Our Story - Franchise Pool International

Our Story
Our Vision
To be Simply The Best roaster and
™
global retailer of specialty coffee and tea.
Our Mission
To create a spirit within our Company that inspires
our Team Members to provide our customers with a
Total Quality Experience: Quality of Product, Service and Environment.
| The first The Coffee Bean & Tea Leaf® store in Los Angeles, California, circa 1963
The Coffee Bean & Tea Leaf® has been innovating–and growing–since 1963. “Find Your Flavor”
isn’t just our slogan; it’s a commitment to our customers and the foundation upon which
we operate. Taste matters and so does our culinary approach to flavor. Our handcrafted
beverages can be made to order and customized to a customer’s preference. It’s not just about
making the perfect drink, it’s about honoring the values of the communities we serve.
Our Team Members are trained to listen and respond to each customer with
a personalized beverage that sets the standard for excellence. The Coffee Bean
& Tea Leaf® prides itself on our innovation and quality, offering one of the
most extensive selections of specialty coffee and tea from around the world.
Company History
The concept for The Coffee Bean & Tea Leaf® stores was born during a
trip the founders Herb and Mona Hyman took to Europe. After touring
the many outstanding coffee shops throughout Europe, the couple
decided to bring the specialty coffeehouse concept to America. The
Coffee Bean & Tea Leaf® was established in 1963, opening their first store
in Los Angeles, California, which continues to operate today as one of
our highest volume and highest profile stores.
Over the next 35 years, Herb continued to grow his coffee business
throughout Southern California. Flavor and a handcrafted feel became
cornerstones of his business. He blended coffee varieties per customer
requests and roasted them to their liking. These personalized roasts
have even been used in formulating some of our more popular blends
today. In 1996 the company was franchised in Asia. The business did so
well in Singapore and Malaysia that the company was purchased from
the Hymans and our first franchisee became the franchisor.
The Coffee Bean & Tea Leaf® has grown to be the largest and oldest
privately held specialty coffee and tea retailer in the U.S. With over
800 stores worldwide, we have a strong presence and reputation for
excellence as a part of communities all over the globe. Company owned
stores are located in California, Arizona, Singapore and Malaysia. Our
growing franchised locations include stores in
California, Hawaii, Michigan, Nevada, Texas,
Australia, Brunei, China, Egypt, India, Indonesia, Israel, East Malaysia
(Sabah), Kuwait, Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, South
Korea, United Arab Emirates and Vietnam. Each year, The Coffee Bean &
Tea Leaf® serves over 100 million coffee and tea beverages worldwide.
| The first The Coffee Bean & Tea Leaf
®
coffee roaster (top) and weighing scale (left), circa 1963
1963 Founders Herb and Mona Hyman open
1980 Multi-store expansion begins,
1989 The Coffee Bean & Tea Leaf®
first store, offering whole bean coffee and
offering a variety of coffee and tea beverages
invents The Original Ice Blended® Drinks
loose leaf tea
Our Stores
Customers come to The Coffee Bean & Tea Leaf®
to enjoy their favorite beverages delivered with
outstanding service in a relaxing and friendly
environment. Our cafés are warm, inviting
places where everyone is welcome to hang out,
relax, and savor the best coffees and teas in
the world. Whether customers in your area
tend to zoom in for a quick cup to go, or like to
hang out and soak up the atmosphere, our café
environments can be scaled and styled to suit
local customs and life styles.
Our Team Members, baristas
and café servers are enthusiastic
and informed aficionados
carefully trained to assist
customers to “Find their
Flavor” and favorite drinks.
