Sometimes a subtle change makes all the difference.

Last year, for example, my local coffee place, 1971, was sold and taken over by a new owner who also owned the Greek restaurant nearby. He kept the coffee the same, but swapped out most of the pastry and food offerings for a larger emphasis on Greek offerings.

Although the menu changes were subtle, the shop seemed less busy, and seating was more available. Within six months, the location closed and was replaced by a nail salon.

Change comes with risk, and similar brands are not always equitable. If your McDonald’s closed and was replaced by a Wendy’s, some people would be happy, while others would be indifferent, and some would be upset.

That’s the risk Dutch Bros. Coffee is taking with its latest purchase.

Dutch Bros. buys Clutch Coffee Bar

Clutch Coffee, a drive-thru coffee chain which was founded in 2018, shared its big news on Facebook.

“Exciting changes ahead! We’re switching gears. We have reached an agreement with Dutch Bros, and Clutch’s last day of business will be this Friday 1/16, closing @ 4 p.m. You can keep the good energy going with Dutch Bros and download the Dutch Bros app,” the chain shared.

All 20 Clutch Coffee locations will close on Jan. 16, then reopen at a later date as Dutch Bros. locations.

“The plan will be for restaurants to close, renovate, and then reopen as Dutch Bros. Notably, Dutch Bros has just two Carolina locations presently — one in Morrisville, North Carolina, and a unit in Summerville, South Carolina,” QSR Magazine reported.

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Dutch Bros. confirmed the purchase to QSR.

As a fellow brand built on human connection, we deeply respect what the Clutch Coffee Bar leadership team has built and look forward to building on that strong foundation in the Carolinas,” the company said in a statement. “We’re excited to continue expanding across the country as we work toward our long-term goal of 2,029 shops in 2029.”

Dutch Bros is taking over Clutch Coffee.

Dutch Bros

Coffee customers are both loyal and fickle

Dropping the Clutch Coffee brand and replacing it with Dutch Bros. comes with some risk.

“If you can flip that switch in a customer’s head and become the brand that they define their choice of coffee around, their loyalty can be incredibly powerful,” Dale Harris, 2017 World Barista Champion with 13 years of experience with Hasbean and Ozone Coffee, told Coffee Intelligence.

Customer loyalty can be the difference between success and failure.

“Due to the intense competition among international coffee players, brand loyalty has become a strategically critical factor in order for each and every coffee organization to sustainably thrive in today’s marketplace. This is because loyal customers are willing to purchase frequently, try other products and services (facilitate cross-buying intentions), bring in new customers, as well as create a positive public image for the firm, according to a study from Science Direct.

The study showed why loyal customers matter.

  • A 5% increase in customer retention subsequently results in 25-75% profit enhancement.
  • Keeping a customer loyal costs a company five times less than attracting new potential ones.

The study also showed that 50% of Starbucks customers buy coffee from other places regularly.

Starbucks is always ready to take your customers

If Clutch Coffee customers want to try another option before (or after) Dutch Bros. takes over, Starbucks will be ready to fill that void. And, once the chain captures a customer, its loyalty program may make it hard for Dutch Bros. or any rival to get them back.

  • Starbucks loyalty members spend 3X more than non-members and visit more often.
  • 41% of Starbucks’s U.S. sales are contributed by its loyalty members.
  • Starbucks’ loyalty program has averaged a 13.29% year-over-year growth.
  • Starbucks rewards members are 5.6 times more likely to visit a Starbucks every day.
  • 21% of Starbucks customers returned within three days, with 10% returning within one day.
  • 71% of Starbucks app users went to a store at least once a week.
  • Starbucks has a higher customer retention rate of 44% than the industry average of 25%.
    Source: Coffee Dasher

Personally, I find myself choosing Starbucks over smaller local options, in part due to its loyalty program and convenience. Your experience may vary.

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