coffee

Financing

Dutch Bros sales are growing, and now the chain plans to add food

The drive-thru beverage chain has an expanded food menu in 160 locations and plans to roll it out to the rest of the system next year. It’s all designed to sell more beverages.

Financing

Starbucks is selling control of its China business to Boyu Capital

The investment firm and the coffee shop giant are forming a joint venture to run the business in a deal valued at $4 billion. Starbucks will retain a 40% stake in the business.

The coffee-shop giant has been beset by a new generation of drive-thru-only beverage concepts. CEO Brian Niccol is undeterred. "I already have the biggest drive-thru coffee chain in America."

The Flynn Group is adding the drive-thru coffee chain to its franchise portfolio. And the mega franchisee is launching a new Growth division to focus on younger, innovative brands.

The coffee shop chain, fresh off a strong summer and the opening of its 10,000th location, is planning to test “Project Chill,” a reconfigured afternoon setup aimed at a younger crowd.

The coffee shop giant is adding full-time, assistant store managers at 62 locations in California, Illinois and Texas as part of a pilot project. Starbucks plans to have them in all shops next year.

A Deeper Dive: David Mesa, president of the New Orleans-based coffee shop chain, joins the restaurant finance podcast to discuss the state of beverage restaurants and its menu optimization.

The Bottom Line: The coffee shop giant, which is closing more than 400 of its shops, had been on an expansion tear since the end of the pandemic, despite its sales challenges.

Brian Niccol, CEO of the coffee shop giant, said the company will shutter underperforming locations and those where remodels are unworkable. The company plans to uplift another 1,000 shops.

In the restaurant industry’s first initial public offering in three years, the Arizona-based coffee chain’s stock rose 30%. The company raised $294 million in the offering.

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