1996 Singapore – the opening of
1998 The first franchisee becomes the franchisor –
1998 Launches
2001 First U.S. franchise
the first The Coffee Bean & Tea Leaf®
private family consortium acquire ownership of
Hot Tea Latte
store opens (Las Vegas, Nevada)
franchised store
The Coffee Bean & Tea Leaf® corporate entity
outside California
Our People
At The Coffee Bean & Tea Leaf®, we put people first. From our coffee
and tea origin suppliers to our retail store Team Members and loyal
customers, we consider everyone part of our extended family. We
provide specialized training so that each Team Member is able to build
bonds of trust with our customers and their guests. By demonstrating
our Core Values (known as FROTH, or Friendly, Respect, Ownership,
Teamwork and Honesty), we inspire all employees to treat each other
with respect and to provide the Total Quality Experience our customers
have come to expect when they visit The Coffee Bean & Tea Leaf®.
| This page: Our Team Members build relationships
2004 Partners with Adopt-A-
2005 Establishes
2006
2006
2006 Debuts new non-dairy
Classroom programs throughout
Caring Cup Global
400th store opens
500th store opens
tea-based frozen beverage line:
California, Nevada, and Arizona
Charity Program
Fru-Tea® Drinks
Our Coffee and Tea
For over 47 years, The Coffee Bean & Tea Leaf® has been proudly offering Simply the Best™ coffee and
teas in the world. From the mountains of Southern Colombia to the tea fields of Sri Lanka, our
expert coffee and tea buyers travel the globe to find and secure the very best crops from small
artisan farms and private estates.
From seed to cup, an equitable way to do the right thing.
At The Coffee Bean & Tea Leaf®, our passion extends far beyond the crops we cultivate and the
beverages our customers enjoy. From seed to cup, we constantly work to maintain a direct
relationship with our growing farms. Buying directly from the grower affords us exclusivity
as well as incomparable product quality. More importantly, maintaining these simple, direct
and honest relationships assures our Company, our growers and our customers a fair and
transparent supply chain.
COFFEE
We purchase specialty grade Arabica coffee beans from three distinct regions:
Latin America, the Asia Pacific, and East Africa. How coffee looks, tastes and
smells has much to do with where it comes from, and how it was grown. All
our imported coffees have been cultivated at high altitude - between 3,500 and
6,000 feet - because cooler temperatures slow the beans’ ripening time, and
create more concentrated, flavorful coffees.
We personally travel the globe to find the best quality harvests. We nurture
long lasting direct relationships with our growers, going beyond fair trade,
not only for the high quality of their product, but also for their Earth-friendly
growing practices and social responsibility standards and, in particular, for the
conscientious way they treat their workers and families.
TEA
The Coffee Bean & Tea Leaf® commitment to quality starts with going beyond fair
trade through the direct relationships we build with our tea growers, continues
with the processing of our whole leaf teas, and extends to the handcrafted
world-class drinks we serve in our stores.
We are very proud that many of our tea growers in countries such as Sri
Lanka, India, Thailand, and Kenya practice environmental sustainability. Our
growers in Thailand, for example, use peanut shells and grass to cover exposed
land, reducing erosion while preparing a healthy, robust soil for future seasons.
2006 Enters new franchised territories
2007 600th store opens and for the
2008 Launches made-to-order
2008 Hits the
with store openings in Bahrain, Egypt
first time franchise stores outnumber
yogurt and oatmeal breakfast
700 store mark
and Qatar, internationally, and Ralphs,
company stores
program
supermarkets domestically
Our Beverage, Retail &
Bakery Products
Since 1963, The Coffee Bean & Tea Leaf® has stood for fine ingredients,
great taste and innovation. We source our products from the greatest
places in the world, roast our coffees and blend our teas by hand, and not
only allow our customers to customize their drinks but help them “Find
Their Flavor” by tailoring beverages exactly to their liking.
We are proud of our numerous industry firsts. The Original Ice Blended®
is the beverage that started the frozen coffee drink craze, creating a new
drink category that is now world famous.
The Coffee Bean & Tea Leaf® did not settle for syrups when customers
started requesting mochas; instead we created proprietary powders.
Our French Deluxe™ Vanilla and Special Dutch™ Chocolate powders are
industry firsts that give our coffee drinks a flavor vastly superior to any
others – creamy and smooth.
With our gourmet powders and hand blended teas as a base, the Chai
Latte and Tea Latte were invented and popularized by The Coffee Bean
& Tea Leaf® during the mid-1990’s. The unique components of our
beverages are sold in our stores and online, helping our customers enjoy
The Coffee Bean & Tea Leaf® experience at home and around the world.
