The California-based specialty coffee roaster and café chain has set its sights on further US outlet expansion and is pressing ahead with planned franchised stores in South Korea after posting strong 2022 sales
A Reborn Coffee store in Cabazon, California, USA | Photo credit: Reborn Coffee
California’s Reborn Coffee is poised for further US outlet growth and its first international stores after posting strong full-year sales.
Reporting on the 12 months ended 31 December 2022, Reborn said revenues increased 42% to $3.2m, up from $2.3m in 2021. Gross profit for the period grew 49% to reach $2.1m.
However, Reborn posted a slightly higher net loss of $3.6m compared to $3.4m in the previous year.
The California-based specialty coffee roaster and café chain attributed the rise in revenues to the opening of new locations alongside continued marketing efforts to boost brand recognition.
Reborn opened four new coffee shops in the US during 2022 and now operates 11 outlets, with further stores in California scheduled to open in the coming months.
The specialty coffee business is also pressing ahead with ambitious international expansion plans following a $7.2m IPO and acquisition of a coffee shop, roastery and R&D facility
in Daejeon, South Korea from which it intends to scale a franchised coffee shop business in the East Asian country.
In January 2023 Reborn signed a joint venture
with Malaysian specialty café chain and distributor COLLECTIVE to open coffee shops in Kuala Lumpur and the Indonesian capital, Jakarta.
While the international outlets have yet to open, Reborn reports new coffee shops in California and South Korea will bring its total store count to 14 in 2023.
Looking ahead, the specialty coffee business is also targeting further international outlet expansion in South Korea, Austria, and Dubai in addition to new US flagship stores in San Francisco, San Diego, Houston and Kansas City.
“2022 was a transformative year for Reborn and for our business, including our successful IPO on Nasdaq, [new partnerships], and ongoing location and product expansion,” said Reborn Coffee CEO Jay Kim.
“Our fourth quarter was highlighted by strong revenue growth as we continued to execute our expansion strategy, driven by strong customer demand, new product innovation and effective operational execution across our retail locations.
“We are aggressively moving forward on strategically expanding our footprint in existing and new markets in California, the U.S. and globally, and developing our franchise opportunity… Internationally we are positioning Reborn for rapid expansion in new key markets and developing our franchise opportunity,” Kim added.
As well as its company-owned coffee shops, Reborn Coffee distributes whole bean coffee, pour-over-packs and cold brew products at retail locations, kiosks and cafés across the US.
However, wholesale and online sales remain a fraction of Reborn’s sales, generating just $56,000 of total net revenues in 2022. Company-owned coffee shops in the US yielded full-year gross profits of $2.1m, up from $1.4m in the year previous.