All agree on the need for revenues.
Mr. Henthorn said the rethemed sports bar would double revenue in the third quarter. Of course, it has to open first -- the May 28 PR said it was supposed to open in July, nothing has been announced. The PR also said that it would be opened during the majority of the remodeling, but one poster noted that they had gone by and found it closed.
Similarly, the third SW FL kiosk was supposed to open in early Q2, per the January 22 PR, but it has apparently also not opened.
And Q1 2014 revenues were down 15% from Q1 2013.
So, we are agreed that revenues need to go up. But, they also have to be profitable revenues; 2013 losses were more than revenue and more than double 2012 losses. And annual revenues were up less than 15% from 2012 to 2013 -- hardly a growth story. Particularly with store count up only from 8 to 10 in the last 2.5 years.
Many posters have noted the company's advertising 'push' for franchising (Forbes, etc.) -- which I agree is important for expansion, since the company is unable to raise cash for expansion via equity. But, the closest thing to a franchise operation is the SW FL business, where a third party has invested significant capital. And the company supported the initial stores with significant advertising in Q4. But, in Q1, the two stores lost about $8K/store/month (per recent filing, look at Minority Interest line) -- while average revenues per store are not even $15K/store/month.
Not clear what the business model is for the reality show. This is a national network, yet BCCI only benefits if people go to the ten kiosks they have (and the sports bar, assuming it does open). Or, buys ice cream in one of the 260 NY area stores announced as carrying it two years ago (anyone know if they still are??) TV runs on advertising -- no advertising, can't pay for content. Some companies are blatant about it -- infomercials. Will be interesting to see who advertises. I had initially thought the reality show was sort of 'T&A,' but that is clearly not the focus of we tv.
