The US drive-thru coffee chain, which is targeting 800 stores nationwide by the end of 2023, saw revenues increase almost 50% in 2022 as a result of its strong outlet growth
Oregon-based coffee chain Dutch Bros has credited its 25% outlet growth last year as driving its robust full-year revenues.
Dutch Bros opened 133 new stores across the US last year, 120 of which are company-operated, to reach 671 outlets nationwide, 60% of which are company-operated.
Reporting on the 12-months ended 31 December 2022, the drive-thru coffee chain achieved 48% revenue growth to reach $739m, compared to $498m in 2021.
Dutch Bros said company-operated store revenues increased 58% to $640m, compared to $403.7m in 2021.
“In 2022, we delivered another strong year of growth with revenue increasing almost 50% to $739m, driven by 133 new store openings systemwide. For the third consecutive year, we have exceeded our new store development targets, doubling our outlet count since March 2019, despite unprecedented disruption to communities and the economy. We’re entering 2023 in a position to build market share, supported by our strong people development and new store pipelines,” said Joth Ricci, CEO, Dutch Bros.
Dutch Bros is seeking to open at least 150 new stores by the end of 2023, which if realised will enable the coffee chain to achieve its five-year goal of reaching 800 outlets. The company has a longer-term target of reaching 1,000 US stores by the first half of 2025.
Additionally, Dutch Bros expects 2023 revenues to reach between $950m- $1bn.
In November 2022, Dutch Bros appointed former Starbucks Senior Executive Christine Barone as President to oversee its next phase of growth.
Ricci said Barone will be ‘instrumental’ in ensuring the company scales in a ‘meaningful, efficient and effective way’ amid wider market uncertainty.
World Coffee Portal research forecasts the 38,000-strong US branded coffee shop market will exceed 41,900 outlets by the end of 2027.
Dutch Bros is currently the third largest coffee-focused coffee chain in the US, behind Starbucks and Dunkin’.
