Iconic coffee chain to move its headquarters out of Oregon
The major move represents yet another high-profile business fleeing the area, where sky-high taxes, crime and regulations have driven companies to seek refuge in Republican states. The move comes just 18 months after the coffee giant tapped Arizona native Christine Barone as CEO as it revealed plans to use millions to relocate much of its workforce to Phoenix. OregonLive said Dutch Bros executives living near the current HQ in Grants Pass had struggled to find adequate childcare in the small city.
But Republicans say the Democrats including Governor Tina Kotek should have fought far harder to keep the chain in the Beaver State, as its revenue continues to rocket. Some also suggested liberal policies passed in state capital Salem were anti-business and helped drive Dutch Bros to the Republican stronghold of Arizona.
'Dutch Bros has been more than just a coffee company; it's been a valued employer, a community partner, and a symbol of local innovation and grit,' said Rep. Dwayne Yunker, R-Josephine County, in a written statement, as reported by Oregon Live. 'Their departure should alarm every policymaker in Salem,' Yunker said. Dailymail.com has reached out to Kotek for comment but has not yet received a response.
The coffee company claims the move is aimed to help 'bring more people together' in order to 'better serve customers' across the country. 'Over the past several months, we have seen the functional and cultural advantages of having more of our field support roles working together in one place,' the company wrote in a statement. 'To support the next phase of Dutch Bros' growth, we're relocating additional roles to our new Phoenix office and making strategic changes to the structure of several teams.'
'Bringing more people together will allow us to better serve our customers and crews across the country,' the company said. 'With these changes, the Phoenix office will become our official HQ.' Despite the move, Dutch Bros said it would maintain a presence in Southern Oregon and continue investing in the region through its charitable foundation. 'Additionally, through the Dutch Bros Foundation, we'll continue our long-standing commitment to uplifting and supporting the Southern Oregon community,' the company said.
The coffee chain started as a humble cart in tiny Grants Pass back in 1992. Brothers Travis and late Dane Boersma built their operation into a nationwide company with over 1,000 locations. Annual sales have exploded from just $240 million five years ago to a staggering $1.3 billion last year, with predictions of another whopping 22 percent surge in 2025.
The decision comes amid an ongoing trend of major companies leaving West Coast states, due to various factors such as crime, policies and taxes. Last month, a long-standing outdoor store decided to close all of its Oregon locations, marking another business casualty in Portland as crime remains at 'historic heights'. Next Adventure, a beloved outdoor gear store founded by childhood friends Deek Heykamp and Bryan Knudsen in 1997, grew into a 'beloved Portland institution' throughout its three decades in operation, making nearly $24 million in annual sales at its peak, Portland Business Journal reported.
The business eventually expanded to four locations across Oregon - its flagship store in Portland's Central Eastside, another in Sandy, and two paddle centers in Portland and Columbia County. However, all four locations are set to close later this year, the owners announced. 'We're entering a very uncertain time, there are challenges and we're in our 60s,' Heykamp said at the time. 'So when you're in uncertain times, and you make decisions as a leader, it's my and Bryan's responsibility to look at our business and make good decisions on how we can build stability and build the best possible outcome for everybody,' he added.
'And after a lot of work, we came up that this is the right direction to go.' Portland and Oregon became symbolic of the decline of Democrat-run progressive cities in the wake of the COVID pandemic. The once stunning city on the Willamette River became a byword for homelessness, open-air drug use, far-left-wing riots and lawmakers happy to turn a blind eye to urban decay. Businesses fled downtown Portland in droves amid plummeting quality of life, with the city enduring record murder rates in 2022. The city finally appears to have been shamed into taking action in recent months, with voters dumping progressive prosecutor Mike Schmidt and clearing homeless encampments from its downtown.
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