Dutch Bros has raised its menu prices three times in the past year, but consumers didn't pushback.
"We have not seen much pushback on price," CEO and President Joth Ricci told Yahoo Finance.
Ricci said the team carefully placed the price hikes. The three include a hike of under 4% in both May and June, then another on September 1 of a little more than 4%.
He explains, "We've been very good...we put in a price position out there where we earn price, we try not to take price and we're careful about where we place price increases and what type of items and what part of our menu that we put pricing into, so our pricing has averaged about 4% bump in each time that we've done that over the last year and so far, we've found that to be, you know, flowed through pretty well."
In the third-quarter, the coffee chain grew revenue by 53% to $198.7 million compared to Q3 last year, doubling in just 18 months. Same-store sales also saw a boost, up 1.7% this quarter.
Investors seem to be encouraged by the overall report, with shares up more than 20% during Thursday's trading session.
Inflation relief 'is coming'
As it turns out — seemingly no part of the business is immune to inflation.
The 30-year-old company saw the price of its goods jump roughly 10.7% year-over-year — and not only coffee is getting hit.
"Look at any coffee shop or any beverage location ... The components that go into that ... nothing has really been able to stay away from the inflationary pressure," he said. "Cups and plastics and dairy, and you know, even the ice and making the ice out of the ice machine has gotten more expensive."
Hinting toward some relief in the future, he said, "We're seeing the market start to come down so you should see some relief in coffee pricing ... probably into the first half of next year."
At the end of the day though, the CEO says Dutch Bros is mindful of passing price increases onto consumers and keeping a close eye on its competition like Starbucks, which raised prices by about 5% over a 12-month period.
"I think other competitors have been a little bit more aggressive with pricing, but we've tried to be careful with the customer and how we've managed that."
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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