Reborn Coffee Secures Commitments for 33 New Locations Through Strategic Franchise Area Development Partnerships Following Successful Seminar

Rhea-AI Summary

Reborn Coffee (Nasdaq: REBN) has secured commitments for 33 new locations through area development and franchise agreements following its Franchise Seminar on February 14-15, 2025. The expansion includes:

• 30 locations across 10 U.S. states (3 locations each in Northern California, Southern California, Florida, Georgia, Arizona, N. Carolina, Tennessee, Texas, Nevada, and Ohio)
• 3 international locations in Prague, Czech Republic

This strategic expansion reinforces the company's growth strategy in both domestic and international markets. Reborn Coffee will provide franchisees with necessary tools, training, and technology to maintain their premium specialty coffee experience across all new locations.

Positive

• Secured commitments for 33 new franchise locations
• Geographic diversification across 10 U.S. states
• International expansion into European market (Prague)
• Strategic growth through area development partnerships

Negative

• None.

Insights

Franchise Development Analyst

The commitment for 33 new franchise locations marks a transformative expansion for Reborn Coffee, representing a potential tripling of their current footprint. The strategic distribution across 10 U.S. states plus Prague demonstrates a well-calculated approach to market penetration, with each region receiving exactly 3 locations - a number that typically allows for efficient supply chain management and marketing economies of scale.

The expansion strategy reveals several key strengths: First, the geographic diversity reduces market-specific risks while creating multiple growth vectors. The selection of states like Florida, Texas, and California - known for high coffee consumption and strong retail markets - suggests thorough market analysis. The international expansion into Prague is particularly noteworthy, as it provides a strategic entry point into the European market, where specialty coffee consumption has been growing at 15-20% annually.

However, investors should consider several critical factors:

• Franchise agreements typically generate revenue through initial franchise fees ($25,000-$50,000 per location) and ongoing royalties (4-6% of gross sales)
• The execution timeline and capital requirements for opening 33 locations will be important for maintaining quality control and brand consistency
• Success will depend heavily on franchisee selection and support infrastructure, particularly for the international location
• Market saturation and competition vary significantly across the chosen locations, affecting potential unit economics

The equal distribution of locations per market suggests a pilot-program approach, allowing the company to test and refine their franchise model while maintaining manageable growth. This methodical expansion strategy, combined with their focus on the premium specialty coffee segment, positions them to capture market share in the growing $85 billion U.S. coffee shop market.

Reborn Coffee Strengthens Nationwide and International Growth with Newly Signed Area Development Agreements

BREA, Calif., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN), a leader in the specialty coffee market, today announced the signing of commitments for 33 new locations through a combination of area development and franchise agreements following its highly successful Franchise Seminar held on February 14-15 at Reborn Coffee’s Headquarters. This milestone reinforces the company’s aggressive growth strategy and solidifies its expanding presence in key domestic and international markets.

The newly secured agreements underscore the strong demand for Reborn Coffee’s specialty coffee, tea, and bakery concept, with locations planned across multiple states and internationally.

Newly Signed Area Development and Franchise Locations:

• Northern California: 3 locations
• Southern California: 3 locations
• Florida: 3 locations
• Georgia: 3 locations
• Arizona: 3 locations
• N. Carolina: 3 locations
• Tennessee: 3 locations
• Texas: 3 locations
• Nevada: 3 locations
• Ohio: 3 locations
• International: Prague, Czech Republic 3 locations
  

“These agreements mark a pivotal moment in Reborn Coffee’s expansion,” said Jay Kim, CEO of Reborn Coffee. “With our area development model, we are accelerating our footprint nationwide and internationally while ensuring strong local partnerships that will drive operational success. California remains our launchpad, and we are well-positioned to establish a presence in key U.S. markets and beyond.”

As the company moves forward with its franchise growth strategy, Reborn Coffee remains committed to delivering a premium specialty coffee experience while supporting its franchisees with the tools, training, and technology needed for success.

For more information about Reborn Coffee’s franchise opportunities, please email info@rebornfranchise.com or call (562)-631-7809.

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 2024, 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, 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 new franchise locations did Reborn Coffee (REBN) secure in February 2025?

Reborn Coffee secured commitments for 33 new locations through area development and franchise agreements in February 2025.

Which U.S. states will have new Reborn Coffee (REBN) franchise locations?

Reborn Coffee will open new locations in Northern California, Southern California, Florida, Georgia, Arizona, N. Carolina, Tennessee, Texas, Nevada, and Ohio, with 3 locations in each state.

What is Reborn Coffee's (REBN) international expansion plan for 2025?

Reborn Coffee has secured commitments for 3 locations in Prague, Czech Republic, marking its expansion into the European market.

How many locations will Reborn Coffee (REBN) open in California?

Reborn Coffee will open 6 new locations in California, with 3 locations in Northern California and 3 in Southern California.