Business
422 coffee chain started as a coffee cart in 1992
World’s fastest growing coffee chain Luckin Coffee, filed for bankruptcy. It faked earnings and owed money. 29 year old coffee chain Dutch Brothers expanded during the pandemic.
Dutch Brothers is a chain of 422 drive through coffee outlets. Two brothers Travis and Dane, started it in 1992 with a coffee cart. They started by investing $12000. Within six months they started making $200 per day. Its revenue in 2020 was $500mn. Even during the pandemic it opened about 50 stores. Of its 422 stores, it’s split between 247 franchised and 175 company-owned. It doesn’t use food delivery apps, as it focusses on quality.
Cofounder Travis said in an interview to Forbes, “He describes its culture as filled with “positive energy. It’s a contagious customer service. No one waits for a check.” Its employees listen to music while they’re working and are bouncing to the beat.”
While Starbucks and 3rd wave cafes opened expensive cafes, it focussed on human connections and drive throughs. It also offers franchises to its employees at big discounts. A 28 year college dropout owns 5 Dutch Brothers franchises. She is a millionaire.