For nearly 40 years, Dunn Brothers Coffee has been a staple for coffee lovers who crave not just caffeine but quality—a cup made from beans roasted fresh daily. Now, the brand is set to take that intimate, local coffeehouse experience to a broader stage, with plans to expand by 250 stores over the next five years.
The task will be significant. Between 2021 and 2024, the company’s unit count dropped by nine, from 63 to 52 shops. The chain now sits at 48 locations across six states, according to its website.
Brand president Scott Harvey calls the strategy “ambitious, yet attainable,” and he attributes that belief to the company’s scalable franchise model and its strong support network.
The chain is focusing on expansion along the I-35 corridor, starting from Minnesota and extending into high-demand states such as Iowa, Texas, and Oklahoma.
“These areas present strong opportunities for premium coffee, aligning perfectly with our growth objectives. By upholding our core values and evolving with consumer preferences, we’re confident in our ability to expand to 250 locations, bringing high-quality coffee experiences to more communities and fulfilling our vision of national growth,” Harvey says.
When selecting sites for its drive-thru shops, Dunn Brothers prioritizes several factors, such as high vehicle traffic, proximity to major roads, and demand in underserved markets, specifically suburban and commuter-heavy regions.
Harvey says Dunn Brothers’ drive-thru-only prototype is compelling to franchisees because of its lower overhead costs, reduced space requirements, simplified staffing needs, and quick setup times that allow faster market entry.
“By focusing on this format, we not only cater to the needs of busy customers but also capitalize on market trends, positioning Dunn Brothers Coffee for sustainable growth and success in an evolving coffee landscape,” Harvey says. “In essence, the drive-thru-only model is more than just a shift in operations; it’s a strategic alignment with customer needs and market dynamics, ensuring that Dunn Brothers Coffee remains relevant and poised for a bright future.”
Franchisee partnerships are at the heart of Dunn Brothers’ growth, Harvey says. The company takes a deliberate approach to selecting the right partners.
“We prioritize franchisees’ unwavering commitment to quality, their understanding of the local market, and their passion for the coffee experience,” the executive says. “Rigorous training and ongoing support ensure alignment with the brand’s values, fostering strong relationships that empower franchisees to succeed while enhancing the overall integrity of the brand.”
The increased footprint means exposure to more customers, and the brand plans to convert new guests into frequent users in multiple ways, including menu innovation. Harvey emphasizes the importance of keeping offerings fresh and engaging, like the Dunn Dirty’s soda collection and the seasonal Pumpkin Palooza lineup. The fall-themed menu featured pumpkin lattes, cold brews, and baked goods made with top-quality ingredients. This year, the brand expanded its holiday offerings with beverages like the Brown Sugar Oat Nog Latte and Candy Cane Mocha, alongside baked treats, such as the Sprinkle Sugar Cookie and Butter Rum Muffin.
Technology is another crucial piece. The company uses advanced POS systems and mobile ordering platforms to streamline service and reduce wait times, while customer data analytics help it personalize offerings and improve guest loyalty. Under VP of marketing Alexis Gillette, the chain has implemented tech-driven initiatives to attract a new generation of coffee guests while preserving the brand’s ethos.
In concert with this technology, Dunn Brothers fosters personal, human-to-human connections with its consumers. The brand makes it a point to remember customers’ names, their orders, and important moments in their lives that they may share.
“This personalized approach empowers our franchise owners to cultivate meaningful relationships with their customers and communities—an engagement level that no app or kiosk can replicate,” Harvey says. “These initiatives exemplify our relentless dedication to providing an outstanding experience while proactively adapting to the dynamic preferences of our customers as we continue to expand.”
Dunn Brothers is powered by Gala Capital Partners, which acquired the concept in July 2022. The private equity firm also owns Cicis Pizza and MOOYAH.
Harvey says being part of Gala Capital’s network has been instrumental in shaping Dunn Brothers’ growth and operational strategy. A cornerstone of the partnership is the shared services model, which offers a suite of resources that operate across various brands to achieve economies of scale, according to Harvey. Some notable support functions include marketing, supply chain management, training, and technology integration. By centralizing these services, Dunn Brothers can streamline processes and reduce overhead costs, allowing it to focus more intently on core competencies and customer engagement.
The shared services model also facilitates collaboration and knowledge sharing among brands within the Gala Capital portfolio. For instance, successful marketing campaigns can be adapted and tailored to fit the unique needs of Dunn Brothers, maximizing outreach and brand visibility. Similarly, best practices in supply chain management, such as vendor consolidation and inventory optimization, enable it to enhance its procurement strategies and reduce waste, Harvey says. Additionally, training programs can be leveraged to boost staff development and create consistency in service quality across locations.
“This collaborative approach not only enhances our operational agility and responsiveness to market changes but also empowers Dunn Brothers Coffee to innovate more rapidly,” Harvey says. “With access to a comprehensive suite of resources and proven best practices, we can swiftly implement initiatives that resonate with our customers while maintaining the high standards of quality and service that define our brand. Ultimately, this strategic framework positions Dunn Brothers Coffee for sustained growth and reinforces our commitment to delivering exceptional experiences for our guests.”
Dunn Brothers is part of a beverage segment that’s exploded over the past several years. Numerous chains are fighting for market share and customer relationships—even top dog Starbucks, which underwent a CEO change amid decreasing sales and traffic.
Harvey understands the tall task. But he’s confident in Dunn Brothers’ ability to win.
“Dunn Brothers Coffee’s five-year growth strategy is grounded in an unwavering commitment to quality, innovation, and robust franchisee support,” Harvey says. “By serving freshly roasted single-origin beans in every location, we deliver a consistently exceptional coffee experience that has garnered both a loyal, growing customer base and significant industry accolades.”
