Dutch Bros Inc. isn’t pulling back on its expansion.
The fast-growing coffee opened 65 stores during the second quarter — including its 600th location — and is on track for at least 130 openings for the full year. Dutch Bros., which is celebrating its 30th anniversary this year,currently operates 603 locations across 14 states.
“Our newest shops are exhibiting predictable and consistent sales and upward margin progression, while our 2020 and 2021 classes are generating annualized volumes that are 10% higher than our system average,” said Joth Ricci, CEO and president, Dutch Bros.
Dutch Bros. went public in September 2021. The company said in its filing at the time that it hopes to eventually to have 4,000 shops, with the majority of its growth to be company-owned locations
Dutch Bros. reported that its total revenues rose 44.2% to $186.4 million for the quarter ended June 30, with the increase helped by a 3% price increase. Company-operated same-shop sales declined 4.3% compared to last year but grew 4.3% vs. 2019.
Inflation took a toll on the company’s performance during the quarter. Dutch Bros. reported a loss of $1.8 million as compared to net income of $11.9 million in year-ago period.
“Like many of our peers, the macro-economic environment is impacting various aspects of our business, and our company-operated shop margins continue to be pressured by record inflation in the second quarter,” Ricci said. “That said, our team accelerated efforts to increase productivity in the middle of our P&L, and we took a 3% price increase in the second quarter. We are evaluating further menu pricing action as needed in the back half of the year.”