Dutch Bros tests out food as coffee wars heat upDutch Bros tests out food as coffee wars heat up

As the coffee wars heat up — with relative newcomers Dutch Bros and 7 Brew gaining on segment veterans Starbucks and Dunkin’ — food just might become a crucial piece of the puzzle. This year, Dutch Bros is looking to expand the beta test of its fledgling food menu from the six-unit 2024 pilot to more locations in 2025 and beyond.

Currently on its main menu, Dutch Bros offers three flavors of muffin tops and a granola bar, but a third quarter pilot test last year doubled those offerings to eight SKUs, with both sweet and savory, mostly breakfast options offered.

“We are a beverage company, and we will always be a beverage company,” Christine Barone, CEO of Dutch Bros said during the recent ICR conference in Orlando, Fla. “The goal with food is to capture that extra pre-work beverage occasion, because in the morning, a lot of us don't want to go to two places as we're on our way to work.”

Although Barone did not offer specifics on menu items or pilot test locations — the company is in the “assortment testing phase,” she told Nation’s Restaurant News — Dutch Bros has previously tested out chorizo breakfast sandwiches and breakfast burritos at select locations, according to social media posts.

For many coffee chains, investing in food innovation is a balance between driving up the average ticket and making sure not to stray too far from the core caffeinated menu offerings.

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With Starbucks, for example, food has been an on-again, off-again focus over the years. In 2015, the company even tried a short-lived dive into the evening daypart by selling wine and tapas-like small plates, though that did not quite catch on. But by the end of 2023, Starbucks was reporting record food attachment rates, and the company was investing significantly in the growing snack category.

It's likely, however, that Starbucks won’t be testing out charcuterie boards anytime soon, as CEO Brian Niccol has reiterated that he will continue to both simplify the Starbucks menu and focus on the brand’s “core as a coffee company.” True to Niccol’s word, Starbucks has discontinued the controversial Oleato and introduced a Cortado espresso beverage for the first time.

Ironically, Starbucks’ menu simplification emulates much of what draws consumers to brands like 7 Brew and Dutch Bros, while Dutch Bros itself is strategically expanding its food offerings to make inroads in the breakfast space. Dutch Bros has an opportunity here to wedge itself into this hot category, especially as some of the larger quick-service chains like Taco Bell and McDonald’s take a step back from breakfast.

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Barone emphasized that one of the most crucial parts of getting breakfast right is to prioritize convenience.

“I think the key in our business is that the food has to be below the cycle time of the beverage,” she said. “We definitely want to make sure that that the items are ready at the same time and that you still have a super-fast experience.”

Contact Joanna at [email protected]