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How Dutch Bros pulled ahead of its biggest competition this quarter

 

At a time when many restaurant companies are struggling to get customers in the door, Dutch Bros is one of the better success stories for the first quarter of 2024. In Q1, the Oregon-based coffee chain saw 10% same-store sales growth, attributable mostly to menu pricing increases, discounting, and positive traffic trends.

Traffic will likely continue an upward growth trajectory after Dutch Bros starts accepting mobile order and pay, which the company will begin offering for the first time by the end of 2024, in partnership with Olo. The new partnership and mobile order and pay solution is currently in test mode at seven locations, and is meant to boost operational efficiency, especially for guests that want to cut down on wait times at the drive-thru lane.

In addition to rolling out new tech and menu innovations, Dutch Bros is focused on its fortressing development strategy. Last quarter, the company opened 45 new locations, and wants to continue that cadence on the road to 4,000 shops in the long-term, all while improving brand recognition and loyalty in new markets.

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