Dutch Bros Relocates Headquarters to Phoenix, Arizona

Categories: Arizona Business NewsArizona State News

Dutch Bros coffee shop in Phoenix, Arizona, showcasing modern drive-thru service.

News Summary

Dutch Bros, the drive-thru coffee chain, is relocating its headquarters from Grants Pass, Oregon, to Phoenix, Arizona. This strategic move follows the company’s significant growth and market capitalization of $11.8 billion. CEO Christine Barone has been operating from Arizona since 2023 to lead expansion efforts. While Dutch Bros retains its roasting facility in Grants Pass, it aims to tap into growing markets, especially in Arizona and the Southeast. Despite concerns over corporate departure, Dutch Bros remains committed to community initiatives and its roots in Oregon.

Arizona – Dutch Bros, the popular drive-thru coffee chain, is making a significant move by relocating its headquarters from Grants Pass, Oregon, to Phoenix, Arizona. This decision marks a pivotal moment for the company, which has attained a market capitalization of $11.8 billion, making it the second most valuable business in Oregon, just behind Nike.

CEO Christine Barone has been actively working out of Arizona since 2023, leading the company’s expansion efforts in the state. The move of the headquarters comes after Dutch Bros began transferring corporate jobs to Arizona early last year, indicating a strategic decision to support its growth and align its corporate structure with the increasing scale of operations.

While Dutch Bros is shifting its headquarters, the company will retain its roasting facility and some support functions in Grants Pass, which it considers a “vital part” of its story. This reflects the company’s commitment to its roots despite the relocation of its corporate offices.

Founded in 1992 by Travis Boersma and his late brother Dane as a single coffee cart in Grants Pass, Dutch Bros has rapidly expanded over the years. Today, the chain boasts over 1,000 drive-thru locations nationwide and is eyeing a total of 7,000 locations in the future. In the past five years, Dutch Bros’ annual sales have surged from $240 million to $1.3 billion, with projections estimating a 22% growth rate by 2025.

The company is experiencing its fastest growth in markets such as Texas and the Southeast, with nearly 90 locations currently operating in Arizona. This move is seen as a strategic effort to position itself closer to these burgeoning markets, as well as a major airport that would facilitate better logistical operations.

As the company grows, it has faced challenges in recruiting young executives in Grants Pass. Factors impacting recruitment include limited childcare options in the area. Despite the company’s growth and its substantial economic contribution, Dutch Bros has not attracted significant political attention from Oregon leaders concerning its headquarters relocation.

Some Republican legislators have attributed the departure to issues related to taxes and regulations; however, Dutch Bros has not cited these factors as reasons for its move. The company employs approximately 18,000 people, with around 8,000 at franchised locations. Grants Pass, prior to this move, housed about 200 corporate employees, but it remains unclear how many jobs will shift to Arizona or if any layoffs are on the horizon due to this transition.

Terry Hopkins, CEO of the Grants Pass & Josephine County Chamber of Commerce, expressed concerns over the potential repercussions of Dutch Bros’ exit from the region. Travis Boersma, who now serves as the company’s chairman, is recognized as one of Oregon’s wealthiest residents, with a net worth estimated at $4 billion. Despite the corporate shift, the Boersma family continues to maintain a residence in Grants Pass, highlighting their ongoing connection to southern Oregon.

Known for its strong fanbase and community initiatives, Dutch Bros engages in various activities, including the “Drink One For Dane” fundraiser, which supports ALS awareness. As the company embarks on this new chapter in Phoenix, it remains committed to its roots and its dedication to community involvement, ensuring that its legacy continues to thrive in both Oregon and its new home in Arizona.