BREA, Calif., USA – Reborn Coffee, Inc., a California-based retailer of specialty coffee, today announced it has signed a binding Letter of Intent (“LOI”) to acquire a specialty coffee shop and a roasting Research and Development facility in Daejeon, South Korea as part of its global expansion plan.
The coffee shop and roasting R&D facility have a solid customer base and are located in a prime site in Daejeon, South Korea, which is Korea’s fifth-largest metropolis with a population of over $1.5 million. The shop and the R&D facility have a total space of over 2,000 square feet with a roaster and a coffee extractor. Current annual sales from the shop and facility are approximately $400,000 per year.
Reborn plans to convert the coffee shop and facility to a flagship location and Reborn concept with an inviting store atmosphere which is designed for comfort and convenience and utilize the location as a headquarters for its franchise program in Korea.
The Company expects to increase current sales through strategic marketing campaigns and through direct support from its US operations. In-house manufacturing of Reborn macaroons and cookies will be launched to appeal to local customers and expand product offerings.
The Company has also registered an information disclosure statement with the Korea Fair Trade Commission (KFTC) to launch a franchising program in the country. With a franchise registration, Reborn is expected to expand with a number of outlets in metropolitan areas throughout South Korea.
“This acquisition in South Korea marks the beginning of Reborn’s global growth strategy,” said Jay Kim, Chief Executive Officer of Reborn.
“South Korea is one of the most dynamic markets within the Asia-Pacific region and coffee is one of the most popular beverages in the country. Establishing a flagship coffee shop and R&D facility in Daejeon positions us to introduce our brand in a major urban area and the location serves as an ideal launchpad for our franchising program.”
“With sales in excess of $400,000, we believe the acquisition will make a significant contribution to revenues in 2023 once we have rebranded to Reborn and launch our new products. We look forward to introducing this exciting location to Daejeon that will launch our Korean operations and serve as a model for our franchising program,” concluded Kim.
Closing of any potential acquisition is subject to final due diligence, negotiation and execution of a definitive purchase agreement and all necessary approvals. The Company expects to finalize the acquisition by the middle of January 2023.
