Reborn Coffee Approved as U.S. Franchisor, Sets Stage for Expansive Growth Across U.S. Markets
Rhea-AI Summary
Reborn Coffee (Nasdaq: REBN) has received approval as a U.S. franchisor, marking a significant expansion milestone. The company aims to open more than 100 franchise locations nationwide within three years. Currently approved to operate in California and non-franchise registration states, Reborn is actively pursuing approvals in additional registration states for a comprehensive nationwide rollout.
The company's franchise model combines premium coffees, teas, and artisanal bakery offerings with modern store concepts. Each location is designed to serve as a cultural and community hub. The expansion strategy focuses on delivering world-class coffee experiences, with plans for growth in both domestic and emerging global markets.
Positive
- Received official approval as U.S. franchisor, enabling nationwide expansion
- Ambitious target of 100+ franchise locations within 3 years
- Already approved in California and non-franchise registration states
Negative
- None.
Insights
The acquisition of U.S. franchisor status represents a strategic inflection point for Reborn Coffee, though the path to successful execution remains complex. The specialty coffee market, valued at
The company's phased approach, starting with California and non-franchise registration states, demonstrates prudent risk management. However, the target of 100+ locations in three years appears ambitious given typical franchise development timelines of 12-18 months per location and capital requirements of
Key success factors will include:
- Franchise unit economics and ROI metrics to attract quality franchisees
- Supply chain scalability to maintain product consistency across locations
- Training infrastructure to preserve brand standards
- Market differentiation in a crowded space
Historical data shows that successful coffee franchises typically achieve
The transition to a franchise model could accelerate revenue growth through franchise fees and royalties while reducing capital intensity. However, investors should monitor franchise recruitment progress, unit economics and same-store sales metrics as key indicators of execution success.
Targeting More than 100 Locations in Three Years, Reborn Coffee Expects to Redefine Specialty Coffee with Domestic & Global Growth
BREA, Calif., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Reborn Coffee Inc (Nasdaq: REBN), a leader in the specialty coffee market, today announced its official approval as a franchisor in the United States. This landmark achievement sets the stage for an ambitious expansion plan, targeting the opening of more than 100 franchise locations nationwide within the next three years, while building momentum for further global growth.
Reborn Coffee is currently approved to operate in the state of California and non-franchise registration states, with additional franchise approvals in other registration states actively in progress. This phased approach ensures a strategic and comprehensive nationwide rollout.
Reborn Coffee believes its franchise model and growth strategy will position the Company as a leading force in the coffee industry. Combining its signature premium coffees, teas, and artisanal bakery offerings with modern, scalable store concepts, the company is redefining how coffee is experienced worldwide.
“We are thrilled to enter this exciting new phase as a franchisor in the U.S.,” said Jay Kim, CEO of Reborn Coffee. “Our mission has always been to deliver more than just coffee - it is about creating a globally recognized experience that blends quality, innovation, and culture. This approval unlocks opportunities for franchisees to join us in shaping the future of specialty coffee.”
Reborn Coffee’s expansion strategy has set the foundation for global growth with a focus on delivering world-class coffee experiences and priming Reborn to grow not just in the U.S., but also in emerging markets across the globe.
The franchise program combines state-of-the-art brewing techniques, high-impact customer experience, and expertly curated offerings, delivering a unique value proposition for entrepreneurs and coffee lovers alike.
Reborn Coffee’s strategic roadmap underscores its goal to become a global lifestyle brand. Each store is designed to be a cultural and community hub, offering a warm, inviting atmosphere and products crafted with care.
About Reborn Coffee
Reborn Coffee, Inc. (NASDAQ: REBN) is focused on serving high quality, specialty-roasted coffee at retail locations, kiosks, and cafes. Reborn is an innovative company that strives for constant improvement in the coffee experience through exploration of new technology and premier service, guided by traditional brewing techniques. Reborn believes they differentiate themselves from other coffee roasters through innovative techniques, including sourcing, washing, roasting, and brewing their coffee beans with a balance of precision and craft. For more information, please visit www.reborncoffee.com.
Forward-Looking Statements
All statements in this release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our recent filings with the Securities and Exchange Commission (“SEC”) including our Form 10-Q for the third quarter of 2023, which can be found on the SEC’s website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company’s ability to continue as a going concern as indicated in an explanatory paragraph in the Company’s independent registered public accounting firm’s audit report as a result of recurring net losses, among other things, the Company’s ability to successfully open the additional locations described herein as planned or at all, the Company’s ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products and costs, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contacts
Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
REBN@mzgroup.us
949-491-8235
Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com
FAQ
How many franchise locations does Reborn Coffee (REBN) plan to open in the next three years?
In which states is Reborn Coffee (REBN) currently approved to operate franchises?
What is included in Reborn Coffee's (REBN) franchise model?
When did Reborn Coffee (REBN) receive its U.S. franchisor approval?
