Dutch Bros is known for their delicious coffees, but most importantly, for their customer service. If you have been to Dutch Bros and want to start your Dutch Bros franchise outlet, then this guide is for you!
Here we will disclose how much does a Dutch Bros franchise owner make, what is its profit potential, revenue figures, etc. So let us get started!
About Dutch Bros
Dutch Bros is an American drive-through coffee chain that was founded by Dane and Travis Boersma in the year 1992 in Downtown Grants Pass, Oregon.
Before starting Dutch Bros, Dane & Travis were in the dairy business, but they left it to serve coffee, rock music, and to make connections with people.
With the help of loyal customers and friends, they finally opened their first franchised store in 2000 and started expanding across the northwest.
If you want to find out what it takes to become the franchise owner of Dutch Bros, then keep on reading!
How Can I Start a Dutch Bros Franchise?
If you are hoping to become the franchise owner of Dutch Bros, then you are out of luck. Unfortunately, Dutch Bros has stopped offering franchises now.
It all started when Dutch Bros decided to switch to an internal franchising model under which prospective franchises were required to work for a minimum of three years under Dutch Bros.
Because of this, between 2010 and 2015, there was a continuity rate of 97% between franchises, and only 3% of all Dutch Bros franchises closed during that time.
However, in the year 2017, Dutch Bros stopped franchising altogether, and now, there are only company-owned outlets that are present.
And as of 2023, there are 783 Dutch Bros outlets in total and all of them are company-owned.
How Much Does A Dutch Bros Franchise Owner Make?
Although now all Dutch Bros franchises are company-owned, previously Dutch Bros franchise owners used to make anywhere between $570,000 and $650,000 in revenue annually.
Owning the Dutch Bros franchise was quite profitable for franchises, but since the franchises were unable to maintain the service level expected by Dutch Bros, the company started buying back all its franchises.
How Much Does A Dutch Bros Employee Earn?
According to ZipRecruiter, Dutch Bros employees’ hourly rate ranges from $9.43 an hour to $28.53 an hour, with the average pay being $18 an hour.
If we look at this data on a yearly basis, then Dutch Bros employees’ salary ranges from $19,608 a year to $59,339 a year, with the average pay being $38,387 a year.
Please note that this is an average number, and a person’s salary at Dutch Bros may vary depending on their department, position, skill set, education, etc.
Pros & Cons Of Dutch Bros Franchise
Pros Of Dutch Bros Franchise
- 24/7 Availability
- Drive-thru services
- Diverse menu
- Offer rewards to customers
- Highly profitable
Cons Of Dutch Bros Franchise
- Long requirement list for the franchise
- High royalty payment
- High-cost investment
- No global presence
- External competition due to common niche
- High standard management
Dutch Bros Franchise Average Revenue & Profit
Since Dutch Bros is so popular among customers, the company offered a great opportunity to make a good profit via its franchise.
Dutch Bros franchise’s previous owners used to make $570,000 and $650,000 in revenue annually, and even after deducting all kinds of expenses, the franchise owner used to take $124,000 of profit on average. Unfortunately, now Dutch Bros do not offer franchises.
However, if we talk about the revenue of Dutch Bros in general, then as per Yahoo, the company generated $739 million in 2022, increasing their revenue by 50%.
Dutch Bros Company Overall Profit
Dutch Bros has witnessed monumental success in the past few years, thanks to its ever-increasing customer footfall.
In the year 2022, Dutch Bros hit its all-time high, generating $739 million in annual revenue, showing an increase of 50% as compared to its previous year’s performance.
The strong performance of Dutch Bros is attributed to new store openings and other initiatives undertaken by the company, including changes in menu prices and cost-cutting measures.
Additionally, Dutch Bros was also able to leverage its digital presence, which drove more sales.
Dutch Bros Franchise Failure Rate
Since Dutch Bros bought all of its franchise outlets in 2017, let us have a look at the number of outlets that opened and closed between 2014 and 2016 to determine what was Dutch Bros failure rate.
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2014 | 195 | 218 | +23 |
| 2015 | 218 | 237 | +19 |
| 2016 | 237 | 262 | Ā +25 |
For the Franchised outlets:
- In 2014, the growth rate was (23)/195Ć100ā11.79%
- In 2015, the growth rate was (19)/218Ć100ā8.71%
- In 2016, the growth rate was (25)/237Ć100ā10.5%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2014 | 19 | 17 | -2 |
| 2015 | 17 | 18 | +1 |
| 2016 | 18 | 15 | -3Ā |
For theĀ Company-OwnedĀ outlets:
- In 2014, the failure rate was (2)/19Ć100ā10.53%
- In 2015, the growth rate was (1)/17Ć100ā5.88%
- In 2016, the failure rate was (3)/18Ć100ā16.67%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2014 | 214 | 235 | +21 |
| 2015 | 235 | 255 | +20 |
| 2016 | 255 | 277 | +22 |
ForĀ TotalĀ outlets:
- In 2014, the growth rate was (21)/214Ć100ā9.81%
- In 2015, the growth rate was (20)/235Ć100ā8.51%
- In 2016, the growth rate was (22)/255Ć100ā8.62%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Dutch Bros grew from 2014 to 2016, showing a growth rate between 11.79% and 10.5%. On the other hand, for company-owned outlets, the failure rate of Dutch Bros was quite high, lying in the range of 10.53% and 16.67% for the period of 2014 and 2016.
