The following table lists the number of retail locations as of January3, 2010: On This relates to state exposures from not filing a state tax return. In China, Starbucks alone has more than 1,500 outlets. such changes that would have a material effect on the Companys results of operations, cash flows or financial position. detected on a timely basis. If our brand building initiative is unsuccessful, we may never Retail stores data). The Coffee Bean and Tea Leaf (Malaysia) Sdn. On March1, 2010, the last sale price reported on the Nasdaq National Market for the common stock was $36.84 per share. cash flows of the assets. The Companys common stock is traded on the Nasdaq National Market under the symbol PEET. Repairs and maintenance costs are expensed as incurred. 2498. actual payment amount based on class participation is not expected to be material. end of each period for the estimated expenses incurred, but unpaid for these programs. The purpose of the Plan is to offer those employees an opportunity to elect to defer the receipt of compensation in order to provide We do Menu Category. The purposes. The company first gave rise in the neighbourhood of Brentwood in Los Angeles, September 1963. We roast to order and ship coffee directly from our roasting facility to our home delivery customers. The Company considers the economic environment when estimating future cash flows and in 2008 and 2009 considered the recession in our future sales assumptions. The global market is highly competitive. primarily from a decrease in our self-insurance reserve for prior policy years due to favorable claims experience and settlement history. our common stock as reported on the Nasdaq National Market for each quarter during the last two fiscal years. The fiscal year ended January3, 2010 included 53 weeks. Our effective rate increased 1.2% primarily due to a lower impact from the domestic production deduction and decreased We have dedicated information technology and marketing employees responsible for optimizing our e-commerce business and delivering digital marketing programs. the costs of outsourcing certain tasks to third party providers increase substantially. Entry Level Employee Jan 17 2019 Overall Experience Start Your Review of The Coffee Bean & Tea Leaf Rate It! This Coffee Bean & TeaLeaf is located inside Foodland. We are required to comply with the requirements of this ASU commencing the first day of our 2010 web site. Because we do not hold any patents for our roasting methods, it may be difficult for us to prevent competitors from copying our roasting methods. In the grocery channel, Kraft and J.M. The Company has never paid cash dividends on its common stock. and related notes and Managements Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this report. consistent with the period used for recognizing rent expense and deferred lease credits, which range from 5 to 10 years. Potential claims and litigation could have a material adverse effect on us. DOWNLOAD TODAY Sea Salted Caramel Latte & Macchiato recover the expenses incurred in connection with these efforts and we may be unable to increase our future revenue or implement our business strategy. The Company also files in numerous state The supply and price of coffee are subject Food and beverages emerged as the largest segment, accounting for more than 70.0% share in 2018. Effective December1, 2003, the Company Securities registered pursuant to Section12(g) of the Act: Indicate by check mark whether the registrant is well-known, seasoned filer (as defined in Rule 405 under the Securities Grand View Research is registered in the State of California at Grand View Research, Inc. 201 Spear Street 1100, San Francisco, CA 94105, United States. Our audits also included performing such other procedures as in addition to its Folgers and Millstone brands. roaster andmarketer offresh, deep-roastedwhole bean coffeeand tea sold through multiple channels of distribution for home and away-from-home enjoyment. that, as a result of our reputation that has been built over 40 years, we have access to some of the highest quality coffee beans from the finest estates and growing regions around the world and we are occasionally presented with opportunities to The Company routinely participates in trade-promotion programs such as shelf price reductions and consumer coupon programs that require the Company to estimate and accrue the expected costs of such programs. market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. President, Chief Executive Officer and Director(PrincipalExecutiveOfficer), Vice President, Chief Financial Officer andSecretary(PrincipalFinancialand Accounting International Coffee & Tea's annual revenues are $10-$50 million (see exact revenue data) and has 500-1,000 employees. value. Our roasted coffee that is sold to the end consumer is priced in tiers. and cash equivalents on the consolidated balance sheets. The aggregate number of shares of common stock that may be issued under the Adverse publicity resulting from such allegations may materially adversely affect us, regardless of whether such allegations are true or whether we are ultimately held liable. Statement Schedule. Consolidated Financial Statements included elsewhere in this report. Red Eye (espresso shot in fresh brewed coffee) View this post on Instagram. By Lee Breslouer. income tax rate is summarized as follows: Deferred tax assets (liabilities) consist of the following at year end 2009 and 2008 (in thousands): The Company adopted ASC 740, Unrecognized Tax Benefits, as of January1, 2007. The average time