Dutch Bros Inc., originally written Dutch Bros. (with a period at the end), is a publicly held drive-through coffee chain in the United States.[3] Founded in 1992 by Dane and Travis Boersma, it is headquartered in Tempe, Arizona, after having been based in Grants Pass, Oregon, for many years prior to 2025. It has company-owned and franchise locations primarily located in the Western United States, although the company has expanded as far east as Orlando, Florida.[4][5][6]
History
Early history
Dutch Bros was founded on February 12, 1992, by Dane and Travis Boersma, brothers of Dutch descent, in Grants Pass, Oregon.[1][7][8] Their family's third-generation dairy farm had been struggling due to changes in environmental regulations, and the brothers were looking to start a new business.[9][10] Travis Boersma suggested a coffee cart where they could sell espresso.[10][8] Dane Boersma was able to help finance the idea with money he had set aside while running a Dairy Queen franchise.[10]
They soon added four more carts and, by 1994, had established their first drive-through location.[12][13]
In 1996, the company began roasting its own coffee, sourcing beans from El Salvador, Colombia, and Brazil.[14][8]
Expansion
In 1994, Dane and Travis Boersma struck a deal with a customer, Marty McKenna, which allowed him to open his own Dutch Bros in Medford, about 30 miles away from Grants Pass.[8][15] McKenna's first stand performed so well that he soon opened up a second one across town.[15] In 1997, the Boersmas brought McKenna on as a partner, hoping he would continue to expand the Medford operations.[8][15] Two years later, they bought out McKenna's stake in the company.[8]
In 1999, Dutch Bros started formally franchising.[16]
Capital increase and IPO
In October 2018, Dutch Bros received an undisclosed amount from private equity firm TSG Consumer Partners for a minority stake in the company and announced plans to expand to 800 stores over the next five years.[23][7]
Dutch Bros reported revenues of $238 million in 2019, $327.4 million in 2020, and $228 million over the first six months of 2021, heading into the company formally filing for its initial public offering (IPO) in August 2021.[26][7] The company stated in its filing that it hoped to raise $100 million, which it would use toward paying down $192 million in long-term debt.[7] Dutch Bros held its IPO and began trading on the New York Stock Exchange with the ticker symbol "BROS" on September 15, 2021.[27]
Business model
Dutch Bros operates as a chain.[8] The vast majority of its stores have no indoor seating and are walk-up or drive-thru stands.[29][30] Each store sells hot and cold drinks, including non-coffee options (including tea, milkshakes, and sparkling sodas) and a selection of baked goods.[31][32]
The company started franchising in 1999.[16] In 2008, Dutch Bros transitioned to an internal franchising model that required potential franchisees to have worked for the company for a minimum of three years.
Operations
Dutch Bros is headquartered in Tempe, Arizona.[34] It had been based in Grants Pass, Oregon, since its 1992 founding, but began moving some corporate offices to Arizona in early 2024 and in June 2025 announced that it was relocating its headquarters there.[35] The company is majority-owned by Travis Boersma, who holds the title of executive chairman, and Christine Barone is its president and CEO.[27][26] In September 2021, Dutch Bros became a publicly traded company, selling 21 million shares for a total of $484 million.[27] As of December 2023, the company employed approximately 24,000 people,[2] and as of August 2024, it had 912 stores.[36]
Charity
Through its fundraiser "Drink One for Dane", Dutch Bros Coffee donates to the Muscular Dystrophy Association.[39] Its other annual charitable initiatives include Dutch Luv, which benefits local food banks, and Buck for Kids, which supports local youth organizations, including chapters of the Boys & Girls Clubs of America.[40][41]
See also
External links
References
- Dutch Bros Coffee to open its first cafe in Tacoma Washington Newz, 22 January 2019, retrieved 1 May 2022^
- Dutch Bros Inc. 2024 Annual Report (Form 10-K) U.S. Securities and Exchange Commission, February 13, 2025^
- Coffee Lovers, Keep An Eye on Dutch Bros. They Just Got a Big Investor