Reis & Irvy’s Sells 200,000th Cup of Frozen Yogurt
Reis & Irvy’s Sells 200,000th Cup of Frozen Yogurt
January FroYo Sales Climb More Than 21 Percent Month-to-Month
SAN DIEGO, CA, Feb. 14, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Generation Next (VEND) announced today that its flagship subsidiary and premium, robotic soft serve franchise, Reis & Irvy’s, has sold a milestone 200,000 cups of frozen yogurt. The announcement comes less than two months since the company announced it had sold its 100,000th cup.
Perhaps more importantly to the company’s stakeholders and franchisees, yogurt sales both in dollar terms and cups sold witnessed a more than 21 percent increase month-on-month between December and January, as a result of increased installs and despite record breaking cold across a large portion of the U.S. in the wake of the Polar Vortex of 2019.
“Our strong sales growth during what many have described as the cold spell of a generation should certainly alleviate any remaining concerns in terms of seasonal impact on sales performance,” said Nick Yates, CEO of Generation Next.
By the Numbers
Reis & Irvy’s sold 45,491 cups of yogurt in January, representing $215,545 in consumer yogurt sales, compared to 37,494 cups sold worth $176,837 in consumer yogurt sales during December, a month-on-month increase of more than 21 percent, the company reports. The average sale price was $4.74 per cup in January.
With the exception of shopping malls, same store sales by category all increased month-to-month in January:
Colleges and universities witnessing sales growth of +46%
High schools, +46%
Corporate campuses, +41%
Family fun’ centers, +37%
Company officials attributed a slight decline (-7%) in shopping mall sales to the December holiday rush and subsequent leveling-off of foot traffic in January, while noting that the category remains a top performer.
Same store weekday sales increased by 25 percent, “proving our product has a strong daily demand,” Yates said. Meanwhile, weekend sales generated 34 percent of January revenue, the company reports.
Looking forward to a growth year
Generation Next CEO, Nick Yates said he was looking forward to a year of positive growth in 2019.
“Being forced to slow the pace of installations late last year and during this first quarter of calendar 2019 is, of course, frustrating for everyone. But it is exciting to see what happens when Reis & Irvy’s robotic kiosks work as they should. We’ve begun to see that impact in January’s sales figures and the results speak for themselves. It shows us that we made the right decision, although not the easy one, in sacrificing some short-term installation targets in order to get our technology and quality control in line with our vision for the franchise. I feel like this year will prove that it was the right move for everyone,” Yates said.
Manufacturing and delivery of Reis & Irvy’s robotic kiosks was paused temporarily late last year to allow time for design improvements, retrofitting and repair of existing machines in the field and in the warehouse. Generation Next announced earlier this month that it had entered into a manufacturing and engineering agreement with Stoelting Foodservice. Stoelting has played a key role in improving the engineering and technology used to build the first robots. The Company expects Stoelting to complement production from its current contract manufacturer during 2019. During the rest of fiscal year 2019, the Company estimates it will install an additional 100 to 150 robots bringing the total robots installed for the year between 290 and 340 with annual revenue recognized of $11.0 to $12.9 million. From July to December 2019, Generation Next expects to install 600 to 800 additional robots and recognize between $22.8 and $30.4 million.
Generation NEXT Franchise Brands, Inc., based in San Diego, California, is a publicly traded company on the OTC Markets trading under the symbol OTCBB:VEND. Generation NEXT Franchise Brands, Inc. is parent company to Reis and Irvy’s, Inc. 19 Degrees Corporate Service and Generation NEXT Vending Robots.
About Reis & Irvy’s, Inc.
Reis & Irvy’s, Inc., is a subsidiary franchise concept of Generation NEXT Franchise Brands, Inc. (VEND). Launched in early 2016, the revolutionary Reis & Irvy’s Vending Robot serves frozen yogurt, ice cream, sorbets and gelatos, a choice of up to six custom toppings and to customers within 60 seconds or less at the point of sale. The unique franchise opportunity has since established itself as a high-demand product and currently showcases a franchise network both domestically as well as internationally.
This information is not an earnings statement and is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. No Reis & Irvy’s franchises will be sold to any resident of any state until the offering has been exempted from the requirements of, or duly registered in and declared effective by, such state and the required FDD (if any) has been delivered to the prospective franchisee before the sale in compliance with applicable law. Currently, the following states in the United States regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you reside in one of these states, or even if you reside elsewhere, you may have certain rights under applicable franchise laws or regulations.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning our future financial performance, including statements regarding: our ability to generate revenue and recognize deferred revenue; our ability to timely launch delivery and installation of our frozen yogurt robots; and our ability to grow our franchising and licensing divisions and launch our corporate-owned and direct sales platforms. The Company bases these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as “believe,” “anticipate,” “propose,” “expect,” “intend,” “plan,” “will,” “may,” “estimates,” variations of such words and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in our filings with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K for the year ended June 30, 2018, our Quarterly Reports, and our Current Reports on Form 8-K. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated and the Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.