Dutch Bros. Coffee

Dutch Bros Inc.

Company type	Public
Industry	Coffeehouse
Founded	February 12, 1992 (1992-02-12) in Grants Pass, Oregon, United States
Founder	Dane Boersma, Travis Boersma
Headquarters	Phoenix , United States
Area served	United States (primarily Western U.S., expanding east to Florida)
Key people	Travis Boersma (Executive Chairman), Christine Barone (President and CEO)
Products	Custom-prepared coffee drinks, whole bean coffee, bottled beverages, smoothies, energy drinks, branded retail products
Revenue	$1.17 billion (2024)
Operating income	$106 million (2024)
Net income	$35.3 million (2024)
Number of employees	17000 (2024)
Website	www.dutchbros.com

Dutch Bros Inc., initially known as Dutch Bros. (including the period), is a publicly listed drive-through coffee chain operating within the United States. Established in 1992 by siblings Dane and Travis Boersma, the company’s main office is situated in Phoenix, Arizona. Its network consists of both company-operated and franchised outlets predominantly located in the western regions of the U.S., with recent growth extending as far east as Davenport, Florida.

The brand specializes in custom-prepared coffee drinks, whole bean coffee, bottled beverages, smoothies, energy drinks, and branded retail products. Dutch Bros’ business approach capitalizes on the convenience of drive-thru service to secure a foothold in the competitive retail coffee market.

As reported in 2024, Dutch Bros achieved $1.17 billion in revenue, with operating income of $106 million and net profit totaling $35.3 million. The workforce numbers around 17,000 employees supporting over 1,000 locations. Leadership includes co-founder and chairman Travis Boersma alongside CEO Christine Barone. The company’s strategic focus centers on rapid expansion through franchising and cultivating strong customer loyalty within its core demographic.

Early history

On February 12, 1992, brothers Dane and Travis Boersma, descendants of Dutch heritage, launched Dutch Bros in Grants Pass, Oregon. Their family’s third-generation dairy farm was facing challenges due to environmental regulations, motivating them to pursue a different venture. Travis proposed starting a coffee cart business selling espresso beverages, while Dane funded the initiative using savings earned from managing a Dairy Queen franchise. They invested $12,050 to purchase an espresso machine and a pushcart stationed in downtown Grants Pass. The name Dutch Bros was chosen as a tribute to their immigrant grandparents.

The enterprise rapidly grew to include four additional carts and opened its inaugural drive-through location by 1994. By 1996, Dutch Bros began roasting its own coffee beans sourced from El Salvador, Colombia, and Brazil. This strategic step allowed greater control over product quality and supply logistics to support their expanding operations.

Expansion

In 1994, Dane and Travis Boersma joined forces with customer Marty McKenna to launch a Dutch Bros outlet in Medford, Oregon, roughly 30 miles from Grants Pass. McKenna’s success led to opening a second stand; by 1997 he became a partner aiding further growth. Two years later, the Boersma brothers repurchased his share.

Formal franchising commenced in 1999, with Dutch Bros reaching its 50th franchised drive-thru by 2004. That same year, after relocating headquarters within Grants Pass, a nearby dumpster fire destroyed roasting equipment, vehicles, and coffee inventory. Despite this setback, the company expanded to 61 locations across Northern California and Oregon’s Willamette Valley by year-end.

By 2009, Dutch Bros operated approximately 135 stands across seven states generating $50 million annually. That year marked the passing of co-founder Dane Boersma due to ALS. In 2013, Travis Boersma featured on the television program Undercover Boss. The company’s revenues continued upward: systemwide sales reached $238 million in 2015, climbed to $350 million in 2016, and totaled $415.3 million by 2017 with more than 283 locations.

In January 2017, Dutch Bros acquired a vacant shopping center downtown Grants Pass—the original site of their first pushcart—and converted part of it into futsal courts for youth soccer alongside fitness facilities for employees. By March, they purchased the nearby Washington Federal bank building to relocate their headquarters and accommodate 150 staff members by autumn.

Capital increase and IPO

In October 2018, Dutch Bros secured an undisclosed minority investment from the private equity firm TSG Consumer Partners and revealed intentions to grow its footprint to 800 locations within five years. The company reported revenues of $238 million in 2019, $327.4 million in 2020, and $228 million during the first half of 2021 prior to its initial public offering filing in August 2021. Dutch Bros targeted raising $100 million through the IPO to pay down $192 million in long-term liabilities. On September 15, 2021, the company debuted on the New York Stock Exchange under the ticker symbol "BROS," generating $484 million by issuing approximately 21 million shares at $23 each. Founder Travis Boersma maintained control over about 74% of voting rights via Class B shares.

Business model

Dutch Bros primarily functions as a drive-thru coffee retailer, offering a variety of hot and cold drinks, including options beyond coffee, complemented by baked items. Although franchising began in 1999, the company transitioned in 2008 to an internal franchise system requiring franchisees to have a minimum of three years’ experience within Dutch Bros. This approach yielded a 97% franchise retention rate between 2010 and 2015. By 2017, Dutch Bros halted franchising altogether to concentrate solely on company-owned store expansion. As of June 2021, franchise operators managed 264 stores while the company directly owned 207 locations. The brand enforces rigorous customer service standards and has a history of repurchasing underperforming franchises to maintain quality and consistency.

Operations

Headquartered in Phoenix, Arizona, Dutch Bros is predominantly owned by founder Travis Boersma, who holds the position of executive chairman. Christine Barone serves as president and CEO. Following its public listing in September 2021, which raised $484 million through the sale of 21 million shares, Dutch Bros employed approximately 24,000 staff members as of 2023 and operated 912 stores by mid-2024. In addition, the company expanded its international presence with a new 65,000-square-foot roasting and distribution facility located in Melissa, Texas during 2024, strengthening its supply chain infrastructure and production capabilities.

Charity

Dutch Bros actively engages in philanthropy through initiatives such as "Drink One for Dane," which supports the Muscular Dystrophy Association. Other charitable efforts include Dutch Luv, focused on assisting local food banks, and Buck for Kids, which provides funding for youth organizations like the Boys & Girls Clubs of America. These programs underscore the company’s dedication to community involvement alongside its commercial development.