We all know Dutch Bros have expanded into various markets and are known for its simple coffee menu. But before investing in Dutch Bros, you want to check the profitability and stability in the market.
In this article, we are going to discuss how much does a Dutch Bros franchise owner make and some significant facts like its cost, expense, support, and so on. So, let’s begin.
About Dutch Bros
Dutch Bro is a coffee chain in the U.S. In 1992, Dane and Travis founded the Dutch Bros in Oregon with a simple menu of Coffee.
Now the menu has expanded and includes lots of hot and cold beverages, snacks, salads, and so on. And not only this, but they also have a comprehensive market of more than 400 franchise stores in the U.S.
However, Dutch bros have a rigid requirement related to their franchise, that’s why the stores are not expanding much.
The requirement of the Dutch Bros franchise are following:
- A candidate must have experience of 3 years as a manager
- The candidate has at least a credit score of 675.
- The candidate must be an existing employee of Dutch Bros
- A candidate will have to submit a 250-word written essay on why the employee is interested in franchising Dutch Bro
- Also, the candidate is required to submit a short video describing his/her personality.
If you are not working in the Dutch Bros, then you are not eligible to buy a franchise. They have rigid policies which you have to follow for buying their franchise.
However, the process is rigid because they don’t want to compromise on quality and customer experience. And we must say the reason behind the success of Dutch Bros is their rigidity.
Read: Dutch Bros Franchise
Read: Caribou Coffee Franchise
How Much Does A Dutch Bros Franchise Owner Make?
As per data, Dutch Bros generates $494million through its sales. An individual Dutch bros franchise owner makes around $1.5+ million through its sales, in which the profit is estimated at around $124,000.
However, this is the estimated profit; there are possibilities that an individual store can perform better than this as the fluctuation in the profit depends on your location and management of the operation.
How Much Does A Dutch Bros Employee Earn?
Dutch Bros employees’ hourly rate ranges from $17 an hour. However, employees’ hourly rate varies depending on their work position and capacity.
Dutch Bros pays its employees an average of $10.50 an hour. An employee of Dutch Bros with the job title- of Shift manager can earn an average of $37.12 an hour, while other employees, like a Cashier/Barista, can earn an average rate of $55 an hour.
Dutch Bro’s pays a decent amount to its employees as compared to the average industry rate.
What Is Dutch Bros Known For?
Dutch Bros is simply known for its Coffee, but its menu has other beverages and snacks too.
The reason people always prefer Dutch Bros Coffee is they are available 24/7 and provide drive-thru service to their customers. There are many popular items of Dutch Bros.
Let’s have a look at them:
- 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
Pros & Cons Of Dutch Bros Franchise
Pros Of Dutch Bros Franchise
- 24/7 Available
- Drive-thru services
- Expanded menu
- Offer rewards to customers
- Fastest growing
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
Is Dutch Bro Franchise Profitable?
There are many aspects that define the profitability of any business. If we talk about Dutch Bros, then it is a profitable franchise.
As per data, a single store of Dutch Bros can easily make around $124,000, which is more than an average industry profit.
Moreover, some resource also shows that the sales of Dutch Bros had a 7.7% growth in 2020. Also, Coffee service is the most demandable niche in the market.
Every 2/3 person drinks Coffee daily. And this is not the only factor that increased the sales of Dutch Bros, but also the marketing strategies of Dutch Bros are amazing.
They provide drive-through service, and the services are available 24/7, which increases its sales.
To conclude, using this strategy, Dutch Bro tries to cover every single person who loves Coffee no matter at what time they want it.
They are always available for you. So, all the aspect of Dutch Bro’s profitability has green flags.
Read: Biggby Coffee Franchise
As we discussed above, Dutch Bro is a coffee chain that offers franchise opportunities to existing employees of their stores. Yes, if you are working in the Dutch Bros as an employee, then you can buy this franchise.
However, non-existing employees or investors are not eligible to buy this franchise. Moreover, an employee has to pass the interview for buying a franchise that is long and rigorous.
Not only this, but a candidate also requires a high-cost investment to invest in it and liquidity to manage the day-to-day activity.
Once you clear the interview stage and manage the investment, then nobody can stop you from making money.
In fact, Dutch Bros has a familiar working environment, and they provide much support to grow the business and have the potential to make a decent amount of profit.
Frequently Asked Question
How many Dutch Bros franchises are there?
Dutch Bros has more than 400 outlets around the world.
What is the annual revenue of the Dutch Bros Franchise?
An individual Dutch Bros franchise owner makes approximately $124,000 annually.
How much does it cost to buy a Dutch Bros franchisee?
An initial investment required to open a Dutch Bros franchise is $120,000-$1,000,000.
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.