Black Rock Coffee Bar (BRCB) investor relations material

Business overview and differentiation

• Operates in seven states with 181 units at year-end, targeting 20% growth and all stores featuring drive-throughs and lobbies.

• Employee retention is significantly better than industry average, with 74% turnover last year and further improvement this year.

• High guest satisfaction scores (92%-94%) are attributed to strong team engagement, profit sharing, and performance scorecards.

• Same-store sales grew 19% over two years, with 10.1% growth last year and 6.4% transaction growth, driven by engaged baristas.

Leadership structure and culture

• Store leads and assistant store leads receive hourly pay, tips, and bonuses, with store lead turnover around 20%.

• Multi-store leads manage 3-4 stores, work alongside store leads, and benefit from strong culture and quality of life.

• Area managers, often aged 19-24, oversee 8-10 stores and focus on developing young leaders.

• Example: A 22-year-old area manager runs 10 stores with $15 million in revenue and 25%-28% store-level profit.

Financial performance and labor model

• Low prime costs and high margins are achieved through a differentiated labor model and engaged teams.

• Profit sharing and scorecards align store teams with company goals, accelerating store profitability.

• Teams receive monthly results and weekly sales-to-labor forecasts, fostering ownership and performance.