THE CEO of coffee giant Dutch Bros has spoken out on a huge ordering change as it works to keep up with rival Starbucks.
With the rollout of its new mobile ordering, the coffee chain is working to address the long lines that customers have complained about.
AlamyThe Dutch Bros CEO has spoken out on the coffee company’s mobile ordering initiatives[/caption] AlamyDutch Bros has rolled out mobile ordering in an effort to better compete with Starbucks[/caption]Dutch Bros, a popular drive-thru coffee chain founded in 1992, started testing mobile ordering in Arizona last February, before expanding the system in the spring.
Around 96% of Dutch Bros locations offer mobile ordering now, including 99% of company-owned stores.
Dutch Bros is working to get a leg up on coffee giant Starbucks, which saw one-third of its sales made through mobile ordering by early 2024.
The company’s move to increase its digital strategy comes as Starbucks works to improve its mobile ordering system, testing a sequencing algorithm to better prioritize order preparations.
Dutch Bros has already experienced considerable sales growth thanks to its mobile ordering initiatives.
The fourth quarter of 2024 was the first full quarter in which coffee lovers across the US could use mobile ordering, CEO Christine Barone shared during the company’s earnings call last Wednesday.
The chain’s same-store sales increased 6.9% during that quarter, with transactions up 2.3%, marking the strongest quarter of transaction growth Dutch Bros had seen since 2022.
Around 8% of the coffee company’s sales were made through the new system during that period, with Dutch Bros rewards members placing 5.4 million mobile orders by the end of December.
COFFEE CHANGES
The coffee chain’s CEO spoke out on her positive outlook for the ordering system.
“Customers who use mobile order increase their frequency and mobile order penetration is more than twice the level of our overall system in some of our newer markets,” said Barone.
The CEO shared that a good portion of mobile orders are received in the morning, with most customers picking up their purchases at the walk-up window rather than drive-thru.
She noted the concentration does not negatively impact the company’s operational efficiency when stores are adequately staffed.
“One of the benefits of mobile order is really in helping with throughput. One, because it takes out that order time as mobile order penetration grows. And it also balances our production,” said Barone.
One of the benefits of mobile order is really in helping with throughput. One, because it takes out that order time as mobile order penetration grows. And it also balances our production.”
Christine Barone Dutch Bros CEODutch Bros has been known to have excessively long lines, with social media platforms inundated with customer complaints.
“Dutch Bros lines are long as f***, you gonna be waiting 30 mins lol,” said one X user.
“I wonder if Dutch Bros workers are always happy or smiling through the pain of the long lines,” said another.
Customers rejoiced when the coffee chain began rolling out the new mobile ordering system.
“Dutch Bros having mobile ordering now is the best thing to ever happen to me,” praised one user.
“Dutch Bros’ mobile ordering saved my life,” wrote another fan.
“The Dutch Bros near my house finally has mobile ordering,” said a third customer.
As Dutch Bros rolls out its mobile ordering platform, Starbucks has several changes underway to boost the customer experience.
The chain broke its silence after the Starbucks CEO revealed the menu would be cut by “roughly 30%,” giving the exact reason why.
Plus, Starbucks fans are already starting to see three big changes roll out in cafes under the new “Back to Starbucks” initiative.
GettyAround 96% of Dutch Bros stores take mobile orders now, including 99% of company-owned locations[/caption] Read More Details
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