Although the company managed to expand the company-owned outlets in the year 2015, showing a growth rate of 5.88%.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Dutch Bros franchise has expanded in the years 2014-2016, showing a total growth rate between 9.81% and 8.62%.
((https://www.franchimp.com/?page=pdf&f=108225_2017.pdf))
Dutch Bros Franchise Payback Period
To find out the payback period of the Dutch Bros Franchise, let us do some calculations:
| AVERAGE INVESTMENT | 325,000 |
| AVERAGE REVENUE PER OWNER | 610,000 |
| AVERAGE PROFIT PERCENTAGE | 15-20% |
| AVERAGE PROFIT PER YEAR | 124,000 |
| AVERAGE PAYBACK PERIOD | 3 Years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 325000/124000 = 2.6 = 3 Years based on median
The average investment for a Dutch Bros Franchise is $325,000.
With an average profit percentage of 15-25%, the average profit per year is $124,000.
This means that the average payback period for a Dutch Bros Franchise is 3 years approximately, and the total investment of $325,000 would be recovered within this period.
Facts About Dutch Bros
- Dutch Bros came up with the term “broista,” which referred to employees who served brews to customers.
- Dutch Bros was actually started by two brothers of Dutch ancestry who left their dairy business that had been going on for three generations.
- The founder brothers used to sell coffee on a coffee cart paddling their way to the railway stations nearby.
- Dutch Bros has a secret menu that is rumored to have 14 items in it.
- One of the founders of Dutch Bros, Dane Boersma, suffered from Lou Gehrig’s Disease, or ALS, and passed away because of it at the age of 55.
- Dutch Bros seasonal flavors change each year.
((https://moneyinc.com/coffee-business-dutch-bros/))
What Is Dutch Bros Known For?
If you have ever been to Dutch Bros, you must already know what the fuss is all about. However, if you haven’t, then you must be curious to know as to what Dutch Bros is known for.
Dutch Bros is a coffee shop, but what makes them so popular is its focus on customer experience and uncompromised service.
And the company is so serious about this that they started buying out franchised units that were not able to keep up with their motto.
Dutch Bros is also known for giving back to society. For this, it participates in local organizations for children and raises money for Muscular Dystrophy Association.
And that’s not it; Dutch Bros was able to give tough competition to a coffee giant like Starbucks because of its unique and wide range of menu options. You can find all sorts of coffees, classic drinks, sodas, freezes, energy drinks, teas, and even muffin tops that are to die for.
These are some of the most popular items in Dutch Bros’ menu:
- Picture Perfect Dutch Freeze.
- Birthday Cake Dutch Frost.
- Cotton Candy Dutch Frost.
- Double Rainbro.
- Golden Eagle Breve.
- Palm Beach Lemonade.
- Tropical Tea.
- The White Chocolate Annihilator.
- Bob Marley
- Christmas morning chai
Is Dutch Bros Franchise Profitable?
The profitability of any company depends on many factors, such as the investment amount, popularity and demand, related costs, etc.
Unfortunately, Dutch Bros do not offer franchise opportunity anymore, but its franchise was quite profitable, and franchise owners used to make a profit of $124,000 a year on average, this number is higher than the industry average.
Dutch Bros Franchise Earning Potential
According to NewsDirect, 74% of Americans drink coffee every day, which is a huge number. This, along with the exceptional taste and service of Dutch Bros company, has led them to increase their revenue by 50% in the year 2022.
Up until 2016, Dutch Bros had franchise stores that were able to make $570,000-$650,000 in revenue. But as per the recent data and the 50% increase in revenue growth, the franchise owners would have been able to make more revenue.
Regardless, Dutch Bros was a high-profit earning potential franchise, and even now, when it is not offering franchises, the company-owned stores are able to perform well consistently.
Dutch Bros Net Worth
According to MacroTrends, As of June 30, 2023, Dutch Bros has a net worth of $1.29 billion. This means that the company’s overall value, taking into account its assets and liabilities, is estimated to be $1.29 billion.
Wrap Up
Dutch Bros was a lucrative franchise opportunity, but owing to the compromised service, the company purchased out all of its franchises.
In this guide, we shared with you how much does a Dutch Bros franchise owner made in revenue, profit, etc.
If the company decides to start franchising again, then this information would be useful to you.
Frequently Asked Question
How many Dutch Bros outlets are there in the world?
As per Scrapehero, there are 783 Dutch Bros outlets in the world in 2023.
How much does it require to start a Dutch Bros franchise?
When Dutch Bros was offering franchises, it required you to put in an initial investment of up to $500,000 to open its franchise.
Why did Dutch Bros stop offering franchises?
Dutch Bros is very particular about their customer service, and they were not satisfied with how their franchised stores were performing in terms of that. Hence, they decided to buy out all of their franchise outlets.
Where is Ducth Bros headquartered?
The company is headquartered inĀ Grants Pass, Oregon.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.