Latest news with #DutchBros.
Miami Herald
a day ago
- Business
- Miami Herald
Dutch Bros. adds breakfast menu to take down Starbucks
Dutch Bros. coffee started as a pure beverage rival to Starbucks and other coffee chains. It was a disruptor of sorts, as most of its locations are drive-thru only. It's a model that has been copied heavily by growing rivals like 7 Brews, but at the time it was a stripped-down, back-to-basics model. Related: One of Texas's oldest BBQ joints is closing permanently after 34 years The company literally began as cart way back in 1992, before the chain began franchising in 2000. It was a slow climb to becoming a real player, but it has steadily grown, reaching a milestone earlier this year. "On February 7, we opened shop number 1,000 in Orlando, Florida, 33 years after our founding and 3,000 miles from our original push cart in Grants Pass, Oregon. With a long runway ahead and conviction in our brand, we aim to open the next 1,000 new shops with the goal of 2,029 total shops in 2029," said CEO Christine Barone during the Dutch Bros. first-quarter earnings call. Don't miss the move: Subscribe to TheStreet's free daily newsletter She is quite confident the company will reach that goal. "We see a long-term opportunity to drive sustainable transaction growth by addressing structural barriers, bringing in new customers, enhancing frequency with existing customers and sustaining ongoing momentum in the productivity of our newer shops," she added. When you look at the Dutch Bros. menu, it's almost entirely drinks. The chain has expanded beyond coffee into smoothies, lemonades, iced teas, sodas, and more. It also offers a very limited snack menu consisting mostly of muffin tops. The chain does, however, see a growth opportunity in food. Barone spoke about that as well. "We see a clear path forward with Order Ahead, throughput and food," she said. More Food: Applebee's brings back all-you-can-eat deal to take down Chili'sPopular Mexican chain reveals surprising growth plansStarbucks CEO shares plan for a whole new menu The coffee chain has been testing a small breakfast menu in a handful of locations. "We are thrilled with the success of our limited food test launched late last year and are excited to continue testing and refining this initiative throughout 2025," she added. The hot breakfast menu includes four smaller-sized items: a sausage, egg, and cheddar slider; bacon, egg, and cheddar slider; chorizo wrap; and a maple waffle, according to Nation's Restaurant News. The test will be expanded to more locations this year. The coffee chain has taken a "move slowly" approach to growth. It's going to continue to do that. "Building on the success we are having with our Order Ahead initiative, we believe food can generate incrementality in the morning day part and drive frequency. Our approach to this test is both strategic and deliberate. We recognize the potential multi-year growth opportunity with our current food mix at less than 2% of sales," Barone said. Dutch Bros. has also remained focused on making sure it keeps its workers happy. "Our goals for this test are clear: maintain existing high levels of barista job satisfaction, continue to support throughput efficiency, minimize complexity, and offer a targeted assortment that allows us to satisfy our customers' craving for food while capturing incremental beverage opportunities," she added. Barone made it clear exactly how the company decided what it adds to its menus. "The pilot test has informed our decision to now offer eight SKUs, including four hot food offerings. With the completion of an initial pilot, we recently expanded this initiative from eight to 32 shops," she shared. Related: Burger King menu adds a wild new Whopper That's only the beginning, as Dutch Bros. sees adding breakfast as a massive opportunity. "Looking ahead, expanding the food test pilot is a crucial step towards a broader test and rollout anticipated to occur throughout 2026. This expansion aims to reach a wider potential audience and positions Dutch Bros more competitively in high value routinized beverage occasions," she added. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
09-05-2025
- Business
- Yahoo
Forget Starbucks, these coffee chains are taking over consumers
Coffee is a nonnegotiable in many people's lives. Some would call it a necessity, and doctors might even call it an addiction. Nonetheless, millions of Americans consume coffee at least once a day, whether to wake up in the morning or for an afternoon pick-me-up. 💵💰 💵💰 In the current uncertain economic climate, many consumers continue splurging on products that have become constant in their lives, despite being more careful in their spending on other items. However, a new consumer trend is emerging, taking over a key market, and showing unexpected lovers are beginning to purchase their daily cup of coffee at smaller chains rather than the usual giants, leading these emerging chains to experience significant growth in store traffic. This is an excellent sign for the future of smaller coffee chains, but established giants like Starbucks and Dunkin' are starting to suffer the repercussions of these actions. Many markets are suffering from a slowdown in consumer spending, but buying coffee is a luxury that's affordable enough, and consumers are willing to budget for it. The overall traffic at establishments that sell coffee is up 1.8% year over year