Dutch Bros, one of the fastest-growing rivals to Starbucks, is making bold moves to shake up the specialty coffee market. With an aggressive expansion plan targeting key states like California and Texas, the company is positioning itself to grab a bigger share of the competitive on-the-go coffee industry.
From Pushcart to Coffee Empire
The journey of Dutch Bros began in 1992 in Grants Pass, Oregon, when brothers Dane and Travis Boersma decided to sell espresso from a small coffee pushcart. Using savings from Dane’s previous Dairy Queen business, they built a brand rooted in friendly service and quality drinks.
Today, Dutch Bros looks nothing like its humble beginnings. The company operates over 1,000 stores across the Western United States, with an ambitious goal to double that number to 2,000 by 2029.
What Sets Dutch Bros Apart from Starbucks
While Starbucks is famous for its in-store café experience, Dutch Bros focuses on speed and drive-through convenience. Most Starbucks locations now have drive-throughs, but Dutch Bros is dedicated almost entirely to this model, making it a strong competitor for on-the-go customers.
Expanding in Starbucks’ Strongholds
Dutch Bros is strategically opening new stores in areas where Starbucks already has a heavy presence. According to data from ScrapeHero, Dutch Bros’ top five states by number of stores are:
| Dutch Bros Top States | Store Count | Starbucks Top States | Store Count |
|---|---|---|---|
| Texas | 223 | California | 3,186 |
| California | 203 | Texas | 1,473 |
| Oregon | 157 | Florida | 940 |
| Arizona | 89 | New York | 760 |
| Washington | 72 | Washington | 712 |
In markets like California and Texas, Dutch Bros and Starbucks often operate within close proximity, setting the stage for intense competition.
Popular Drinks Driving Sales
Dutch Bros’ Golden Eagle — a blend of espresso, vanilla, caramel, and caramel drizzle — and its Rebel Energy line (with flavors like Double Rainbro and Shark Attack) are customer favorites.
They also serve milkshakes, smoothies, and other specialty drinks that appeal to a younger audience.
This product variety is paying off. In the second quarter of 2025, Dutch Bros reported:
- Revenue growth of 28% year-over-year to $415.8 million
- Company-owned store revenue of $380.5 million, up 29%
- Same-shop sales increase of 6.1% overall
- Same-shop transactions up 5.9% at company stores
CEO Christine Barone credited this growth to innovative drink offerings such as Dulce de Leche, Sour Berry, and Matcha drinks, as well as the success of the Dutch Rewards program, which now accounts for 72% of all transactions.
Store Growth and Financial Success
During the latest quarter, Dutch Bros opened 31 new stores in 13 states, with 30 company-owned. Net income rose to $38.4 million, up from $22.2 million last year, while EPS increased 37% to $0.26.
For 2025, Dutch Bros plans to open 160 new stores and aims for 4.5% same-store revenue growth, expecting annual revenue between $1.59 billion and $1.6 billion.
The “Broista” Advantage
A key part of Dutch Bros’ brand identity is its “broistas” — energetic, friendly baristas who deliver a high-energy, customer-first experience. This people-focused culture has been a differentiator since 1992, fostering loyalty among millennials and Gen Z.
Future Growth Plans
Looking ahead, Dutch Bros is experimenting with food offerings, boosting order-ahead sales, and planning to launch consumer packaged goods (CPG) in 2026, allowing customers to buy Dutch Bros products in grocery and convenience stores.
Starbucks vs. Dutch Bros: The Battle Ahead
While Starbucks remains the global leader with over 41,000 stores worldwide and $9.4 billion in quarterly revenue, it has faced labor disputes, unionization efforts, and customer complaints about food quality and speed of service.
Dutch Bros, meanwhile, is still in rapid growth mode, targeting a long-term goal of 7,000 shops nationwide.
This growth potential — combined with its drive-through model and loyal fan base — could chip away at Starbucks’ market share.
Following its latest earnings report, Dutch Bros’ stock price jumped 22% on August 7, signaling strong investor confidence in its future.
Dutch Bros is no longer just a regional coffee chain — it’s a national contender ready to challenge Starbucks’ dominance. With a fast-expanding store network, innovative beverages, and a people-first culture, Dutch Bros is strategically positioning itself for long-term success.
The coming years will likely see a fierce battle for coffee lovers’ loyalty, especially in high-value states like California and Texas.
Frequently Asked Questions
1. What makes Dutch Bros different from Starbucks?
Dutch Bros focuses on drive-through speed, high-energy service, and sweeter drink options, while Starbucks offers a broader in-store café experience.
2. How many Dutch Bros locations are there in 2025?
Dutch Bros has over 1,000 stores and plans to reach 2,000 by 2029.
3. What are Dutch Bros’ most popular drinks?
Favorites include the Golden Eagle, Rebel Energy flavors like Double Rainbro and Shark Attack, plus smoothies and milkshakes.
