Bad Ass Coffee of Hawaii kicks off the two multi-unit signed development
November 18 - 2023
Coffee Geography Magazine
Bad Ass Coffee of Hawaii, a leading coffee franchise renowned for its premium sourcing of Hawaiian coffees and memorable cafés, announces two multi-unit signed development agreements in the greater Phoenix, Arizona market. A five-store deal will bring locations to the Chandler and Gilbert areas over the next five years. Alongside this development, is a three-unit agreement that will bring new stores to the Scottsdale-North Phoenix market.
Existing franchisees Aaron and Lisa Rutter opened their first Bad Ass Coffee location at CityScape in downtown Phoenix in January 2022. Looking to grow their portfolio, the husband-and-wife team recently acquired Bad Ass Coffee's legacy store in Tolleson and has already begun a full remodel of the store with a Grand Re-Opening targeted for January 2024. Ready to expand even further, the Rutters then signed a five-unit development agreement that will bring locations to the Chandler/Gilbert East Valley over the next five years. The first location is slated to open in Chandler by fall 2024.
"Since opening the CityScape location, the downtown community has really embraced our business, and we continue to welcome new and loyal customers into the store," said Lisa Rutter. "What attracted us to Bad Ass Coffee of Hawaii was far more than a proven business model. It was the product, the vision, the opportunity to be part of something unique. From the CEO down, you feel the commitment to quality, coffee, brand heritage, and company culture. This assures us we made the right decision to invest in the brand, and we look forward to our continued expansion throughout Arizona," added Aaron Rutter.
Scottsdale locals, Don and Kate Johnson are the newest franchisees to be awarded new Bad Ass Coffee of Hawaii locations in the Scottsdale-North Phoenix market with a 3-store development agreement. No strangers to the franchise industry, the Johnson's already own and operate a portfolio of Jersey Mike's locations in Southern California. The husband-and-wife team were looking to diversify with a unique brand with a superior product that has tremendous growth potential. They found that in Bad Ass Coffee and are on track to open their first location in the Scottsdale-North Phoenix region by late summer 2024.
"With a wealth of experience in operational management and financial services, we couldn't be more excited to join a team of highly qualified individuals who share our passion for this brand," said Kate Johnson. "We've been inspired by the support provided by the franchisor and are looking forward to growing a portfolio of 10+ stores in the future. Kate, a successful executive in the banking industry, and myself, a pilot, are ready to take flight into this new adventure, fueled by our belief in the growth and opportunity that the Bad Ass Coffee presents."
Multi-unit growth continues to play a momentous role in Bad Ass Coffee's franchise expansion strategy. More than 70% of the system is now comprised of multi-unit operators. Arizona boasts tremendous growth potential as company leadership has also identified Tempe, Glendale, and Tucson as target markets for expansion.
"The development and opening of 11 stores in the greater Phoenix area represent a significant step forward in our Southwest growth strategy," said Scott Snyder, CEO of Bad Ass Coffee of Hawaii. "We have tremendous franchise partners with vast experience, and every new location they open helps reinforce the strength of our brand. With untapped markets across Arizona, we're on the fast-track to aggressive statewide development."
With rapid national expansion underway, the brand is currently supporting aggressive growth plans in the Southwest, Southeast, Texas, and Coastal prime markets. Bad Ass Coffee provides a development support system, including teams, technology and tools to help identify the right territories for expansion, plus expertise in financing, real estate, and construction management, to assist franchisees and multi-unit operators.
The success of Bad Ass Coffee has not gone unnoticed. The brand recently ranked on QSR's 2023 40/40 List as one of America's hottest emerging fast casual brands. 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*.
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.
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.