GRANTS PASS, ORE. — Dutch Bros, a drive-thru coffee chain primarily known for its hand-crafted drinks, is testing the waters on a limited food test.

The coffee chain, which recently opened its 1,000th unit in the United States, initiated a limited food test in six locations in the third quarter. Since that time, the test has been expanded to eight locations.

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. Executives at Dutch Bros have been tightlipped on where the tests are taking place and what additional food items are being offered.

Speaking with analysts during a Feb. 12 conference call to discuss fiscal 2024 earnings, Christine Barone, president and chief executive officer of Dutch Bros Inc., said that while the test is small, initial signs are encouraging and point toward the viability of an expanded program.

“This initial test has been focused on understanding the optimal assortment and how an expanded food program interacts with our existing operations,” Barone said.

She noted that as Dutch Bros considers a food program it is following three “guardrails.”

No. 1, employee satisfaction.

“As we expand their roles, we must consider how to do so in ways that continue to foster a fun and energetic work experience that assures we continue to attract and retain the very best people,” Barone said.

Second, the chain is seeking a targeted assortment focused on capturing the food attached opportunity and a potential incremental beverage opportunity while minimizing complexity, she said.

Finally, Dutch Bros wants to see no impact to throughput.

“We believe we have an opportunity to expand market share in the morning daypart,” Barone said. “We understand that many people seek the added convenience of a food pairing with their morning beverage choice. Food makes up less than 2% of our total sales, and we are likely missing morning beverage transactions from would-be customers who are not satisfied with our current food offerings.

“With the expansion of our food program, we are targeting these incremental beverage occasions and aim to compete more aggressively for these high-value routinized occasions with a limited food offering that fulfills our customers' needs.”

Barone said Dutch Bros intends to expand the test throughout 2025 and considers a broader rollout more of an opportunity for 2026 and beyond.

Dutch Bros’ plans for a broader food menu come as Seattle-based Starbucks Corp. is undertaking a cutback in its food and beverage offerings. In late January, Brian Niccol, chairman and CEO of Starbucks, said the company plans to reduce stock-keeping units in both beverages and foods by approximately 30% by the end of fiscal 2025. He said Starbucks seeks to simplify operations, accelerate order processing and improve the customer’s experience.

Food sales accounted for about 23% of Starbucks’ total retail sales in 2024. Starbucks’ food menu includes breakfast sandwiches, breakfast wraps, egg bites and bakes, oatmeal, yogurt, croissants, Danishes, loaves, cakes, muffins, scones, donuts, bagels, cookies, brownies and cake pops, among others.