Dutch Bros Coffee vs SubwayFranchise Comparison 2026
Dutch Bros Coffee and Subway represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Dutch Bros Coffee | Subway | Difference |
|---|---|---|---|
| Franchise Fee | $30,000 | $15,000 | +100% |
| Total Investment (Low) | $400,000 | $116,000 | +245% |
| Total Investment (High) | $700,000 | $263,000 | +166% |
| Cash Required | $300,000 | $80,000 | +275% |
| Royalty Rate | 5.0% | 8.0% | Lower |
| Advertising Fee | 2.0% | 4.5% | Lower |
| Estimated Revenue | $1.7M | $490,000 | +247% |
| Number of Locations | 900 | 20,133 | Fewer |
| Year Founded | 1992 | 1965 | Newer |
| Training Duration | 4 weeks | 2 weeks | Longer |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Dutch Bros Coffee
Drive-thru coffee chain with energy drinks and specialty beverages. Strong cult following and high per-unit sales. Requires multi-unit development commitment.
About Subway
Lower-cost franchise option with flexible footprint. Lower per-unit sales but easier entry point for new franchisees.
Investment Comparison
Subway requires a lower initial investment (avg $189,500) compared to Dutch Bros Coffee(avg $550,000), making it more accessible for first-time franchisees. However, Dutch Bros Coffee may offer higher revenue potential.
Fee Structure
Dutch Bros Coffee has lower ongoing fees (7.0% total) compared to Subway(12.5% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Subway has a significantly larger footprint with 20,133 locations compared to Dutch Bros Coffee's 900. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Dutch Bros Coffee vs Subway franchise?
Dutch Bros Coffee requires an initial investment of $400,000 to $700,000, while Subway requires $116,000 to $263,000. Subway has the lower average investment at $189,500.
What are the ongoing fees for Dutch Bros Coffee vs Subway?
Dutch Bros Coffee charges a 5.0% royalty plus 2.0% advertising fee (7.0% total). Subway charges 8.0% royalty plus 4.5% advertising fee (12.5% total). Dutch Bros Coffee has lower total ongoing fees.
Which franchise makes more money: Dutch Bros Coffee or Subway?
Based on estimated average unit revenue, Dutch Bros Coffee generates $1.7M per location compared to $490,000 for Subway. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Dutch Bros Coffee have vs Subway?
Dutch Bros Coffee has 900 locations, while Subway has 20,133 locations. Subway has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Dutch Bros Coffee or Subway a better franchise investment in 2026?
Both Dutch Bros Coffee and Subway are established QSR brands with proven models. Subway offers a lower entry point, while Dutch Bros Coffee shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
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