Popular Starbucks rival adding 1,000 new locations

Customers love the brand's drive-thru first design and friendly customer service and will soon have more locations.

Apr 2, 2025 - 15:15

Popular Starbucks rival adding 1,000 new locations

Whether it's a cup of black coffee, a cappuccino, or a sugar-free vanilla latte with oat milk, coffee is probably an essential part of your morning routine.

Also, like most Americans, your coffee habits have probably changed over the last few years.

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Gone is the basic pot of brewed coffee, replaced with a Nespresso or Keurig single-cup brewer, or perhaps with something fancier, like a Breville or De'Longhi espresso machine.

But if your new routine also includes a commute, chances are good that routine also includes a stop at a drive-thru.

Dutch Bros. is known for its infinite number of drink combinations.
Dutch Bros, Inc.

Dutch Bros. customers are historically loyal

Businesses have to evolve if they want to survive. Back in 1992 brothers Dane and Travis — a.k.a. the Dutch Bros. — starting serving espresso from a pushcart in Grants Pass, Oregon.

From that first cart, the brothers opened other locations around Oregon and then opened their first franchise in 2000. From there, Dutch Bros. (BROS) spread across the Northwest. And now, the brand just celebrated the opening of its 1000th location.

Last year, the company focused on its mobile ordering app Order Ahead, which has been a huge success. According to QSR, more than nine out of 10 Dutch Bros.' mobile-ordering customers said they were likely to use the channel again and recommend it to a friend.

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More important, the mobile users reported they visited Dutch Bros. five percent more often. Also telling, tip rates are higher on the mobile-ordering channel, making for happier employees. And Dutch Bros. reports its customers say the company beats competitors on speed, quality, and service.

Dutch Bros. has seen steady growth for decades and is now poised for major expansion

Dutch Bros. opened 32 new shops in 11 states in 2024, bringing the total number of stores to 982 across 18 states, according to the company's most recent financial statement.

Most of the locations are company-operated.

The company's total revenues grew 34.9%, to. $342.8 million, compared to $254.1 million over the same period in 2023.

Dutch Bros. reported it expects annual revenue growth of roughly 20% this year — in excess of the company goal — with new shop growth ranging from the low-single digits to mid-teens.

Revenue growth will be enhanced by the company's announcement to enter the consumer packaged-goods market, adding packaged coffee and expanding food options, the company said in a press release. "In partnership with Trilliant Food & Nutrition, LLC, Dutch Bros. plans to launch a line of packaged coffee and related products to be sold in retail outlets."

At Dutch Bros. inaugural investor day, March 27, 2025, CEO and President Christine Barone said the goal is to have 2,029 stores by 2029. That number is more than double the number of locations today, yet well below the company's stated total addressable market of 7000+ locations nationwide.