Our full line of baked goods is made from the highest quality
ingredients, some of which are from our own proprietary recipes and
baked with care at our company-owned kosher bakery facility in Santa
Monica, California. Internationally, our Chefs create a full dining
experience from breakfast to dinner and an entire bakery line.
From our hand crafted beverages to flavorful, freshly baked pastries,
The Coffee Bean & Tea Leaf® always delivers a Total Quality Experience.
| Top photo: Tamping off fresh espresso
| Middle photo: Unique tea blends are displayed in jars
| Bottom photo: Freshly baked goods in our case
2008 Enters new franchised
2008 Runs “Support From
2009 Enters new franchised
territories with store openings
Home” campaign to support
territories with store openings in Oman,
in India, Mexico and Vietnam
military personnel
internationally, and Texas, domestically
Our Master Artisans
Jay Isais
Jesse Martinez-Beltran
Senior Director of Coffee,
Roasting, and Manufacturing
Master Coffee Roaster
Jay combs the world’s finest coffee growing
regions, from Latin America and East Africa
to South Asia and the Pacific, sampling and
selecting the regions’ best harvests, then
overseeing our blending and roasting process.
In sourcing the world’s greatest coffees,
Jay travels from one end of the tropics to
the other, from Costa Rica and Colombia to
Ethiopia and Papua New Guinea, cultivating
close relationships with local growers. The
Coffee Bean & Tea Leaf® is proud to offer a range
of specialty grade coffees we proclaim to be
Simply the Best™.
Jay is responsible for selecting and buying
the highest-quality green coffee beans from
the world’s finest growing regions, as well
as for the manufacturing, warehousing,
and worldwide distribution of our coffee
and tea products. He has over 25 years of
industry experience, holding both operations
management and buying positions in the
coffee industry. Jay is a founding member of
the Roasters Guild, a volunteer instructor
for the SCAA, a certified judge for the Cup
of Excellence® program (A.C.E.), a licensed
Q Grader, and an APICS Certified Supply
Chain Professional.
Jesse is responsible for the careful roasting
and blending of all coffee beans at our main
facility in Southern California. Over the
past 15 years, Jesse has worked diligently to
become a Master Roaster. He oversees the daily
roasting to ensure each small batch is done
to perfection. He has traveled throughout
the coffee-growing regions of the world and
served as an International Juror for The Cup
of Excellence®. He is also a member of the
Specialty Coffee Association of America’s
(SCAA) Roaster’s Guild and a licensed
Q Grader.
David De Candia
Director of Tea, Buyer
& Master Blender
David sources and develops our premium teas
and is one of the world’s leading tea experts.
He has been an enthusiastic advocate of the
benefits of tea — both in-house and to the
general public. He travels the world to find the
finest ingredients and is constantly researching
and testing new flavor possibilities. David is a
driving force in giving back to origin countries
with programs that benefit local farmers,
their families, and communities. David’s
passion for tea and his artistry in creating new
flavor combinations have been instrumental
in keeping The Coffee Bean & Tea Leaf® on the
cutting edge of beverage innovation.
| Left photo: Jesse Martinez-Beltran (left) & Jay Isais (right)
coffee tasting as they do for every roast of every day.
| Right photo: David De Candia smelling the sweet aroma of tea.
| Bottom right: David showcases the premium ingredients
used in creating our unique tea blends.
Company Growth
The Coffee Bean & Tea Leaf® is one of the
world’s oldest and largest privately held coffee
retailers. Our corporate headquarters have
grown to include locations in Los Angeles,
California, Singapore, and Malaysia. With
franchised and company-owned locations in 20
countries, The Coffee Bean & Tea Leaf® serves more
than 100 million coffee and tea beverages each
year and over 20,000 Ice Blended® drinks a day.
In addition, our coffee line can be found in more
than 500 grocery stores throughout California
and online throughout the United States.
