its operations and having more control over employee hiring, training, and performance evaluation processes, Dutch Bros is able to ensure that its brand’s reputation remains consistent across all locations nationwide.
Dutch Bros Revenue & Profit
With millions of customers visiting Dutch Bros locations each year, it’s no wonder that the company has seen monumental success in recent years.
From its humble beginnings in Northern California to have over 760 locations nationwide, Dutch Bros continues to be a popular coffee destination for many.
Dutch Bro’s revenue and profit hit all-time highs in 2022. The company reported $739 million in annual revenue that year – a huge increase of almost 50% from 2021’s total of $497 million.
During the fourth quarter of 2022 alone, Dutch Bros’ company-operated shop gross profit was reported at $38.8 million – significantly higher than the $16.6 million reported during the same period the previous year.
The strong performance was attributed to an increase in sales due to new store openings, as well as higher margins from new initiatives implemented by the company, including cost containment initiatives and menu pricing adjustments.
In addition, Dutch Bros was able to leverage its loyalty program and digital presence to help drive sales and boost profitability during these times.
What Are Some Alternatives To Dutch Bros Franchise?
Although Dutch Bros does not offer franchising opportunities, there are still many ways to get into the coffee business.
There are other franchise options available for those interested in opening a coffee shop or cafe and making profits from their own space.
Here are some of the coffee shop and cafe franchises to consider:
Biggby Coffee
Biggby Coffee is a specialty coffee and cafe franchise that serves freshly brewed coffee drinks, teas, smoothies, and breakfast pastries.
They offer franchising opportunities for those interested in getting into the coffee business.
Founded in 1995, Biggby Coffee currently has over 280 locations nationwide and offers a full range of espresso beverages and specialty drinks.
The initial investment required to open a Biggby Coffee franchise can vary between $276,000 and $439,000.
This investment covers the cost of equipment, training, and other expenses related to opening a franchise.
Overall, Biggby Coffee is a great alternative to Dutch Bros that can provide entrepreneurs with the opportunity to join an established franchise system and make profits from their own coffee shop.
Caribou Coffee
Founded in 1992, Caribou Coffee is one of the oldest and most successful franchises in the coffee industry.
With over 477 locations throughout the United States, Caribou Coffee offers a unique opportunity for individuals looking to get into the coffee business.
Unlike Dutch Bros, Caribou Coffee provides franchisees with an extensive menu of delicious drinks featuring signature espresso beverages, cold-pressed juices, and nitro-infused drinks.
They also offer a variety of baked goods, such as muffins and scones, that are baked fresh daily.
The initial investment required to open a Caribou Coffee franchise can range anywhere between $250,000 and $1 million, depending on factors like location size and equipment cost.
The company provides comprehensive training on customer service skills and operations management so franchisees can run their business efficiently and successfully.
Dutch Bros Comparison
| Company | Dutch Bros | Biggby Coffee |
|---|---|---|
| Year Founded | 1992 | 1995 |
| Franchise Fee | N/A | $20,000 |
| Initial Investment | N/A | $276,000–$439,000 |
| Number of Outlets | 760+ | 280+ |
Conclusion
Dutch Bros Coffee is an iconic coffee brand that has experienced immense growth in recent years.
Although the company does not offer franchising opportunities, there are still many options available for those looking to get into the coffee business.
Franchises like Biggby Coffee and Caribou Coffee provide aspiring entrepreneurs with a great way to get involved in the industry and make profits from their own space.
Both of these franchises provide comprehensive training and support to ensure that franchisees can successfully run their businesses and maximize their profits.
FAQs
Is Dutch Bros A Franchise?
No, Dutch Bros is not currently offering franchising opportunities.
Who Owns Dutch Bros?
Dutch Bros is a privately owned company, with brothers Travis and Dane Boersma as the owners.
How Much Does It Cost To Open a Franchise Similar to Dutch Bros?
The cost of opening a franchise similar to Dutch Bros can range from $250,000 to over $1 million, depending on factors like location size and equipment cost.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.