How Much is a Dutch Bros Franchise Cost, Profit Margin ?
Dutch Bros Franchise Overview
Who doesn’t love the smell of freshly brewed coffee, drifting through the air to please you? This is a view that the Dutch Bros Franchise aims to spread by brewing wonderful coffee.
A drive-through coffee shop concept founded in Southern Oregon in1992 by brother duo Dane and Travis Boersma, the Dutch Bros Franchise focuses on serving high-quality caffeinated beverages. The first coffee shop was started in 1992, and there are now 292 franchise locations around the world. Each location offers a wide range of specialty coffee drinks made with a premium private bean blend that is roasted fresh every day.
| Sr No. | Type | Public |
| 1 | Traded as | NYSE: BROS |
| 2 | Industry | Drive-thru restaurants Restaurants Retail coffee Retail beverages |
| 3 | Founded | February 12, 1992; 30 years ago in Grants Pass, Oregon[1] |
| 4 | Founders | Dane Boersma Travis Boersma |
| 5 | Headquarters | Grants Pass, Oregon , U.S. |
| 6 | Number of locations | 538 in 12 states[2] |
| 7 | Area served | Western United States |
| 8 | Key people | Travis Boersma (chairman) Joth Ricci (CEO) |
| 9 | Products | Whole bean coffee beverages Made-to-order beverages Bottled beverages Merchandise Smoothies Energy drinks |
| 10 | Revenue | US$497.9 million (2021)[2] |
| 11 | Operating income | US$−113.3 million (2021)[2] |
| 12 | Net income | US$−12.9 million (2021)[2] |
| 13 | Total assets | US$553.7 million (2021)[2] |
| 14 | Total equity | US$93.5 million (2021)[2] |
| 15 | Number of employees | 19,000 (2021)[2] |
| 16 | Website | www.dutchbros.com |
How to Get Dutch Bros Franchise?
Obtaining a Dutch Bros. franchise brings about numerous benefits for the franchisee. However, the franchise opportunities are available with Dutch Bros only to those who are already linked with the coffee franchise, i.e., to the only current franchisees and staff.
For those who are applicable, the following can be ensured to get a Dutch Bros Franchise.
- The first step is to ensure enough capitalization. To operate a Dutch Bros restaurant requires a minimum of $150,000 in liquid capital. It is also important to recognize the financial commitment required to launch a coffee business franchise.
- One also needs to take into account the costs of construction and real estate, equipment and signs, licenses and permits, uniforms, and insurance.
- Before applying, it is recommended to carefully consider previous business experience. Furthermore, it is important to note the market availability for Dutch Bros franchises to see if there are any available markets in the desired location.
- Once the above steps have received clarification, an application may be submitted to the franchise. Upon which the application will be reviewed. If an application is accepted, then an email confirmation receipt will be sent to the application owner.
- Once the candidates' financial and background checks are completed, and they meet the criteria of the franchise, they will be allowed to set up a franchise of their own.
Is Dutch Bros Franchise Profitable?
Depending on the region, each Dutch Bros. franchise store is expected to generate $570K-$650K in total income. Within their worldwide franchise, Dutch Bros sources coffee and supplies directly from cultivators across the world, along with distributing, roasting, and packaging it all. The average profit for a Dutch Bros business owner is projected to be around $124,000 per year.
Franchise revenue, like profit, is determined by a variety of factors. The amount of money one can make from a franchise is determined by a variety of factors, including the franchise location, labour costs, commercial lease rates, and a variety of other considerations.
Dutch Bros Franchise Requirements
To be qualified to create a franchise with the Dutch Bros one must accomplish with these ideas :
- One must have at least 3 years of experience with the company,
- One year as a manager
- A recommendation from the franchisee of the branch where one works.
This restriction is in place to ensure the quality of each franchise that is opened, as well as to ensure that the administration of these franchisees adheres to the company’s core values. If this does not happen, then the firm will buy the franchise back.
If interested applicants are not employed by the company, they can consider applying for a retail position and then working to ensure that the standards are met.
How much does a Dutch Bros Franchise Cost
| Fee Requirements | In Dollars | In Rupees |
| Franchise Fee | $30,000- $50,000 | Rs 23,43,931- 39,06,552 |
| Rent | $738-$12,400 | Rs 57,660- Rs. 9,68,825 |
| Equipment Fee | $25,000- $153,000 | Rs 19,53,276- Rs 1,19,54,050 |
| Licence | $1,000-$25,000 | Rs 78,131- Rs 19,53,276 |
| Professional Fees | $2,500-$20,000 | Rs 19,53,276- Rs 15,62,621 |
| Point-of-Sales Fees | $3,460- $5,935 | Rs 270333- Rs 4,63,707 |
| Additional Funds (for 3 months of operation) | $20,000- $25,000 | Rs 15,62,621- Rs 19,53,276 |
The initial investment is from $150,000 to $500,000. The franchise fee is $30,000.
Liquid cash: A total of $150,000 in liquid cash is required.
Equipment fee ($30,000- $50,000): The equipment fee is the investment required for the purchase of various equipment to be used to run the franchise. That could be your refrigerators, ovens, Furniture, and other types of Essential equipment primarily required for smoother operations.
License fee ($1,000-$25,000): This fee is required for the legal documents & license required in your region by the governing bodies, it could be an FSSAI license, Food Safety Licence, etc.;
The ongoing fees include the initial franchise fee and an ongoing royalty fee of 5%. In Indian rupees, the investment is around Rs 1.09 Cr.
Is Dutch Bros Franchise Worth it ?
While setting up a Dutch Bros franchise is surely worth it, issues related to opening a franchise should also be considered. This can be due to the hardships caused by COVID, marketing issues, difficulties with growth and maintenance, etc.
Expected Return on Investment
As quoted by a Franchise Times Story, "The average unit volumes in 2020 were $1.7 million, and same-store sales climbed 2% through COVID-19." As a result, the profit prospects of a Dutch Bros franchise appear promising, with sales increasing even during COVID-19.
Conclusion
Dutch Bros aims to give not only a high-quality product, but also a high-quality client experience. The Dutch Bros coffee is the largest privately held, drive-through only coffee company in the United States. The Coffee shop offers a wide range of coffees, caffeinated beverages, and other beverages such as tea, energy drinks, smoothies, hot cocoa, soda, and lemonade. While setting-up a Dutch Bros franchise is a highly lucrative idea, all requirements and conditions have to be met to succeed in doing so.