as of 2025. However, some excel at it more than others, and the outcome may be surprising. Smaller coffee chains are thriving in this current environment, reaching some of the highest store traffic numbers ever. In the first quarter of 2025, Dutch Bros. () saw a 13.4% increase in traffic, Scooter's Coffee grew by 15.3%, and 7 Brew Coffee reported an impressive 87.3% surge, as reported by giant coffee chains are experiencing the opposite. Starbucks () saw a nearly 1% decline in store traffic compared to the previous year, and Dunkin' had an even worse fall of 1.7%. This slowdown in traffic is starting to affect the top competitor, leading it to report sales declines. Starbucks' comparable store sales fell 2% in the second quarter of 2025, marking the fifth consecutive quarterly decline. Comparable transactions were down 2% compared to last year, while traffic continues to report negative numbers with a 4% decline. These numbers might result from Starbucks' higher prices compared to the smaller chains. However, the same can't be said about Dunkin', since its prices are more comparable to those at smaller chains. Despite its recent drops, Starbucks remains the top coffee giant, dominating the market share and getting more foot traffic than all other chains. Consumers who visited Dunkin', Dutch Bros., Scooter's Coffee, and 7 Brew Coffee also visited Starbucks within the same time frame. In contrast, only 27.4% of its customers visited its rival chains, as stated in the previously mentioned report. More Retail News:This says a lot about the loyalty Starbucks has built with its customers, since the majority remain committed to the brand, despite the growing competition. After all, Starbucks and Dunkin' are considered coffee giants for a reason. They have a much larger footprint than these smaller chains and are not likely to be overtaken anytime in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
08-05-2025
- Business
- Miami Herald
Forget Starbucks, these coffee chains are taking over consumers
Coffee is a nonnegotiable in many people's lives. Some would call it a necessity, and doctors might even call it an addiction. Nonetheless, millions of Americans consume coffee at least once a day, whether to wake up in the morning or for an afternoon pick-me-up. Don't miss the move: Subscribe to TheStreet's free daily newsletter In the current uncertain economic climate, many consumers continue splurging on products that have become constant in their lives, despite being more careful in their spending on other items. However, a new consumer trend is emerging, taking over a key market, and showing unexpected results. Related: Starbucks CEO makes major announcement in turnaround strategy Coffee lovers are beginning to purchase their daily cup of coffee at smaller chains rather than the usual giants, leading these emerging chains to experience significant growth in store traffic. This is an excellent sign for the future of smaller coffee chains, but established giants like Starbucks and Dunkin' are starting to suffer the repercussions of these actions. Image source: Getty Images Many markets are suffering from a slowdown in consumer spending, but buying coffee is a luxury that's affordable enough, and consumers are willing to budget for it. The overall traffic at establishments that sell coffee is up 1.8% year over year as of 2025. However, some excel at it more than others, and the outcome may be surprising. Smaller coffee chains are thriving in this current environment, reaching some of the highest store traffic numbers ever. In the first quarter of 2025, Dutch Bros. (BROS) saw a 13.4% increase in traffic, Scooter's Coffee grew by 15.3%, and 7 Brew Coffee reported an impressive 87.3% surge, as reported by Related: McDonald's menu adds experimental new items fans will love However, giant coffee chains are experiencing the opposite. Starbucks (SBUX) saw a nearly 1% decline in store traffic compared to the previous year, and Dunkin' had an even worse fall of 1.7%. This slowdown in traffic is starting to affect the top competitor, leading it to report sales declines. Starbucks' comparable store sales fell 2% in the second quarter of 2025, marking the fifth consecutive quarterly decline. Comparable transactions were down 2% compared to last year, while traffic continues to report negative numbers with a 4% decline. These numbers might result from Starbucks' higher prices compared to the smaller chains. However, the same can't be said about Dunkin', since its prices are more comparable to those at smaller chains. Despite its recent drops, Starbucks remains the top coffee giant, dominating the market share and getting more foot traffic than all other chains. Consumers who visited Dunkin', Dutch Bros., Scooter's Coffee, and 7 Brew Coffee also visited Starbucks within the same time frame. In contrast, only 27.4% of its customers visited its rival chains, as stated in the previously mentioned report. More Retail News: After closing stores, Walmart makes a big additionFormerly bankrupt restaurant chain reopens locations, adds new itemPopular breakfast chain goes national with surprising deal This says a lot about the loyalty Starbucks has built with its customers, since the majority remain committed to the brand, despite the growing competition. After all, Starbucks and Dunkin' are considered coffee giants for a reason. They have a much larger footprint than these smaller chains and are not likely to be overtaken anytime soon. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CBS News
