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User:Hillaryjbrown/Dutch Bros History

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History

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Original site of Dutch Bros Coffee in Grants Pass, Oregon

Early history

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Dutch Bros was founded on February 12, 1992 by Dane and Travis Boersma, brothers of Dutch descent, in Grants Pass, Oregon.[1][2] Their family’s third-generation dairy farm had been struggling due to changes in environmental regulations, and the brothers were looking to start a new business.[3][4] Travis Boersma suggested a coffee cart where they could sell espresso.[4][2] Dane Boersma was able to help finance the idea with money he had set aside while running a Dairy Queen franchise.[4] They spent an initial $12,000 on an espresso machine and a single pushcart, which they set up in downtown Grants Pass.[2][5] The name Dutch Bros was chosen in honor of their immigrant grandparents.[2]

The cart initially offered ristretto espresso using a double-shot base, along with free syrups.[6] Within six months of opening, the Boersmas were generating roughly $200 per day in sales.[2] They soon added four more carts, and by 1994 had established their first drive-through location.[7][8] In 1996, the company began roasting its own coffee, sourcing beans from El Salvador, Colombia, and Brazil.[9][2]

Expansion

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In 1994, Dane and Travis Boersma struck a deal with a customer, Marty McKenna, which allowed him to open his own Dutch Bros in Medford, about 30 miles away from Grants Pass.[2][10] McKenna’s first stand performed so well that he soon opened up a second one across town.[10] In 1997, the Boersmas brought McKenna on as partner, hoping he would continue to expand the Medford operations.[2][10] Two years later, they bought out McKenna’s stake in the company.[2]

In 1999, Dutch Bros started formally franchising.[11] The company opened its 50th franchised drive-thru location in 2004.[2] That same year, shortly after moving into a new headquarters in Grants Pass, a nearby dumpster fire spread to the building, destroying Dutch Bros roasting equipment, five vehicles, and thousands of pounds of coffee beans.[12][2] Following this incident, the company continued to expand, and by the end of 2004, operated 61 coffee shops spanning from Northern California to Oregon’s Willamette Valley.[13]

By 2009, Dutch Bros was running approximately 135 coffee stands in seven states and generating $50 million in gross annual revenue.[11] Travis Boersma was featured on the American version of the television show Undercover Boss in 2013.[14][15] Revenues continued to grow into the mid-2010s. The company made $238 million in systemwide sales in 2015, $350 million in 2016, and $415.3 million in 2017, by which point there were over 283 Dutch Bros locations.[2][16][17]

In January of 2017, Dutch Bros purchased a vacant shopping center in downtown Grants Pass where their original push cart was located.[5][16] The company converted 20,000 square feet of the shopping center’s interior into futsal courts for local youth soccer teams and workout space for its employees.[18][16] In March of that same year, the company bought the Washington Federal bank building across the street from the shopping center, with the intention to move its headquarters and 150 employees into the bank building the following fall.[19][16]

Capital increase and IPO

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In October of 2018, Dutch Bros received an undisclosed amount from TSG Consumer Partners for a minority stake in the company and announced plans to expand to 800 stores over the next five years.[17][1]

Dutch Bros reported revenues of $238 million in 2019, $327.4 million in 2020, and $228 million over the first six months of 2021, heading into the company formally filing for its IPO in August of 2021.[20][1] The company stated in its filing that it hoped to raise $100 million, which it would use toward paying down $192 million in long-term debt.[1] Dutch Bros held its IPO and began trading on the New York Stock Exchange with the ticker symbol "BROS" on September 15, 2021.[21] The IPO raised $484 million, selling about 21 million shares for $23 each.[21][8] Travis Boersma retained about 74 percent of shareholder voting power after the listing, due to his ownership of Class B stock.[21]

References

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  1. ^ a b c d Rogoway, Mike (August 21, 2021). "Dutch Bros seeks to raise $100 million in IPO, hopes to have 4,000 coffee stands someday". The Oregonian. Retrieved October 4, 2021.
  2. ^ a b c d e f g h i j k l Adams, Susan (June 15, 2016). "The Coffee Cult: How Dutch Bros. Is Turning Its 'Bro-istas' Into Wealthy Franchisees". Forbes. Retrieved October 4, 2021.
  3. ^ Tims, Dana (September 28, 2017). "Top Workplaces 2017: Dutch Bros. Coffee finds strength in its relationships". The Oregonian. Retrieved October 5, 2021.
  4. ^ a b c Culverwell, Wendy (August 15, 2014). "How Dutch Bros. grew from a pushcart in Grants Pass to a $150M coffee mainstay". Portland Business Journal. American City Business Journals. Retrieved October 5, 2021.
  5. ^ a b "Dutch Bros. purchases original location". KOBI (TV). California Oregon Broadcasting, Inc. January 19, 2017. Retrieved October 5, 2021. Cite error: The named reference "KOBI" was defined multiple times with different content (see the help page).
  6. ^ Oliver, Megan (November 12, 2014). "Dutch Love". 1859 Oregon's Magazine. Statehood Media. 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. ^ a b "TSG-backed Dutch Bros valued at over $5 billion in NYSE debut". Reuters. September 15, 2021. Retrieved October 5, 2021.
  9. ^ Angel, Devanie (February 16, 2006). "Dutch treat". Chico News & Review. Retrieved October 5, 2021.
  10. ^ a b c Preszler, David (May 17, 1999). "Dutch Bros. opens 10th". Mail Tribune. Retrieved October 5, 2021.
  11. ^ a b Furniss, Jennifer (February 28, 2009). "Tactics: Dutch Bros. rejects the corporate grind". Oregon Business. Retrieved October 5, 2021.
  12. ^ "Still No Cause For Oregon Coffee Warehouse Fire". Firehouse. August 13, 2004. Retrieved October 5, 2021.
  13. ^ "Coffee shops perking up Oregon town". Seattle Times. December 24, 2004. Retrieved October 5, 2021.
  14. ^ "Season 5 Episode 8: Dutch Bros. Coffee". CBS. Retrieved 21 December 2018.
  15. ^ "Nampa Dutch Bros. will be featured on 'Undercover Boss' tonight". Idaho Press. Retrieved 21 December 2018.
  16. ^ a b c d Adams, Susan (May 9, 2017). "Dutch Bros., A Forbes Small Giant, Is Moving Its Headquarters And Investing In Its Hometown". Forbes. Retrieved October 5, 2021.
  17. ^ a b Spencer, Malia (October 1, 2018). "Dutch Bros lands private equity investment, plans massive expansion". Portland Business Journal. Retrieved October 5, 2021.
  18. ^ Kolliner, Kimberly (January 19, 2017). "Dutch Bros makes a multi-million dollar purchase for the community". KTVL. Sinclair Broadcasting. Retrieved October 5, 2021.
  19. ^ Whiting, Lisa (March 27, 2017). "New home for Dutch Bros". Mail Tribune. Retrieved October 5, 2021.
  20. ^ Bjorke, Christopher (August 20, 2021). "Dutch Bros files for IPO, seeks to raise $100M". Phoenix Business Journal. Retrieved October 5, 2021.
  21. ^ a b c Patton, Leslie; Hytha, Michael (September 15, 2021). "Dutch Bros Shares Get 59% Debut Boost After $484 Million IPO". Bloomberg. Retrieved October 5, 2021.
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