Dutch Bros Coffee Franchise Cost – A couple of short decades ago, Dan Richardson was a bank vice president at Southern Oregon. He had no ambitions of owning his own business, and while he enjoyed his morning coffee, he was not obsessed with that. “I remember driving to work one day in 1992 and there were these 2 men on a street corner with a blue tarp,” Richardson said. “I didn’t even understand what espresso was back then.”
In 2002, private circumstances led the Richardson family to relocate to Chico, and soon before Dan left Grants Pass he ran into an acquaintance who was going to start a Dutch Bros. franchise.
He then got to thinking about it. “I knew it was a proven entity. I saw what the lines were,” Richardson said. “I understood their business philosophy was really customer-oriented, really upbeat, and that I knew it’d go well down here.” The East Park Avenue drive-through opened in June 2003, giving off from 4,000 and 5,000 free java drinks during the two-day grand opening.
Chico was hooked. Mid-morning on a recent weekday, just about any driver passing through the kiosk had something to say to Richardson, who perhaps ironically comes off as a little shy. 1 customer was excited about his new job, another had recently married, two ribbed him about getting his picture taken for this story: “Smile, Dan!”
Apart from quality, Richardson stated Dutch Bros. hopes to be known as the location with genuinely friendly workers. “You need to be certain that you’re employing real, likable, outgoing types of people,” he said.
“We actually do care about the men and women that are coming from your window. “When you see tens of thousands of people each day you receive a bond with them.” Somehow, Dutch Bros. was able to keep up the friendly atmosphere amid the growth of chainlike proportions.
The men Richardson had seen peddling coffee facing a Grants Pass Wal-Mart nearly 14 decades ago were “Dutch Bros.” Travis and Dane Boersma, whose business has grown from one push-cart to 76 drive-through franchises in the Western United States. In Southern Oregon’s small cities, it’s hard to drive a distance without visiting the distinctive blue painted windmill and tulips. In 1996, the company began roasting its coffee.
Following their “Dutch Creed,” which oozes optimism, the creators have laid out a multi-phased “expansion spiral” that contains the launch of a nationwide franchise effort this past year. Richardson, who had no experience running his own company, is thankful he got in on the idea fairly early.
“I was essentially purchasing the Dutch Bros. name instead of attempting to do it myself,” he said. “If you get the ideal franchise, you are not needing to reinvent the wheel”
However, he cautioned, “If you are getting into one it’s much like a union and you need to be really sure who you’re jumping into bed with. You have got to make sure it is a company that you want to be with since it’s a long-term commitment.”
According to the Dutch Bros. Web site, new franchisee applicants must have a net worth of at least $500,000, including $125,000 in cash. There’s a $30,000 franchise fee up front, and after that royalty fees are 5 percent of gross sales or $1,300 a month—whichever is greater
Even though the Chico franchise has done well for him money-wise, ” Richardson stated, “it’s not all about the cash. It is really part of my life. It makes no fiscal sense to give away coffee for daily. We do not advertise it. We simply do it”
He amounts 90 percent of sales aren’t only “repeat” customers, but people who drive by or walk up many times a week, daily or more than once a day. “That’s our bread and better individuals on their way to work,” Richardson explained. “Nearly everybody that comes through has our stamp card”
Richardson said he’s never felt restricted by the company’s rules such as what beverages can be offered and that specials to advertise. “They need to stay consistent–when people see Dutch Bros. that they know what they’re likely to have,” he said. “But when a customer wants a specific beverage [that is not on the menu], we’ll try to create it.” And while some businesses don’t care when out-of-town investors buy into a franchise and also employ a manager to run it, Dutch Bros. needs the franchise to be very involved with the day-to-day surgeries.
Richardson will shortly need to divert his focus only a couple of feet: The Richardsons and business partners Dennis and Loree Snyder are wading through the city planning process to construct the Crazy Kahuna Car Wash–which isn’t a franchise–on a little dirt lot next to the existing Dutch Bros. “I had been looking out on this empty lot constantly and it just looked like a waste,” said Richardson, who currently has a ground lease on both properties.
But he has what company T-shirts call the “Dutch adore.” Richardson wants to open a second Dutch Bros. location in Chico. “It is only a matter of finding the right location.”