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Our Story
Our Vision
                   To be Simply The Best roaster and
                                           ™




               global retailer of specialty coffee and tea.




                  Our Mission
           To create a spirit within our Company that inspires
          our Team Members to provide our customers with a
Total Quality Experience: Quality of Product, Service and Environment.
Company History
                                                                                                                                                            The concept for The Coffee Bean & Tea Leaf® stores was born during a
                                                                                                                                                         trip the founders Herb and Mona Hyman took to Europe. After touring
                                                                                                                                                         the many outstanding coffee shops throughout Europe, the couple
                                                                                                                                                         decided to bring the specialty coffeehouse concept to America. The Coffee
                                                                                                                                                         Bean & Tea Leaf® was established in 1963 opening their first store in
                                                                                                                                                         Los Angeles, California which continues to operate today as one of our
                                                                                                                                                         highest volume and highest profile stores.

                                                                                                                                                            Over the next 35 years, Herb continued to grow his coffee business
                                                                                                                                                         throughout Southern California. Flavor and a handcrafted feel became
                                                                                                                                                         cornerstones of his business. He would blend coffee varieties per
                                                                                                                                                         customer requests and roast them to their liking. These personalized
                                                                                                                                                         requested have even been used in formulating some of our more popular
                                                                                                                                                         blends today. In 1996 the company was franchised in Asia. The business
                                                                                                                                                         did so well in Singapore and Malaysia that the company was purchased
                                                                                                                                                         from the Hymans and our first franchisee became the franchisor.

                                                                                                                                                            The Coffee Bean & Tea Leaf® has grown to be the largest and oldest
                                                                                                                                                         privately held specialty coffee and tea retailer in the U.S. With over
                                                                                                                                                         800 stores worldwide, we have a strong presence and reputation for
                                                                                                                                                         excellence as part of communities all over the globe. Company owned
                                                  | The first The Coffee Bean & Tea Leaf® store in Los Angeles, California Circa 1963                    stores are located in California, Arizona, Singapore and Malaysia. Our
                                                                                                                                                                                growing franchised locations, include stores in
                                                                                                                                                                                California, Hawaii, Michigan, Nevada, Texas,
                                                                                                                                                                                Australia, Brunei, China, Egypt, India, Indonesia, Israel, East Malaysia
The Coffee Bean & Tea Leaf® has been innovating–and growing–since 1963. “Find Your Flavor”
                                                                                                                                                                                (Sabah), Kuwait, Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, South
isn’t just our slogan; it’s a commitment to our customers and the foundation upon which                                                                                         Korea, United Arab Emirates and Vietnam. Each year, The Coffee Bean & Tea
we operate. Taste matters and so does our culinary approach to flavor. Our handcrafted                                                                                          Leaf® serves over 100 million coffee and tea beverages worldwide.
beverages can be made-to-order and customized to a customer’s preference. It’s not just about
making the perfect drink, it’s about honoring the values of the communities we serve.
Our Team Members are trained to listen and respond to each customer with
a personalized beverage that sets the standard for excellence. The Coffee Bean                                                                                                                                                       | The first The Coffee Bean & Tea Leaf    ®

                                                                                                                                                                                                                                            coffee roaster (top) and weighing scale (left), circa 1963
& Tea Leaf® prides itself on our innovation and quality, offering one of the
most extensive selections of specialty coffee and tea from around the world.                                                            1963 Founders Herb and Mona Hyman open          1980 Multi-store expansion begins,                               1989 The Coffee Bean & Tea Leaf®
                                                                                                                                        first store, offering whole-bean coffee and     offering a variety of coffee and tea beverages                   invents The Original Ice Blended® Drinks
                                                                                                                                        loose-leaf tea
Our Stores
     Customers come to The Coffee Bean & Tea Leaf®
     to enjoy their favorite beverages delivered with
     outstanding service in a relaxing and friendly
     environment. Our cafés are warm, inviting
     places where everyone is welcome to hang out,
     relax, and savor the best coffees and teas in
     the world. Whether customers in your area
     tend to zoom in for a quick cup to-go or like
     to hang out and soak up the atmosphere, café
     environments can be scaled and styled to suit
     local customs and life styles. Team Members.
     Our Team Members, baristas and café servers,
     are enthusiastic and informed
     aficionados carefully trained
     to assist customers to
     “Find their Flavor” and
     favorite drinks.


