Why is 7Brew so popular? [5 Reasons]

It is hard to imagine that a company that was just founded in 2017 has exploded to over 100 locations in just 6 years, making over $200M in revenue and that too competing with household names and giants like Starbucks, Dunkin Donuts, and Pete’s Coffee! They are doing something right and in this article, we will explore the reasons.

Table of Contents

Founding story

7 Brew’s origin traces back to 2015 when a simple visit to Arkansas sparked Ron Crume’s dream of starting a coffee shop. The dream materialized in 2017 with the opening of the first 7 Brew Coffee store in Rogers, AR.

Like many entrepreneurs, the idea percolated in Ron Crume’s mind for a long time. In the 1990s, Crume, an Oregon native, had a plan to open coffee shops drawing inspiration from the Dutch Bros. Coffee brand, headquartered in his home state. He wanted to build something similar in Northwest Arkansas. But, instead, Crume returned to Oregon in the late 1990s and opened a foundry and machine shop.

However, it eventually materialized in 2017. Initially, the brand started with just one store, but soon expanded to 15 branches across Arkansas, with three franchisees planning to open several branches nationwide1.

7 Brew was founded with a mission to revolutionize the drive-thru coffee experience. The founders envisioned creating a space where premium coffee could be served quickly, while also establishing new friendships along the way. This vision was realized with the opening of their first “stand” in Rogers, AR, where they offered seven original coffee varieties.

The brand has since grown, offering a variety of custom handcrafted drinks in different locations across the country. Central to 7 Brew’s ethos is the concept of cultivating kindness and joy with every drink, which is reflected in their service, speed, quality, energy, and atmosphere.

Additionally, industry veterans Jamie Coulter and Jimmy John Liautaud have made a majority investment in 7 Brew, further propelling the brand’s growth and development.

How many locations does 7Brew have?

The rapid growth of 7Brew, marked by the opening of its 100th store, is a testament to its rising popularity. This was in June of 2023. Currently, they seem to have around 143 stands (locations).

Their growth strategy appears to be well-calibrated as they continue to expand and grab a share of the booming coffee market in the U.S., which saw sales by branded coffee shops reach $45.8 billion by June 2022

Why is 7Brew so popular? 5 Reasons

1. Culture and Financial Prudence

7Brew’s growth is strongly tied to its culture/capital connection. The company provides field and brand support to foster this connection and highlights operational differences that drive returns.

They place a strong emphasis on hospitality with a mission of “cultivating kindness and revolutionizing the drive-thru experience by treating people like people, igniting happiness, and creating enduring connections with customers.” Their approach to culture is about making both employees and customers feel good, fostering a pleasant and efficient environment driving sales.

2. Unique Offerings

7Brew stands out with its unique offerings like the German Chocolate flavor, a blend of coconut and caramel mocha, which is not commonly found in other coffee shops. Additionally, they offer the Triple 7, an extra-caffeinated option with six shots of espresso, catering to individuals who need that extra boost of caffeine.

3. Consumer Behavior Shift

The shift in consumer behavior towards seeking afternoon energy boosts through coffee and energy drinks has been a business driver for 7Brew. They cater to this demand with a variety of offerings, boasting less than 70 SKUs but over 20,000 drink combinations.

The company also stays relevant by adapting to high-demand trends like adding cold brew to the menu

5. Franchising Economics

Launching a franchising program has also contributed to 7Brew’s accelerated growth, attracting major franchisees and expanding their presence across multiple states. The franchising program is believed to be a key differentiator for 7Brew in a crowded market segment

7Brew’s unit economics are appealing with an average unit volume of about $2.35 million, and construction costs targeted below $1.3 million per unit. This robust return attracts investors and supports the brand’s expansion efforts (https://www.vettedbiz.com/seven-brew-franchise/)

Conclusion

7Brew’s approach to blending a unique culture with sound financial strategies, coupled with an understanding of shifting consumer behaviors and a compelling product offering, are pivotal factors contributing to its rising popularity and rapid growth in the competitive coffee market.