Business · Food

Dutch Bros. continues rapid expansion of its Valley footprint

Get ready for more crowded parking lots, Central Valley.

Dutch Bros., the Oregon-based coffee shack chain, is continuing to leverage its deep affinity of young Valley consumers with new moves to expand.

In the span of a few short months, the coffee chain will have four locations – increasing its size to 11 locations within the central San Joaquin Valley.

The company has quickly constructed a drive thru at the southwest corner of Herndon and Fowler avenues in Clovis, marking its first foray into the city.

Meanwhile, in Kings County, the company began construction on a new location in Hanford near an Aldi grocery store.

And in Visalia, the chain is adding a franchise on Akers Street.

Dutch Bros. operates on a franchise model, with a unique twist.

Unlike many fast food or fast casual chains, franchisees of Dutch Bros. are exclusively former Dutch Bros. employees.

In a Forbes profile, the company said that it has doubled down on franchising its locations to tried-and-true workers by eschewing strict capital requirements for franchisees and offering generous loan terms to cover the rest.

The embrace of a tightly-knit franchising strategy was described as unheard of by a franchising expert.

The company has regularly earned high plaudits from the magazine’s rankings of franchised establishments and held a 97 percent five-year continuity rate between 2010 and 2015, meaning only 3 percent of locations closed during that span.

Alex Tavlian
Alex Tavlian is the Executive Editor of The San Joaquin Valley Sun and Executive Director of Valley Future Foundation. You can reach Alex at alex.tavlian@sjvsun.com.