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Hawaiian coffee franchise to open shop in Pagosa Springs

Bad Ass sees growth potential in destination towns like Steamboat, Telluride, Aspen and Durango
Bad Ass Coffee of Hawaii plans to open 150 locations across the country in the next five years. (Courtesy of Bad Ass Coffee of Hawaii)

A new coffee shop is coming to Pagosa Springs, and if the name of the business doesn’t grab your attention, maybe the company’s aggressive expansion plans will raise an eyebrow.

Bad Ass Coffee of Hawaii plans to add three Colorado locations by the first fiscal quarter of 2023 including the Pagosa Springs location at 362 Pagosa St. The move is part of the company’s effort to expand, especially in a state that sees high tourism visitation.

“These new store announcements are an exciting part of our young company history since acquiring the company assets in 2019 and moving the company headquarters to Colorado in 2020,” said CEO Scott Snyder in a news release. “We are really just starting to tap into the Colorado market and believe the state has tremendous store volume potential.”

Bad Ass Coffee of Hawaii started on the Big Island of Hawaii in 1989. Since then, the company relocated to Salt Lake City and then to Denver. In 2019, the company was purchased by Royal Aloha LLC, which initiated the move to Colorado.

“Bad Ass” is a reference to the donkeys in the Kona District of Hawaii that would carry coffee beans down the mountains of the Big Island.

The company has 24 locations nationwide, with 93 shops in various stages of development.

Snyder said Colorado has been a great state for business growth over the years, referencing the success of businesses like Chipotle that started in Denver.

The company sees growth potential in the greater Denver area, Colorado Springs and Fort Collins, along with destination towns such as Steamboat Springs, Vail, Breckenridge, Durango, Telluride, Aspen and Summit County, according to the release.

Bad Ass Coffee of Hawaii is a franchise, which means various locations have different owners. The Pagosa Springs location will be owned by San Juan Motel owner Rakesh Patel, an Army veteran.

“Rakesh was a perfect fit for a franchisee,” Snyder said in an interview with The Durango Herald. “He’s someone who knows the community well in Pagosa.”

He said the Pagosa Springs location should open in March or April.

“I’ve been in Pagosa now for like five or six years,” Patel said. “What makes me want to do this is the community and locals who’ve always been supportive.”

Patel said he is interested in owning locations in other Colorado towns, but has not decided where. He remains focused on opening the Pagosa Springs location.

“I want to get done with this one first, and then we can start worrying about the other one,” he said.

The franchise sells coffee brewed from Hawaiian beans, which have a different taste than South American coffee beans. Snyder said the coffee beans are grown in volcanic soil that gives the bean a smoother taste and the style of coffee is less acidic, making it easier to drink for those who may have a sensitive stomach.

Bad Ass Coffee of Hawaii sources its coffee beans from the Kona region of the Big Island but also imports beans from Kauai and Maui.

Shops in Denver and Colorado Springs are scheduled to open in the first quarter of 2023. The franchise has an aggressive plan to add 150 locations across the U.S. over the next five years.

As the franchise expands, Bad Ass Coffee of Hawaii is recruiting more franchisees to run its different locations. The company is looking to partner with qualified people seeking single store or multiple store opportunities.

tbrown@durangoherald.com



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