28-04-2025
- CBS News
Sacramento County women used counterfeit cash at multiple Oregon businesses, sheriff says
LODI — A mother and daughter duo from the Sacramento area are accused of using counterfeit money at several businesses in Jackson County, Oregon, authorities said Monday. Samantha Jo Ann O'Neil, 42, and Jamie Aileen O'Neal, 18, both from the Walnut Grove community in southern Sacramento County, were arrested on Saturday, the Jackson County Sheriff's Office said. Both women face three counts of first-degree forgery, three counts of third-degree theft, 10 counts of criminal possession of a forged instrument and three counts of possession of a forgery device, authorities said. Samantha Jo Ann O'Neil, 42, and Jamie Aileen O'Neal, 18 Jackson County Sheriff's Office The alleged crimes took place in the town of White City. The women are accused of using counterfeit $20 bills at several area businesses. After two reports were made to local law enforcement early Saturday morning, surveillance footage obtained by investigators showed the suspects' vehicle, a Toyota Camry, with a California license plate. That car was located later that morning in the city of Medford, just south of White City, in the parking lot of a Hobby Lobby. After surveilling the vehicle for a while, deputies arrested the two women as they were returning to the car. Uncut sheets of counterfeit money found in the suspects' vehicle Jackson County Sheriff's Office Authorities said more counterfeit money was located inside the suspects' vehicle. The sheriff's office identified that Hobby Lobby, as well as Dutch Bros., McDonald's, and Starbucks locations in White City, as businesses where counterfeit bills were used. The O'Neils left to Oregon from Lodi, California, on April 23, authorities said. Law enforcement officials believe there are additional businesses where the counterfeit bills were used while the women made their trip north. The 42-year-old O'Neil allegedly was also in possession of more than seven grams of methamphetamine and a meth pipe. She faces an additional drug charge, the sheriff's office said.
Miami Herald
02-04-2025
- Business
- Miami Herald
Popular Starbucks rival adding 1,000 new locations
Whether it's a cup of black coffee, a cappuccino, or a sugar-free vanilla latte with oat milk, coffee is probably an essential part of your morning routine. Also, like most Americans, your coffee habits have probably changed over the last few years. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter Gone is the basic pot of brewed coffee, replaced with a Nespresso or Keurig single-cup brewer, or perhaps with something fancier, like a Breville or De'Longhi espresso machine. Related: Trader Joe's, Aldi make surprising moves in grocery space But if your new routine also includes a commute, chances are good that routine also includes a stop at a drive-thru. Businesses have to evolve if they want to survive. Back in 1992 brothers Dane and Travis - a.k.a. the Dutch Bros. - starting serving espresso from a pushcart in Grants Pass, Oregon. From that first cart, the brothers opened other locations around Oregon and then opened their first franchise in 2000. From there, Dutch Bros. (BROS) spread across the Northwest. And now, the brand just celebrated the opening of its 1000th location. Last year, the company focused on its mobile ordering app Order Ahead, which has been a huge success. According to QSR, more than nine out of 10 Dutch Bros.' mobile-ordering customers said they were likely to use the channel again and recommend it to a friend. More Food News: McDonald's, Starbucks targeted by rival fast-food chain's takeoverPopular retailer unveils affordable line with unexpected brandOreo celebrates 113th birthday bringing back fan favorite Related: Starbucks CEO sounds the alarm on coffee chain's problems More important, the mobile users reported they visited Dutch Bros. five percent more often. Also telling, tip rates are higher on the mobile-ordering channel, making for happier employees. And Dutch Bros. reports its customers say the company beats competitors on speed, quality, and service. Dutch Bros. opened 32 new shops in 11 states in 2024, bringing the total number of stores to 982 across 18 states, according to the company's most recent financial statement. Most of the locations are company-operated. The company's total revenues grew 34.9%, to. $342.8 million, compared to $254.1 million over the same period in 2023. Dutch Bros. reported it expects annual revenue growth of roughly 20% this year - in excess of the company goal - with new shop growth ranging from the low-single digits to mid-teens. Revenue growth will be enhanced by the company's announcement to enter the consumer packaged-goods market, adding packaged coffee and expanding food options, the company said in a press release. "In partnership with Trilliant Food & Nutrition, LLC, Dutch Bros. plans to launch a line of packaged coffee and related products to be sold in retail outlets." At Dutch Bros. inaugural investor day, March 27, 2025, CEO and President Christine Barone said the goal is to have 2,029 stores by 2029. That number is more than double the number of locations today, yet well below the company's stated total addressable market of 7000+ locations nationwide. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
