Cafe Serendipity Holdings Inc. (CAFS)

[lesgetrich]

In the interview, McNulty says that they currently have 5 sales reps and are hiring another 15 within the next 60 days. They'd have to target four stores from each rep by the end of the year to reach their target of 75. He later said he expects 60 to 70 by year end. I don't think that the targets are unrealistic given the number of reps (that's about 1 store every three months per rep).

If you assume that each rep can garner about $20,000 per year per store from commissions and residuals and a good rep sells 5 or 6 stores per year $400,000/yr within a few years is very doable.

He also said that they currently have three stores with three more in the pipeline. Next week they expect to announce an ERP and wallet system for the stores.

I think their business plan is very realistic and that they have the talent on board to be able to execute it. Whether everything will fall into place as they expect is a different question and only time will tell.