Dutch Bros. Coffee

Financing

Dutch Bros wants to sell more food to sell more beverages

The drive-thru beverage chain’s expanded menu test is now in 32 locations. While it comes with a lower profit, the company believes it can capture more beverage occasions. But it won’t mess up operations.

Financing

How Dutch Bros cracked the code on new market openings

The drive-thru beverage chain is expanding rapidly into new markets. Advertising and pacing of store openings have helped those markets generate strong sales.

The drive-thru beverage chain’s sales and traffic increased, despite tough comparisons, as its stores in new markets continue to thrive. And it doesn’t fear economic uncertainty.

It was more collegial executive exchange than smack down, but the leaders of the drive-thru coffee concept and fast-casual Italian beef concept shared notes on growth, menu innovation and digital tech at the Restaurant Leadership Conference in Phoenix.

Crunch, creaminess and other textural food components are becoming as important as flavor when it comes to menu innovation.

The drive-thru coffee chain now believes there is room for more than 7,000 locations nationwide, up from its previous forecast of 4,000.

The drive-thru beverage chain generated strong sales thanks to mobile order, loyalty and advertising. Investors sent its shares up more than 20%.

The Bottom Line: Data from Technomic shows that the drive-thru chain is outperforming its much larger rival on numerous metrics, which may help explain the brands' diverging performances.

The drive-thru concept does an unusual amount of business in the afternoons for a brand that sells espresso and energy drinks. CEO Christine Barone wants to change that.

The drive-thru beverage chain said its same-store sales increased 2.7%, thanks to mobile ordering, loyalty, advertising and rubber ducks. The stock closed up 28% on Thursday.

  • Page 1