BARISTAS COFFEE CO (OTCMKTS:BCCI) reported that it finalized a joint venture deal with BMOC to expand Mall Café format operations throughout the state of NY. The JV will be owned 49%by BMOC and 51% by Baristas and will be managed mainly by BMOC. It will operate as per the Baristas Café concept, which has been fruitful in the Pennsylvania locations. The dedicated places that are in malls in Pennsylvania are company’s franchises owned and operated by BMOC associates.
Baristas reported that it will recognize revenue steady with other majority owned JV firms in Florida. The first location has been decided and negotiated. The venue will be disclosed once an opening plan has been finalized. Barry Henthorn, the CEO of Baristas, said that NY has been on company’s list for quite some time. Baristas and its associated wanted to verify the mall concept and receive acceptance.
Now that the concept has been accepted in Pennsylvania, the company is moving forward with the implementation of same concept in other regions. The success in Pennsylvania region makes the management exceptionally optimistic about the success of concept in NY. The new deal enables Baristas to get a larger stake in the new locations while benefiting from the operational aptitude of BMOC associates.
The management of BMOC stated that since the recent openings, the team have been approached by numerous NY area mall operators and have figured out a sizable pool of attractive and available locations throughout the state. With the extensive expansion underway within the BMOC eight state master franchise zone, the management felt it as appropriate to include the resources and expertise of Baristas to maximize the fast expansion throughout NY.
In last trading session, the stock price of Baristas jumped 10% to close the trading session at $0.033. The gains came at a share volume of 740,491 compared to average share volume of 1 million.