Dutch Bros Inc. Announces Expanded Operations Support Center in Phoenix, Arizona

Rhea-AI Summary

Dutch Bros Inc. (NYSE: BROS) announces plans to expand operations at its Phoenix, Arizona office, aiming to shift 40% of its support staff by 2025. The expansion is expected to be discussed in detail during the Fourth Quarter and Full-Year 2023 earnings call in mid-February. CEO Christine Barone emphasizes the brand's focus on relationships and the strategic nature of the roles being moved. The move is intended to position the support center closer to the brand's expansion across the US, leveraging Phoenix's strong market and cultural presence. The company plans to maintain a significant presence in Grants Pass, Oregon, where it originated.

Insights

Market Research Analyst

The announcement by Dutch Bros Inc. regarding the expansion of its operations in Phoenix, Arizona, underscores a strategic move aimed at bolstering the company's growth trajectory. By relocating 40 percent of its total support staff to this office, the company is not only seeking to enhance its operational efficiency but also strategically positioning itself to attract talent within a competitive labor market. Phoenix's advantageous location, with access to a major airport, facilitates improved connectivity and logistical benefits, which are vital for a company in the quick service beverage industry where speed and customer service are key differentiators.

Moreover, the company's focus on maintaining its cultural ethos, referred to as 'Dutch Luv,' by establishing a support center in a market that strongly embraces its brand, can be seen as a move to safeguard its brand identity amidst rapid expansion. This cultural alignment could potentially resonate with consumers and employees alike, fostering loyalty and contributing to the company's competitive advantage.

Financial Analyst

The financial implications of Dutch Bros' operational expansion are multifaceted. On one hand, the upfront costs associated with such a move might impact short-term financials, potentially affecting the company's stock performance. However, investors typically weigh such strategic investments against the long-term benefits they are expected to generate. The proximity to a major airport and the strategic relocation of key personnel could result in operational efficiencies and cost savings over time, possibly leading to margin improvements.

Furthermore, the company's ambitious goal of reaching over 4,000 shops suggests aggressive growth plans that could excite investors about future revenue streams. The market will likely monitor the upcoming earnings call for details on the financial impact of the expansion, including any guidance adjustments that reflect the costs and expected benefits of the Phoenix office expansion.

Human Resources Expert

The decision to move a significant portion of Dutch Bros' support staff to Phoenix is indicative of a strategic human resources initiative. The company is likely considering the talent pool available in the region, which may be more aligned with its needs as it scales operations. The ability to attract and retain top talent is crucial for a company experiencing rapid growth and Phoenix's labor market could offer a diverse and skilled workforce that aligns with Dutch Bros' core values and operational needs.

Additionally, the emphasis on maintaining a strong company culture during expansion is a critical aspect of human resources strategy. By reinforcing its presence in a market where its brand is already well-received, Dutch Bros may be looking to leverage local cultural fit to enhance employee engagement and satisfaction, which can lead to higher productivity and reduced turnover rates.

GRANTS PASS, Ore.--(BUSINESS WIRE)-- Dutch Bros Inc. (NYSE: BROS; the “Company” or “Dutch Bros”) one of the fastest-growing brands in the quick service beverage industry in the United States by location count, today announced it intends to expand operations at its Phoenix, Arizona office. The Company anticipates providing further details on the expansion during its Fourth Quarter and Full-Year 2023 earnings call in mid-February.

“Dutch Bros is a brand built on relationships, whether they’re at the window or among our teams,” said Christine Barone, CEO and president of Dutch Bros. “We appreciate the ability to bring more people together and look forward to harnessing what makes Dutch Bros so special by fostering even stronger connections with each other and our field crews.”

The Company anticipates shifting approximately 40 percent of its total support staff to its Phoenix, AZ office by January 1, 2025. These roles are primarily strategic in nature and those that support day-to-day operations, a portion of which are already based in Arizona. Expanding operations in Arizona positions the Company’s support center closer to its center of gravity as the brand expands across the country.