                                                                                                                                                           Our People
                                                                                                                                                              At The Coffee Bean & Tea Leaf®, we put people first. From our coffee
                                                                                                                                                           and tea origin suppliers to our retail store Team Members and loyal
                                                                                                                                                           customers, we consider everyone part of our extended family. We
                                                                                                                                                           provide specialized training so that each Team Member is able to build
                                                                                                                                                           bonds of trust with our customers and their guests. By demonstrating
                                                                                                                                                           our Core Values (known as FROTH, or Friendly, Respect, Ownership,
                                                                                                                                                           Teamwork and Honesty), we inspire all employees to treat each other
                                                                                                                                                           with respect and to provide the Total Quality Experience our customers
                                                                                                                                                           have come to expect when they visit The Coffee Bean & Tea Leaf®.


                                                                                                                                                                                                                              | This page: Our Team Members build relationships


1996 Singapore – the opening of         1998 The first franchisee becomes the franchisor –   1998 Launches   2001 First U.S. franchise         2004 Partners with Adopt-A-       2005 Establishes    2006                2006                         2006 Debuts new non-dairy
the first The Coffee Bean & Tea Leaf®   private family consortium acquire ownership of       Hot Tea Latte   store opens (Las Vegas, Nevada)   Classroom program throughout      Caring Cup Global   400th store opens   500th store opens            tea-based frozen beverage line:
franchised store                        The Coffee Bean & Tea Leaf® corporate entity.                        outside California                California, Nevada, and Arizona   Charity Program                                                      Fru-Tea® Drinks
Our Coffee and Tea                                                                                                               Our Beverage, Retail &
    For over 47 years, The Coffee Bean & Tea Leaf® has been proudly offering Simply the Best™ coffee and                                  Bakery Products
    teas in the world. From the mountains of Southern Colombia to the tea fields of Sri Lanka, our
                                                                                                                                        Since 1963, The Coffee Bean & Tea Leaf® has stood for fine ingredients,
    expert coffee and tea buyers travel the globe to find and secure the very best crops from small
                                                                                                                                     great taste and innovation. We source our products from the greatest
    artisan farms and private estates.
                                                                                                                                     places in the world, roast our coffees and blend our teas by hand and not
    From seed to cup, an equitable way to do the right thing.                                                                        only allow our customers to customize their drinks but help them “Find
                                                                                                                                     Their Flavor” by tailoring beverages exactly to their liking.
    At The Coffee Bean & Tea Leaf®, our passion extends far beyond the crops we cultivate and the
    beverages our customers enjoy. From seed to cup, we constantly work to maintain a direct                                             We are proud of our numerous industry firsts. The Original Ice Blended®
    relationship with our growing farms. Buying directly from the grower affords us exclusivity                                      is the beverage that started the frozen coffee drink craze, creating a new
    as well as incomparable product quality. More importantly, maintaining these simple, direct                                      drink category that is now world famous.
    and honest relationships assures our Company, our growers and our customers a fair and
                                                                                                                                        The Coffee Bean & Tea Leaf® did not settle for syrups when customers
    transparent supply chain.
                                                                                                                                     started requesting mochas, instead we created proprietary powders.
                                 COFFEE                                                                                              Our French Deluxe™ Vanilla and Special Dutch™ Chocolate powders are
                                                                                                                                     industry firsts that give our coffee drinks a flavor vastly superior to any
                                 We purchase specialty grade Arabica coffee beans from three distinct regions:
                                 Latin America, the Asia Pacific, and East Africa. How coffee looks, tastes and                      other – creamy and smooth.
                                 smells has much to do with where it comes from, and how it was grown. All our
                                 imported coffees have been cultivated at high altitude - between 3,500 and                             With our gourmet powders and hand blended teas as a base, the Chai
                                 6,000 feet - because cooler temperatures slow the beans’ ripening time, and                         Latte and Tea Latte were invented and popularized by The Coffee Bean
                                 create more concentrated, flavorful coffees.                                                        & Tea Leaf® during the mid-1990’s. The unique components of our
                                    We personally travel the globe to find the best quality harvests. We nurture                     beverages are sold in our stores and online, helping our customers enjoy
                                 long lasting direct relationships with our growers, going beyond fair trade,                        The Coffee Bean & Tea Leaf® experience at home and around the world.
                                 not only for the high quality of their product, but also for their Earth-friendly
                                 growing practices and social responsibility standards in particular, the                              Our full line of baked goods is made from the highest quality
                                 conscientious way they treat their workers and families.
                                                                                                                                     ingredients, most of which are from our own proprietary recipes and
                                                                                                                                     baked with care at our company owned kosher bakery facility in Santa
                                 TEA
                                                                                                                                     Monica, California.
                                 The Coffee Bean & Tea Leaf® commitment to quality starts with going beyond fair
                                 trade with the direct relationships we build with our tea growers, continues                          From our hand crafted beverages to flavorful, freshly baked pastry,
                                 with the processing of our whole leaf teas, and extends to the handcrafted
                                                                                                                                     The Coffee Bean & Tea Leaf® always delivers a Total Quality Experience.
                                 world-class drinks we serve in our stores.
                                    We are very proud that many of our tea growers in countries such as Sri
                                 Lanka, India, Thailand, and Kenya practice environmental sustainability.                                | Top photo: Tamping of fresh espresso
                                 Our growers in Thailand, for example, use peanut shells and grass to cover                              | Middle photo: Unique tea blends are displayed in jars
                                 exposed land, reducing erosion, while preparing a healthy, robust soil for
                                 future seasons.                                                                                         | Bottom photo: Freshly baked goods in our case

