From cart stalls to listed companies! The boss of the Dutch brother of the well-known coffee chain teaches the secret of success!

Travis Boersma, co-founder and executive chairman of Dutch Brothers Coffee, launched his company's initial public offering on the New York Stock Exchange on September 15, 2021, AP News reported.

Travis Bolsma (Travis Boersma)

The offering drew an enthusiastic response from investors, with shares of Dutch Brothers Coffee up nearly 60% within hours. The company priced its initial public offering at $23. By the end of the day, the share price had jumped to about $37.

Photo Source: Choice

The sensational IPO, the largest IPO:Dutch Bros in Oregon's history, raised about $484 million, far exceeding the $146 million and $169 million raised by Oregon heavyweight Nike and Columbia Sportswear in 1980 and 1998.

Dutch Brothers Coffee also became the fifth-largest company in the state by market capitalization with this IPO, and its stock market capitalization is close to that of Columbia Apparel.

Many domestic partners should not know much about this coffee chain brand, but I believe that after listening to their legendary entrepreneurial stories, they will certainly deepen their impression of [Dutch Brothers Coffee].

The Dutch brothers were founded in 1992, when Travis Boersma and Dayne left the dairy industry to buy espresso drinks from a wheelbarrow next to the tracks in downtown Grantz pass, Oregon.

With the help of family, friends and loyal customers, Dutch brothers became popular and grew rapidly. It soon changed from one wheelbarrow to four, and in 1994, they bought the first drive-in place, laying the foundation for the next development.

The first franchise store opened in 2000, and the Dutch brothers have grown ever since. Shops with windmill signs spread across the west, now as far east as Texas and Oklahoma.

In terms of the number of restaurants opened, the company is one of the fastest growing brands in the US catering industry. As of June 30, 2021, the company has 471 stores in 11 states in the United States, of which 264 are run by franchise partners of Dutch brothers, which is one of the secrets of Dutch Brothers' success.

Franchising, to put it bluntly, is a privileged individual, team, or company, which is very similar to a domestic franchise to some extent, which greatly increases the revenue source of Dutch Brothers Coffee. Although the franchise model was stopped in 2017, so far more than ordinary stores are owned by franchises, and many operators have long-term and close ties.

As we all know, the outbreak of the COVID-19 epidemic has had an impact on the operating status of many listed companies. So how did [Dutch Brothers Coffee] get away with it? This is the second secret of its success.

Combine the facts and adapt to the circumstances. During the outbreak, all the company's stores adopted the "drop-off" model (which is similar to the "drop-off point" at the beginning of the business) to provide services to customers.

These are not enough. Dutch Brothers Coffee has not only gained popularity in the beverage market, but has also made a difference in philanthropy, raising money for the Muscular Dystrophy Association (Dayne, one of the founders of muscular atrophy lateral sclerosis (ALS), commonly known as ALS) and raising the brand's profile by sponsoring baristas to go to college.

"people-oriented" is also the core of Dutch Brothers Coffee. At present, Dutch Brothers has nearly 17000 employees.

"this is an incredible day for Dutch brothers," Bolsma, 50, told Forbes on the day of his listing. When our brother started this company about 30 years ago, we never thought we would be here today. Now, I am focusing on providing more opportunities for employees, which is the core reason for our listing. "

As things stand, Dutch Brothers Coffee is still a new and growing company.

Although it made its debut and won a complete victory, whether we have the potential to compete with Starbucks, Piye and other well-known coffee brands for the coffee market in the future, let's give the answer to time.

Photo source: Forbes, the official website of Dutch Brothers Coffee