Deschutes County Dutch Bros. Coffee expands

Published 12:00 am Tuesday, January 13, 2015

The newest addition to the Dutch Bros. Coffee empire opened for business Monday morning just outside the Wal-Mart on SE Third Street in Bend.

It marks the ninth Dutch Bros. franchise location in Central Oregon, all of which are owned by husband and wife Bill and Carol Smith, of Bend-based Dutch Bros. Central Oregon, who have held the franchise for 10 years.

Their daughter, Kaelyn Costa, who started with the company as a barista and met her husband, Josh Costa, on the job, said her father had his eye on the Third Street spot for some time.

“He loves car counts. He watches spots and when they become available,” Kaelyn Costa said Friday. “He’s always watching and waiting.”

The newest Dutch Bros. Coffee joins two others on Third Street, where the Smiths first opened for business. Their first Dutch Bros. drive-thru still serves a hot cup of joe at 1143 NE Third St., near the corner of NE Lafayette Avenue. The Smiths own six Dutch Bros. Coffee locations in Bend, two in Redmond and one in Sisters.

Regular customers helped drive the Smiths’ expansion, their daughter said.

“We’re blessed to have a loyal following,” she said. “We treat customers how we would … treat our friends and family.”

The Dutch Bros. corporate culture emphasizes a friendly connection with its clientele, said Jen Wheatley, spokeswoman for Grants Pass-based Dutch Bros. The 23-year-old company has 237 locations in seven Western states from Washington to Arizona. “We really encourage our baristas to get to know our customers,” she said Monday.

A Dutch Bros. barista has his or her hands full, said Costa, who started in high school and now trains baristas for her parents’ locations, as well as handling marketing and public relations. In addition to friendly service, the company is known for “give-back days,” usually one day every quarter when a portion of the day’s profits are given to local schools or nonprofits.

“We do want to hire fun, happy people that want to give people that awesome customer experience they deserve,” she said.

The baristas undergo four days of training in Dutch Bros. practices and another seven to 10 days of in-store training, Costa said. The typical Dutch Bros. employee works for about a year; the typical manager for three, she said. Each location serves about 400 drinks every day, Costa said.

Dutch Bros. baristas don’t rely on cash registers to make change, instead doing the transactions in their heads. Meanwhile, they’re brewing up the order from one of several different drink varieties available while making small talk with the customer, someone they probably know as a regular.

“It’s not just making coffee,” Costa said. “It’s the whole experience.”

— Reporter: 541-617-7815, jditzler@bendbulletin.com

Q: How do you size up and match the coffee-making competition?

A: Kaelyn Costa: We don’t strategize or analyze the competition. We love all and serve all; that’s our philosophy. (On Starbucks, “the big green giant” ) It’s different from ours. In price sensitivity, we’re more middle of the road, and we have a definite culture. Some people don’t connect with that (culture).

Q: Where do you see the franchise in three to five years?

A: Kaelyn Costa: Since we’re a franchise and a family business, maybe we’ll have another store or two, but we’re pretty stable. We want to focus on the quality of our current locations and keeping the culture of the company. Keeping that intact is everyone’s No. 1 goal.

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