Welcome to the Arena from ICR – Conversations with Today's Innovators & Business Leaders Joth Ricci, CEO at Dutch Bros Coffee — One Cup at a Time: How a simple model and strong mission can drive growth
Summary:
With Covid-19 mandates relaxing and consumers eager to rejoin the real world, the beverage industry has been bouncing back over the last year. However, the landscape is not exactly what it used to be, and while doors are open, there are some new challenges to face. Changes in consumer habits as a result of the pandemic, along with the much-discussed supply chain issues, have forced many in the industry to reconsider best practices. 2021 even saw industry giant Starbucks close nearly 400 of their sit-down locations in favor of simplified, pick up and takeaway options. They're onto something, but they didn't get there first.
My guest today is Joth Ricci, CEO of Dutch Bros Coffee, a drive-through coffee chain headquartered in Oregon that has been having success with this model for years. It's a brand that has been a "30 year overnight success," and an amazing case study on building a culture that is foundational to stakeholder success.
In this episode, Joth explains the business model that helped Dutch Bros avoid the obstacles other retail beverage companies have experienced in the last few years, their plans to continue expanding into new geographical markets, and why their focus on employee satisfaction and company culture is paying off.
Highlights:
- How Joth came to join Dutch Bros Coffee as CEO (03:22)
- Joth talks through the premise of Dutch Bros Coffee (05:20)
- Joth explains the advantages the Dutch Bros business model affords the company (06:30)
- Why being a "people business" is central to Dutch Bros philosophy (07:47)
- Joth explains how Dutch Bros has been expanding their market reach (12:00)
- What Dutch Bros Coffee's recent IPO means to the company (13:30)
- Joth explains new initiatives the company is taking, including their new rewards program (15:30)
- Joth talks through some of the companies financials (19:10)
- Joth explains the importance of philanthropy to Dutch Bros Coffee (22:45)
- Wrap Up (24:35)
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If you have questions about the show, or have a topic in mind you'd like discussed in future episodes, email our producer, andrew@lowerstreet.co.