BCCI in Seattle may benefit from the demise of Java Juggs and Twin Peaks, either due to less competition or cheap acquisition of kiosk sites.
But such gains are marginal, in the overall scheme of things; the keys to this company's ultimate success and market cap are a larger national footprint and brand extension such as the announced Knoxville sports bar, done profitably.
The company engaged in a significant advertising push last Spring ($1M plus, depending on how much of the announced (Oct 1) $1.7M media buy from MFG was spent on the SW FL openings) to attract franchisees, resulting so far in only a single announced agreement, an 8 state 'master franchise' agreement with BMOC.
This was a complex transaction, per the announcing PR; it included BMOC promising $25K/month in national advertising to find new franchisees, plus BCCI owning 51% of a JV with BMOC to turn Pavilion 117, a sports bar previously operated by BMOC, into a baristas-branded sports bar presumably to continue to be operated by BMOC. This bar was announced to open by the end of July; not open yet.
Net, despite significant advertising expenditures over the past several months, not a single kiosk franchise deal has been announced. This does not speak well for the appeal of the BCCI kiosk business model. Hopefully the sports bar business model may be more favorably received by the investment community, but that requires profitable operation.
Perhaps the reality TV show will create national brand awareness, but the audience for we tv at 9AM is mostly stay at home women -- not sure if that will promote franchise sales for a coffee kiosk business and sports bar concept which appeal to males. It will be interesting to see who advertises on the reality show.