2006 Enters new franchised territories       2007 600th store opens and for the      2008 Launches made-to-order    2008 Hits the    2008 Enters new franchised                                    2008 Runs “Support From     2009 Enters new franchised
with store openings in Bahrain, Egypt        first time franchise stores outnumber   yogurt and oatmeal breakfast   700 store mark   territories with store openings                               Home” campaign to support   territories with store openings in Oman,
and Qatar, internationally, and Ralph’s,     company stores                          program                                         in India, Mexico and Vietnam                                  military personnel          internationally, and Texas, domestically
domestically
Our Master Artisans
Jay Isais                                           Jesse Martinez-Beltran                             David De Candia
Senior Director of Coffee,                          Master Coffee Roaster                              Director of Tea, Buyer
Roasting, and Manufacturing                                                                            & Master Blender
                                                       Jesse is responsible for the careful roasting
   Jay combs the world’s finest coffee growing      and blending of all coffee beans at our main       David sources and develops our premium teas
regions, from Latin America and East Africa         facility in Southern California. Over the          and is one of the world’s leading tea experts.
to South Asia and the Pacific, sampling and         past 15 years, Jesse has worked diligently to      He has been an enthusiastic advocate on the
selecting the regions’ best harvests, then          become a Master Roaster. He oversees the daily     benefits of tea — both in-house and to the
overseeing our blending and roasting process.       roasting to ensure each small batch is done        general public. He travels the world to find the
                                                    to perfection. He has traveled throughout          finest ingredients and is constantly researching
   In sourcing the world’s greatest coffees,
                                                    the coffee-growing regions of the world and        and testing new flavor possibilities. David is a
Jay travels from one end of the tropics to
                                                    served as an International Juror for The Cup       driving force in giving back to origin countries
the other, from Costa Rica and Colombia to
                                                    of Excellence®. He is also a member of the         with programs that benefit local farmers,
Ethiopia and Papua New Guinea, cultivating
                                                    Specialty Coffee Association of America’s          their families, and communities. David’s
close relationships with local growers. The
                                                    (SCA A) Roaster’s Guild and a licensed             passion for tea and his artistry in creating new
Coffee Bean & Tea Leaf® is proud to offer a range
                                                    Q Grader.                                          flavor combinations have been instrumental
of specialty grade coffees we proclaim to be
                                                                                                       in keeping The Coffee Bean & Tea Leaf® on the
Simply the Best™.
                                                                                                       cutting edge of beverage innovation.
   Jay is responsible for selecting and buying
the highest-quality green coffee beans
from the world’s finest growing regions, as
well as the manufacturing, warehousing,
and worldwide distribution of our coffee
and tea products. He has over 25 years of
industry experience, holding both operations
management and buying positions in the
coffee industry. Jay is a founding member of                                                             | Left photo: Jesse Martinez-Beltran (left) & Jay Isais (right)
                                                                                                                 coffee tasting as they do for every roast, of every day.
the Roasters Guild, a volunteer instructor
for the SCA A, a certified judge for the Cup                                                             | Right photo: David De Candia smelling the sweet aroma of tea.
of Excellence® program (A.C.E.), a licensed                                                              | Bottom right: David showcases the premium ingredients
                                                                                                                 used in creating our unique tea blends.
Q Grader, and an APICS Certified Supply
Chain Professional.
Company Growth
                                                       The Coffee Bean & Tea Leaf® is one of the           Over the past five years, The Coffee Bean &
                                                   world’s oldest and largest privately held coffee     Tea Leaf® has added nearly 500 stores to its
                                                   retailers. In 20 countries, The Coffee Bean &        global network – growing from 304 stores
                                                   Tea Leaf® serves more than 100 million coffee        to over 776 at the end of 2009. That’s a
                                                   and tea beverages each year and over 20,000          new store opening every four days.
                                                   Ice Blended® drinks a day. In addition, our coffee
                                                   line can be found in more than 500 grocery             Key Statistics:
                                                   stores throughout California and online              • 39% Compounded Annual Growth Rate (cagr)
                                                   throughout the US.                                   • Over 500 stores operated by 30+ franchisees.
                                                                                                        • Serving 1,000,000 customers around the
                                                                                                         world each week.



