New stores fuel Dutch Bros’ surging third quarter revenues

Dutch Bros opened a record 38 new outlets to reach 641 sites | Photo credit: Nicolas Nieves-Quiroz 

Oregon-based Dutch Bros has credited new store openings for driving year-on-year sales growth of 53% in its third quarter. 
 

Dutch Bros achieved revenues of $198.6m in its third quarter and is expecting full-year sales of at least $725m. Company-operated stores achieved revenue growth of 60% to reach $173.5m, compared to $108.7m in the same period of 2021. 
 

The US drive-thru coffee chain opened a record 38 new outlets during the three months ended 30 September 2022 to reach 641 sites. 34 of the 38 new stores opened in the quarter are company-operated. 

Dutch Bros, which exceeded 600 stores in August 2022, has now opened more than 30 outlets for each of its last five consecutive quarters. The company expects to open 150 new locations next year and reach 800 sites by the end of 2023. 

“We continue to execute our growth strategy, leveraging our strong team to open new shops and our proven operational playbook and loyalty program to engage and connect with new and existing customers. Our new shops are fueling revenue growth, which increased 53% year-over-year to $198.6m. We are targeting at least 150 new shop openings for 2023. This would enable us to reach 800 shops by the end of 2023, a goal we made as a private company five years ago when we had just 328 shops,” said Joe Ricci, CEO, Dutch Bros. 

World Coffee Portal research indicates that consumer demand for drive-thru remains strong across the US, albeit slightly reduced following the easing of Covid-19 restrictions last year. Project Café USA 2023 found that 54% of US consumers prefer the format over a traditional bricks-and-mortar location.