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User:Hillaryjbrown/Dutch Bros Business model

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Business model

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Dutch Bros operates as a chain.[1] The vast majority of its stores are drive-thru stands.[2][3] Each store sells hot and cold drinks, including non-coffee options, and a selection of baked goods.[4][5]

The company started franchising in 1999.[6] In 2008, Dutch Bros transitioned to an internal franchising model that required potential franchisees to have worked for the company for a minimum of three years.[1] This resulted in a 97 percent continuity rate among franchises; between 2010 and 2015, only three percent of all Dutch Bros franchise locations closed.[1] In 2017, Dutch Bros stopped franchising and started opening only company-owned stores.[7][8] As of June 2021, 264 Dutch Bros stores were being run by franchisees and another 207 were fully company-owned.[4]

Dutch Bros places an emphasis on its employees, who are known as "Broistas", having a positive and customer-first approach.[1][9][10] The company has held an annual team-building event called COACHA, where employees from the chain's locations meet to get to know each other, share priorities, and hear from the company's leaders.[10] When a Dutch Bros location initially opens, a team of trainers is dispatched to the new store, where they train employees for at least four weeks.[1][11] Upon being hired, new employees shadow experienced ones for 12 days.[12] The company has a history of buying out franchisees who fall short of the company's customer service standards.[1]

Operations

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Dutch Bros is headquartered in Grants Pass, Oregon.[13] It is majority-owned by Travis Boersma, who holds the title of executive chairman, and led by President and CEO Joth Ricci.[14][15] The company operates approximately 500 stores across 12 states and employs about 16,500 people.[13][16][17] In September 2021, Dutch Bros became a publicly traded company, selling 21 million shares for a total of $484 million.[14]

Charitable efforts

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Dutch Bros co-founder Dane Boersma passed away on October 15, 2009, after battling amyotrophic lateral sclerosis for more than five years.[18] The Boersma family and Dutch Bros launched an annual fundraiser titled "Drink One for Dane" in 2005 as a way to increase awareness of the disease, raise support for those impacted, and fund research to find treatments and cures.[19][20] Proceeds from the campaign are donated to the Muscular Dystrophy Association.[20][21] As of 2021, Dutch Bros has raised more than $10.3 million in support of MDA's ALS programs.[21]

The company donates 1 percent of its gross sales to the communities it operates in.[22][18] In 2007, Dutch Bros started Dutch Luv, an annual Valentine’s Day canned food drive designed to aid local food banks.[23][24] In 2016, the company halted the can drive and instead started donating $1 for each drink it sold on Dutch Luv Day.[24] As of February 2021, that effort had raised approximately $1.8 million.[23][25] In 2010, Dutch Bros started holding its annual Buck For Kids initiative, in which its stores donate $1 per beverage sold to an organization that benefits children, such as a local school district or Boys & Girls Clubs chapter.[26][27] As of September 2020, the company had raised $2.5 million through Buck For Kids.[28] In the midst of the COVID-19 pandemic, the company donated its April 2020 profits to First Responders First.[29]

