Dunn Brothers Coffee Plans To Open 250 New Shops
Dunn Brothers Coffee, a regional franchised coffee chain with about 50 locations, is planning to open an additional 250 locations over the next five years, QSR Magazine reports, though the company didn't specify a timetable for the rollout or where it plans to expand.
About half of its locations are in its hometown of Minneapolis.
The company launched a line of packaged coffee beans and K-Cups for sale in Twin Cities grocery stores. It also said it is planning drive-thru-only models.
In 2022, private equity firm Gala Capital Partners acquired Dunn Brothers, which was founded in the 1980s by brothers Ed and Dan Dunn. Gala Capital has restaurant holdings that also include Famous Dave's, Rusty Taco, Mooyah Burgers Fries & Shakes, and Cicis Pizza.
Dunn Brothers, which serves small-batch roasted coffee and a variety of food items, stresses the freshness of its offerings.
“We never sell coffee in our shops that’s been roasted more than five days prior,” Dunn President Scott Harvey said in a statement published by QSR magazine.
The expansion will come at a time when coffee shop chains are still growing, bouncing back from pandemic-era damage to the industry. The number of branded U.S. coffee shops now total over 40,000 after growing about 4% in 2023, according to Allegra World Coffee Portal. Starbucks remains the top chain, with more than 16,100 outlets, followed by Dunkin', with more than 9,400.
Total U.S. branded coffee shop market sales will exceed $52.4B this year and be $61.6B by 2028, World Coffee Portal forecasts.
