Milk going into iced coffee – Selcuk Oner/Getty Images
When pondering coffee chains, Starbucks and Dunkin’ likely come to mind first. By 2024, these two brands accounted for approximately 78% of the coffee market in the United States, as per Placer.ai. However, this is a decline from nearly 86% in 2019, largely due to the rise of other coffee chains. In a distant third place is Dutch Bros, an Oregon-based coffee chain that’s steadily increasing its market presence.
Dutch Bros was founded in 1992 by two dairy farmers. While it specializes in coffee-based drinks, the majority of its offerings—about 90%—are iced beverages. Now boasting 1,140 locations across the U.S., Dutch Bros is carving out its niche in the coffee landscape, generating approximately $1.6 billion in annual revenue. The growth of smaller coffee chains has contributed to Starbucks experiencing an 8% decline in market share since 2019.
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Dutch Bros has different popular drinks
Dutch Bros assorted drinks – Mario Tama/Getty Images
Although hot coffee can be ordered at Dutch Bros, it is renowned for its customizable energy drinks. The Rebel line has become a defining feature of the brand. “We flavor [Rebel], we let you add whatever toppings you want,” stated Tana Davila, Dutch Bros’ chief marketing officer, in an interview with the Wall Street Journal. “The energy market is growing at a faster rate than coffee, so we are very well positioned to continue to lead.”
Similar to Starbucks, Dutch Bros features a range of seasonal drinks, lattes, and protein-packed beverages (which Starbucks introduced in 2025). However, Dutch Bros stands out with unique offerings like its Rebel energy drinks, as well as an array of shakes and smoothies in flavors such as cotton candy and green apple, plus sparkling sodas. Remarkably, energy drinks comprise a quarter of Dutch Bros’ sales, while other signature beverages, like the popular Golden Eagle, are also delighting customers. The combination of unique beverages and exceptional customer service is aiding Dutch Bros in steadily increasing its market share.
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Read the original article on Chowhound.
Key Takeaways
- Starbucks and Dunkin’ dominate the U.S. coffee market, holding 78% of sales.
- Since 2019, these brands have lost market share as smaller chains, including Dutch Bros, rise in popularity.
- Dutch Bros, founded in 1992, primarily offers iced beverages, with 90% of its sales in this category.
- The chain features unique drinks, especially its customizable Rebel energy drinks.
- Exceptional customer service has been a key factor in Dutch Bros’ growth.
FAQ
What makes Dutch Bros unique compared to other coffee chains?
Dutch Bros is well-known for its iced beverages and customizable energy drinks, particularly its Rebel line, which sets it apart from traditional coffee offerings.
How many locations does Dutch Bros have?
Dutch Bros currently operates 1,140 locations across the United States.
What percentage of Dutch Bros sales come from energy drinks?
Energy drinks account for about 25% of Dutch Bros’ overall sales.
Does Dutch Bros offer hot coffee?
Yes, while Dutch Bros is known for its iced drinks, hot coffee is still available on the menu.
In conclusion, as competition in the coffee market intensifies, Dutch Bros is proving to be a formidable player. With its distinctive offerings and focus on customer experience, it continues to capture the hearts of coffee enthusiasts across the nation.