Over the past five years, The Coffee Bean &
Tea Leaf® has added nearly 500 stores to its
global network – growing from 304 stores
to over 776 at the end of 2009. That’s a
new store opening every four days.
Key Statistics:
• 39% Compounded Annual Growth Rate (cagr).
• Over 500 stores operated by 30+ franchisees.
• Serving 1,000,000 customers around the
world each week.
Store Growth
1000
900
800
776
722
stores
700
635
600
500
500
400
300
378
304
200
100
0
2004
2005
2006
2007
2008
2009
US Company Stores
138
164
192
201
189
180
Asia Company Stores
79
77
78
87
89
91
Franchise Stores
87
137
230
347
444
505
304
378
500
635
722
776
Total Stores
Our coffees and teas originate from some of the richest
and most fertile growing regions throughout the world:
* Los Angeles
Austin, USA
Teas
Coffees
Darjeeling India
Assam India
Cape South Africa
Thailand
Taiwan
China
Sri Lanka
Japan
Brazil
Kenya
Brazil
Colombia
Costa Rica
Ethiopia
Guatemala
Indonesia Java, Sumatra, Bali
Jamaica
Kenya
Mexico
* Corporate Office
Nicaragua
Papua New Guinea
Tanzania
Uganda
USA (Kona)
Recent Limited Editions
Peru
Nepal
India
Ecuador (Galápagos)
Dubai, UAE
Saket, India
* Malaysia
* Singapore
Ho Chih Minh City, Vietnam
store locations
United States
Middle East
Asia & Australia
Arizona
California
Hawaii
Michigan
Nevada
Texas
Bahrain
Egypt
Israel
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Australia
Brunei
China
India
Indonesia
Malaysia
Philippines
Singapore
South Korea
Sri Lanka
Vietnam
Latin America
Mexico
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a “franchise” or “business opportunity”. It is for information purposes only. Currently, there are at
least fifteen (15) states in the United States of America (the “USA”), at least three (3) Canadian provinces, and at least 13 other countries that regulate the offer and sale of franchises. In all states
in the USA, federal law requires pre-sale disclosure of franchises. If you are a resident of one of these states, provinces or countries, or of any jurisdiction that hereafter regulates the offer and
sale of franchises, are receiving this message in the USA or the other countries listed above, or intend to operate a franchise or business opportunity in the USA or these countries, we will not
offer you a franchise or business opportunity unless and until we have complied with applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction.
No offer of a franchise by us to you will be binding on us, and no franchise will be granted by us to you, until both: (a) all conditions precedent to its offer and acceptance have been fully
satisfied by you and us; and (b) we have delivered to you a fully executed area development agreement (“ADA”) signed by our President. Any action you take, or expenditures you make prior to
your receipt of a fully executed ADA (and our notification to you that all conditions precedent to its execution have been met), are at your own risk.
The Total Package
Origin
Roasting & Distribution
Farms and Estates – We have personal
relationships with the families that own and
run the coffee farms and tea estates. As we have
become a part of their lives, we have gained
access to parts of the land we may otherwise
not have. Field 17 at the Bogawantalawa Tea
Estate in Sri Lanka is considered to produce
the finest tea in the world. The tea from that
field never goes to auction but, through our
relationship with the estate, is sold directly to
The Coffee Bean & Tea Leaf®.
Our privately owned and operated facility
is located in Southern California. This
state-of-the-art plant is where all our whole
bean coffees are tested and roasted fresh
daily and where all of our whole leaf teas and
flavored infusions blended and packaged.
Coffee nursery, Costa Rica
Bags of green coffee, RAD
Coffee farm, Costa Rica
Roasting coffee, RAD
Direct Trade Relationships
Direct trade means that we maintain a direct relationship with
the actual producer. By maintaining a simple, direct, and honest
relationship with each of our suppliers based on our guiding
principals, we can assure ourselves and our customers of a fair and
transparent supply chain. We’re part of the process from the seed
all the way to when you take a sip of our quality coffee and teas.
| Bottom left photo: Paul Balzer, Vice President of Supply Chain, at the Bogawantalawa Tea Estate, Sri Lanka
Third Party distributors
Our 3rd party distributors are equipped with
a 50,000-square-foot warehouse located in
Compton, California, where our finished
products are sent for distribution and
shipping. Daily shipments to our stores ensure
the freshest, most satisfying coffee and tea
products available anywhere. Our Customer
Service department, which takes care of all
orders for 20 countries, is also located here.
