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Dutch Bros Inc.’s expansion of its corporate offices into Arizona is moving forward as planned, the drive-thru coffee giant’s CEO said during a quarterly earnings call on May 8.
“The expansion of our support center in Arizona, which we announced last quarter, remains on track, and we are excited to ramp up our hiring in that market,” Christine Barone, the president and CEO of Dutch Bros, said on the call.
Dutch Bros (NYSE: BROS), which is based in Grants Pass, Oregon, opened an office in Scottsdale at 6320 E. Thomas Road earlier this year that is home to some of the company's operations support staff. The plan is to significantly grow Dutch Bros' presence in the Valley during the next year.
Dutch Bros expects to have at least 40% of its corporate staff working in the Phoenix office by the beginning of 2025. The company is looking for large office space in the Valley.
“Phoenix is a terrific market for us, where we enjoy high brand recognition and affinity. We look forward to capitalizing on this excitement as we continue to build out capabilities in this support center,” Barone said. “We anticipate moving into our permanent office location in early 2025.”
The office move is expected to cost Dutch Bros $41 million. Dutch Bros has several corporate job openings – including IT, construction management and HR – listed online that are all based in Scottsdale.
As the company looks to grow its corporate presence in the Valley, it is also using Phoenix as a test market for new product initiatives.
Earlier this year, Dutch Bros started testing order ahead technology within its mobile app. Barone told investors and analysts that the initial phase of the test is going well and the company has expanded the test program to include several stores in the Arizona market.
“We have gathered a lot of employee and customer feedback as we work through our stage gate process,” Barone said. “We are optimistic that we will have mobile order capabilities in a majority of our shops by the end of 2024.”
For the first quarter of 2024, Dutch Bros reported results above Wall Street’s estimates including revenue of $275.1 million, which is a 39.5% jump from the same quarter a year ago. The company's shares gained 3.% on Thursday to close at $32.30.
