Dutch Bros surpasses 500-store milestone in the US, with third quarter revenues up nearly 50% compared to the same period in 2020 – but CEO wants to go much further
Dutch Bros is forecasting 'at least' 122 new stores in 2022 | Photo credit: Dutch Bros
US coffee chain Dutch Bros has surpassed 500 stores, the company has revealed. Reporting its third quarter results to 30 September 2021, the drive-thru coffee chain said total revenues for the period grew 49.8% to $129.8m compared to the same period in 2020.
The company opened 33 coffee shops during its third quarter, of which 30 were company-owned. Profits from company-owned stores, which represent just under half of the company’s portfolio, were $22.8m.
Dutch Bros said it projected revenues of $125-$128m in the fourth quarter, with ‘at least’ 112 new store openings projected for 2022. However, the company’s CEO and President Joth Ricci outlined far grander to plans to eventually operate 4,000 stores in the US.
“While we are excited to have recently begun our journey as a public company, we are already focused on a clear set of growth-minded objectives that make Dutch Bros a national brand,” Ricci said.
“This includes expanding what is already a strong pipeline of homegrown regional operators and combining that with a disciplined, people-led growth strategy that creates the potential for at least 4,000 shops nationwide,” he added.
In September 2021, Dutch Bros. revealed significant growth ambitions
for the US market as it pitched investors for an IPO that raised approximately $557m.
Dutch Bros’ drive-thru model proved beneficial for the brand during 2020, enabling stores to continue trading during Covid-19 lockdowns when many other brick-and-mortar coffee shops were forced to temporarily close or modify trading.
World Coffee Portal data shows the proportion of US consumers
surveyed favouring drive-thru over entering a coffee shop has increased from 48% in 2019 to 63% in 2020.