The StoreS
Stores – Each new location becomes a part
of the community and a welcome oasis for our
customers. We’re passionate about our product
and proud of our company’s heritage.
Los Angeles, California
Seoul, Korea
Austin, Texas
From the sustainable farms where our products originate to our strong and healthy
distribution and supply chains, we’re a complete business solution.
Franchising Information
The Coffee Bean & Tea Leaf® is a well known, highly
respected brand name. We’re located in many key markets
internationally and our business continues to experience
dramatic growth across the US and the world. We strive to
have stores everywhere our customers work, live and play.
With an ability to adapt to market-specific demands and
location-specific needs, we take into consideration the
environment, local community standards, cultural nuances,
customer habits and market demands. Each franchise store
is uniquely planned based on our brand standards and then
tailored to meet the individual requirements of every
new location.
Make our success yours.
| Top photo: California store
| Middle photo: Vietnam store
| Bottom photo: Mexico store
With 50 years of experience in the specialty coffee segment,
The Coffee Bean & Tea Leaf® has built a strong and complete
business infrastructure and offers comprehensive franchise
resources. We have worldwide distribution capabilities and an
integrated supply chain - owning the experience from Farm
to Customer. Exclusive and proprietary recipes for beverages,
pastries, and café meals are created by our internal product
development team who ensures each item is crafted to our
premium standards. Our real estate and development team
assists in store designs, specs and construction. The support
team includes dedicated franchise trainers and ongoing
franchise support with training centers in Los Angeles, Kuala
Lampur, and Singapore. We believe in finding the right
developer and growing together. Our franchisees maintain
the integrity of The Coffee Bean & Tea Leaf® name and continue
to expand and strengthen the brand across the world.
The Special Distribution Store category
The Coffee Bean & Tea Leaf® is a leader in developing non-traditional franchised locations that
have won wide acceptance across the industry. We start by understanding the culture of the
specific location. We then embed a custom-configured The Coffee Bean & Tea Leaf® cafe within the
footprint of a larger institution, i.e., grocery store, airport, hotel, hospital, or university. Within
the past year, our franchisees have opened nine new SDS locations, bringing the total number
of non-traditional locations throughout North America to 85. Recent openings include several
prominent film studios, the University of Southern California, numerous airport
locations, and 50 cafes within Ralphs grocery stores. This model allows our customers to
find their favorite beverage everywhere they go, while improving the customer experience and
increasing revenues for the institution.
| Left Photo: Singapore
| Right Top to Bottom: Korea, Indonesia,
Univerisity of California, Riverside
Charitable Initiatives
The Coffee Bean & Tea Leaf® works with a selected number of charities
through our Caring Cup initiatives, which benefit domestic and international organizations.
The Help Group – This organization serves children with autism, Asperger’s syndrome,
learning disabilities, Attention Deficit/Hyperactivity Disorder, mental retardation and emotional
challenges. At The Coffee Bean & Tea Leaf® store locations, customers are invited to sign a holidaythemed card in exchange for a $1 donation and then “deck the walls” of the stores. 100% of the
proceeds from these donations are given to The Help Group. The company also donated an
additional $1 from every purchase of its whole bean, 16 oz. Holiday Blend coffee and Winter Dream
Tea® tin to The Help Group.
Support From Home – The Coffee Bean & Tea Leaf® stores in the U.S. recently participated
in a program developed to support military troops stationed overseas. Customers were invited
to purchase a special coffee blend and write personalized messages right on the package. With
the help of the organization Soldier’s Angels and Fisher House™, the campaign was hugely
successful– over 18,000 pounds of coffee were purchased, and shipped to military personnel
overseas during this 3-month effort.
