Dutch Bros. Coffee breaks the mold with first walk-in store

Quick: What is the largest privately owned drive-through coffee company in the United States?

If you guessed Starbucks, guess again. It’s Dutch Bros. Coffee, boasting some 250 locations across Arizona, Oregon, California, Washington, Idaho, Nevada and Colorado. The key word making the operation the nation’s largest is “private” — all franchises are locally owned and operated.

Locally, much of the chain’s success can be attributed to husband-and-wife team Jim Thompson and Janice McCarthy. The couple own 14 of the 17 stores in metro Phoenix, and have another opening in December at Grayhawk Plaza in north Scottsdale.

The three other local Dutch Bros. shops have ties to Thompson and McCarthy, too, since those northwest Valley stores are owned by the couple’s former employees, Caleb and Morgan Berkey.

And more are coming, making Arizona a prime hub of the operation that was formed in 1992 by brothers Travis and Dane Boersma and still maintains its headquarters in Grants Pass, Ore.

“We now employ 380 people locally, and have several other sites we are acquiring here,” Thompson said. “Over the next three years, we will reach a total of 30 stores in the Valley.”

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It’s been quite a ride for Thompson and McCarthy, who established their first franchise arrangement in 2007, focusing on the typical quick-stop layout of 800 square feet with walk-up and drive-through windows for ordering, plus patio seating. The new store breaks that mold, however, spanning 2,200 square feet.

“It will be our first walk-in store, seating about 50 guests,” Thompson said. “The interior will have a dining area, a lounge area with computer charging stations, chic decor in our great Dutch Bros colors, and a roll-up glass door leading to the covered patio.”

In keeping with the Bashas’ shopping center design theme of Grayhawk, the exterior will feature a gabled roof with open wood beams, including atop the drive-through lane.

Besides showcasing the company’s signature hot or iced flavored coffees, the new layout will allow Dutch Bros. to sell its coffee beans retail and offer more food options. Already, the menu features treats like mocha coffee spun with caramel, frozen espresso shakes, a blueberry pomegranate smoothie, blended energy drinks, granola nut cranberry bars and lemon poppy seed muffin tops.

Coffee lovers can expect to see more of the new-style shops in the coming years.

“Our new buildings now are being built with more space and all equipment doubled, to accommodate the large volumes we are experiencing,” Thompson said. “It’s also to maintain our reputation for being a very speedy drive-through.”

Meanwhile, Thompson’s older Dutch Bros. shops are getting upgrades, packing in more equipment to increase service efficiency. “We have already completed projects on five existing stores, with more remodels coming soon,” he said.

Thompson and McCarthy, who have lived in north Scottsdale for 25 years, remain committed to local causes. Throughout the year, Dutch Bros. holds promotions that raise money for non-profit organizations.

“We market primarily through give-back to local charities, such as Phoenix Children’s Hospital, United Food Bank, American Cancer Society, Muscular Dystrophy Association, Ryan House and the Boys and Girls Clubs,” Thompson said.

Details: New store coming to 20851 N. Scottsdale Road, Scottsdale (Grayhawk Plaza); dutchbros.com.