  1. ^ a b c d e f Adams, Susan (June 15, 2016). "The Coffee Cult: How Dutch Bros. Is Turning Its 'Bro-istas' Into Wealthy Franchisees". Forbes. Retrieved October 4, 2021.
  2. ^ Tanyeri, Dana (February 1, 2017). "Growth Chains: Woe is Who? - Dutch Bros Coffee". Foodservice Equipment & Supplies. Retrieved November 11, 2021.
  3. ^ Oches, Sam (July 27, 2021). "Dutch Bros. gets a jolt from drive-thru". Nation's Restaurant News. Retrieved November 11, 2021.
  4. ^ a b Beltran, Luisa (August 23, 2021). "Dutch Bros Coffee Goes Public". Barron’s. Retrieved August 23, 2021.
  5. ^ Pitz, Ray (August 8, 2013). "A sweet combination". Sherwood Gazette. Retrieved November 11, 2021.
  6. ^ Furniss, Jennifer (February 28, 2009). "Tactics: Dutch Bros. rejects the corporate grind". Oregon Business. Retrieved October 5, 2021.
  7. ^ Tognini, Giacomo (September 15, 2021). "Dutch Bros Coffee IPO Brews Oregon's Newest Billionaire". Forbes. Retrieved October 5, 2021.
  8. ^ Wilson, Marianne (September 15, 2021). "Dutch Bros. goes public with big expansion plans". Chain Store Age. Retrieved November 11, 2021.
  9. ^ Angel, Devanie (February 16, 2006). "Dutch treat". Chico News & Review. Retrieved October 5, 2021.
  10. ^ a b Quinn, Cassidy (August 29, 2019). "A look inside Dutch Bros' annual 'Coacha' event". KGW. Retrieved November 11, 2021.
  11. ^ Hammack, Kylie (September 30, 2021). "West coast coffee is in Stillwater: Dutch Bros. finds success in its first week in Stillwater". The O'Colly. Retrieved November 11, 2021.
  12. ^ Maze, Jonathan (August 20, 2021). "Dutch Bros Files For A $100M IPO". Restaurant Business. Retrieved November 11, 2021.
  13. ^ a b "Form S-1/A Dutch Bros Inc". SEC.gov. September 13, 2021. Retrieved October 14, 2021.
  14. ^ a b Patton, Leslie; Hytha, Michael (September 15, 2021). "Dutch Bros Shares Get 59% Debut Boost After $484 Million IPO". Bloomberg. Retrieved October 5, 2021.
  15. ^ Bjorke, Christopher (August 20, 2021). "Dutch Bros files for IPO, seeks to raise $100M". Phoenix Business Journal. Retrieved October 5, 2021.
  16. ^ "Dutch Bros Coffee to Go Public". Barron's. Retrieved 17 September 2021.
  17. ^ Hamer, Cristal (December 10, 2021). "Dutch Bros Coffee opens Hollister location". KSBW. Retrieved December 10, 2021.
  18. ^ a b Hsuan, Amy (October 15, 2009). "Dutch Bros. Coffee co-founder dies". The Oregonian. Retrieved October 8, 2021.
  19. ^ Ramirez, Daniel (May 12, 2021). "Dutch Bros Holding Its 15th Annual Drink One For Dane Fundraiser". KDRV. Retrieved October 8, 2021.
  20. ^ a b Knox, Sklar (April 30, 2021). "Coffee for a Cure: Dutch Bros aims to raise $1.6 million this year for the Muscular Dystrophy Association". The News-Review. Retrieved October 8, 2021.
  21. ^ a b Parfitt, Jamie (May 27, 2021). "Dutch Bros Annual 'Drink One For Dane' Campaign Raises $1.9 Million for ALS Care". KDRV. Retrieved October 8, 2021.
  22. ^ Benda, David (October 5, 2007). "EspressoExpress". Record Searchlight. Retrieved October 5, 2021.
  23. ^ a b Kloppenburg, Katie (February 11, 2021). "Dutch Bros holding annual fundraiser to help fight hunger". KIVI. Retrieved October 5, 2021.
  24. ^ a b Parfitt, Jamie (February 12, 2019). "Dutch Bros Pledges Donations To Local Food Banks On Valentine's Day". KDRV. Retrieved October 5, 2021.
  25. ^ Wyatt, David (February 12, 2021). "Sweet Days Are Here". Manteca Bulletin. Retrieved October 5, 2021.
  26. ^ Paras, Julian (September 10, 2021). "Dutch Bros 'Bucks For Kids' Day donations will go to local school districts". KPVI. Retrieved October 5, 2021.
  27. ^ Hadden, Chelsie (October 10, 2016). "Dutch Bros Tri-Cities raises over $10,700 for Boys & Girls Club". YakTriNews. Retrieved October 5, 2021.
  28. ^ "Dutch Bros Coffee holds 10th annual Buck for Kids fundraiser". KNTV. September 16, 2020. Retrieved October 5, 2021.
  29. ^ Frank, BrieAnna (March 27, 2020). "'Simply the right thing to do': Valley continues acts of kindness as coronavirus spreads". KITI. Retrieved October 5, 2021.
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