A refined retail strategy drives Bad Ass Coffee’s 1H 2023 revenue growth
Image: Bad Ass Coffee of Hawaii
Bad Ass Coffee of Hawaii, a coffee franchise known for its sourcing of Hawaiian coffees and memorable cafés, reports on its mid-year performance, noting 19 new franchise signings and a 23% year-over-year increase in systemwide sales (year-to-date June 2023). Momentum builds as Bad Ass Coffee enters the back half of 2023 with more than 14 stores in various stages of development.
Multi-unit growth continues to play a significant role in Bad Ass Coffee’s franchise expansion strategy. More than 70% of the system is now comprised of multi-unit operators. In addition, new franchisees are seeing immense value in diversifying their portfolios with an emerging coffee shop.
Bad Ass Coffee recently signed a three-unit agreement in Myrtle Beach, another three-unit deal in Fort Worth, a five-unit agreement in San Antonio, and a five-unit agreement in Phoenix, among others. Leadership aims to continue focusing development in the Southeast, Rocky Mountain West, Southwest, California, and Texas, in addition to re-establishing store presence in Hawaii. With rapid expansion underway, the brand has set aggressive expansion plans to open 150 new locations over the next five years, with prime markets available nationwide.
“We’re focused on clustering new stores regionally with legacy stores and establishing new groupings of stores in prime markets with experienced multi-unit, multi-brand operators. This strategy will continue to guide our future development,” said Scott Snyder, CEO of Bad Ass Coffee of Hawaii. “With an aggressive push to build a best-in-class national coffee franchise opportunity with modern prototypes, a strong infrastructure, technology and innovation, and a craveable menu, we’re poised for remarkable accomplishments this year.”
Driving Bad Ass Coffee’s performance has been a refined focus on its retail strategy unlocking revenue growth potential. Systemwide sales in merchandise is over 6% of total sales, with the top one-third of the system achieving over 11% in total sales*. New this year, Bad Ass Coffee enlisted professional surfers from Maui as brand ambassadors to create new coffee flavours and a limited-run merchandise line. The limited-time-offers proved immensely successful for the brand as it continues to find new ways to pay homage to its Hawaiian heritage.
In addition to its brand ambassador collaborations, Bad Ass Coffee has found success in its seasonal LTO launches, including this year’s Spring Swell drink line, all-new energy drink – Mana, and Summer Beach Bonfire Collection, with more slated for the autumn and winter seasons. These products complement a five-year menu innovation project currently underway that is set to provide a comprehensive future roadmap for both food & beverage offerings that are on-trend and inspired by Hawaii.
According to Bad Ass Coffee’s 2023 FDD, the top 50% of stores saw an average net sale of more than USD $1 million, with the average of the top 25% exceeding $1.2 million*.
“We’re on a mission to validate Bad Ass Coffee of Hawaii’s position nationally as the premium coffee franchise brand in the QSR space, while providing unparalleled support to our franchisees as we continue to grow our brand footprint. As we aim to expand and elevate our brand to new heights, our franchisee-first mentality will be instrumental to our long-term success,” added Snyder.
The brand recently ranked on QSR’s 2023 40/40 List as one of America’s hottest emerging fast casual brands.
Bad Ass Coffee of Hawaii was born on the Big Island of Hawaii in 1989 with the dream of sharing American-grown, premium Hawaiian coffee with customers everywhere. In addition to premium coffee from the famous Kona region of the Big Island, Bad Ass Coffee also sources from Kauai and Maui. Beyond premium Hawaiian coffees, Bad Ass Coffee of Hawaii serves up a full menu of blended drinks, signature lattes, cold brews, teas, innovative foods with a Hawaiian twist, and branded merchandise.
Bad Ass Coffee of Hawaii is looking to partner with qualified and engaged individuals seeking single and multi-unit opportunities. The brand offers an affordable, highly scalable opportunity with strong profit-potential. Franchisees can expect a total investment range between $454,200 – 920,500*. As International Franchise Association VetFran members, veteran franchisees who join will receive a $10,000 discount* off the initial franchise fee.
For more information on Bad Ass Coffee of Hawaii franchise opportunities, visit badasscoffeefranchise.com.
*Source: 2023 FDD – Bad Ass Coffee of Hawaii