Reborn Coffee, a prominent US specialty café chain, is setting the stage for a significant international expansion after reporting notable sales growth in the first quarter of 2024. The company, headquartered in California, saw a 35% increase in quarterly revenues, reaching $1.5 million. Gross profit also surged by 51%, totaling $1.1 million, although the net loss of $1 million remained consistent with the previous year.
The company is capitalizing on this momentum to push into new markets in East Asia and the Middle East. Reborn Coffee currently operates 11 stores and has another in development, following the closure of two locations in San Francisco and single outlets in Irvine and Cabazon.
Jay Kim, CEO of Reborn Coffee, highlighted the company’s strategic efforts during the first quarter. “Our focus on diversifying and expanding our global presence has been reinforced by strong revenue growth and improved margins. We’ve continued to drive sales and enhance gross profit at our US locations, positioning us well for strategic expansion into new online and geographic markets, as well as for potential acquisitions and investments,” Kim said.
In line with its global ambitions, Reborn Coffee has been investing in coffee roaster and food production assets over the past two years. The company’s expansion plans are further supported by recent investments and acquisitions. Reborn is preparing to launch its first South Korean outlet by the end of 2024, following its acquisition of a coffee shop, roastery, and R&D facility in Daejeon in December 2022. The company has also secured $2 million from South Korean investors, including Scott Lee, CEO of Walking Slow Entertainment.
Additionally, in July 2024, Reborn Coffee entered into a Memorandum of Understanding (MOU) to acquire Bbang Ssaem Bakery, a 31-store bakery-café chain in South Korea. This move is aimed at establishing Reborn as a leading coffee and bakery franchise in both the US and South Korea.
Reborn Coffee has also taken a majority stake in Derin Lezzetler, a Turkish snack and frozen bakery product producer, marking a strategic investment to support its expansion into the Middle East and East Asia. Franchise agreements have already been established in the UAE and China.
Kim elaborated on the company’s strategy, stating, “Our acquisitions and investments in bakery and food product companies are designed to diversify our global footprint and revenue streams in complementary markets.”
Furthermore, Reborn Coffee has interests in the Hawaiian cascara brand Bay View Farm and the US pet attire brand Sgt. Puppa, the latter of which is intended to support a forthcoming Reborn Pet Social Café in Pasadena, California. A recent e-commerce venture on Amazon is expected to boost revenue and expand the company’s online customer base.
Looking forward, Reborn Coffee plans to open 20 company-owned and 20 franchised stores across the US, including flagship locations in Miami, San Diego, Houston, and Kansas City. The company also aims to establish a presence in South Korea, Malaysia, Dubai, China, Singapore, Thailand, and the UK.