Dutch Bros. VP talks expansion in Tampa Bay and throughout Florida
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Jul 27, 2023

Dutch Bros. Coffee shops are small — 915 square feet — and have no indoor seating or access for customers. But outside the shop is what Aaron Harris, the chain's senior vice president of development, calls "a party in the parking lot."

"The 'broista' may spend more talking to your dog than you, or employees might be taking a random poll, like 'What's your favorite Elvis song?'" Harris told the Tampa Bay Business Journal. "But it just creates an absolute vibe, and we want to create a routine where customers are coming to see us every day."

Oregon-based Dutch Bros. plans to build its first Tampa Bay location in the South of Gandy area, on the site of a former car wash at West Ballast Point Boulevard and North Dale Mabry. Dutch Bros. has been expanding throughout Orlando and Central Florida, with three sites confirmed in Davenport, Lake Nona and Apopka. Plans are also in the works for the Jacksonville area, Harris said, though he declined to identify any sites there.

The Tampa Bay market could eventually be home to 20 Dutch Bros. locations; realistically, 10 could be built in the next five years, Harris said. The company is also looking at sites near the University of South Florida and throughout the suburbs. An ideal Dutch Bros. site is .75 acres and can accommodate a drive-thru with space for 16 cars as well as 10 to 12 surface parking spaces.

Dutch Bros.' Florida expansion will happen slower than its growth in Texas, where the chain has opened 130 stores in two and a half years.

"It is a little bit slower than the Texas expansion," Harris said, "but we are all about creating opportunity and being very smart with our investments."

The company went public in 2021. After accounting for interest expense, taxes, cost of sales, selling, general and administrative expenses, the company reported a net loss of $9.39 million. Most of the losses were due to higher interest expense, which more than tripled from $2.5 million to $7.9 million year over year.

Dutch Bros. opened 45 shops across nine states in the first quarter. Second-quarter results will be available August 8.

“Our new shops are highly efficient, mature quickly, and continue to demonstrate predictable and attractive margin profiles," CEO Joth Ricci said in a statement. "The class of shops opened in 2019, 2020, and 2021 have already achieved our 30% contribution margin target, and the class of 2022 is maturing in line with our margin expectations. We are hitting these targets as we continue entering new trade zones across the country. This performance gives us confidence in Dutch Bros growth strategy — both in the near-term and beyond.”