BMOC estimates that 10 to 20 stores can be sited and opened in 2015 under the BMOC master franchise agreement
ERIE, PA (PRWEB) May 13, 2015
BMOC PARTNERS announces milestone financial results for its first two operating stores under the Baristas mall café concept and the financial impact on its master franchise agreement with Baristas Coffee Company (OTCQB:BCCI) . The results include better than expected financial performance, to date, according to Lance Lehr, President, BMOC Partners.
First, Baristas stores at Dubois Mall and at Stroud Mall met their first financial goal, a cash flow positive operating day, on Saturday, May 9. The normal expected time frame for achieving a cash flow positive day is typically 30-60 days from opening, stated Lehr. Stroud met its goal on its third week of operation, and Dubois had almost double the cash flow needed for breakeven in just its second week of operation. Extremely strong bakery sales at Dubois are the primary factor for meeting the financial goal and almost doubling the required revenue. Dubois is presently operating at 70% of cash flow, averaged over each week, for breakeven, and Stroud is at 50% of cash flow required for breakeven. Breakeven revenue, cash flow, is typically expected within 60 to 120 days from initial opening on a typical mall food venture.
BMOC, secondly, reports that on an annual basis it expects both locations to produce strong consistent revenues and franchise royalty payments to Baristas Coffee Co.
BMOC, assuming continued strong financial results from store openings, estimates that 10 to 20 stores can be sited and opened in 2015 under the BMOC master franchise agreement, by BMOC, with revenue per store reaching budget targets rapidly.
“As each store achieves breakeven,” stated Lehr, “BMOC starts to recover its capital expenditure and allows for reinvestment into a new location.” The BMOC president noted that the spring and summer months are the slowest for mall traffic, and in fall, winter, normal traffic increases will double or triple sales as a matter of course. Lehr added that BMOC is currently in negotiation with several entities to joint venture specific markets based on the preceding financial data. “Stroudsburg is performing well,” explained Lehr, “but Dubois is showing that the rural malls are ripe for explosive growth.” Added Lehr, “this will be part of our strategy for the remainder of 2015.”