Minneapolis-based coffee chain Dunn Brothers Coffee aims to quintuple its retail footprint over the next five years.
On Wednesday, the company announced plans for a new “strategic franchise growth initiative” that would see the opening of 250 new stores within five years. Dunn Brothers currently operates 50 stores in seven states, 28 of which are in Minnesota.
“We have a legacy of quality and keeping that as our north star allows us to bridge generations,” said Dunn Brothers president Scott Harvey in a press release. “For many communities, access to quality coffee has been limited, or even nonexistent, but we see an opportunity to change that.”
Harvey, who previously led New York-based chain Golden Krust Caribbean Bakery, became president in August 2023. At the time, the company said his appointment came “at the forefront of strategic brand growth.”
As the name of the initiative suggests, the expansion relies will rely heavily on franchising. The company’s release pitched franchising as presenting “numerous benefits for owner-operator groups, including a robust business model, a dedicated support tea, and the benefits of a well-established brand in the thriving coffee industry.”
Franchising is nothing new for Dunn Brothers. The company launched its first franchise coffee shop in 1994. In an email to TCB, Harvey said the latest venture will represent the company’s “most ambitious franchising initiative to date, building on a long history of pioneering in the franchise sector and setting the stage for even greater growth and success.”
He added that the company has “intensely focused on upgrading its infrastructure and refining beverage offerings and store economics” over the past several months.
“These improvements have fortified the business, making it a prime time to scale up,” Harvey said.
The company’s expansion plans will start along the Interstate 35 corridor in Minnesota. There are plans to open around five stores in Minnesota and South Dakota this year, Harvey said.
The new franchise push comes as Dunn Brothers expands other lines of business, including new packaged coffee beans and K-Cups in Minneapolis grocery stores. The company also plans to introduce “menu innovations” in its coffee shops, though precise details around that aren’t clear quite yet. Harvey said that Dunn Brothers will remain “keenly focused on aligning with consumer preferences.”
Ed and Dan Dunn launched Dunn Brothers in 1987 after their time in Portland, Oregon, according to the company’s website.
