Charlotte’s coffee scene is about to get hotter. Another West Coast chain is coming

A coffee competition in Charlotte is brewing as a popular West Coast chain competing with industry giants Starbucks and Dunkin’ plans its Carolina debut in Charlotte.

Dutch Bros Coffee submitted a redevelopment plan for 5637 Albemarle Road in east Charlotte, per a permit sketch plan filed Tuesday with the city of Charlotte.

The proposal includes a “quick-serve restaurant and oil change facility,” engineering firm Development Services Group Inc., in Portsmouth, Virginia, said in the project description.

The nearly 1-acre commercial property is adjacent to the former Eastland Mall site and owned by Pittman Investment Properties, Mecklenburg County property records show. In February, Wells Fargo closed its drive-thru bank on the site.

The company confirmed Thursday it’s in the “very early stages” of its plans for Charlotte and declined further comment.

What is Dutch Bros?

Dutch Bros is the third-largest coffee chain in the U.S. based in Grants Pass, Oregon.

The fast-growing drive-thru and walk-up store serves espresso-based, customizable cold and hot beverages, plus smoothies, teas, shakes and energy drinks. The menu also includes muffin tops and granola bars.

The publicly-traded company opened in 1992 as a pushcart and has grown to 950 locations in 18 states as of September, according to Dutch Bros’ website.

The closest Dutch Bros to Charlotte are in the Knoxville, Tennessee, area. Dutch Bros has 25 stores in Tennessee.

Dutch Bros goal is to open 4,000 stores in the U.S. over the next 10 to 15 years. In 2023, it opened 159 shops with plans to open up to 165 this year and 160 next year.

Hot coffee competition

Last month, Dutch Bros reported its third-quarter sales revenue ending Sept. 30 was $338 million, up 28% compared to last year.

For comparison, Seattle-based coffee behemoth Starbucks with over 38,000 stores worldwide reported sales revenue drop of 4% to $465.4 million in its fourth quarter that ended Sept. 29. In October, the New York Times said Starbucks is struggling with foot traffic down 10% over the past year.

Several Starbucks have closed in the Charlotte region since the pandemic, including at malls like Northlake and SouthPark. But its presence remains strong with dozens of locations in the Charlotte region, including inside stores like Harris Teeter and Target. Starbucks also has submitted plans this year with the city of Charlotte for a freestanding stores, including 11431 N. Tryon St. and 1901 N. Tryon St.

Dunkin’ was acquired by Inspire Brands in 2021 for $11.3 billion, making the company private. The company has nearly 13,000 stores in 42 countries. Dunkin’ expanded to Charlotte in 2004 and has about 70 stores in the region.

Charlotte’s local coffee competition also is strong from dozens of local and regional shops that have popped up over the past several years.

This story was originally published December 16, 2024 at 5:00 AM.