Are you Interested and looking for a Food and Beverages franchise – Dutch Bros? Starting a Dutch Bros franchise will be the best option and would certainly conclude your research for same.
In this guide, we’ll dive deep into the Dutch Bros franchise with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Franchise Fee: $30000
- Royalty Fee: 5%
- Liquid Capital Required: $150,000
- Rent: $2000 – $12,500
- License: $1,000-$25,000
- Equipment Cost: $25,000- $153,000
- POS and IT support fees: $3,460- $5,935
- Total Initial Investment: $150,000 to $500,000
Table of Contents
Overview of Dutch Bros Franchise
Established in 1992 by Dane and Travis Boersma, Dutch Bros is one of the rapidly growing renowned drive-thru coffee chains in the US. They are known for primarily serving varieties of handcrafted drinks such as coffee, tea, chai, and many other cold brews.
It has a wide presence of more than 600 retail outlets(370 company-operated and remaining are franchised) across multiple cities in the US and other countries.
It is remarkable how a pushcart beside railroad tracks in downtown Grants Pass( Oregon, US) has grown into one of the most well-known drive-thru coffee concept businesses with more than US$ 677 million in annual revenue.
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Key Facts of Dutch Bros
| Sr No. | Type | Public |
| 1 | Traded as | NYSE: BROS |
| 2 | Industry | Drive-thru restaurants Retail coffee & beverages |
| 3 | Founded | February 12, 1992 |
| 4 | Founders | Dane Boersma Travis Boersma |
| 5 | Headquarters | Grants Pass, Oregon, U.S. |
| 6 | Number of locations | 641 in 14 states |
| 7 | Area served | Western United States |
| 8 | Key people | Travis Boersma (chairman) Joth Ricci (CEO) |
| 9 | Products | Whole bean coffee beverages Made-to-order beverages Bottled beverages Merchandise Smoothies Energy drinks |
| 10 | Revenue | US$667 million (2022) |
| 11 | Number of employees | Approx. 19,000 (2022) |
| 12 | Website | www.dutchbros.com |
Why Consider owning a Dutch Bros Franchise?
Now the question arises, why should someone prefer to franchise Dutch Bros over any other chains such as Kung Fu Tea, Jollibee, Black rifle coffee, and Panda express? If you are unsure about the alternative Tea and Café franchise, check out the highlighted franchise businesses.
- Their expertise and experience of over thirty years would help new franchisee owners to grab the business fundamental seamlessly and add value to the chain, enabling them to understand consumer needs and innovate its menus.
- Dutch bros chain offers a wide range of freshly brewed beverages, which is quite popular among their consumers, enabling the chain to draw consumers frequently.
- The chain has been continuously launching and experimenting with new products among its customers, allowing the brand to offer newly handcrafted menus regularly.
- The Dutch Bros chain is a proven business model that has continued to grow for years, enabling new franchisee prospects to run the business seamlessly.
- Dutch bros chain offers attractive loyalty and reward programs that allow the unitholders to attract new customers and reward them frequently.
- Their extended support helps interested prospects to start a new franchised unit at their chosen location hassle-freely and profitably.
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How much does Dutch Bros Franchise Cost?
To start a Dutch Bros franchise, one would at least require an initial investment of $150,000 to $500,000 and a Liquid Cash of $150,000. Furthermore, Before choosing a Dutch Bros location, one must do the market research and understand the market potential and its growth prospects.
Dutch Bros Franchise Fee
The chain does charge an initial franchise fee of $30000 for the Dutch Bros franchise. Furthermore, the total initial Investment to setup a Dutch bros outlet will be between $150,000 to $500,000 for a drive-thru coffee shop.
Cost Break up & On-going expenses – Dutch Bros
| Types of Cost | Cost and its description |
|---|---|
| Franchise Fee | $30000 |
| Liquid Capital Required | $150,000 |
| Royalty Fee | 5% on Net sales |
| Rent | $2000 – $12,500 |
| License | $1,000-$25,000 |
| Equipment Cost | $25,000- $153,000 |
| POS and IT support fees | $3,460- $5,935 |
| Total Initial Investment | $150,000 to $500,000 |
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Dutch Bros Franchise Profit Margin
Considering the Dutch Bros’s growth, brand presence through global expansion, and expertise would help franchisee owners to make good chunks of profit from this chain.
Furthermore, Based on our assumption, one may anticipate generating $570K-$650K of total sales, and the average profit per year will be around $100K-150K. The profitability may differ based on location, employee salary, and other aspects.
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Dutch Bros Franchise Requirements
- One must adhere to and strictly follow the Dutch Bros chain standards set by the brand.
- Interested prospects should have at least 3 years of experience with company in one year as a manager.
- Interested candidate should meet in the financial requirement suggested by the company.
- One should be willing to work in a food and beverages franchise and dedicate themselves to the company.
- They should have leadership and good management skills, which would help the interested applicants to run the business seamlessly.
- One must undergo extensive training programs to understand the franchise fundamental that helps the franchisee to operate a store hassle-freely.
How to Get a Dutch Bros Franchise?
Dutch Bros brand offer several benefits, but they are limited to existing franchisees and staff.
Please follow the below steps to own a Dutch Bros outlet.
- Visit their official website, and fill up the details in contact us page.
After form submission, the franchise team evaluates your application and based on that arranges an Introductory call to understand more about each others.
Conclusion
Considering its development potential, brand recognition, and more than 30 years of experience in this sector, opening a Dutch Bros outlet will prove profitable to the interested aspirants.
Furthermore, Dutch Bros is also seeking qualified applicants from other parts of the globe, which would help them to expand globally and interested candidates to join in the ever-growing industry.
With an Initial investment of $150,000 to $500,000 and franchise fee of $30000, Dutch Bros offers a reasonable profit margin to its unitholders.
Good Luck!! Happy Franchising!!
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FAQ
How much does is cost to start a Dutch Bros franchise?
Ans: To setup a Dutch Bros outlet, one would need to require a investment of $150,000 to $500,000 as a total Initial cost.
Franchise Fee: $30000
Royalty Fee: 5%
Liquid Capital Required: $150,000
Rent: $2000 – $12,500
License: $1,000-$25,000
Equipment Cost: $25,000- $153,000
POS and IT support fees: $3,460- $5,935
Total Initial Investment: $150,000 to $500,000Is Dutch Bros franchise profitable?
Ans: Considering Dutch Bros global presence, varieties in menu, and expertise would add value to the chain and ultimately help the interested aspirants to be a part of the specialized food industry. Furthermore, One may anticipate generating $570K-$650K of total sales, and the average profit per year will be around $100K-150K
How much does a Dutch Bros franchise owners make?
Ans: There could be multiple factors affecting the franchise’s profitability. The franchise support team can also provide you with guidance on conducting market research and growth analysis of the concerned brand in your locality.
Based on data available over the internet, one may expect an average profit of around $100K-150K per year.
