Knowledge Perk
Company Overview
Name: Knowledge Perk
Industry: Coffee
Established: 2017/18
Position: Founder/CEO
Knowledge Perk operates as a coffee company that not only serves customers directly through its retail outlets but also engages in roasting its own coffee and has established an RTDE product line. The company has a diversified business model that includes corporate-owned coffee shops, licensed locations, wholesale operations, and partnerships for custom branding.
Key Aspects
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Locations and Operations
Currently operates 5 corporate locations and 3 licensed locations with 3-5 more in the works.
Involvement in both coffee roasting and RTDE production, pursuing a level of vertical integration in operations.
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Custom Branding and Partnerships
Specializes in custom branding for sports teams and universities.
Has established partnerships with notable entities such as Charlotte FC, Wells Fargo Championship, App State, Winthrop U and others.
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Financials
Like most post covid high growth retail companies, experiencing significant cash flow issues.
Facing rising Costs of Goods Sold (COGS) in a competitive market environment.
Still operating at rapid growth going from $100k in revenue to $2.5M in revenue in 5 years, expected $4M and $5.5M+ next two years annual projections.
Over $1.1 in capital raised, not counting debt/loans.
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Growth and Future Goals
Aims to achieve rapid scaling to increase volume, part of a strategic move toward a potential exit.
The future growth strategy includes expanding the number of corporate and franchise locations and enhancing the presence in national markets.
Intends to solidify its position by growing its wholesale business and launching Ready-To-Drink (RTD) coffee products, like canned cold brew and possibly a coffee sports drink.
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Target Market Expansion
Plans to penetrate new markets by leveraging custom coffee blends tailored for universities, and professional sports in NFL markets, aimed at increasing both foot traffic in retail stores and online traffic.
The expansion strategy is also geared towards growing the wholesale side of the business by supplying to various outlets, including coffee shops, grocery stores, universities, and sports stadiums.
Knowledge Perk presents itself as a dynamic and ambitious coffee company with a diverse business model. While facing financial constraints due to economic pressure and scaling, its strategic focus lies in expanding its market presence, both through physical retail outlets and innovative product offerings. The company's unique approach to custom branding, especially in collaboration with sports and academic institutions, sets it apart in a competitive industry. The next few years are crucial as Knowledge Perk aims to overcome its current challenges and achieve significant growth in revenue and market presence.