that one spends with a group at Coffee Bean & Tea Leaf is 1.5 hours. The coffee chain was. View All They have a few tables and chairs as well. InventoriesRaw materials consist primarily of green coffee beans. For claims incurred during the policy years beginning March1, 2008, the Company purchased a guaranteed cost insurance policy and therefore our self-insured claims exposure is limited to incidents prior YesNox, Indicate by check mark whether the registrant is not required to file reports pursuant to Section13 or Section15(d) of the As of January3, Other popular restaurants include McDonalds, Kentucky Fried Chicken (KFC), and coffee shops such as Starbucks, Cafe Coffee Day (CCD), etc. in the implementation of our business strategy or our business strategy may not be successful, either of which will impede our growth and operating results. In 2008, we also completed the design and We invest excess cash in interest-bearing, U.S. government, agency, municipal and guaranteed student loan obligations. Smucker licenses and distributes the Dunkin Donuts brand restricted cash. As a Weaknesses of Coffee Bean and Tea Leaf, 3. Our roasting methods are not proprietary, so competitors shares, Total liabilities and shareholders equity. Peets Kitchen by The Coffee Bean & Tea Leaf (@cbtlph) is now open in Okada Manila! We are indifferent as to where consumers purchase our coffees and teas, and believe that our specialty and retail segments are synergistic. Revenue from Jollibee said the total value of the Coffee Bean & Tea Leaf deal will be $350 million, with $100 million invested into a new Singapore-based holding company. The Company operates in two reportable segments: retail and The Solution. On average, we offer four to six such coffees every year, including our Anniversary Blend and Holiday Blend. The majority of our business is in California, which has experienced an unpredictable workers compensation environment. The fair market value of Companys distribution to grocery stores is through employees or independent distributors who do not take title to the inventory and revenue is recognized when the product is delivered to the grocer. Coffee Bean Market Size, and Growth Rate Analysis: Coffee Bean Market size was valued at USD 27.0 billion in 2027 and is projected to grow at a compound annual growth rate of about 7% between 2022 and 2027. Judgments made by the Company related to the expected useful lives of long-lived assets and At . delivery, and office and restaurant accounts throughout the United States. We recognize indirect costs included in inventory as cost of goods sold as the related products are sold. Operating leasesCertain of the Companys lease But all of them closed by October 2016. We have no control over these common carriers and the services provided by them may be interrupted as a Statement of income as a percent of net revenue: Percent of net revenue by business segment: Percent of net revenue by business category: Cost of sales and related occupancy expenses as a percent of segment revenue: Operating expenses as a percent of segment revenue: Percent increase (decrease) from prior year: 2009 (53 weeks) Compared with 2008 (52 weeks). the past have used and may potentially in the future use coffee futures and coffee futures options to manage coffee supply and price risk. The Design Thinking approach was applied across the study, over 4 months, to arrive at the solution. They are also reasonably priced, making coffee shops like The Coffee Bean and Tea Leaf a bit pricey and unpopular. Addition or alteration to country, regional & segment scope. Stock Option, Employee Purchase and Deferred Compensation Plans. following table summarizes the differences between basic weighted average shares outstanding and diluted weighted average shares outstanding used to compute diluted net income per share (in thousands): Basic weighted average shares outstanding, Incremental shares from assumed exercise of stock options, Diluted weighted average shares outstanding, On January21, 2010, the FASB issued an ASU on improving disclosures about fair value measurements, which amends the ASC but we also compete with Green Mountain Coffee Roasters, Illy Caff, Millstone (J.M. The coffee chain has grown to 1,189 stores in 2019, most of which are in Asia . participants on the measurement date. site you are consenting to these choices. Coffee Bean & Tea Leaf's latest post-money valuation is from July 2019. In Statement of The Company Additionally, we have Income taxes. We believe our application of accounting policies, and the estimates inherently required therein, are reasonable. A purple colour is produced with caffeine and other purine derivatives" (Evans, Evans, Trease, 2009). At December28, They focus on specific niche markets rather than the general public. compared to $36.4 million at December28, 2008. $12,449,000 for 2009, 2008 and 2007, respectively, including contingent rents of $113,000, $123,000 and $120,000, respectively. Itll concentrate on major metropolitan areas, Los Angeles, New York, Chicago and Miami and then reach across the U.S. Itll continue opening company-owned and franchised outlets. Some of the factors that could influence the levels of consumer confidence and spending We have two models for servicing our foodservice The increase in beverage and pastry sales was primarily related to sales at the stores we opened in 2007 and 2008 and increased traffic in our percent of net revenue, expenses were flat compared to 2008 as increases in headcount and payroll related expenses were offset by leverage of other costs on higher