The US drive-thru coffee chain surpassed 600-stores in the second quarter of 2022 and remains on track to open 70 further stores this year
Oregon-based drive-thru coffee chain Dutch Bros has reached two milestones in its second quarter – surpassing the 600-store landmark and exceeding $1bn in systemwide sales for the 12 months ended 30 June 2022.
Dutch Bros, which marks its 30th anniversary this year, opened 31 outlets in its second quarter and is targeting 670 by the end of the year and 4,000 across the US within a decade.
The company reported sales growth of 44% for the period ended 30 June 2022, to reach $186m. It expects total 2022 revenues to exceed $715m, which would represent a 44% increase from 2021.
The drive-thru chain also reported exceeding $1bn in systemwide sales across the last 12 months, a first-time achievement for the company.
Dutch Bros reported a second quarter loss of $1.8m, compared to an $18m loss in the same period last year.
“We have opened 65 shops in the first half of 2022 and are on track for at least 130 shop openings for the full year. Our newest shops are exhibiting predictable and consistent sales and upward margin progression, while our 2020 and 2021 classes are generating annualised volumes that are 10% higher than our system average. As we pursue strategic growth from west to east, Dutch Bros’ portability and brand acceptance have been outstanding,” said Joth Ricci, CEO, Dutch Bros.
Ricci also cautioned that the current macro-economic environment is impacting the chain, with company-operated store margins increasingly pressured by record inflation. Having increased prices twice in the last nine months, Dutch Bros said it will evaluate further price increases in the second half of the 2022 if necessary.
Drive-thru is an increasingly popular coffee shop format in the US and gained further traction during the pandemic when social distancing became an important operational concern.
With more than 6,400 sites, Dunkin’ is by far the largest drive-thru operator in the country, while Seattle-based coffee giant Starbucks is planning to accelerate its US store growth via high-returning drive-thrus.
On a similar scale to Dutch Bros, Nebraska-based Scooter’s Coffee is also approaching 600 stores in the US.
