Dutch Bros Aims to Boost Beverage Sales by Expanding Food Offerings: Here’s What You Need to Know!

Dutch Bros is on a mission to boost its food menu. The coffee chain, based in Grants Pass, Oregon, is expanding from four to eight food items. But they are taking their time with this change. They started testing in eight locations and have now extended it to 32. Full menu availability might not happen until next year.

CEO Christine Barone shared insights about this careful approach. She emphasized the importance of speed in service. “We want to make sure that the food works within our current cycle time,” she explained at the William Blair Growth Stock Conference. Fast service is key for Dutch Bros, which primarily focuses on drinks. Currently, food only makes up about 2% of their sales.

The existing menu features three types of muffin tops and a granola bar. The new items include two sliders, a chorizo wrap, and a Dutch waffle. Although food profits can be lower than drinks, the chain believes that offering food will lead customers to buy more beverages, especially during breakfast.

CFO Joshua Guenser mentioned that adding food could lead to higher sales. “This should help us increase our transaction numbers and overall ticket size,” he said. However, broader food offerings come with challenges. They will require heating equipment and extras like tongs and paddles for serving.

Despite these hurdles, Barone noted that their staff, or “broistas,” have been successfully managing the current offerings. This confidence allowed for the test’s expansion to 32 locations, but Barone cautions that they are just beginning their journey into food offerings.

A recent survey highlights a growing trend toward coffee shops providing food options, with 60% of customers expressing interest in grabbing a snack along with their coffee. This change reflects a broader shift in consumer behavior, where convenience and speed are top priorities.

As Dutch Bros navigates this new territory, they remain focused on balancing operational efficiency with customer preferences. This shift could bring a fresh vibe to their shops and deepen their connection with customers seeking a quick meal alongside their favorite beverages.



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