Dutch Bros Coffee buys 51 former Salad and Go locations
Coffee chain Dutch Bros Coffee is acquiring 51 former Salad and Go restaurant sites across four states following the latter's bankruptcy and abrupt closure. The deal adds locations in Arizona, Nevada, Texas, and Oklahoma.
Phoenix, AZ – Dutch Bros Coffee has announced it will purchase 51 former Salad and Go restaurant locations in four U.S. states. The acquisition follows Salad and Go's surprise bankruptcy filing and immediate closure of all its operations this week. The deal includes sites in Arizona and Nevada, along with leases for former locations in Texas and Oklahoma.
Salad and Go, which had faced financial difficulties and a recent outbreak of cyclosporiasis, had announced the closure of all remaining sites. The chain had already undergone several rounds of closures over the past year. Dutch Bros stated the transaction is subject to court approval and anticipates converting the locations into its own outlets next year.
Court documents filed by Salad and Go indicated a limited pool of potential buyers. The drive-through-focused format of Salad and Go's sites, with no indoor seating, aligns with Dutch Bros' business model. The company also sought a buyer that was already scaled, a criterion met by Dutch Bros with its existing network of over 1,200 locations.
The purchase price for the 51 locations is $105 million. The acquisition significantly expands Dutch Bros' footprint in Arizona and other states. The deal was announced alongside Dutch Bros' second-quarter earnings, after which the company's shares fell more than 13% in after-hours trading.