Laser Cyprus seeks Coffee Beanery franchise for all Europe

Laser Investments Pcl (LAS) subsidiary, Big Scorer Enterprises, the master franchisor for Coffee Beanery in Cyprus and eight other countries, wants to broaden its cooperation with the U.S. coffee chain and secure the rights for all of Europe.

Laser Investments’ General Manager, Costas Gkotsis, told the Financial Mirror that Big Scorer Enterprises, which is a now a wholly owned subsidiary of Laser after the recent takeover and share issue, owns the Coffee Beanery franchise rights for Cyprus, Greece, Turkey, Poland, Bulgaria, Romania, Serbia, Albania and Slovenia.

“We are in talks to secure the master franchise rights for all of Europe,” Gkotsis said, adding that the experience of Cyprus, where Big Scorer already operates two outlets, has been beyond expectation.

Following the first outlet in Nicosia’s trendy Engomi district, Coffee Beanery opened a second outlet in Limassol on 25^th October Avenue and plans to open more in Nicosia, Limassol, Larnaca, Ayia Napa and Paphos.

“Our strategic plan calls for eight Coffee Beanery outlets in Cyprus by March 2008,” said Gkotsis, adding that an aggressive expansion plan will be introduced for Greece and other European markets after the master franchise deal for all Europe is finalized by September.

 

— New capital

Laser Investments has scheduled an extraordinary general meeting for July 27 to approve a rights issue to raise EUR 5 mln. The motion has the broad support of the majority shareholders. If the rights issue is approved, it will create about 18-19 mln new shares in addition to the existing 38 mln shares, including the ones issued to finance the Big Scorer takeover.

The proceeds of the new capital will be used to finance the opening of new Coffee Beanery outlets, set up new warehouse and distribution facilities, purchase machinery and pay for administrative staff.

Gkotsis explains that Cyprus will become the base for the expansion drive into Europe and for this reason the group will set up a regional centre here to support the franchise development and expansion plan.

This involves staff hiring and training to mount the overseas operations as well as provide the right equipment and support.

Gkotsis says Big Scorer will aim to sell country franchises to select groups active in their respective countries, as opposed to selling one franchise at a time to individuals.

“This may take longer to develop the network, but once we sign off the country franchises, the number of outlets will increase rapidly.”

Ioanna Christophi, wife of Aspis Holdings CEO Lambros Christophi is the largest shareholder in Laser Investments with a 29.91% stake, followed by the Aspis Group SA of Greece with a 20-25% stake and several other major shareholders holding stakes of 3-12% in the company after Laser issued the new shares to Big Scorer to finance the recent acquisition.

 

— Specialty Coffee

 

The Coffee Beanery opened its first stores in the United States in 1976, before the American public knew the term “specialty coffee.” In the 30 years that have followed, the Coffee Beanery continues to build its brand and franchise organization on the principles of time-tested and honoured traditions and values.

Today, the Coffee Beanery has over 135 locations throughout the U.S., 25 locations internationally, and is recognized as an industry leader for its unique family business approach, corporate culture and commitment to quality.

 

— Leisure Group

 

In addition to the Coffee Beanery franchise development, Laser Investments is also active in the stock market with a portfolio of EUR 1 mln aiming for a good return in tandem with a rising equity market.

The fact that Gkotsis has a financial services background and previously worked as an equity trader in Greece is seen as another plus for Laser and its investment strategy and positionings.

Laser Investments also plans to acquire stakes in other leisure industry companies, both in Cyprus and in Greece with Gkotsis promising a “hot” period of takeovers.

“Our aim is to give exceptional growth through an aggressive acquisition and expansion policy for the benefit of our shareholders,” concluded Gkotsis.