Dive Brief:
- 7 Brew is opening its first location directly on a college campus at the University of Arkansas, the chain announced Tuesday.
- The brand will break ground on the kiosk over the summer and begin serving students in the fall, per the press release. Unlike its traditional drive-thru locations, this unit will offer more space for guests to have their beverages inside.
- The location will be the third walk-thru stand developed by the chain, which focuses primarily on small drive-thru locations. The chain has a similar walk-thru stand located near but not on The Ohio State University.
Dive Insight:
These college locations could become an important proving ground if 7 Brew decides to pursue a greater focus on on-premise transactions. The brand’s strengths — rapid franchise development, simple operations and fast drive-thru speed of service — have made it an attractive brand for franchisees, including private equity-backed operators.
Those strengths, and similar operational emphases by competitors including Dutch Bros, have made the coffee segment more competitive. But segment-leader Starbucks, in the midst of a turnaround, is looking to build an experiential moat around its empire by renovating stores and focusing on on-premise, in-person transactions. Competing against Starbucks may require challenger brands to adapt their drive-thru focused stores for a more traditional coffeehouse playbook.
Chris Dawson, 7 Brew’s president, said the University of Arkansas spot would have a focus on experiential elements across occasions, and that it “brings people together on a study break, morning commute or late-night treat to enjoy our beverages and experience the kindness, energy and passion that are central to the 7 Brew brand.”
The brand’s first walk-thru location opened last year in a Walmart. The continued development of locations in high foot traffic areas, like major retailers and universities, gives the chain an alternative growth avenue to its standard drive-thru format.
The brand has grown dramatically in recent years, from 460 stores last summer to more than 600 locations now, according to the press release. 7 Brew has bulked up its C-suite with hires from other major restaurant players. Last June, the chain hired its first supply chain chief from Inspire Brands, signaling it intends to grow a major national system. In December, it hired a former Restaurant Brands International CFO to oversee its financial operations.
