Dutch Bros. Coffee is a beloved coffee chain hailing from Oregon. With over 300 locations across the United States, this rapidly expanding company has captured the hearts of coffee enthusiasts nationwide. If you’re considering becoming a part of the Dutch Bros. family by opening a franchise, you’re likely curious about the franchise fee. Well, you’re in luck! The Dutch Bros. franchise fee is a reasonable $30,000. Compared to other coffee chains, this fee is relatively low, as franchise fees for other brands can range from $50,000 all the way up to a staggering $1 million. However, keep in mind that in addition to the franchise fee, you’ll also need sufficient liquid capital to cover the costs of opening and running your franchise. Dutch Bros. estimates that you should have at least $250,000 in liquid capital to get started.
What You Need to Know Before Franchising with Dutch Bros
Dutch Bros. Coffee has a unique approach to their franchise model. In the past, they allowed employees to open franchises, but their business model has since evolved. Currently, Dutch Bros. owns all of its stores, having bought out any existing franchises that did not meet their high standards. To be eligible to open a franchise with Dutch Bros., you must have worked for the company for a minimum of three years, with at least three of those years spent in a managerial role. Additionally, you’ll need to have raised $150,000 in liquid capital.
Starting a franchise with Dutch Bros. Coffee involves more than just the initial investment. You’ll also need to consider additional expenses such as equipment, signage, licenses, permits, uniforms, and insurance. However, despite these costs, a Dutch Bros. franchise can be a fantastic opportunity for those seeking a low-cost franchise option with a well-established brand. Dutch Bros. Coffee has a long-standing reputation for success in the Western United States, with consistent growth in both size and sales. In fact, their gross sales increased by an impressive 52.2% from 2020 to reach $479.9 million in 2021. Analysts estimate that each store can generate a profit of approximately $380,000 per year.
The Changing Landscape of Dutch Bros Franchises
It’s important to note that Dutch Bros. Coffee now completely owns all of its franchises, having purchased all existing franchise agreements. However, if you are a loyal employee of Dutch Bros., you may have the opportunity to apply for a regional operator position. If you’re in the process of obtaining a business loan, you can explore opening a franchise with another company.
Cost Breakdown: How Much to Franchise a Dutch Bros Coffee Shop
The cost of franchising a Dutch Bros coffee shop can vary based on location, but it typically ranges from $250,000 to $350,000. This includes the initial franchise fee of $30,000, as well as an ongoing royalty fee of 6%. Depending on your specific location, a typical Dutch Bros. store can generate annual revenues ranging from $570,000 to $650,000. With careful management of expenses, purchases, and salaries, the average store owner can expect to make an annual profit of around $124,000. Before opening a store, franchise owners must meet certain requirements, including at least three years of experience working in an approved franchise store.
A Peek Into the Dutch Bros Coffee Phenomenon
Dutch Bros Coffee has made a significant impact in the American market, with over 470 locations across 11 states. The company was founded in 1992 by brothers Dane and Travis Boersma, and it has become an iconic brand valued at approximately $3.3 billion. Not only is Dutch Bros Coffee known for offering high-quality coffee and creating a casual atmosphere, but it is also recognized for its commitment to providing higher wages compared to other industry players. Many Dutch Bros employees earn more than $200,000 annually, making it one of the highest-paying companies in the industry.
The Billionaire Story Behind Dutch Bros Coffee
Travis Boersma, the majority owner of Dutch Bros Coffee, has played a pivotal role in shaping the company’s success. Currently worth an estimated $3.3 billion, Boersma, alongside his late brother, founded Dutch Bros in 1992. They started with a small coffee cart, and their venture grew into the widely recognized and beloved Dutch Bros Coffee we know today.
Can You Open a Dutch Bros Franchise?
If you’re wondering about the possibility of opening a Dutch Bros franchise, we regret to inform you that Dutch Bros Coffee no longer offers franchising opportunities. The company has transitioned to a model where all locations are company-owned, with regional operator positions only available to exceptional individuals with a strong history of employment and a great cultural fit.
Comparing Dutch Bros Franchise Costs with Starbucks
While Dutch Bros is no longer offering franchises, it is interesting to compare their franchise costs with those of other coffee giants like Starbucks. Licensing for a Starbucks store typically costs around $315,000, with an additional requirement of $700,000 in liquid assets. Starbucks operates over 30,600 stores globally, with approximately 15,000 in the United States. However, franchising opportunities are limited for Starbucks, as they prefer to maintain control over their operations. It’s worth noting that Starbucks is a publicly traded company, and you can invest in their stock on the New York Stock Exchange.
The History of Dutch Bros Franchises
In 2008, Dutch Bros made the decision to stop franchising and instead focused on internal growth through the use of franchise leaders. With franchise fees ranging from $30,000 to $500,000, the initial investment required for a Dutch Bros franchise can range from $150,000 to $500,000. Currently, Dutch Bros owns the majority of its 264 locations, with 207 under company ownership as of June 2021.
Understanding the Dutch Bros Operator Salary
For those interested in pursuing a career as a Dutch Bros Operator, salary expectations can vary depending on location and experience. According to Glassdoor, the average salary for a Dutch Bros Operator is $36,856. However, keep in mind that salaries can differ significantly based on factors such as the location of the store and the operator’s level of experience. The best way to determine the specific salary for an operator position is to contact the Dutch Bros location you are interested in and inquire about their pay scale.
Getting to Know Dutch Bros Coffee: A Popular American Brand
Dutch Bros Coffee has become an iconic American brand, with over 470 locations spread across 11 states. Known for their exceptional coffee, Dutch Bros Coffee employees can earn salaries ranging from $20,905 to $163,329 per year, depending on their role. Baristas typically earn between $10.54 and $31.16 per hour, while shift leads make an average of $10.62 per hour. In addition to their competitive wages, Dutch Bros Coffee employees also receive tips, which can greatly add to their earnings.
The Success Story Behind Dutch Bros Coffee
Dutch Bros Coffee is a family-owned and operated company that has made a significant impact in the coffee industry. With a net worth estimated at $143 billion, the company’s market capitalization is a testament to its success. The majority shareholder is The Vanguard Group, Inc., who owns 6.99% of the company’s shares. Dutch Bros Coffee’s president and CEO, Joth Ricci, leads a dedicated team of employees. The company’s dedication to quality and customer service has earned them a loyal following known as the “Dutch Mafia.”
The Price of a Dutch Bros Franchise
The cost of a Dutch Bros franchise is not set in stone, as the company prefers to work with each potential franchisee on a case-by-case basis. However, it’s important to note that Dutch Bros does not offer any financing options, so potential franchisees should be prepared to make a significant investment. Rest assured, Dutch Bros provides a comprehensive training program for all new franchisees, which is included in the initial investment cost.
Conclusion
While Dutch Bros Coffee no longer offers franchise opportunities, it remains a beloved coffee chain with a dedicated following. The company’s commitment to quality, exceptional wages, and unique atmosphere has contributed to its success and market presence. Although franchising with Dutch Bros is no longer possible, the brand continues to thrive and captivate coffee lovers across the United States. If you’re interested in exploring other franchise opportunities, make sure to do thorough research and consideration to find the perfect fit for you.