The drive-thru chain said an a ‘exceptional’ 2023 and a strong start to 2024 shows the business is well placed to achieve its sales and outlet growth targets this year
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Dutch Bros reported 31% year-on-year sales growth to reach $966m | Photo credit: Dutch Bros
Dutch Bros continued its upward sales and outlet growth trajectory last year and has set its sights on $1.2bn revenues in 2024.
The US drive-thru coffee chain reported 31% year-on-year sales growth in the 12 months ending 31 December 2023 to reach $966m. The business also reversed a $19m loss in 2022 to post $10m profit, with adjusted EBITDA rising 75% to $160m.
Dutch Bros forecasts total 2024 revenues will reach $1.2bn.
Oregon-based Dutch Bros is currently the fourth largest branded coffee chain in the US by outlets, behind Starbucks, Dunkin’ and Panera Bread. It opened 159 new stores last year – 146 of which were company-operated – to reach 831 sites across 16 US states.
Alongside 24% year-on-year outlet growth, Dutch Bros also opened more than 30 new stores for the tenth consecutive quarter in the three months ending 31 December 2023.
Dutch Bros expects to open more than 160 net new stores this year as it moves closer to its 1,000 outlets by 2025 goal.
The drive-thru coffee chain is also seeking to develop its Dutch Rewards loyalty programme in 2024, including a pilot test and mobile order functionality in its app. More than 60% of fourth quarter transactions came from Dutch Rewards members.
“We had an exceptional 2023 and entered 2024 with great momentum. We continued to drive steady new shop growth, and Q4 marked our 10th consecutive quarter of 30+ new shop openings. We are optimistic for our next phase of growth,” said Christine Barone, CEO, Dutch Bros.
In January 2024 Dutch Bros strengthened its leadership team with the appointments of Sumi Ghosh as Incoming President of Operations, Josh Guenser as Chief Financial Officer and Jess Elmquist as Chief People Officer.
The drive-thru coffee chain also announced a large-scale reorganisation of its support centre operations, with approximately 40% of back-office staff being relocating to its Phoenix, Arizona office this year. Dutch Bros’ roasting, accounting and select other support functions will continue to be based in Oregon.
“We recognise the importance of continuing to attract top-notch talent, and we believe adding a significant presence in the Phoenix market positions us to better compete for this talent. We also believe this expansion will enable easier access to our operations as we grow across the US,” Barone said.
Dutch Bros anticipates the move will incur approximately $30m in costs, plus up to $10m in capital expenditures related to the Arizona office expansion.