Dutch Luv

1. Dutch Luv Presented by: Kelsy Bryant Dianna McClain Jenn French Daniel Kause

2. History • Dane and Travis Boersma of Grants Pass, Oregon • Began in 1992 when their father turned his dairy farm into a golf course

3. Mission Statement To be so strong that nothing can disturb your peace of mind. To talk health, happiness and prosperity to every person you meet. To make all your friends feel there is something in them. To look at the sunny side of everything and make your optimism come true. To think only the best, to work only for the best and expect only the best. To be just as enthusiastic about the success of others as you are about your own To forget the mistakes of the past and press on to the greater achievements of the future. To wear a cheerful countenance at all times and give every living creature you meet a smile. To give so much time to the improvement of yourself that you have no time to criticize others. To be too large for worry, too noble for anger, too strong for fear, and too happy to permit the presence of trouble.

4. Franchising • Running between $70,000 & $180,000 • Began popping up in 1999 as Dutch Bros. spreading into Klamath Falls and Roseburg • In 2001, opened in Albany and Chico California "As an owner, I wanted to stay within a 30-mile radius; that’s why we came up with the franchise idea," Boersma says. "We wanted to see if enough people were interested, and the response has been phenomenal."

5. Franchising PHASE II • Their Phase II goal was to immediately grow their brand into new communities with a population of 15,000+ people. • Sought out applicants for areas between Seattle to the north, the Bay Area to the south, and Reno to the East

6. Franchising PHASE III • Began Fall of 2005 • Over the next 24 months they will begin to build their brand north into British Columbia, south to the Mexico Border and east to the Rockies.

7. Franchising PHASE IV & V • They anticipate beginning PHASE IV in late 2006. This growth will take them into the Midwest, South, and East Coast. • They will continue Canadian growth as part of PHASE IV, and touch other foreign soil in PHASE V

8. Organizational Structure • TOP MANAGERS: Dane handles daily operations and Travis oversees growth • MIDDLE MANAGERS: Brother-in-law Dave Morris and Abe Menchenfriend train franchisees and employees. • FIRST-LINE MANGERS & OTHER EMPLOYEES: The central office has a staff of 10, and there are more than 250 employees and 23 franchises in two states.

9. Daily Operations • Eventually, the two-sided drive-thrus became the standard platform. • Dutch Bros. dispenses between 250 and 1,200 drinks daily from each. • The company roasts and grinds between 15,000 and 18,000 pounds of beans monthly at its Grants Pass warehouse.

10. Making Things Happen • Planning: • All stock and inventory • Scheduling • Hiring and Firing

11. Making Things Happen • Managing Information: • Communicating information from top managers to store employees • Passing on schedules and new procedures to employees • Managing inventory and shipments from warehouse to stores

12. Making Things Happen • Control: • Maintaining a positive work atmosphere • Using proper feedback control to control and eliminate problems • Allowing employees the freedom to work in their own niche • Evenly distributing and delegating responsibility

13. 5 Forces Analysis

14. Meeting the Competition • Fast, Friendly, Fun • Focused on Customer service • Promotional Strategies • Seasonal Change • Frequency of Strategy Change • Dutch Days

15. Social Responsibility Dedication to the Community Donations • Book Drive • Profit Contributions • Charity Work

16. Drive - Thru Fast Convenient Smaller Company Local Limited Interactions Accessible Walk-In Longer Waits Atmosphere Brand Name Conglomerate Backing Competitive Edge? www.danstreicher.com/ latest.html

17. Effectiveness and Recommendations • Relaxed Attitude Toward Competitors • Competitive tactics Need to Expand along with Franchise • Direct Consumer Targeting • Market Research • Differentiation through Simplicity • Core Products • Retain Small Business Feel Always Remain able to Adapt!

18. Organization • Managing Teams • Managing Human Resource Systems • Managing Service & Manufacturing Operations

19. Managing Teams • Employees • 1 manager per store location • Hiring & Firing • Scheduling • Workers work in a cross training environment

20. Managing Human Resource Systems • Website • Informational • Order Coffee beans, equipment & clothing • Franchising • 60 locations beginning ’05 • 25 locations scheduled to open by year ending • Only 13 new locations have opened

21. Managing Service & Manufacturing Operations • Preparations • Store manager orders everything • Processes • Drive thru vs. walk-in locations • Deliveries

22. Recommendations • People • Get employee feedback regularly to prevent social loafing • Projects • Get out in the community • Keep website updated • Processes • Less stress on store manager, others can order

23. Leading • Self-Awareness • Understanding of emotions, strengths, weaknesses, needs, drives • Self-Regulation • Control of feelings and impulses • Motivation • Drive to achieve beyond expectations

24. Leading • Empathy • Considering employees’ feelings, as well as other factors, in the process of making intelligent decisions • Social Skill • Moving people in the direction you desire through “friendliness with a purpose”

25. We Would Like to Thank: Justin-11th and High manager Val Darling- employee at 11th and High Tianna Timothy- “ Jason- regional manager

26. Mission Statement To be so strong that nothing can disturb your peace of mind. To talk health, happiness and prosperity to every person you meet. To make all your friends feel there is something in them. To look at the sunny side of everything and make your optimism come true. To think only the best, to work only for the best and expect only the best. To be just as enthusiastic about the success of others as you are about your own To forget the mistakes of the past and press on to the greater achievements of the future. To wear a cheerful countenance at all times and give every living creature you meet a smile. To give so much time to the improvement of yourself that you have no time to criticize others. To be too large for worry, too noble for anger, too strong for fear, and too happy to permit the presence of trouble.