Dutch Bros Coffee has officially opened its first location in the city of Los Angeles, marking a significant milestone as the company celebrates its 1,111th outlet. Situated at 3726 S Figueroa St., near the University of Southern California (USC), this new 1,300-square-foot walk-up establishment signals the chain’s continued expansion across the United States.
The project was facilitated by JLL’s representatives, Shauna Mattis and Liam Bredberg, who worked on behalf of the landlord, DWS. Dutch Bros was represented by Xan Saks and Alex Kogan from Beta Agency. The opening reflects the brand’s commitment to reaching new customers in urban areas, particularly in California, where it has previously had limited presence in city locations.
Brady Benner, the regional operator for Dutch Bros, expressed enthusiasm about the new location, stating, “I could not be more grateful for the opportunity to bring Dutch Bros Coffee to Los Angeles. Bringing this location to the Exposition Park and the greater Los Angeles community means we will have a space to bring love and light to each person we meet every day. We can’t wait to serve you, L.A. – see you soon!”
The expansion into Los Angeles is part of a broader growth strategy for Dutch Bros, which has seen remarkable development since its founding in 1992 by Dane and Travis Boersma. Originally based in Grants Pass, Oregon, the company has since relocated its headquarters to Tempe, Arizona. Dutch Bros primarily operates drive-through locations, with a significant concentration in the western United States.
Strategic Growth and Financial Success
In October 2018, Dutch Bros received an undisclosed investment from private equity firm TSG Consumer Partners, which acquired a minority stake in the company. This funding supported the chain’s ambitious goal to expand to 800 stores within five years. By August 2021, Dutch Bros filed for an initial public offering (IPO), aiming to raise $100 million to address long-term debt totaling $192 million.
The company’s IPO successfully launched on September 15, 2021, raising an impressive $484 million by selling approximately 21 million shares at $23 each. This financial backing has bolstered its expansion efforts and allowed Dutch Bros to reach new markets, including its recent foray into Los Angeles.
As the coffee chain continues to grow, it remains focused on maintaining its unique brand identity, characterized by a vibrant company culture and commitment to community engagement. The opening of the Los Angeles location is anticipated to enhance Dutch Bros’ visibility and accessibility in a competitive market that has a strong coffee culture.
In summary, the launch of Dutch Bros’ first city location in Los Angeles not only represents a significant achievement for the brand but also underscores its intentions for ongoing expansion. As the company seeks to serve new communities, it positions itself as a formidable player in the coffee industry, poised for further growth in the coming years.
