Could you think of a drive-through coffee shop in the US that is as popular as Dutch Bros? No? Well, it’s understandable. After all, the company is widely known across the country. And for good reasons.
Dutch Bros prides itself on user-friendly staff who serve great coffee. The crew exudes an aura of positivity, enough for customers to keep coming back.
With its popularity, you might want to run a shop yourself. But how much does a Dutch Bros Coffee franchise cost? And what would it take to obtain one?
Average Dutch Bros Coffee Franchise Cost
Unfortunately, the average Dutch Bros Coffee franchise cost is unknown. In fact, franchising is not open to the public. Only employees who have been with the company for 3 years could become franchisees.
Why the stringent rules? Well, Dutch Bros wanted to uphold its values, work culture, and quality products in its every branch. That said, committed employees are the leading candidates to continue the company’s legacy.
Dutch Bros is so determined to keep its reputation untarnished. For instance, the company would buy out a franchise that won’t be able to perform to its standards, no matter the cost.
If you want to obtain a Dutch Bros franchise and you’re not an employee, you could always apply for a position first. Borrowing the company’s words, you should go and “join the Mafia.”
Required Expenses for a Dutch Bros Franchise
Though the Dutch Bros Coffee franchise start-up fee is unknown, you could still learn about some required expenses to start your business.
- Liquid capital
Of course, you need to be a Dutch Bros employee first before you prepare any of the above. Remember, you have to be employed in the company for a minimum of 3 years. Additionally, you need at least one year of managerial experience.
Say you’ve already served at the company for several years. To become a franchisee, you need a Dutch Bros Coffee franchise start-up fee. Additionally, you also have to secure a liquid capital.
According to FranchiseHelp.com, the required liquid capital for a Dutch Bros franchise is around $150,000. The cost includes cash, stocks, bonds, and additional expenses like securities. The said amount should be readily available for use.
Aside from the liquid capital, you should pay $30,000 to $60,000 for the expenses during opening day. The celebration is a grand one. The launching party involves giant inflated coffee cups and giving free drinks to customers.
Note that Dutch Bros could loan you for financing the franchise. For instance, one term offered to an employee involves the company loaning about $250,000. The fund is payable for 10 years at 12% interest. The loyal staff has only put forward $5,000 for five franchises while the rest of the cost was covered by the said loan.
Coffee shops would not run without the equipment that makes the drinks. Dutch Bros is the same. The store must have an espresso machine, blender, and cooler, among others.
One of the must-haves for a Dutch Bros franchise is a La Marzocco espresso machine. A unit costs $10,000. Add in other equipment and the total price would be around $150,000.
On the accounting side of things, a cash register and credit card machine are essential for transactions.
Of course, a Dutch Bros franchise must have a home. You could either lease or buy a property. The cost would depend on your location as cities have varying rental or acquisition rates.
Thankfully, with its continuous expansion, Dutch Bros may go as far as paying for the remodeling or construction of the store (for the meantime). The cost of constructing a franchise would depend on the specifications for that particular branch.
The company would also help you find a strategic location where you’re sure to lure in customers.
Other Requirements to Become a Dutch Bros Franchisee
Aside from the Dutch Bros Coffee franchise start-up fee, you must be an employee who is one with the culture promoted by the company. That is, being positive and able to connect with people.
A crew at the company is expected to ask how a customer’s day was, know a buyer’s preferences, and do little good things for someone who’s feeling down. The culture of Dutch Bros revolves around the connections they make with others.
Also, you need to submit a written essay describing why you want the franchise. You would also have to enclose in your application a video essay that would detail your personality.
Looking to apply to Dutch Bros to get your hands on a franchise? Here’s a sample of how much you could make as an employee of the company from Glass Door:
- Barista: $9 to $10 per hour
- Store manager: $17 per hour
- Regional manager: $17-$19 per hour
- Shop manager: $12-$13 per hour
Gains from a Dutch Bros Franchise
Apparently, you could earn hundred thousands of dollars from a Dutch Bros franchise (provided all conditions are right).
A regional manager, for instance, could be making a gross sale of $4 million. The profit from that would be $230,000. Furthermore, high-volume locations would yield higher profits. An example is a store on Highway 99 in California which earned $3.1 million in sales within only 10 months. The generated profit was $570,000.
Giving Back to the Community
In Dutch Bros, it’s not always about the profit. Sure, the stores are high-yielding. But the truly rewarding part is the fact that you could give back to the community.
For instance, the company donates a one day worth of profits to the Muscular Dystrophy Association. This charity project was conceptualized by founder Travis Boersma, following the death from Lou Gehrig’s disease of his brother and co-founder Dane.
The company also holds an annual event called “Buck for Kids Day”, aiming to donate to local youth-oriented non-profit organizations.
Furthermore, the company sees to it that 1% of the gross sales from each store is reinvested in the community.
A Dutch Bros Coffee franchise would go a long way, thanks to its brilliant concept. Customers would surely love what they’d get from a drive-through coffee shop who has much more to give than a cup of cappuccino.