Dunn Brothers Coffee is expanding its footprint in the Upper Midwest through a new franchise agreement in Chamberlain, South Dakota, a move that underscores the company’s long-term growth ambitions as it approaches its 40th anniversary.
The planned location will introduce the Minneapolis-based coffee brand to another South Dakota community while serving as a platform for several next-generation initiatives, including updated store designs, enhanced technology systems, and operational improvements aimed at elevating both customer experience and franchise performance.
“This agreement represents more than a single location,” said Benjamin Anderson, President of Dunn Brothers Coffee. “As we approach 40 years of serving communities with fresh-roasted coffee, we’re investing in the future of our brand through innovation, operational excellence, and strategic growth.”
Situated along the Missouri River in central South Dakota, Chamberlain represents the type of community-focused market that aligns with Dunn Brothers’ expansion strategy. The company sees significant opportunity in smaller, underserved markets where consumers are increasingly seeking premium coffee experiences and strong local connections.
Founded in 1987 by brothers Ed and Dan Dunn in St. Paul, Minnesota, Dunn Brothers Coffee has built its brand around daily in-store small-batch roasting, a practice that continues to distinguish the chain within the competitive coffee segment. Since being acquired by Gala Capital Partners in 2022, the company has accelerated its franchise development efforts and invested heavily in infrastructure designed to support future growth.
The Chamberlain agreement supports Dunn Brothers’ broader objective of opening 250 new locations over the next five years. The company currently operates approximately 50 stores across seven states and is focused on expanding its presence through franchising, flexible store formats, digital ordering capabilities, loyalty technology, enhanced drive-thru operations, and strengthened franchise support systems.
According to the company, ongoing investments are focused on modernizing the customer experience through digital ordering capabilities, loyalty technology, enhanced drive-thru operations, flexible store formats, and expanded franchise support systems.
Industry observers view the Chamberlain development as strategically significant because it demonstrates Dunn Brothers’ willingness to expand into smaller, underserved communities rather than concentrating exclusively on major metropolitan markets. The city, home to roughly 2,500 residents, represents the type of community-focused growth opportunity the company believes can support long-term franchise success.
Dunn Brothers has also earned recognition for its beverage quality, including being named the No. 1 cold brew coffee in America by Tasting Table and ranking among the top five highest-quality coffee chains in the United States by Insider Monkey.
While specific construction and opening timelines for the Chamberlain location have not yet been announced, company representatives said additional details will be released as development plans move forward.