Local Store Initiatives – Each store is provided a budget to give back to its local
community. Whether it is donating product or a portion of the proceeds from sales on specific
items to charities, The Coffee Bean & Tea Leaf® strives to be a caring and compassionate
corporate citizen.
In addition, many employees are active in the communities they serve and are often the ones
who research and recommend the initiatives in which The Coffee Bean & Tea Leaf® participates.
Employees are also encouraged to get to know their customers and build relationships so that
they’re aware of the local community’s needs. The Coffee Bean & Tea Leaf® often receives letters of
appreciation from customers throughout the world detailing the positive impact these programs
have had—and continue to have.
Caring Cup Origins
| Kio, a tea estate worker from Mukengeria, Kenya
| Nariño, Colombia: Multi-purpose room is built for the children of local coffee families with the help of the Caring Cup program.
At The Coffee Bean & Tea Leaf®, quality product and quality of life go hand in hand. That’s why
we insist that origin farms practice environmentally safe cultivation and offer fair wages to their
workers, enabling them to provide for their family’s welfare. We also work closely with growers
in origin countries to develop programs that give back to the local communities, ensuring that
revenue from the sale of our products is more fairly and equitably distributed all along the supply
chain. Below you will find a selection of some of our most successful ongoing programs.
Kenya – Working with local authorities, The Coffee Bean & Tea Leaf®
recently finished construction of a nursery school in the Mukengeria
district of Kenya, where some of our most popular black teas are
cultivated. This school is certain to offer new hope to local families,
while reinforcing our company’s core values.
Colombia – In collaboration with Empresas de Nariño, a local
coffee grower, The Coffee Bean & Tea Leaf® donates a portion of the
proceeds from every one-pound bag of its Colombian coffee to build
and improve schools in the Nariño region of Colombia.
Sri Lanka – In 2003, The Coffee Bean & Tea Leaf® funded the
construction of the Bogawantalawa tea estate community center, where
the company buys its Ceylon teas. Additionally a portion of the sales
of our Ceylon teas benefits the Aid Lanka Kids Foundation, which
provides care and education to orphans at the Jeevanie School for Girls.
Ethiopia – Through sales of Ethiopian coffee, The Coffee Bean &
Tea Leaf® donates to the Kidane Mhret Students’ Self-Help Association,
which provides library services, tutoring, school supplies and
educational facilities to local children.
India – Warm meals are often a rarity in the developing world where
many of our products are grown and cultivated. The Coffee Bean & Tea Leaf®
recently presented 150 petroleum stoves to be installed in the homes of tea pluckers working on
the Shree Dwarika tea estate in Darjeeling, India.
Papua New Guinea – A donation of funds above the premiums paid for our green coffee was
made to build a new school on the world famous Sigri Estate in Papua New Guinea.
The Executive Team
Los Angeles
Sunny Sassoon
Mel Elias
Terry Mansky
Bob Kaufman
Paul Balzer
Mark Lindstrom
Coralie Calvet Lewis
Tom Clemente
Vincent Chang
Feroz Mohd
Executive Chairman of
the Management Board
Vice President of
Supply Chain
President and CEO
Vice President of
Operations
Chief Administrative
Officer, Senior Vice
President and
General Counsel
Vice President of Finance
Vice President of
Business Development
Vice President of Sales
Singapore / Malaysia
Victor Sassoon
CEO Asia Pacific
Michelle Sassoon
COO Asia Pacific
Senior Director of
Business Development
& Controller
(Asia Pacific)
Director of Franchise
Operations (Asia Pacific)
Simply the Best!
The Coffee Bean & Tea Leaf® 1945 S. La Cienega Blvd., Los Angeles, CA 90034
coffeebean.com/franchise
Phone: 1-800-TEA-LEAF (1-800-832-5323)
Email: [email protected]
6/10 ©2010 International Coffee & Tea, LLC.
The Coffee Bean & Tea Leaf® name and logo are registered trademarks of International Coffee & Tea, LLC.
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