Dutch Bros' Sales Are Skyrocketing Thanks to 2 Popular New Menu Items
Dutch Bros Coffee has been a hit with its customers in 2024. In its first-quarter earnings call yesterday, the Oregon-based coffee chain shared that its same-store sales increased by 10% during the period, which marks the company's strongest single quarter since Q4 2021.
Among the success drivers for Dutch Bros, Christine Barone, CEO and president of the chain, highlighted the addition of protein coffee and boba drinks to the menu. The chain launched these beverages earlier in the year as limited-time items and has since made them permanent offerings.
"Our innovation strategy is working," Barone said during the earnings call. She noted that the release of the protein coffee, followed by boba, drove "strong results in both the morning and afternoon dayparts."
In January, Dutch Bros launched its protein coffee to address a customer need for a high-protein functional beverage.
"It was exciting to see how our customers recognized the value of this new occasion and made it a part of their routines, evidenced by higher repeat purchase behavior than our typical [limited-time offering]," Barone said.
The chain currently offers protein coffee in four varieties: Protein Latte, Vanilla Protein Latte, Salted Caramel Protein Latte, and Salted Caramel Protein Mocha.
Then, in March, Dutch Bros rolled out Poppin' Boba drinks, which "surpassed" the company's expectations, according to Barone. She noted the drink's appeal among Dutch Bros' younger customer base.
Like the protein coffee, the boba beverages sparked repeat purchase trends and a positive customer response. Barone said these drinks also drove traffic, boosted average spending per visit, and sparked what the company believes is increased group buying behavior. The coffee chain is now permanently offering strawberry boba as a premium add-on.
In addition to its coffee and boba drinks, Dutch Bros is also seeing success with its Dutch Rewards loyalty program. Barone said this made up 66% of the chain's first-quarter transactions.
Beyond the sales growth, Dutch Bros opened 45 new locations during its first quarter. Going forward, Dutch Bros plans to open 150 to 165 new stores this year. The chain is also continuing to focus on boosting awareness by ramping up advertising in newer markets.
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