The state of Oregon is reeling from a catastrophic corporate exodus, highlighted by the definitive relocation of the $11.8 billion coffee chain, Dutch Bros, from Grants Pass to Phoenix, Arizona. This monumental shift, finalized in June 2025, represents the first major homegrown company in generations to abandon Oregon, prompting severe scrutiny of the state’s business climate. Political figures like Senate Republican Leader Daniel Bonham assert that the state’s policies effectively “punish success” through increasing regulations and one of the nation’s highest tax burdens, driving companies away. The departure was signaled by CEO Christine Barone, an Arizona native, who initiated the swift relocation of 40 percent of corporate roles.
This corporate flight is accelerating a broader trend of economic decline. Oregon’s business ranking has plummeted from 21st place in 2023 to a dismal 39th in 2025, ranking 47th for business friendliness nationally. This hostile environment—marked by complex regulations and inadequate services—is pushing other major firms, including Jeld-Wen and Owens Corning, to move or shutter operations. The crisis, compounded by a mass exodus of high-income households from Multnomah County, demands accountability from Governor Tina Kotek. The loss of Dutch Bros serves as a critical wake-up call for Oregon to redefine its approach to supporting economic growth and retaining entrepreneurial talent.