US coffee chain Dutch Bros sells minority stake to investment firm

US-based drive-through coffee chain Dutch Bros Coffee has received a minority investment from private equity firm TSG Consumer Partners.

It is hoped the partnership will enable Dutch Bros to grow to 800 shops in five years, attract key talent, employ innovative technology to improve the quality of service, use business intelligence and data to advance operations, and execute a disciplined brand strategy.

The Oregon-headquartered chain currently has 9,000 employees at more than 300 chains in seven US states. It serves speciality coffee, smoothies, teas, a private-label Dutch Bros Blue Rebel energy drink and nitrogen-infused cold brew coffee.

Travis Boersma, co-founder and CEO of Dutch Bros Coffee, said: “TSG understands the vision of Dutch Bros and values our unique company culture and dedication to our people, customers and local communities.”

He added: “We have set ambitious growth and expansion goals, and we trust TSG to help us build on this momentum in the most strategic way possible.”

TSG managing director Blythe Jack said: “Dutch Bros has an exceptional history of fostering deep connections with its customers, which has proven instrumental to its rapid growth and success as the country’s largest, privately held drive-thru coffee company.

“We are thrilled to partner with the management team, and look forward to maintaining the company’s strong heritage and truly unique culture while executing on key growth drivers, and ‘spreading the Dutch Luv’ as Dutch Bros enters its next stage of expansion.”

Chuck Esserman, CEO and founder of TSG, added: “Dutch Bros is an innovative, founder-led brand backed by an intensely loyal customer following. We are pleased to leverage our deep consumer brand expertise to help support the company’s long-term growth ambitions and are excited to help the business continue to deliver its compelling value proposition to even more consumers over the coming years.”

Last year TSG Consumer Partners bought a 23% stake in British beer maker and pub chain BrewDog for £213 million.