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Coffee Bean & Tea Leaf CEO Mel Elias on the company’s expansion and the rise in commodity prices.
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We'll probably prices have been and cause of concern for many companies over the past year while prices are down from their -- 2011 highs say still have nearly quadrupled in the past decade my next guest has not letting that.
Stop his company -- from sixty locations over 800 locations.
In just over ten years joining me now is CEO of coffee bean and tea -- now.
Allow highest thank you very much for joining us today and first -- congratulations.
On your growth and -- you opened two stores here and New York City.
I seen -- getting my comment cards it I've been leaving in various locations on the West Coast for -- mean.
How are you finding this growth and what are your growth cannot plans look like.
Well it's taken us almost fifty years that we finally did make it to new Citi and the only people happier -- we.
Customers -- so.
We're very thrilled and you know we knew we had a very big fan base in New York City that seven we opened -- first over their lines around the book -- not what we were expecting.
And that's very encouraging for us as we prepare for national expansion.
You know one of the things you talk about the brand I am a very loyal fan of your brand everytime I'm not and differences the Los Angeles I always stop -- -- copy mean anti elite but branding -- in the experience of copied -- Casting he maintained in a lot of the companies don't get it right when they try and -- so how do you maintain that consistency.
And that level of experience as you take your brand o'clock across the globe.
Well I mean it's a very important fact in the most important thing we have to do is always listen to what our customers want to and always pay attention to.
The in -- experience that we're trying to provide them so as we become -- We always have to be mindful of the fact that we still have to have a small company approach to the way we do business.
That's what's made -- successful and as we've come national and indeed as we become international.
What we have to continue to deliver -- meaningful memorable experience for our customers and I think we do really -- -- at that which is why.
Fifty years later the coffee -- so a very powerful brand.
-- coffee prices milk prices fuel prices are all on the rise how are you hand delaying.
-- rising trend in this or any weight not to pass it on to consumers like Starbucks and many of their peers have already done.
Well I mean that indeed the coffee price increase and in fact the commodity price increases have it has been unprecedented so.
Despite all our efforts -- and I'm sure many other companies have the same issue it's very difficult not to take selected menu pricing but that said.
You know we do have direct relationships of plantations we are in control of -- manufacturing.
So we we always find ways to reduce our overhead and to minimize and to reduce our operating expenses and in that way we can take the burden of most of these commodity price increases.
The good news is that commodity prices has been coming down so we -- pretty optimistic coming into 2012.
-- what is your outlook for in 20122013.
In the many places in the globe that year on -- -- finding themselves.
Pinching there and their wallets are -- they're there they're pulling back.
One of the easiest places to pull back is an expensive -- -- seeing any impact.
-- -- in consumer behavior.
Well -- we close 2011.
At an unprecedented -- -- same store sales were almost double digit.
All across the globe in -- in about 22 different countries.
We're seeing that this the lifestyle and the the -- the daily affordable indulgence which is what.
Coffee experience is all about is is not being compromised on.
So we're very bullish and we feel very confident that going into 2012.
We're gonna see continued potential sales growth and we have a budget strategy that that continues to invest in continues to open stores in fact we have from the store around the world almost every 72 hours.
So we're very confident.
That's phenomenal and now the -- -- the oldest and largest privately held specialty coffee retailer in the United States.
Whenever I'm going public is that something that you aspire to -- you've been able -- sixteen so far without public capital but.
At what point we you -- consider turning to the public markets.
What we we've just created this new single -- platform and we've seen this incredible amount attraction in that area.
So they really is a lot of opportunity for this brand and so we're looking at going public is one of a couple of different options in terms of raising finance and capital -- continuing the growth in that area.
So a single set platform is something which I think is is the future of this business and it that needs extra capital.
Going public is not is an option we're gonna consider very very seriously.
As we continue to expand that in incurred in national -- -- nationwide you know we're ready in Bed, Bath & Beyond that rarely -- -- retailers but there's a lot of scope.
Well you know where it started when you do finally go public we're glad to have you on Nell alive CEO Abbie thank you mean and -- from my -- thanks -- running things.
