$FOFU The retail industry has always been in a constant evolutionary process; naturally searching for the next big shift. Management has assembled a plan to participate in one of the largest consumption medicinal and recreational shifts of the century. We believe as State laws continually change to legalize the use of medicinal and recreational use of marijuana, the federal laws will change also to accommodate the states and also to take advantage of the taxes that are and will be generated by the sales tax on a federal level. Once this occurs then you will see a different dynamic take place within the retail space, be it at the recreational or dispensary business level. The future will be significantly different than it is today. The fundamentals of retailing will become more important than ever. The stores will need to evolve in many aspects of the business because there will be downward pressure on margins thus pushing retailers to compete in the market. The essentials of branding, marketing, advertising, technology, product development, real estate and having a strong retail management group will start to emerge. The clear winners in the space are likely not even in the business today. Over time the winners will be the management teams that understand the commitment to excellence in customer service and have a strong discipline and passion for retail. These dynamics will push companies to think about employing multiple strategies to achieve long term growth thus creating a national retail stores brand.
The next 12 months we will be taking a 4 pronged approach to the build out of the Café Serendipity brand and the development of 4 cornerstones in the build out of the company.
1) Intellectual Property and Operating Systems :
The company is currently is currently developing unique and proprietary Intellectual property that will be extremely beneficial to our franchisors and partners in merchandising, POS systems and even banking. Management believes this will be a key cornerstone in the how we as a company distinguishes ourselves from the competition. Our goal on this prong is to be providing real tangible benefits to our participating merchants using our platforms. The current marketplace is extremely unorganized, with very little structure in terms of POS (Point of sale systems).
Banking is nonexistent as it conflicts with federal banking laws. We are currently in development of systems which aim to be a solution for our participating partners.
2) Franchise and In Store branded commerce
Much like Starbucks did for coffee over the past 20 years, we plan on building a reliable, trusting, high-level lifestyle brand that consumers can count on a consistent brand on a national basis. We believe there is a big opportunity where consumers want to experience the same trusted products at multiple locations. Additionally, these products act well with referrals that can link with a brand. The company is currently building out a scalable model whereby partners can purchase franchise locations and existing dispensaries can participate with branded similar products at multiple locations. The industry is entirely ripe to develop, duplicate and roll out consistent store concepts as well as merchandising branded boutiques.
3) Product Development, Science and Technology:
We are bringing in extremely talented management teams with diverse skill sets to help build, brand and distribute our unique product line that includes accessories, apparel, coffee and teas, bakery and other edibles, lotions, marijuana and oils. Consistency of high quality merchandise and interesting product lines will be the key to building out our product category mix.
4) Merger and Acquisition's
Currently this industry is extremely fragmented with no real dominant player within the industry. There is a unique strategy that can be implemented that entails incorporating a type of roll up and acquisition strategy at the branded level while in keeping with federal and state laws. This will incorporate nicely and allows us an advance footprint within the marketplace,
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