Customers have more options than ever when it comes to purchasing beverages. But Dutch Bros and QuikTrip—leaders in the space on the restaurant and convenience-store sides—agree that service and hospitality are differentiators.
During the Future of Beverage conference in Austin, Texas, Tana Davila, CMO of Dutch Bros, said the mantra of the concept’s founder is “it’s a relationship business, and people should leave happier than they when they came in.” The 1,000-unit drive-thru coffee chain has built a culture of like-minded people who deliver on that promise, she said. “The people piece is hard to replicate.”
Davila was joined on stage by Aisha Jefferson, corporate communications manager of 1,180-unit convenience store chain QuikTrip, for the session “C-Stores and Restaurants Keep Watch on the Beverage Horizon,” moderated by RB Managing Editor Heather Lalley.
But speed and convenience are also key to both concepts’ success. How do those priorities mesh with hospitality?
“Our team members are trained to be quick and friendly and home in on the customer,” said Jefferson. Technology has helped free them up so they can, she explained. QuikTrip recently upgraded its equipment and is the first to have self-serve coffee on tap, including nitro cold brew, lattes and hot chocolate; frozen drinks and iced teas are next.
QuikTrip's Coffee Wow tap system offers a selection of beverages on draft. | Photo by CSP Staff
“Locations have a wall of machines, and our teams interact with the customers, showing them how to get their beverages by pulling the levers in our Coffee Wow tap system,” said Jefferson. “The customers love to play with the machines.”
Innovation is a differentiator, too, and like QuikTrip, Dutch Bros is innovating beyond what’s in the cup. The Tempe, Arizona-based chain is introducing a grocery line, innovating with flavor on the CPG (consumer packaged goods) side, said Davila. “It’s to help build awareness as we expand to the Midwest and East, away from roots, where people are less familiar with the brand,” she added.
The Dutch Bros food menu is also expanding. “Food is an opportunity to remove barriers to visits and can help drive morning traffic,” said Davila, “but we want to have maximum impact with a minimum of SKUs to keep it efficient.”
QuikTrip recently added fryers to stores to enhance its food offerings.
When asked to look into their crystal balls and predict what’s next for beverages, both speakers had some thoughts.
Dutch Bros was ahead of the curve, introducing Protein Coffee two years ago. | Photo courtesy of Dutch Bros
The bulk of Dutch Bros business—87%—is in cold beverages, and Davila sees opportunity for innovation in that category. “Experiential beverages that incorporate more texture is a trend, and the market is growing toward energy drinks at a faster clip than coffee,” she said. Beverages with functional benefits are also on the rise.
Customization will continue to be a driver of use, Davila added, and Jefferson agreed. “Social media is pushing personalization and customization, with people always making new concoctions, mixing together a lot of ingredients,” Jefferson said, adding that beverage ideas are starting to originate with social media first rather than the brands.
QuikTrip’s goal is to be the leader of beverage in c-stores, she said. “In the future, we want to continue to wow people by revolutionizing beverages.”
The Future of Beverage is a new conference hosted by Informa Connect, the parent company of Restaurant Business. It concludes Friday.
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