Encore Restaurants, LLC announced the launch of Encore 7 BREW, LLC, a wholly-owned subsidiary of Encore Enterprises, Inc., which owns the exclusive rights to build and operate franchise locations of 7 Brew drive-thru beverage stands throughout Phoenix.
The franchise group is also opening new locations in Salt Lake City, Utah, according to a press release, creating more than 3,000 jobs in that market, of which approximately 60% will be full-time positions. In Arizona, the new 7 Brew franchise locations will generate more than 4,700 jobs, of which approximately 60% will be full-time. So far, two Encore 7 BREW stands have been installed in Utah at Provo and Millcreek. It’s unclear when and where the new Phoenix locations will open.
“Encore 7 BREW is a highly skilled, experienced franchisee with a proven track record of building and operating storefronts that outperform the competition; we’ve strategically selected them to helm 7 Brew’s expansion into Utah and Arizona,” John Davidson, CEO of 7 Brew, said in a press release. “7 Brew is on a strong growth trajectory, and we have every confidence entrusting Encore 7 BREW’s seasoned leadership to advance our mission of redefining the drive-thru beverage experience through personalized, human-centric customer service, premium products, and exceptional efficiency.”
Recognized as QSR Magazine’s “Breakout Brand of 2023,” no restaurant chain in America is growing faster than 7 Brew, which started in Rogers, Ark., in 2017. Today, the brand has over 295 locations across 31 states, serving over 20,000 different combinations of custom drinks while ‘cultivating kindness and joy with every drink.’ In February 2024, Blackstone announced a growth equity investment in 7 Brew to help enable the next-generation drive-thru beverage business to accelerate its already-rapid expansion across the U.S. in collaboration with its premier franchise partners.
“Demand for drive-thru coffee and energy drinks has surged an astounding 5380% in five years, and 7 Brew is a dominant force of momentum in the category,” Dale Doerhoff, president of Encore Restaurants, said in a press release. “Encore 7 BREW is uniquely positioned to drive the brand’s Utah and Arizona expansion, applying our experience as the largest, most successful Five Guys franchisee in the country from 2014-2022. Our stores consistently ranked at the top for guest satisfaction, food safety, employee retention, and financial performance, ultimately attracting the parent company to buy back all 110 locations.”
Coffee is the second-largest sector in the U.S. restaurant industry, with an annual spend of over $31 billion. The U.S. coffee market is projected to grow at a CAGR of 5.1% leading up to the next decade. By 2025, 89% and 21% of U.S. coffee sales and coffee consumption, respectively, are expected to take place outside of the home, with consumers preferring drive-thru establishments. The Specialty Coffee Association reports that curbside and pick-up orders have grown by a staggering 5380% since 2019, with drive-through and app sales increasing by 30% since the pandemic alone.
