Dutch Bros. coffee started as a pure beverage rival to Starbucks and other coffee chains. It was a disruptor of sorts, as most of its locations are drive-thru only.
It’s a model that has been copied heavily by growing rivals like 7 Brews, but at the time it was a stripped-down, back-to-basics model.
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The company literally began as cart way back in 1992, before the chain began franchising in 2000. It was a slow climb to becoming a real player, but it has steadily grown, reaching a milestone earlier this year.
“On February 7, we opened shop number 1,000 in Orlando, Florida, 33 years after our founding and 3,000 miles from our original push cart in Grants Pass, Oregon. With a long runway ahead and conviction in our brand, we aim to open the next 1,000 new shops with the goal of 2,029 total shops in 2029,” said CEO Christine Barone during the Dutch Bros. first-quarter earnings call.
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She is quite confident the company will reach that goal.
“We see a long-term opportunity to drive sustainable transaction growth by addressing structural barriers, bringing in new customers, enhancing frequency with existing customers and sustaining ongoing momentum in the productivity of our newer shops,” she added.
Dutch Bros. has built its reputation around beverages.
Image source: Dutch Bros Inc.
Dutch Bros.’ growth is about more than drinks
When you look at the Dutch Bros. menu, it’s almost entirely drinks. The chain has expanded beyond coffee into smoothies, lemonades, iced teas, sodas, and more.
It also offers a very limited snack menu consisting mostly of muffin tops.
The chain does, however, see a growth opportunity in food. Barone spoke about that as well.
“We see a clear path forward with Order Ahead, throughput and food,” she said.
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The coffee chain has been testing a small breakfast menu in a handful of locations.
“We are thrilled with the success of our limited food test launched late last year and are excited to continue testing and refining this initiative throughout 2025,” she added.
The hot breakfast menu includes four smaller-sized items: a sausage, egg, and cheddar slider; bacon, egg, and cheddar slider; chorizo wrap; and a maple waffle, according to Nation’s Restaurant News.
The test will be expanded to more locations this year.
Dutch Bros. has a clear plan
The coffee chain has taken a “move slowly” approach to growth. It’s going to continue to do that.
“Building on the success we are having with our Order Ahead initiative, we believe food can generate incrementality in the morning day part and drive frequency. Our approach to this test is both strategic and deliberate. We recognize the potential multi-year growth opportunity with our current food mix at less than 2% of sales,” Barone said.
Dutch Bros. has also remained focused on making sure it keeps its workers happy.
“Our goals for this test are clear: maintain existing high levels of barista job satisfaction, continue to support throughput efficiency, minimize complexity, and offer a targeted assortment that allows us to satisfy our customers’ craving for food while capturing incremental beverage opportunities,” she added.
Barone made it clear exactly how the company decided what it adds to its menus.
“The pilot test has informed our decision to now offer eight SKUs, including four hot food offerings. With the completion of an initial pilot, we recently expanded this initiative from eight to 32 shops,” she shared.
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That’s only the beginning, as Dutch Bros. sees adding breakfast as a massive opportunity.
“Looking ahead, expanding the food test pilot is a crucial step towards a broader test and rollout anticipated to occur throughout 2026. This expansion aims to reach a wider potential audience and positions Dutch Bros more competitively in high value routinized beverage occasions,” she added.
