LOS ANGELES Coffee Bean & Tea Leaf, the 729-unit chain based here, said Wednesday the Travel Hospitality Services division of contractor Delaware North Cos. would open CB&TL branches in U.S. airports under an exclusive strategic development agreement.
The terms of the deal were not disclosed, nor would CB&TL or Delaware North representatives disclose a development schedule. However, a written statement from the franchisor about the agreement said that Delaware North “has several new [Coffee Bean & Tea Leaf] locations under development.”
CB&TL president Mel Elias, whose company has 20 airport locations overseas and five domestically, including three operated by Delaware North, said the contractor’s management team “is a great fit with our company.” He added, “We are confident that their passion for our brand will translate to the travelers who enjoy our beverages at our airport stores.”
Christopher Whitcomb, a spokesman for Buffalo, N.Y.-based Delaware North, said the deal “represents a major strategic shift, as Coffee Bean & Tea Leaf will now be our preferred coffee concept.” Until now, he noted, his company, which has contracts to provide food-and-beverage services at 19 U.S. airports, has used a variety of regional and national chain coffee concepts.
Privately held Coffee Bean & Tea Leaf, with approximately 279 company operated outlets and 450 sites franchised to others, has its greatest market penetration along the West Coast. In a statement about the agreement with CB&TL, DNC Travel Hospitality Services president Matt King said his team is “looking forward to expanding the brand’s exposure in airports nationwide.”
Two of Delaware North’s existing CB&TL sites are at the Ontario International Airport in Ontario, Calif., while the third is in the Phoenix Sky Harbor International Airport in Phoenix. In all, Delaware North operates 300 restaurants and retail outlets in more than 25 airports worldwide, the company said.
Besides California, Arizona and Nevada, Coffee Bean & Tea Leaf said it has outlets in Singapore, Malaysia, Korea, Brunei, Indonesia, United Arab Emirates, Israel, Australia, China, Kuwait, Egypt, Qatar, Oman, Bahrain, Vietnam, Mexico and the Philippines.
CB&TL representatives said the 20 existing international airport locations are operated by an assortment of local parties. They added that to bolster the chain’s presence in international airports, the franchisor would consider an exclusive development agreement with a multi-national operator, such as was reached with Delaware North for U.S. expansion.
Contact Alan J. Liddle at [email protected].
