Are you dreaming of owning a Dutch Bros franchise? If so, you might be disappointed to learn that Dutch Bros no longer offers franchising opportunities. Here’s everything you need to know about why you can’t open a Dutch Bros franchise and the company’s unique approach to growth and culture.
The Evolution of Dutch Bros Franchising
Founded in 1992 in Grant’s Pass, Oregon, Dutch Bros quickly became known for its drive-thru coffee stands and a menu full of hot and cold beverages as well as baked goods. In 1999, the company began offering franchise opportunities, and many of the current locations are indeed franchises.
However, by 2008, Dutch Bros shifted its business model. The company decided to move to an internal growth model, which required potential franchise owners to have worked for Dutch Bros for at least three years. This change aimed to ensure that new store owners had a deep understanding of the company’s values and culture.
Why Did Dutch Bros Stop Franchising?
Despite initially offering franchise opportunities, Dutch Bros decided to stop selling franchises altogether by 2017. The primary reason for this shift was to maintain the company’s culture and customer service standards. Dutch Bros began buying out franchisees who were not meeting their customer service expectations to protect the brand’s core values of “practicing love and humility.”
Co-founder and CEO Travis Boersma explained that the company doesn’t “tolerate toxic or cancerous behavior to the culture.” By transitioning to company-owned locations, Dutch Bros ensures that each store aligns with its high standards and community-focused ethos.
Company-Owned Locations and Regional Operator Positions
Today, all Dutch Bros locations are company-owned. While many coffee franchises still sell single- and multi-unit agreements to investors, Dutch Bros has taken a different path. The company’s growth strategy focuses on internal promotions, offering regional operator positions exclusively to employees who have demonstrated outstanding performance and a deep understanding of Dutch Bros culture.
Investing in Dutch Bros
If you were set on investing in Dutch Bros, there is an alternative. Dutch Bros Coffee went public in 2021 and is now traded on the New York Stock Exchange under the ticker symbol BROS. While you can’t buy a franchise, you can purchase stock and become a part of the company’s financial journey.
Conclusion
Dutch Bros’ decision to stop franchising was driven by a desire to protect its brand culture and maintain high customer service standards. While this means you can’t open a Dutch Bros franchise unless you’re already a standout employee within the company, you can still invest in Dutch Bros by purchasing stock. This approach ensures that every Dutch Bros location offers the same quality experience that has made the brand a beloved name in the coffee industry.