Dutch Bros is like any other coffee chain out there, including how they operate when it comes to franchising.
Dutch Bros has been my favorite place to grab coffee for well over a decade now.
So much so, that I actually wanted to have one of my own.
I’m here to share exactly how their franchise requirements work and what their business currently looks like, in detail.
Is Dutch Bros Coffee A Franchise You Can Own?
Dutch Bros no longer affers a franchise program for potential owners.
According to the Dutch Bros website, all Dutch Bros are now company-owned locations, and franchisees can no longer open a Dutch Bros location.
While it's unfortunate that Dutch Bros is no longer offering franchise opportunities, this decision may actually work in favor of potential investors.
By keeping all stores company-owned, Dutch Bros can maintain positive relations and meet the high standards their customers have come to expect from the brand. 
Additionally, the company's emphasis on promoting from within means that if you're passionate about the brand and willing to put in the hard work, there may still be opportunities to grow and advance within the organization.
While owning a Dutch Bros franchise is no longer an option, there are still plenty of ways to get involved with this beloved coffee chain.
DBs Franchising History Explained
Dutch Bros (named after the founder's immigrant grandparents) is a privately held coffee chain with a rich history.
It was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon. The business started as an espresso machine bought to serve complimentary drinks to friends.
In the early years of the business, the company operated under a franchise model, with the Boersma brothers partnering with friends and family members to open new drive-through locations across the Pacific Northwest.
In 2008, Dutch Bros shifted to an internal growth model, which meant individuals interested in opening a Dutch Bros location had to be existing employees with at least three years of experience working for the company.
By 2017, the company made the decision to stop offering franchises altogether.
This move allowed the company to ensure that all locations were consistent in branding, customer experience, and quality.
Since then, Dutch Bros has expanded rapidly, opening new spots across the western United States, serving quality caffeinated beverages.
How Much Does a Dutch Bros Franchise Make?
A Dutch Bros franchise can make anywhere from around $570 – $650K total revenue, depending on the location.
The average profit for a Dutch Bros store owner at an estimated $124,000 annually.
Factors like labor cost, product waste, employee theft, and higher wait times can all affect total revenue, as well.
Previous Financial Requirements & Fees Of Dutch Bros Franchisees
While there are no longer offers Dutch Bros franchise opportunities, it's crucial to thoroughly understand the costs associated with any potential Dutch Bros franchise before investing.
Some franchises may have low initial fees, but additional expenses like payroll, technology, or training fees may arise later.
Take your time to study the costs and consider reaching out to former franchisees for their perspective.
Here are some past requirements of Dutch Bros franchises:
Fees or Expenses
Liquid capital (liquid cash requirement)
Total Initial Investment Range
According to median sales estimates for Dutch Bros, a 20% profit margin can lead to potential franchisees recouping their investment in approximately 2.75 years, which is shorter compared to other franchise opportunities.
Additionally, along with the franchise fee, Dutch Bros had an ongoing royalty fee of 5% of gross sales or $1,300 per month.
These royalty fees were separate from the initial franchise fee. The corporate office collected it to maintain good standing as a Dutch Bros coffee franchise operator.
Dutch Bros Average Sales, Revenue & Profit Analysis
Although Dutch Bros no longer offers franchising opportunities, its impressive financial performance is worth noting considering a franchise opportunity.
In 2020, despite the challenges posed by the pandemic, the company reported a 7.7% growth in net sales, thanks in part to its drive-thru model.
The company's 328 locations generated an estimated $494 million in system-wide sales, with an average revenue per store of around $1.5 million in gross sales per unit.
In 2020 alone, Dutch Bros opened 53 new outlets, contributing to its continued success.
The brand's performance during the pandemic highlights its ability to adapt to changing market conditions.
That makes it an attractive option for investors seeking opportunities in the coffee industry. Here are some key financial metrics of the Dutch Bros franchise:
Dutch Bros SWOT Analysis (What You Need To Know)
Dutch Bros Coffee has several strengths that give it a sustainable competitive advantage.
Dutch Bros Inc also has weaknesses that limit its ability to build a sustainable competitive advantage due to a lack of resources and capabilities.
Dutch Bros can take advantage of various macro-environmental factors, including economic growth, policy changes, technological innovations, consumer preferences, and political developments.
These factors present opportunities for the company to strengthen its market position or expand further. Some of their significant opportunities are:
Threats are external factors that can impact the business model of Dutch Bros.
Are Dutch Bros Shops Involved In The Community?
Nowadays, it's increasingly common for entrepreneurs to want to positively impact their communities.
That’s one of the many reasons why I was motivated to look into opening one, myself.
One of Dutch Bros' core values is giving back to their communities and supporting local organizations.
Dutch Bros is committed to making a difference in the lives of people living with Lou Gehrig's disease.
Since the death of co-founder Dane Boersma due to this condition, Dutch Bros' drive-through locations donate one day's profits from their drinks to the Muscular Dystrophy Association annually.
This is just one example of how the company seeks to support those in need.
Another way the coffee shop gives back is through "Buck for Kids Day." On this special day, proceeds from sales at Dutch Bros locations are gifted to local non-profit organizations that support youth in the community.
By supporting these organizations, Dutch Bros is investing in the future of their communities and helping to make a positive difference in the lives of children and families.
Frequently Asked Dutch Bros Franchise Questions
How much is the Dutch Bros franchise owner's salary?
A Dutch Bros franchise owner salary could have been between $50,000 to $250,000 annually. While it can be profitable, the average income is not high for a franchise owner.
How rich is the owner of Dutch Bros?
The owner of Dutch Bros, Travis Boersma, has an estimated net worth of $2.1 billion. That’s a big accomplishment as the owner of a once small coffee shop chain that started as a coffee cart headquartered in downtown Grants Pass, Oregon.
What makes Dutch Bros successful?
Dutch Bros Coffee is successful due to its high-quality, premium private bean blend with a wide range of customization available. This is all done at affordable prices and with excellent customer service.
Are there any alternative franchises?
For an alternative franchise to Dutch Bros, many other businesses franchise, and you may be interested in The Human Bean. It's a small coffee shop franchise that uses a drive-thru model similar to Dutch Bros.
Are coffee franchises profitable?
A coffee franchise can be profitable depending on location, competition from other chains, cost structure, pricing strategy, marketing, and management. A strong brand reputation, unique offerings, efficient operations, and effective marketing campaigns are essential for success.
Who is Dutch Bros’ target audience?
Dutch Bros caters to a younger demographic by offering various tasty, delicious, unique hot and cold beverages made fresh daily.
Who is Dutch Bros biggest competitor?
Dutch Bros Coffee’s biggest competitors are Starbucks, Scooter’s Coffee, Dunkin Donuts, Caffe Bene, Peet's Coffee, and Caribou Coffee. Many other coffee chains could be considered competitors.
While it’s not currently possible to start my own Dutch Bros coffee shop, it’s not to say it will never be a possibility in the future.
In fact, with their growth and success, I can see them offering franchise opportunities like they did at one point.
Meanwhile, I still love supporting my local Dutch Bros stores by visiting and enjoying their delicious coffee drinks and other beverages.