A Reborn Coffee store in Manhattan Beach, California, USA | Photo credit: Reborn Coffee 

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US specialty café chain Reborn Coffee has reported strong first quarter sales growth as it prepares for long-awaited debuts in East Asia and the Middle East.

Revenues for the quarter ended 31 March 2024 rose 35% year-on-year to $1.5m, with gross profit increasing 51% to $1.1m. The business’ $1m net loss for period was unchanged from a year ago.

According to a press release, Reborn Coffee now operates 11 stores and has one in development after closing two locations in San Francisco and single sites in Irvine and Cabazon.

“The first quarter of 2024 was highlighted by ongoing efforts to diversify and expand our global operations, supported by strong revenue growth and improving margins. At our US company-operated retail locations, we continued to drive sales and improve gross profit… This operational execution has enabled us to focus on strategic expansion into new online and geographic channels, as well as acquisitions and investments to broaden our portfolio,” said Jay Kim, CEO, Reborn Coffee.

The California-based operator has been steadily investing in coffee roaster and food production assets over the last two years to support ambitious global growth plans.

Reborn has been seeking to break ground in South Korea since acquiring a coffee shop, roastery and R&D facility in Daejeon in December 2022 and expects to open its first outlet in the country by the end of 2024. It has also raised $2m from South Korean investors, including Walking Slow Entertainment CEO, Scott Lee.

In July 2024, Reborn Coffee signed a Memorandum of Understanding (MOU) to acquire 31-store South Korean bakery-café chain Bbang Ssaem Bakery, a move it said would solidify its position as a ‘premier coffee and bakery franchise’ in the US and South Korea.

The coffee chain also acquired a majority stake in Turkish snack and frozen bakery product producer Derin Lezzetler, another strategic investment to support planned expansion to the Middle East and East Asia following franchise agreements in the UAE and China.

“Through acquisitions and investments in bakery and food product companies, we are diversifying our global footprint and revenue channels in complementary markets,” Kim added in the earnings statement.  

Reborn also has interests in Hawaiian cascara brand Bay View Farm and US pet attire brand Sgt. Puppa, with the latter intended to supply a planned Reborn Pet Social Café in Pasadena, California. Meanwhile, a recent e-commerce launch on Amazon will ‘drive substantial revenue growth and capture a wider online customer base,’ Reborn stated.

Looking ahead, Reborn is seeking to open 20-company-owned and 20 franchised stores in the US, including four flagship cafés in Miami, San Diego, Houston, and Kansas City.

The operator also has ambitions to open stores in South Korea, Malaysia, Dubai, China, Singapore, Thailand and the UK.