Thursday, January 30, 2025

[EXCLUSIVE] Former Sonic That Was Almost a Car Wash To Become a Dutch Bros Coffee

A new Dutch Bros Coffee is coming to metro Atlanta.  According to documents reviewed by ToNeTo Atlanta, a new Dutch Bros. is coming to the site of an old Sonic restaurant in Tucker.   

The new Dutch Bros is planned for 4545 Hugh Howell Road where Sonic closed suddenly in January 2020.  Chattanooga real estate firm Hutton purchased the roughly one acre property December 7, 2020 for $780,000, according to DeKalb County property records.  The firm initially intended to develop its ModWash car wash on the property, but "zoning restrictions created multiple roadblocks" and thankfully the neighborhood will be getting a Dutch Bros instead.  

A typical Dutch Bros is drive-thru only with about a 1,000 square foot building and some also featuring a 300 to 400 square foot patio.  

The Dutch Bros beverage menu is diverse with coffees, teas, sodas, smoothies, lemonades and energy drinks, among other offerings, while its food menu is rather limited.  According to the Dutch Bros website, the food menu (referred to as "Snacks") includes only a chocolate chip muffin top, orange cranberry muffin top, lemon poppyseed muffin top and a granola bar.    

Brothers of Dutch descent Dane and Travis Boersma started the business as a pushcart in Grants Pass, Oregon in 1992.  The company began franchising in 1999 and after growing to several hundred units, stopped offering new franchises as of 2017, although franchisees still operate some locations.  

ToNeTo Atlanta first reported in November 2023 that the company was looking to open its first location in the Atlanta market in Johns Creek.  It's unclear what the holdup was, but that location, as well as others planned for 2465 Buford Drive in Lawrenceville and 2695 Watson Boulevard in Warner Robins are, along with the Tucker shop, expected to open in 2025.  

Dutch Bros became a publicly traded company in 2021 and after the stock soared initially, the company experienced some growing pains as a public company but has more recently rebounded.  The stock (NYSE: BROS) currently trades at about $68 per share, up about 120 per cent over the past year, well above its $23 IPO price.    

Christine Barone, a veteran executive of Starbucks and former CEO of True Food Kitchen, joined Dutch Bros as President in February 2023, and following the news that then CEO Joth Ricci was stepping down, Barone was named CEO this past January.  

Dutch Bros stated in 2023 that it plans to have 4,000 shops nationwide in the next 10 to 15 years.  To achieve this goal, the company plans to lean heavily on their predominantly DTO model.  Dutch Bros has in recent years made inroads into Tennessee, Florida, Alabama, Kentucky, and Florida with 27, seven, five, and four units, respectively.  The company is reportedly looking to enter the Charlotte market soon, too.      

As of December 31, 2024, Dutch Bros had 982 locations across 18 states.  The company announced January 29 that it will on February 12 host a conference call and webcast to review Fourth Quarter and Fiscal Year 2024 results.  The chain will easily hit 1,000 units in the near term - it stated in November that it will open at least 160 units in 2025 - but it will be interesting to hear how Barone, now a year into her role as CEO, plans to continue to accelerate growth of the chain and hit 4,000 units or more.  

Dutch Bros is entering metro Atlanta at a time of tremendous competition and limited availability of prime locations.  Drive-thrus - whether they be for coffee, burgers, smoothies, or chicken joints - are also facing increased scrutiny from cities and communities who fear that drive-thrus' convenience will lead to increased traffic and congestion.    

Industry titan Starbucks, also with a new CEO with something to prove,  is constantly building, relocating and most recently, renovating Atlanta area locations, such as the Tucker shop across from Cofer Crossing.

Meanwhile, new players such as Scooter's, Biggby, 7 Brew and Ziggi's, among others, are vying for market share.  Even Caribou Coffee, which had gone through a retrenchment from the market, returned to metro Atlanta with four new locations in 2024 and multiple additional units in development for 2025 and beyond.  

Have you been to Dutch Bros Coffee?  Who do you think makes the best coffee in Atlanta?  Where else would you like to see Dutch Bros. open?   

Please share your thoughts below.

10 comments:

Anonymous said...

We have lots of coffee, but very few upscale restaurants. However, filled space is better than vacant space.

Anonymous said...

Paramount Coffee in Tucket has the best Coffees and Tea options. Great space and perfect products!

Anonymous said...

Agreed! Love their coffee.

Anonymous said...

Good luck. There already 3 coffee shops within about a mile of this CB location, all with loyal clientele.

Anonymous said...

And they play the “da da, da-da-da daaaaah!” music with the mountain at the end! Love Paramunt!!

Anonymous said...

Tucker definitely needs more restaurants not chain restaurants but more upscale. Also, there are more than enough coffee spots...no more needed. WE NEED RESTAURANTS PLEASE!!

Anonymous said...

WE NEED MORE MAC DONALDS AND LONG JOHNSILVERS AND ARBYS!!!!!!!!

Anonymous said...

The more the merrier. The responses seem like the “I hate new business we already have 3 and don’t want/need anymore” crew. There are at least 20 brands of coffee at the Publix and even more flavor/roast combinations but we should sit pat at 3 coffee places.

Anonymous said...

Because that crew wants to live in Russia. “Only one restaurant in whole city. Nobody nyeeds more. Da!”

Anonymous said...

This is much needed all the coffee places in Tucker don't offer sf options. I'm pretty sure half of Georgia is diabetic so we need sugarfree drinks, and Dutch Bros offers that option. I was in Cali recently and I had a couple of different drinks (and they were sugarfree) I was completely in awe of this company. I'm glad they're coming to Georgia

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