GRANTS PASS, ORE. — A limited food test that began in the third quarter of fiscal 2024 has performed well and will be expanded to more stores the rest of this year and into 2026, said Christine Barone, president and chief executive officer of Dutch Bros Inc.

The drive-thru coffee chain primarily known for its beverages recently expanded the initiative to 32 locations, up from 8.

“We are thrilled with the success of our limited food test launched late last year and are excited to continue testing and refining this initiative throughout 2025,” Barone said during a May 7 conference call with analysts to discuss first-quarter financial results. “Building on the success we are having with our order ahead initiative, we believe food can generate incrementality in the morning daypart and by frequency. Our approach to this test is both strategic and deliberate. We recognize the potential multiyear growth opportunity with our current food mix at less than 2% of sales.”

Barone said Dutch Bros’ goals for the test in 2025 are three-fold: maintain existing high levels of employee job satisfaction, continue to support throughput efficiency and minimize complexity, and offer a targeted assortment.

Currently, all Dutch Bros locations offer muffin tops — available in chocolate chip, poppyseed and orange cranberry — and granola bars, but the test locations also feature an expanded bakery offering and sweet and savory hot food options.

“The pilot test has informed our decision to now offer eight (stock-keeping units), including four hot food offerings,” Barone said.

“Looking ahead, expanding the food test pilot is a crucial step toward a broader test and rollout anticipated to occur throughout 2026,” she said. “This expansion aims to reach a wider potential audience and positions Dutch Bros more competitively in high-value routinized beverage occasions.”

Asked by an analyst to compare Dutch Bros’ food strategy to that of its competitors, a couple of which generate 10% to 20% of total sales from food, Barone said the company plans to be more deliberate.

“I think as we really kind of launch more fully into a food business, we’re being very thoughtful about kind of what the strategic intent there is,” she said. “And it is really to capture additional beverage opportunities. And, so, what (is) the lowest amount of complexity kind of required to capture those beverage opportunities.

“I do think that compared to potentially others out there, we’re thinking about this limited SKU count that’s really going to help us manage throughput, manage the complexity in our business, but still provide some of those really important hot protein options in the morning that drive those routinized beverage routines. I think that as you look at that, we’re really thoughtful about exactly what we want the food program to do and feel that we’ve landed in a good place to kind of fulfill that strategy.”