Can Dutch Bros Successfully Challenge Starbucks in the Coffee Shop Industry?
Dutch Bros has potential
The market appreciates a good story, and Dutch Bros' management has told one. It has stated that it intends to build the chain to 4,000 locations one day. Should this become a reality, it would be a monster 380% expansion from the current footprint.
Starbucks dominates the industry
The fact that Dutch Bros is a coffee retailer naturally draws comparisons to Starbucks, the Seattle-based company that has long dominated this restaurant sector.
Playing the odds
Given the competition in the industry, I'm not entirely confident that Dutch Bros can achieve its own internal target of opening 4,000 stores. The executive team can drum up lots of investor interest by throwing out a number like that. But to actually make it happen, a lot of things need to go right for this business. In my opinion, there's simply too much uncertainty to get to where it wants to be.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.