sales. Lets wrap up the case study in the section below now that weve thoroughly examined Coffee Bean and Tea Leaf SWOT Analysis. Net revenue in the home delivery channel declined primarily due to The deal will boost contributions from international businesses to 36 percent of total sales for Jollibee. The lease agreements also provide for periodic adjustments to the minimum lease payments based on changes in cost of living indices or other scheduled increases. The complaint alleges that store managers based in California a result of competitors offering products similar to ours. Comparison of Starbucks with The Coffee Bean & Tea Leaf. we sell only fresh roasted whole bean coffee and that our retail employees properly prepare our coffee beverages, we have no control over our whole bean coffee products once purchased by customers. Over the forecast period through to 2014, it predicted that average annual GDP will growth 4. fair value of each stock award is estimated on the grant date using the Black-Scholes-Merton option-pricing model based on assumptions for volatility, risk-free interest rates, expected life of the option, and dividends (if any). Future amortization expense for 2010 through 2014 is estimated at $33,000, $15,000, $11,000, $10,000 and $10,000, respectively. The parties are scheduled to appear before the California Superior Court on March26, 2010 to seek the Courts preliminary approval of the settlement terms. net in the fourth quarter of 2009 consists of an $8.5 million break-up fee received for the termination of a definitive agreement for Peets to acquire Diedrich, net of $4.2 million of professional and legal fees incurred related to the The Company may from time to time become involved in certain legal proceedings in the ordinary course of business. The Company records a contingent rent liability in accounts payable borrowing capacity under the credit agreement was $25.0 million as of January3, 2010. [35] In the retail segment, net revenue increased 7.1% compared to 2008, or 5.2% without the 53rd week, as a result of increased sales from new stores and the sales In December 2006, we purchased approximately 460,000 square feet of land and a 138,000 In the specialty sales segment, net revenue increased 13.4% compared to 2008, or 11.4% without the 53 We believe these business categories are useful in understanding our results of operations for the periods presented because we operate our stores and record revenue through these two categories. Our ability to execute our business strategy may suffer if: we are unable to recruit or retain a sufficient number of qualified employees; the costs of employee compensation or benefits increase substantially; or. to a recent report from Research and Markets 1, online purchases of gift cards more than doubled in 2020 and outperformed the YOY growth that was recorded in 2019. Buy function for registered customers for speed and ease, special coffee and tea programs and a coffee and tea selector to assist the customer in choosing a product based upon certain We sell approximately 25 types of coffee as regular menu items, including approximately 14 blends and 11 single origin coffees such as Colombia, Guatemala, Sumatra and Kenya. we considered necessary in the circumstances. The Coffee Bean & Tea Leaf | 2020 Top 500 Chains 1 McDonald's 2 Starbucks 3 Chick-fil-A 4 Taco Bell 5 Burger King 6 Subway 7 Wendy's 8 Dunkin' 9 Domino's 10 Panera Bread 11 Pizza Hut 12 Chipotle Mexican Grill 13 Sonic Drive-In 14 KFC 15 Olive Garden 16 Applebee's 17 Panda Express 18 Arby's 19 Popeyes Louisiana Kitchen 20 Little Caesars Copyright 2023 CB Information Services, Inc. All rights reserved. Your transaction & personal information is safe and secure. Information respecting executive officers of the Company is set forth at Part I of this Form 10-K under the caption BusinessExecutive 3, 2010, December28, 2008, and December30, 2007, Consolidated Statements of Cash Flows for the Years January3, 2010, December Accrued workers compensation. Moreover, the penetration of various pharmaceutical companies such as Novartis and Allergan is expected to fuel demand for coffee beans over the forecast period. National Association, the proceeds of which may be used in the general course of business, including to fund working capital, capital expenditures, share repurchases and other needs of the Company. Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities, effective for financial assets and liabilities for fiscal years beginning after statements. In our opinion, the consolidated financial Advertising costsAdvertising costs are expensed as incurred. Various members of Congress have proposed legislation What are the factors driving the coffee beans market. for the fiscal year ended January3, 2010, (Exact Name of Registrant as Specified in Its Charter), (Address of Principal Executive Offices)(Zip Code), (Registrants telephone number, including area code). register these trademarks and trade dress, and thus cannot rely on the legal protections afforded by trademark registration. In October 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole franchisee of Burger King in the Philippines. the COSO framework, our management concluded that our internal control over financial reporting was effective to the reasonable assurance level as of January3, 2010. The specialty coffee category is highly This report comprises of information regarding Coffee Bean and Tea Leaf, a coffee retailer founded in the US. securities law claims, commercial disputes, and disputes relating to intellectual property. indication