Bad Ass Coffee of Hawaii Sets Sights on Growth
For Bad Ass Coffee Co., 2022 was a year of growth after strategic systemwide investments and enhancements to strengthen overall brand infrastructure and support.
The coffee retailer closed out the year opening 8 new locations and awarding with 45 franchise agreements.
Key to its strong performance has been strategic systemwide investments and enhancements to strengthen overall brand infrastructure and support.
The brand's reinvention dates back a few years. In retrospect, early 2020 may not have been the best time to relaunch a coffee brand, but that’s what the team behind Bad Ass Coffee of Hawaii did.
Scott Snyder first came on as a consultant in 2017, and he ended up leading a group that acquired the company in July 2019.
“We got our master plan together and relaunched it in early 2020 just as just as COVID reared its ugly head,” Snyder, now CEO, explained.
Franchise First
Bad Ass Coffee of Hawaii started on the Big Island of Hawai'i in 1989 and is known for its premium Hawaiian coffees that it sells and serves at its now 25 locations.
“Our strategy has been very intentional,” Snyder explained. “We made a commitment when we acquired this brand that it would be a franchise-first organization, so every decision that we've made, every technology that we've implemented has been very thoughtful.”
“You can't do it all once, so how do you prioritize which parts of the infrastructure you build first? (We had to determine) “what would have the greatest impact for existing franchises but would also demonstrate a very successful strategy that would be attractive to new franchisees,” he explained.
When he started working with Bad Ass Coffee, technology wasn’t stable or consistent across the company. There were five POS systems being used, none of which the franchisor had regular access to, and there wasn’t digital ordering, loyalty or a mobile app.
(Getting a standardized, cloud POS) “was one of our first priorities,” he explained. The POS system was not only a massive priority from the need to have data and standardization, but it was also the platform that would enable online ordering mobile apps, order ahead, and gift cards both digital and physical.
Alignment Through A Common Technology
During that first year of ownership, the top priorities started with the POS, then layering on loyalty, and evaluating its product acquisition, packaging and distribution.
The POS system was not only "a massive priority" from the need to have data and standardization, but it was also the platform that would enable online ordering mobile apps, order ahead, and gift cards.
2022 Accomplishments
- The implementation of the company's first loyalty program and digital ordering system.
- The rollout of a new online learning platform for franchisees to streamline communications and training.
- Seasonal LTO launches a menu innovation project to provide a comprehensive future roadmap.
- Bad Ass Coffee is among the brands rolling out new store prototype designs. Tropical Smoothie Cafe opened its first double-drive thru in October. Krystal opened a prototype designed with off prem in mind. And international chicken brand Jollibee opened its first drive-thru with two lanes in Orlando on January 18.
- According to Bad Ass Coffee's 2022 FDD, the top 25% of stores saw average net sales of more than $1.2 million.