Dutch Bros (BROS) Baird 2024 Global Consumer, Technology, & Services Conference summary

Business overview and growth strategy

• Operates nearly 900 beverage-focused, drive-through shops with a strong culture and internal growth systems.

• Focuses on high-frequency beverage sales, with proprietary energy drinks and minimal food offerings.

• Plans to expand from 876 shops to over 4,000 in the next 10–15 years, with a coast-to-coast presence in 17 states.

• Achieved 11 consecutive quarters of 30+ shop openings, including a record-tying 45 new shops in Q1 2024.

• Targets mid-teens percentage growth in shop count, leveraging new market data for more precise expansion.

Operational excellence and team development

• Emphasizes consistent, high-quality service and a unique, scalable training system for all employees.

• Growth is driven by experienced operators opening new markets, supported by robust onboarding and people systems.

• Recent hires with large-scale brand experience and new leaders in operations, finance, and people are strengthening the executive team.

• Long-tenured team members and founders remain integral to culture and strategy.

Innovation, customer engagement, and technology

• Launched innovative products like protein coffee and Poppin' Boba, now permanent menu items.

• Dutch Rewards program drives 66% of transactions, enabling targeted marketing and customer retention.

• Media strategy shifted to focus on acquiring new customers, especially in low-awareness markets, with increased advertising investment.

• Mobile Order and Pay is in beta testing, targeting majority adoption by end of 2024, with flexible pickup options.

• High app adoption and customer demand suggest rapid uptake of mobile ordering, though incrementality is yet to be determined.