Why Dutch Bros’ People-First Approach is a Blueprint for Success

Speed and convenience are the price of entry in this hyper-connected age of customer service — not the difference-makers. The best example of this truth is one I see every day as a consumer and through the lens of branding as the President and Chief Creative Officer of a creative agency.

I am a big fan of the coffee chain Dutch Bros, which is exploding across my home state of Texas for good reason. In a space dominated by Starbucks and Dunkin’ Donuts, their punk-rock vibe and social experience is the product as much as the coffee.

This is a company on track to soon pass the 1,000-location milestone after nearly doubling in size since going public in September 2021. Earlier that same year, Dutch Bros opened their first store in the Lone Star State, and today have 142 shops and counting. Expansion has followed a proven formula: Seasoned operators who embody the Dutch Bros culture relocate to seed new markets. With over 400 internal operators in the pipeline — having spent an average of seven years with the company — Dutch Bros ensures its culture scales with its footprint.

So, how do you create a similar level of engagement where staff become the driving force of the brand? Dutch Bros’ success offers a blueprint for turning employees into owners of the customer experience.

Related: What Leaders Must Do to Create a Great Customer Experience

Make service your point of difference

If you want to max out the idea of convenience, think about how Dutch Bros have opened some of their newer shops with an escape lane so staff can run out drinks to customers before even making the window. Combine that with plans to launch mobile ordering nationwide, and it will make for a speedy getaway with your favorite beverage in hand.

But, CEO Christine Barone said the time saved would be reinvested by deploying more “broistas” to engage with people in line at the drive-thru or at the window. “As we look at mobile order and pay, we think it’s incredibly important that we really keep our brand differentiator, and that brand differentiator is our service,” Barone said.

This experience shows in the numbers that 67% of transactions come from loyalty members, and the chain enjoys $2 million-plus average unit volumes — outperforming both Starbucks ($1.8 million) and Dunkin’ ($1.3 million), albeit with a smaller footprint. Enhancing the consumer experience beyond expectation is a proven strategy. Chick-fil-A has also shown that a culture of empowerment and engagement can drive stunning growth in quick-service restaurants.

The takeaway? This is not a zero-sum game. Design your systems so efficiency creates space for connection, not eliminates it. Then, when targeting expansion, be disciplined and, if necessary, slow down so you grow only as fast as your people and culture allow.

Related: To Dominate Your Market, You Need to Follow These Five Steps

Create a clear developmental pathway

Of course, Dutch Bros are not just about the people. The brand is also known for its elaborate customization options and secret menu. So, as the company grows, the pressure to maintain uniform standards rises with it.

The Dutch Bros way starts with an intensive training program that codifies speed, quality and service standards in what they call the “Mafia Manifesto” alongside their Employee Handbook. As one employee explained to a newbie on Reddit: “Focus on ‘quality’ first — getting every component right. Speed comes later. The biggest thing is that even if it’s a stressful, busy shift, my coworkers will be right alongside me, and we’ll get through it together.”

In addition to fostering a mutually supportive family dynamic among staff, Dutch Bros provides a development pathway supported by up to $5,250 per year in education benefits after the first year. “If you’re on a path where you’re driven and motivated to become a regional operator within the company, you’ll get to a place where you’re earning extraordinary income,” says cofounder Travis Boersma.

To follow the formula:

• Begin with immersion: Cultural training before operational training sends a clear message about priorities through stories, standards and shared experiences.
• Build in authenticity: Create space for individual expression within your systems — personality should not be scripted.
• Design for growth: Give people a clear development pathway and support staff with concrete resources like education subsidies.

The lesson here is to give people the resources so they can start mapping out their future from day one on the job. While Dutch Bros jettisoned its traditional franchise model to promote from within, Raising Cane’s “Restaurant Partner Program” is another good example of rewarding hard work and vision. Managers in company-owned stores at the fast-food chain can even achieve a net worth of $1 million within a decade. With incentives like these, people will take ownership of both their roles and the culture.

Related: The Analysts See Value In Dutch Bros Inc.

Protecting the real product

Dutch Bros’ refined growth approach includes removing locations from the pipeline that do not meet investment criteria. Thus, the company is free to focus on sites that give its service culture the best opportunity to succeed.

With more strategic market entries and a deep bench of experienced operators ready to open new locations, this is how a people-first culture enables smart growth. Even as they roll out mobile ordering nationwide, Dutch Bros are still choosing to throttle volume where necessary to maintain service levels — proving that when you are in the business of relationships, every decision must protect your core values.