Bad Ass Coffee of Hawaii’s mid-year report shows strong performance with double digit franchise signings & strong systemwide growth

Bad Ass Coffee of Hawaii’s mid-year report shows strong performance with double digit franchise signings & strong systemwide growth

August 12 - 2023

Coffee Geography Magazine

Bad Ass Coffee of Hawaii, a coffee franchise renowned for its premium sourcing of Hawaiian coffees, 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 & innovation, and a craveable menu, we're poised for remarkable accomplishments this year."

Scott Snyder, CEO

Scott Snyder, CEO

Driving Bad Ass Coffee's strong performance has been a refined focus on its retail strategy unlocking immense revenue growth potential. Systemwide sales in merchandise is over 6% of total sales, with the top 1/3 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 flavors and a limited-run merchandise line. The limited-time-offers proved immensely successful for the brand as it continues to become innovative and find new ways to pay homage to its Hawaiian heritage. 

In addition to its brand ambassador collaborations, Bad Ass Coffee has long 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 fall and winter seasons. These products complement a significant 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 $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. 

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 popular blended drinks, signature lattes, cold brews, teas, innovative foods with a Hawaiian twist, and branded merchandise.