Dutch Bros Investor Relations Material

Dutch Bros Coffee, headquartered in Grants Pass, Oregon, is a noteworthy name in the drive-thru coffee industry in the United States. Founded in 1992, it's grown substantially over the years, positioning itself as the largest privately-held drive-thru coffee chain in the nation. With a presence spanning multiple states and more than 400 locations, Dutch Bros has earned recognition not only for its range of beverages but also for its unique franchise model and commitment to community engagement.

The inception of Dutch Bros Coffee can be traced back to brothers Dane and Travis Boersma. Initially involved in their family's dairy farming venture, they transitioned to the coffee business, starting with a single espresso pushcart in Grants Pass. The success of their venture led them to transition from a cart model to the more recognizable kiosk-style drive-thrus. The company was the largest privately held coffee chain in the nation for some time but went public in September 2021

Dutch Bros. offers a diverse menu, with offerings like lattes, mochas, and cold brews, The chain has also expanded its offerings to include teas, smoothies, and energy drink infusions. While coffee and various drinks remain central to the business, the company also offers a variety of snacks and light meals on its menu.

As the business grew, Dutch Bros adopted a franchise model, which allowed individuals to own and operate their own locations. This model played a crucial role in the company’s rapid expansion, with many franchisees opening multiple locations across different regions. Entrepreneurs are given the opportunity to establish their own locations, bolstered by extensive training and support from the company's headquarters. This approach has allowed Dutch Bros to sustain consistent brand identity and service quality across its numerous outlets while allowing it to grow. Franchising is a common practice for this type of business, with some examples of companies operating in a similar fashion being Dunkin’, Restaurant Brands, and McDonald’s. Notably one of Dutch Bros main competitors, Starbucks, does not operate on a franchise model.