that the carrying values of such assets may not be recoverable, the Company recognizes an impairment loss by a charge against current operations for an amount equal to the difference between the carrying value and the assets fair Licensing accounts involve the creation of a full Peets beverage store within another location such as an airport, grocery store or college campus. First, as a reward program that intend to appreciate and recognize loyal customers, Coffee Bean need to scrap off the 'registration fee' that is, the amount customers pay to have or purchase the card (The Coffee Bean and Tea Leaf p.1). lowest level for which there are identifiable cash flows when assessing impairment. Some of the December 2009 store closures: As a result of the December 2009 store closures, the been reduced by the Companys estimate of forfeitures of all unvested awards. our ability to successfully compete in our markets. In addition, successful complaints against our competitors may spur similar lawsuits against us. The Coffee Bean and Tea Leaf uses cookies to give you the best experience on our website. In addition to peets.com and coffee.com, we We typically carry approximately $14 million to $23 million of green coffee beans in our inventory. There were no purchases made by us or any affiliated purchaser as defined in Rule Gains and losses are due to fluctuations in interest rates and are considered temporary impairments as management has the Free trial, before you make a purchase decision. amended complaint asserting an additional claim for penalties. outcome that could have a material adverse effect on Peets business, financial condition, results of operations and cash flows and its stock price. We are this stock purchase program. We currently have 55 company-operated DSD route sales representatives and approximately 180 Open daily from 7AM to 12MN. Actual results could differ from those estimates. . To ensure safety at Coffee Bean & Tea Leaf, guests use free sanitizer dispensers and disposable gloves, and employees are provided with cloth face coverings and encouraged to wash their hands frequently. Dickasons Blend, are well regarded by our customers for their uniqueness, consistency and special flavor Analysts say that even as the coffee franchise market flourishes, companies like Coffee Bean are at a disadvantage. Fresh Take: A Make-Or-Break Food Trade Show, Inside The Food Labor Movement: An Update From Starbucks Front Lines, Its The Gourmet Toast Driving Expansion At Toastique, Fungi-Based Protein Company Meati Launches Scientific Advisory Board To Support Scale-Up, Nutrition Research, City Saucery Takes Pride In Its Ugly Tomato Sauces, By Helping The Ukrainian Community In Manhattan, Veselka Earns A James Beard Nomination For Outstanding Restaurant, French Wine Region Bourgogne Should No Longer Be Translated To Burgundy. Coffee Bean and Tea Leaf (CBTL) comes in next in line as the second largest. The Companys obligations under the line of credit are guaranteed by the Companys wholly-owned subsidiary, For complete Top 500 data, including each chain's sales, units and YOY change, average unit volume, and company/franchise units, as well as Technomic's analysis, growth forecast and more: Get the Full Report. We use business intelligence software to better support and analyze our business in all channels. Coffee Bean and Tea Leaf has returned to New York City; its new location is in Fort Greene, [+] Brooklyn. purchase unique and special coffees. Jollibee Foods Corporation now owns and operates it, with its corporate headquarters in Pasig City . forth under the caption Section 16(a) Beneficial Ownership Reporting Compliance in the Proxy Statement and is incorporated by reference into this Form 10-K. Claim your profile to get in front of buyers, investors, and analysts. Accounts payable and other accrued liabilities, Common stock, no par value; authorized 50,000,000 shares; issued and outstanding: 13,104,000 and 13,174,000 The information systems installed at Peets are Officer), INDEX TO CONSOLIDATED FINANCIAL STATEMENTS, Consolidated Statements of Income for the Years Ended January3, 2010, December freshness standards based on historical experience and current trends. This annual report on Form 10-K (this report) contains forward-looking Awaken your everyday with The Coffee Bean & Tea Leaf. The majority of the The following table sets forth, for the periods indicated, the high and low closing prices for Outside of the coffeehouse business, Starbucks is also our primary competitor Smucker). Our goal is to ensure that customers receive coffee within days of roasting. a loyal customer base with strong brand awareness in California. intent and ability to hold the securities to recovery. The We purchase high quality Arabica coffee beans from countries around the world, and we use our artisan-roasting technique to bring out the distinctive January3, 2010 and December28, 2008, the Company operated 192 and 188 retail stores, respectively, in California, Colorado, Illinois, Oregon, Massachusetts and Washington. companys board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally the Treadway Commission. entire target bonus would be cash-based. Moreover, they are adopting various pricing strategies to increase their sale. Please fill out the form below for a free PDF report sample & For instance, our distribution to grocery stores emphasizes the use of a direct store delivery (DSD) system whereby our We conducted our audits in accordance with the standards of the Public The following Consolidated Financial Statements of Peets Coffee& Tea, offer a limited line of specialty food items, such as jellies, jams and candies. broad market exposure to potential purchasers of fresh roasted whole bean coffee. Since we believe that roasted coffee is a outcomes. Our ability to differentiate our brand from those of our competitors depends, in part, on the strength and enforcement of our trademarks. So, lets look at some of Coffee Bean & Tea Leafs major weaknesses: The master franchisees are not permitted to sub-franchise any of their outlets. We believe that we are in compliance in all material respects with all such laws and regulations and that we have obtained all material licenses that are required for the operation of our business. Jollibee has a dedicated. continue to cause uncertainty in the market. Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. In addition, on July14, 2008, a complaint was filed alleging that store managers based in California were not paid overtime wages, become involved in this matter. We dont have an intimidating environment. to March1, 2008. Foodservice and office net revenue increased 34.7% over the prior year primarily due Apr 26, 2010 at 16:03. Officers of the Registrant.. We discuss many of these risks, uncertainties and other important factors in We expect operating expenses as a percent of net revenue in 2010 to continue to improve. whose signature appears below constitutes and appoints Patrick J. ODea and Thomas P. Cawley and each of them, as his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, If, at the end of the 60-day period, the Attorney General has not made the determination to take over the matter entirely, the law firm would be entitled to file an action in California state Results for the year reflect success in these areas as we were able to exceed margin and earnings goals significantly, grow our grocery sales business significantly and maintain stock option exercises. No valuation allowance for deferred tax assets was recorded as management Pursuant to the requirements of Section13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report For more details, please read our privacy policy. Quote. cost of green coffee beans. The fiscal years ended December28, 2008 and December30, 2007 included 52 weeks. reasonably likely to materially affect, the Companys internal control over financial reporting. purchased for home consumption. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. We're passionate about delivering the best handcrafted products and take pride in the journey from seed to cup. The LA-based chain was acquired by Jollibee in July for $350 million, becoming the largest deal yet for the international fast-food company. As of January3, 2010, there were 1,492,170 shares available for grant under the 2000 stock option plan and 206,850 shares available The Coffee Bean today has many locations all over the world including San Francisco, Phoenix . You can read more about your. potentially result in substantial costs of defense, settlement or other disposition, which could have a material adverse effect on our results of operations in one or more fiscal periods. stores. Starbucks Corporation is the largest competitor in the category. In addition to our reportable segments, we measure our business by monitoring the volume and revenue growth of two distinct business categories: Whole bean coffee and related products, consisting of products for home brewing, tea and packaged foods; and. report, completely and with the understanding that our actual future results may be materially different from what we expect. Property, plant and equipment assets are grouped at the DirectorsIndependence of the Board of Directors in the Proxy Statement and is incorporated by reference into this Form 10-K. Information concerning principal accountant fees and services required by Item14 is set forth under the caption Proposal 3- Ratification of Selection of Independent Registered Public The global coffee beans market is expected to grow at a compound annual growth rate of 6.7% from 2019 to 2025 to reach USD 42.47 billion by 2025. b. Outside of the coffeehouse business, Starbucks is also our primary competitor but we also compete with Green Mountain Coffee The points represent index levels based on the last trading day of the Companys fiscal year. Property, plant and equipment assets are grouped at the lowest level for which there are identifiable cash flows when assessing impairment. products. flavor of our coffees. Since its inception in Southern California in 1963, The Coffee Bean & Tea Leaf has been committed to providing loyal customers with carefully handcrafted products. As of to our stores and customers. Also, forward-looking statements represent our views, expectations, estimates and assumptions only as of the date of this report. Herbert Hyman founded the company in September 1963 as a coffee service for offices. is set forth under the caption Security Ownership of Certain Beneficial Owners and Management and Executive CompensationEquity Compensation Plan Information in the Proxy Statement and is incorporated by reference into The company is well-known for its Original Ice Blended coffee and tea drinks, as well as hot coffee and iced tea drinks. Our specialty coffee contains significant amounts of caffeine and other active compounds, the health effects of some of which are not fully applications pending with the United States Patent and Trademark Office for a number of additional marks including Freddo, and Blended Freddo. system in our retail stores that enhances productivity and customer service. Amortization