Dutch Bros expects to open least 125 new shops in 2022 in new, existing markets
Dutch Bros Inc. is moving East as it ramps up store growth.
The Oregon-based coffee chain is committed to opening at least 125 new locations in 2022. In addition to moving East, Dutch Bros will continue to expand in existing markets, including Southern California, a market it said will be a “significant” growth driver.
Dutch Bros, when went public in September, opened 98 shops (of which 82 were company-operated) in 2021, including the launch of the brand in Texas. It recently entered the Nashville market.
The company ended the year with 538 locations in 12 states. It noted that new shops are opening at higher average unit volumes than the system average, including in new markets.
“In 2022, we celebrate Dutch Bros’ milestone 30th anniversary, and begin our expansion east with our entrance into Nashville,” said Joth Ricci, CEO and president of Dutch Bros Inc. “While our history shows we’re a well-established and respected brand, we are still in the early stages of our long-term story. Over the next 10 to 15 years, we foresee at least 4,000 shops across the United States.”
Dutch Bros’ total revenues rose 55.8% to $140.1 million in the fourth quarter, ended Dec. 31. System same-shop sales grew 10.1% year-over-year and 15.3% on a two-year basis. For the full year, total revenues grew 52.1% to $497.9 million.
Dutch Bros reported a loss of $122 million in 2021, reflecting the costs of its public offering and the new store opening costs. The company warned of unusual expenses in 2022, especially in the first half of the year, to cover the cost of its rapid expansion.
Dutch Bros forecast 2022 revenue of at least $700 million. The company plans to build a coffee roasting facility to accommodate growth in the Midwest and a change in the way Dutch Bros pays for new shops, which results in greater upfront costs.
Dutch Bros., which serves a variety of energy drinks and other beverages in addition to coffee, was founded in 1992 with a single pushcart by brothers Travis and Dane Boersma. (Dane Boersma died of Lou Gehrig's disease in 2009.) Although it operates some sit-down cafes, most of its locations are drive-thru and have one or two lanes. Some offer outdoor or patio-seating.