TL;DR
Dutch Bros stopped franchising in 2017 to focus on internal growth and company-owned locations. The coffee chain has over 770 locations in 15 states, with existing franchise owners potentially earning over $100,000 in profit per year.
Dutch Bros, known for their creative drinks and friendly staff, is a favorite coffee chain for many American consumers. Dutch Bros opened its first franchise in 2000 — less than a decade after its 1992 founding.
Unfortunately, if you’re thinking about becoming a franchise owner of the brand, it's too late.
In 2008, the brand switched to an internal growth model, meaning that franchisees needed to have worked for the brand for at least three years before opening their own store. And by 2017, Dutch Bros stopped franchising altogether so it could be the “sole judge of getting ‘the best of the best’ people in its system.”
“We could build a pipeline of people and a ladder for them to climb and pay them extraordinarily well,” co-founder Trav Boersma told QSR Magazine. “They could build their teams and do leadership development and cultivate culture like nobody’s business. That people system that we developed … is one of the best things that we’ve ever done.”
The coffee chain now has over 770 locations in 15 states. Although many of those are pre-established franchises, Dutch Bros now only opens company-owned locations.
For those that do own a Dutch Bros, it can be a pretty successful venture. Mashed reported that a Dutch Bros location can bring in over $650,000 in revenue per business year and net the owner over $100,000 in profit, though these figures can vary.
However, it may not be just Dutch Bros. The coffee industry as a whole continues to see growth. A survey from the National Coffee Association found that 63% of Americans reported drinking coffee within the past day. If you want to get in on the action, here are a few other coffee brands that do offer franchises in 2024.
Investment Range: $246,305–$564,626
Unit Count: 379
Gourmet coffee franchise BIGGBY COFFEE exists to help entrepreneurs own a business that allows them to love life while making a difference. Franchise owners are active in their communities from day one. By developing a culture of warmth, friendliness and support in the shops, they are rewarded with the support of their community in return.
Tim Hortons
Investment Range: $247,000–$2.2 million
Unit Count: 5,290+
Originally a Canadian chain, Tim Hortons now has over 4K locations worldwide. Known for its signature coffee and donuts, Tim Hortons has expanded its menu to include sandwiches, soups and other food items.
Scooter’s Coffee
Investment Range: $797,000–$1.3 million
Unit Count: 780+
Known for its drive-thru coffee kiosks and coffeehouses, Scooter's Coffee has expanded its presence primarily in the Midwest and Great Plains regions of the United States. The chain is recognized for its commitment to quality coffee and a friendly, customer-first atmosphere.
Though it’s not possible to open a new Dutch Bros franchise in 2024, at least we can still enjoy their delicious drinks and their “people system.”
In this story
This story was originally published in 1851 Franchise on January 21, 2024. Burnaze summarizes and links to the original reporting.
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