Dutch Bros.’ Drive for Success Comes at a Price

The huge popularity of the Dutch Bros. is turning out to be a good news/bad news scenario for the drive-thru-only concept. One the one hand, there’s big demand on the part of consumers for the outlets and their customizable drinks and take-it-easy vibe, as evidenced by the huge traffic tie-ups its locales often generate not only during their opening days but beyond.

But that same popularity has also gotten the Tempe, Ariz.-based chain of just under 1100 units in dutch (pun intended) with local planning officials concerned such tie-ups will negatively impact nearby business and make it more difficult for emergency vehicle to make it through the area.

Those two opposing forces overlapped on Nov. 5, when the company released its third-quarter results – which showed it plans to continue growing at a breakneck speed, including opening  175 new outlets next year – and the newspaper Naperville, Ill.  running a story that said officials in that Chicago suburb had decided the night before to indefinitely table a plans for new Dutch Bros. outlet in their jurisdiction That suspension came at Dutch Bros.’ request, which wanted time to “continue to process the input that they’re receiving and work on the proposal.” (No representatives for the chain were not present at the meeting.)

The bottom line for Dutch Bros. (and other booming chains such as Chick-fil-A): popularity has a price that’s best paid attention to before a single shovel of dirt gets turned on a new locale.