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Miami Herald
17 hours 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.
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.
Yahoo
29-01-2025
- General
- Yahoo
Feeding America brings 24/7 food lockers to Fox Valley Tech. Here's what to know.
GRAND CHUTE — Feeding America Eastern Wisconsin is expanding its programs in the Fox Valley by adding 24/7 access to meals for college students through a new food locker system. So far, around 50 students have used the 24 newly installed lockers, which allow them to order food online and pick it up on campus. This comes with an investment from Fox Valley Technical College of $100,000. The lockers, the first of their kind in northeastern Wisconsin, sit near the south parking lot of the college's campus in Grand Chute, just west of Appleton. The area is easily accessible to students throughout the day. No matter the weather, the temperature-controlled lockers ensure food items remain fresh, and students can place orders anytime through a simple online platform. Here is what to know about the project. These lockers aim to address food insecurity among college students, and on-campus food pantries have sprung up at universities across the country. A survey released earlier this year by Temple University's Hope Center for College, Community, and Justice showed that nearly 45% of the nearly 86,000 student respondents from 123 two- and four-year institutions across the United States said they had been food insecure in the past 30 days. 'We have lots of students who are experiencing food insecurity with having full-time jobs, trying to keep their grades up, and trying to make a living,' said Dominic Tesch, one of 50 Fox Valley Technical College students who started using Order Ahead last month. At the college, 78 students already rely on the campus food pantry weekly. However, the pantry's resources are limited, depending on donations and the school budget. Partnering with Feeding America allows to support more students in need, said Tesch, 27, who is juggling two jobs while pursuing an Associate of Arts degree. He ordered bread, milk, meats, and some cereal and cooked on his own, he added. Students can choose from perishable and non-perishable items, which are procured, packed, and delivered to the lockers by Feeding America Eastern Wisconsin, said Cameron Wengrzyn, the nonprofit's director of market and communication. The non-profit plans to expand the food locker program across its 35-county footprint, ensuring the food distribution system meets people's needs. The distribution model allows for flexibility in where food is distributed, including clinics, traditional food pantries, community centers, and food deserts, said Patti Habeck, president and CEO of Feeding America Eastern Wisconsin. The nonprofit hopes to expand, but it depends on finding partners and funding for lockers, Wengrzyn said. Feeding America Eastern Wisconsin provides 34 million pounds of food each year, via its partner pantries and programs, to more than 24,000 families in Wisconsin's 35 eastern counties, according to data from its 2023 annual report. You can help by donating your time or by making a financial donation. Editor's note: USA TODAY NETWORK-Wisconsin and The Post-Crescent partner annually with Feeding America Eastern Wisconsin on the Stock the Shelves campaign in October. This reporting is separate from that partnership. Zhen Wang is a business reporter for The Post-Crescent. Reach her with story tips and feedback at zwang@ or 920-993-7117. This article originally appeared on Appleton Post-Crescent: Feeding America brings food lockers to Fox Valley Technical College
