Coffee company Duch Bros had a successful IPO on the New York Stock Exchange under the ticker BROS, of course!
The company, which particularly contributes their success to a ‘Dutch luv’ culture, certainly saw some love on the markets as their share price jumped as high as 57% after launch Co-founder, and largest shareholder Boersma, is now worth $2.3billion.
I’ve always wanted to visit a Dutch Bros coffee house, most of which are drive thru’s, that served them well during the pandemic. I’m not sure what the appeal is. Their menu slightly horrifies me. Options like the 9 1 1, a play on the emergency number, is a concoction that includes 6 shots of espresso, cream, and Irish cream syrup.
Their menu slightly horrifies me
But they really nailed the branding, and customer service is supposed to be one of the reasons people go back.
The company attributes the quality of their service to the staff, to whom they invest in with a number of key benefits – see our other story this week here. As a result, they have some of the highest retention rates in the industry at 40%, compared to 100% on average.
In February Boersma moved over to become Chairman as an experienced Joth Ricci took over as chief executive officer.
The current price of the stock looks expensive when you consider profits and margins have recently declined, according to their filing statement.
With large incumbents like Starbucks and Peets coffee, it will be interesting to see how Dutch Bros corporate strategy evolves to compete.
