Few, maybe zero, restaurant chains are growing faster on a percentage basis than a drive-thru coffee chain founded eight years ago in Rogers, Arkansas—the home of the first Walmart. 7 Brew started as a stand offering seven choices (hence the name): Blondie (caramel and vanilla breve), Brunette (hazelnut and caramel mocha), Smooth 7 (white chocolate and Irish cream breve), Cinnamon Roll, White Chocolate Mocha, German Chocolate, and Triple 7 (Smooth 7, but with six espresso shots).
By the start of 2022, there were just 14 of them. But that number would rise to 40 by the end of year. And then, the gates opened. Across 2023, 7 Brew lifted by a net 140 restaurants to get to 180. How did it perform in 2024? The chain’s just-released FDD unveiled a near-mirror-like run of 141 net expansion across the year to bring 7 Brew’s footprint to 321 restaurants. Or, 2,100 percent growth since 2022. The brand is now the second-largest drive-thru-only coffee chain in America behind Dutch Bros, which recently passed 1,000 locations. It also noted in its FDD, as of December 29, 2024, there were roughly 2,500 future stands under development agreements.
LOOK BACK: QSR’s Breakout Brand of 2023: 7 Brew Rewrites the Record Book
7 Brew’s 2024 base broke apart as 297 franchises (up 136 and 137 net in the prior two years, respectively) and 24 company owned (climb of five and three in the past two calendars).
As for what’s ahead in 2025, 7 Brew appears ready to ramp that pace even further to 228 projected franchised openings and 14 company. It’s spread out across America.
7 Brew has dotted the map so far.
Locations (year-end 2024)
- Alabama: 15
- Arkansas: 19
- Colorado: 4
- Connecticut: 1
- Florida: 19
- Georgia: 9
- Illinois: 10
- Indiana: 17
- Iowa: 2
- Kansas: 9
- Kentucky: 13
- Louisiana: 6
- Michigan: 4
- Mississippi: 3
- Missouri: 25
- Nebraska: 4
- New Mexico: 2
- New York: 6
- North Carolina: 9
- Ohio: 18
- Oklahoma: 17
- Pennsylvania: 2
- South Carolina: 5
- South Dakota: 1
- Tennessee: 15
- Texas: 48
- Utah: 2
- Virginia: 3
- West Virginia: 2
- Wisconsin: 6
- Wyoming: 1
Last year’s growth included 139 openings and three stores reacquired by the company. There were no terminations or stores that ceased operations for other reasons, or non-renewals. It was all expansion, no closures.
The largest growth markets in 2024 were Texas (from 26 to 48), Ohio (four to 18), Missouri (15 to 25), Kentucky (six to 13), Florida (11 to 19), and Arkansas (12 to 19).
As the above chart showed, it appears Alabama, Florida, Georgia, Illinois, Kentucky, Missouri, Ohio, Pennsylvania, Tennessee, and Texas are all slated for double-digit 7 Brew additions in 2025.
Into performance, average store gross sales across the measured system in 2024 was $2.040.883 million. Median sales were $2.060.914 million. The highest-earning 7 Brew generated $3.978.338 million and the lowest $888,964.
These 7 Brews averaged about 510 square feet and, as of year-end 2024, were open an average of 22 months. The longest-operating store was on the market for 95 months. The youngest, 12 months. Store-level EBITDAR (not inclusive of rent and costs tied to real estate) was 29.34 percent (average of $426,000).
Of the 180 included locations, 91 (51 percent) exceeded the sample’s average gross sales of $2.040.883 million.
Gross profit margin was 70.87 percent, labor expense 22.93 percent, operating expense 8.42 percent, and total loyalty and store marketing expense 10.18 percent. Royalties were 7 percent, brand fund 2 percent, tech fee 0.25 percent, and post royalties, brand fund, and tech fee EBITDAR 20.09 percent. The net sales margin was 97.18 percent and cost of goods sold 26.31 percent. Fifty-six percent (101 locations) exceeded that 97.18 percent net sales figure.
For just franchised 7 Brew locations, average store gross sales in 2024 came in at $1.989.229 million. Median gross sales $1.921.485 million. The highest-earning 7 Brew clocked $3.978.338 million and the lowest $888,964.
Company locations averaged gross sales of $2.505.769 million. Median was $2.412.664 million and the top performer was $3.864.427 million, with the low collecting $1.387.850 million.
The total investment needed to begin operation of a new 7 Brew is $894,000 to $2.178.5 million, assuming a five-store commitment, inclusive of a $1450,000–$745,000 fee paid to the franchisor or affiliate. It’s $35,000 for the initial first store plus a $10,000 payment for each of the second through fifth units. After those five, operators must pay a $10,000 development fee for each additional restaurant.
CEO John Davidson, who leads 7 Brew’s parent company Brew Culture, based in Springdale, Arkansas, has held that role since January 2020. Since 2004, he’s also served as managing director of family-office investment firm Monroe Capital.
7 Brew in March added former Subway CDO Mike Kehoe to the team as president of international franchising.
A deep and experienced executive team has come together over this spurt:
Andrew Ritger, formerly CEO of Value Dry Cleaners, came on as COO and director of franchising in May 2021. Chris Dawson, the ex-CEO of Walk-On’s, joined as president of Brew Culture in July 2024.
Shane Cornyn, senior project manager of JRM Construction Manager, was named CDO in March 2024.
Nicolas Chavez, the former CMO of KFC from November 2021 to 2024, onboarded in the same title at Brew Culture last December.
Danyel Bischof-Forsyth, once with Tyson Foods, became chief technology officer in January 2024. Zach Davis was appointed SVP of financial planning and analysis last May after time at Conn’s HomePlus and Walmart. Mike Lopez started as VP of new stand growth in October 2025 after serving as COO for Tint World. Patrick Jones began as chief accounting officer in February 203 after working at Hancock Whitney Corporation. VP of supply chain Chris Heath onboarded in August 2025 following a seven-year run at Daisy Brand. Lastly, Chris Davis has been director of real estate since October 2023. He came over from Charlotte, North Carolina-based Driven Brands.
7 Brew ended 2024 with total current assets of $26,334,470, a significant change from $3,178,625 after 2023 and $4,399,342 at 2022 exit.
Total assets were $62,217,171, up from $35,120,447 and $22,055,825, respectively.
Total revenues for 7 Brew last year were $43,519,728. In 2023 and 2022, it was $15,396,490 and $4,093,132, respectively.
Net income close of 2024 was $18,388,782 following $1,560,891 in 2023 and a loss of $2,563,076 in 2022.
