Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Baristas operating loss is $0.60 per $1.00 revenue. An increase in operating cost will create more red ink.

I suspect all coffee kiosks will be under pressure. Perhaps "Starbucks" as well -- not sure of their pay practices.

Even if everybody raises prices -- that will mean less coffee is bought in total, so losses can be expected to increase.

Net, out of state outlets are even more important. Will be interesting to see the financial results derived from BMOC; we know Barista 'list' prices for franchisees, but we don't know what BMOC is paying. We do know that the BMOC deal announced in May was a "Master Franchise Development deal"; traditionally, this would mean two tiers of franchisee, so BMOC would get some of the franchise fee and BCCI would get some.

The specific terms applying to the 'in progress' Pennsylvania mall sites have not been disclosed, though there was mention that the first $25K franchise fee had been deposited.

We also know that BMOC has committed to $25K/month in national advertising to find more franchisees; we don't know how that affects various franchise fees.