Dutch Bros
The latest coffee shop with a whole latte potential
A rapidly growing enterprise that has caught our attention is Dutch Brothers Coffee, based out of the upper northwest. Dutch Bros is a privately-owned coffee company (NYSE: BROS) founded in 1992 by Dane and Travis Boersma in Grants Pass, Oregon. What began as a single pushcart coffee stand has now grown into a successful franchise with over 800 locations across the United States. Renowned for its handcrafted specialty coffee drinks, Dutch Bros emphasizes spreading positivity, building genuine connections with customers, and making a difference in the communities they serve.
What stood out? For the most part, they have a unique footprint of about 950 sf, and often with drive-throughs on both sides of the building. These outparcels are generally well-located, with long term NNN leases in place. And they are trading at cap rates lower than both Dunkin’ and Starbucks.
As of last week, there were roughly 50 net-leased Dutch Bros locations on the market. The average asking price was $2 million at an average cap of 4.92%. To match their growth, many were relatively newer stores with an average lease term of 16 years.
