Coffee QSR brand Dutch Bros focused on heavy expansion in 2025 as it works its way toward its goal of 2,000 stores by 2029, but modest same-store visit performance suggests that the brand is entering a phase of “market maturity that requires new ways to drive greater traffic growth at existing locations,” wrote foot traffic research firm Placer.ai in its recent report.
“But to maintain its growth momentum, Dutch Bros will likely need to look beyond its beverage-first identity. By strategically expanding its breakfast offerings, the brand can attract a new segment of morning diners while driving incremental spend from its existing loyal customer base,” the research firm said.
Placer.ai data shows that only 32.6% of Dutch Bros visits occur before 11:00 a.m., compared to 43.1% for the coffee category as a whole, meaning Dutch Bros has an opportunity to capture market share by pivoting toward a stronger breakfast strategy. Food currently accounts for only about 2% of Dutch Bros’ total sales, a figure it hopes to increase significantly with the help of hot breakfast items.
“To sustain growth, the brand is targeting the morning daypart by introducing breakfast offerings, reaching approximately 160 stores by the end of September 2025 and plans to deploy the menu across its store fleet in 2026. This strategy appears to be paying off: November saw same-store visits surge to their highest levels of the year. While this spike was likely supported by holiday menu launches and Black Friday, it also suggests the breakfast initiative is gaining traction and successfully revitalizing performance at established locations,” Placer.ai said.
In other coffee QSR news, Starbucks recently closed 42 locations in New York, or 12% of its total in the city. It recently lost its top spot as the largest chain in Manhattan to Dunkin’, reported CNN.
Starbucks also reportedly closed more than 20 locations in Los Angeles this year; 15 in Chicago; seven in San Francisco; six in Minneapolis; five in Baltimore; and dozens more in other cities.
Yet, the company “plans to open stores and remodel others in 2026, including in major metros like New York and Los Angeles, ‘featuring refreshed designs and elevated experiences that reflect the Starbucks brand,’” according to CNN.