Do you want to know how much money Dutch Bros franchise owners make yearly? If YES, here are 5 factors that determine the income & profit margin for Dutch Bros. Every cup of Dutch Bros. coffee is handcrafted — roasted by hand in the Pacific Northwest, blended by hand and then ground and pulled by hand, ristretto – style.
Although it is called Dutch Bros Coffee, they sell a variety of drinks such as smoothies, frosts, teas, Italian sodas, Rebels, and freezes. You can also get them with almost any flavour you can think of. Dutch Bros offers you a lot of freedom in making the perfect drink for yourself.
Note that most Dutch Bros locations have a drive – thru with an option of ordering at a window which you can walk up to. For the most part, people tend to prefer the drive – thru. When the line is long, all you have to do is sit in your car and someone will come up to your window and take the order.
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How Much Do Dutch Bros Make per Cup of Coffee?
While their drinks are already pretty cheap and affordable, they offer the use of stamp cards. At Dutch Bros, if you buy 10 cups, you’ll get your 11th one for free. If you’re lucky, they’ll even throw in a few extra stamps and that’s not even the best part.
You can get any drink in any size and most Dutch Bros locations are opened 24 hours. If they aren’t, they’re usually open pretty late. Dutch Bros is good at any time of the day,
How Much Do Dutch Bros Franchise Owners Make Yearly
Owing to the above factors, it is estimated that each Dutch Bros Franchise store generates $570 – $650K total revenue depending on location. Dutch Bros source coffee and supplies direct from the growers around the world, distributes, roasts, and packages all within their global ecosystem. This leaves the average profit for a Dutch Bros store owner at an estimated $124,000 annually.
5 Factors That Determine the Estimated Yearly Income of Dutch Bros Franchise Owners
It is pertinent to note that Dutch Bros. Coffee only offer franchising opportunities to existing employees. Dutch Bros. expresses its desire to grow only with people who have shown sincere commitment to the company and its values. Howbeit, the average franchise cost and income is not known.
However, just like any other coffee franchise in the United States, there are few factors believed to influence the potential annual income of Dutch Bros franchise owners. These factors can vary based on the franchisor and possible business agreements. Here are few to consider when analyzing the exact amount a Dutch Bros Franchise owner makes in the United States.
The location where the Dutch Bros store is set up tends to be very important to the income and profit of the store. A store in prime location will get more customers when compared to one in local locations. In order to set up a Dutch Bros store, you need to get a location approved and analyzed by the franchisor. After proper amount of research, Dutch Bros will only approve a location that suits its vision and shows the potential for success.
2. Labour Costs
Note that when employees abuse time or skip the clock, it tends to affect business income. That is why every good business owner is advised to always make sure they’re clocking in and out when they are supposed to so they won’t be overspending on payroll.
3. Product Waste
Product waste in every business establishment is a tragedy. Take a look at how much coffee or tea servers are throwing away after each meal they serve. If it’s excessive, it means that the portion sizes are too big. Although the franchisor tends to dictate the ration and size most times, you can reduce waste by using as much of each item as you can. Another way to avoid product waste is to manage inventory.
4. Employee Theft
You may not want to think about it, but many coffee shops have high theft rates among their employees. Staffs see an easy meal and take advantage of it. But according to Dutch Bros website, they ensure you have a good system in place to track food costs and manage employee theft.
But it is pertinent a franchise owner takes inventory often and knows exactly where the food is going. In addition, if you offer staff a meal before or after their shift, consider keeping it to a set menu. This keeps them from eating those items on the menu that cost the business a lot to prepare.
5. High Wait Times
Although Dutch Bros has established itself as a unique drive thru coffee shop, how long customers have to wait for a table or service at your restaurant affects profit. While that may seem counter – intuitive because a busy shop is a profitable one, it pays to look at why you have high wait times.
Dutch Bros. Coffee is a drive – through coffee shop franchise focused on serving quality caffeinated beverages and giving back to its community. Customers do not even have to leave their cars to pick up a cup of flavoured coffee brewed from fresh – roasted beans blended on location.
Dutch Bros. works to offer not only a quality product, but also quality customer service. Employees are asked to take the “Dutch Creed” which includes pledges like “To talk health, happiness and prosperity to every person you meet” and “To think only the best, to work only for the best and expect only the best.”