Dutch Bros Strikes $105 Million Deal for Salad and Go Locations
Bankrupt Salad and Go may have shut down , but its infrastructure will still be put to use. Dutch Bros agreed to pay $105 million for up to 65 sites to accelerate its own development.
The transaction covers locations in Arizona, Nevada, Texas, and Oklahoma. The conversions will start in 2027. The sale is expected to close in Q3.
"New shop growth is one of the most important drivers of our long-term strategy, and this potential site acquisition demonstrates how we're investing to accelerate that growth," Dutch Bros CEO Christine Barone said in a statement. "These sites would expand our leadership position across Arizona, Nevada, Oklahoma, and Texas, where we've built strong brand awareness and see a significant opportunity to continue densifying our footprint. As we thoughtfully convert these sites, we look forward to bringing the Dutch Bros experience to even more communities."
Dutch Bros finished Q2 with 1,225 shops across more than 25 states. Annual revenue tops $1 billion, and AUV has risen above $2 million. It is the third-largest coffee chain in America, following Starbucks and Dunkin'.
The deal follows a steep reversal for Salad and Go, which was founded in Gilbert, Arizona, in 2013 as an affordable, health-focused alternative to traditional fast food. Its drive-thru-only restaurants relied on production facilities that prepared and portioned ingredients for distribution to stores. The chain filed for bankruptcy on Tuesday and announced the closure of its remaining 70 units.
Salad and Go reached a peak valuation of approximately $1.1 billion in 2022 and grew to 146 restaurants across Arizona, Nevada, Texas, and Oklahoma. Its push into Texas and Oklahoma began in 2021 and eventually exposed problems with site selection, brand awareness, and the expense of its commissary model, according to CFO Francis Gallagher in court filings.
The company spent more than $47.1 million to build its Garland, Texas, production facility, paired with approximately $25.4 million from New Markets Tax Credit lenders. The total investment came to roughly $72.5 million. The facility carried $15 million to $20 million in annual overhead costs, and the region was significantly cash-flow negative even before companywide overhead was factored into its results.
Salad and Go closed approximately 41 underperforming restaurants in the region in September 2025. It announced the closure of every remaining Texas and Oklahoma store in January and shut the Garland facility January 11.
The cuts failed to stabilize the business. Its surviving Arizona and Nevada restaurants performed near break-even, but corporate overhead, administrative expenses, and rent tied to closed stores created what Gallagher described as unsustainable cash burn.
Investors supplied approximately $27 million in new capital between December and January. Operating losses, dead rent, and wind-down costs consumed most of this capital. Higher gas prices, weaker consumer spending, and a recent cyclospora outbreak accelerated losses during the 90 days preceding the filing, Gallagher said. The company said its products have not been linked to the outbreak.
Salad and Go began discussing a potential out-of-court sale with another buyer in February. That proposal covered certain restaurants in Phoenix, Tucson, and Las Vegas, plus the Phoenix production facility and related infrastructure. The parties failed to reach a definitive agreement.
For Dutch Bros, the proposed transaction marks its second purchase of a drive-thru chain in 2026. Earlier this year, the company spent $20 million to acquire 20-unit Clutch Coffee Bar , whose North and South Carolina restaurants are being converted into Dutch Bros shops.
Dutch Bros has set a goal of reaching 2,029 locations in 2029.
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