HOUSTON — Arkansas-based 7 Brew Coffee has announced their purchase of 73 drive-thrus previously owned by Salad and Go for $143.18 million, including 34 sites in Metro Phoenix.
7 Brew’s competing bid was filed today after a closed auction this Monday, in which Dutch Bros declined to increase their $105 million bid for the shuttered drive-thrus. This bid will allow 7 Brew to expand rapidly into the Phoenix market, emerging as an overnight competitor to Dutch Bros, Black Rock Coffee and other drive-thru coffee chains operating throughout the Valley.
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7 Brew outbid the original Dutch Bros deal by $38 million, roughly $346,000 more per-site. The company will also be purchasing eight more sites than Dutch Bros offered to buy in its original offer — with 11 fewer sites in Greater Phoenix than the original proposal.
The Salad and Go bankruptcy case is still ongoing, and this deal has yet to be finalized. The final hearing on the bulk sale will be held on Sept. 21.
Christine Barone, CEO and president of Dutch Bros, announced yesterday in a press release that the company would not be increasing their offer for the 65 sites from the $105 million bid announced in August.
“While we have chosen not to increase our original offer, we remain engaged in the process and will continue to evaluate opportunities where the total investment provides the appropriate return,” Barone says.
Despite this, Barone remains confident in the company’s ability to expand, with a set goal of 2,029 stores by 2029.
7 Brew currently operates over 700 stands nationwide in 38 states. Only two of these locations are in Arizona, both in Tucson. Their first store in the Valley is scheduled to open on Sept. 14 in Queen Creek.