“As we look toward our long-term objective of 4,000+ shops, strengthening our existing operations in Arizona positions us to compete for the talent we need to accomplish this ambitious goal. In addition, Phoenix's proximity to the nation's 12th busiest airport provides significantly easier and faster access to our rapidly-expanding set of markets across the US, increasing connectivity,” said Barone. “The Phoenix market is also one of the strongest in our system, where ‘Dutch Luv’ is embraced every day. We expect that by further establishing a support center in an area of strong culture, we will keep our customers and broistas top of mind as we grow.”

Dutch Bros began as a pushcart in 1992, in Grants Pass, Oregon, and as of December 31, 2023, the Dutch Bros system has grown to 831 shops (542 company-operated and 289 franchised-operated) across 16 states. The Company expects to maintain a significant presence in Grants Pass, including its roasting facility and several support operations.

“Grants Pass is home and our connection here is a key part of Dutch Bros’ success,” said Travis Boersma, co-founder and executive chairman. “Dutch Bros will continue to be connected to the community in a meaningful way through our roasting facility, HQ offices, the shops that operate in the area, and our local givebacks.”

About Dutch Bros Inc.

Dutch Bros Inc. (NYSE: BROS) is a high growth operator and franchisor of drive-thru shops that focus on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE. Founded in 1992 by brothers Dane and Travis Boersma, Dutch Bros began with a double-head espresso machine and a pushcart in Grants Pass, Oregon. While espresso-based beverages are still at the core of what we do, Dutch Bros now offers a wide variety of unique, customizable cold and hot beverages that delight a broad array of customers. We believe Dutch Bros is more than just the products we serve—we are dedicated to making a massive difference in the lives of our employees, customers and communities. This combination of hand-crafted and high-quality beverages, our unique drive-thru experience and our community-driven, people-first culture has allowed us to successfully open new shops and continue to share the “Dutch Luv” at 831 locations across 16 states as of December 31, 2023.

To learn more about Dutch Bros, visit www.dutchbros.com, follow Dutch Bros Coffee on Instagram, Facebook, Twitter, and TikTok, and download the Dutch Bros app to earn points and score rewards!

^{Dutch Bros, our Windmill logo, Dutch Bros. Blue Rebel and our other registered and common law trade names, trademarks and service marks are the property of Dutch Bros Inc. All other trademarks, trade names and service marks appearing in this Preliminary Earnings Release are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Preliminary Earnings Release may be referred to without the ® and ™ symbols, but such references should not be construed as any indicator that their respective owners will not assert their rights thereto.}

Forward-Looking Statements

In addition to historical information, this release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on Dutch Bros’ current expectations and beliefs, as well as a number of assumptions concerning future events. Forward-looking statements include, without limitation, information and expectations regarding Dutch Bros’ employment practices, business and operational strategies, and potential growth opportunities. When used in this press release, the words “estimates,” “projected,” “expects,” “should,” “guidance,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Dutch Bros’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those related to general economic conditions, commodity inflation, increased labor costs, disruptions in our supply chain, ability to hire and retain employees, and other risks, including those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 27, 2023, our Quarterly Report on Form 10-Q for the period ended September 30, 2023 filed with the SEC on November 8, 2023, and in our future reports to be filed with the SEC. Forward-looking statements contained in this press release are made as of this date, and Dutch Bros undertakes no duty to update such information except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240117878757/en/

For Investor Relations inquiries:

Raphael Gross

ICR

(203) 682-8253

investors@dutchbros.com

For Media Relations inquiries:

Jessica Liddell

ICR

(203) 682-8208

jessica.liddell@icrinc.com

Source: Dutch Bros Inc.

FAQ

What is the ticker symbol for Dutch Bros Inc.?

The ticker symbol for Dutch Bros Inc. is BROS.

What are Dutch Bros Inc.'s expansion plans for its Phoenix, Arizona office?

Dutch Bros Inc. intends to shift approximately 40% of its total support staff to its Phoenix, AZ office by January 1, 2025, with a focus on strategic roles and day-to-day operations support.

Where did Dutch Bros originate?

Dutch Bros began as a pushcart in 1992 in Grants Pass, Oregon.

How many shops does Dutch Bros currently operate?

As of December 31, 2023, Dutch Bros operates 831 shops across 16 states, with 542 company-operated and 289 franchised-operated locations.

What is the long-term objective of Dutch Bros Inc.?

Dutch Bros Inc. aims to have 4,000+ shops in the long term.