                                                                                             Store Growth
                                                           1000

                                                             900

                                                             800                                                                            776
                                                                                                                             722
                                                             700
                                                                                                               635
                                                             600




                                                  stores
                                                             500                                500

                                                             400                  378
                                                                     304
                                                             300

                                                             200

                                                             100

                                                                 0
                                                                     2004        2005           2006          2007           2008           2009
                                              US Company Stores      138          164            192           201            189            180
                                              Asia Company Stores     79           77             78            87            89             91
                                              Franchise Stores        87          137            230           347            444            505
                                              Total Stores           304          378            500           635            722            776
| Right: Interior of store in Austin, Texas

| Left: Exterior of store in Austin, Texas
Our coffees and teas originate from some of the richest
    and most fertile growing regions throughout the world:
                                                                                                                                                                                                                               Dubai, UAE




                    Austin, USA                                                                                                                                                                                                Saket, India




                                                                                                                                                                                                                               Ho Chih Minh City, Vietnam



  Teas                    COffees                                                sTORe LOCaTIONs

Darjeeling India          Brazil                  Nicaragua                 United states                                                         Middle east                                                           asia & australia
assam India               Colombia                Papua New Guinea          arizona                                                                                                                                     australia
                                                                                                                                                  Bahrain
Cape south africa         Costa Rica              Tanzania                  California                                                                                                                                  Brunei
Thailand                  ethiopia                Uganda                                                                                          egypt
                                                                            Hawaii                                                                Israel                                                                China
Taiwan                    Guatemala               Usa (Kona)
China                     Indonesia -                                       Michigan                                                              Kuwait                                                                India
sri Lanka                   Java, sumatra, Bali   Recent Limited editions   Nevada                                                                Oman                                                                  Indonesia
Japan                     Jamaica                 Peru                      Texas                                                                 Qatar                                                                 Malaysia
Brazil                    Kenya                   Nepal                                                                                           saudi arabia                                                          Philippines
Kenya                     Mexico                  India                     Latin america                                                         Uae                                                                   singapore
                                                  ecuador (Galápagos)       Mexico                                                                                                                                      south Korea
                                                                                                                                                                                                                        sri Lanka
                                                                                                                                                                                                                        Vietnam

                                                                              This information is not intended as an offer to sell, or the solicitation of an offer to buy, a “franchise” or “business opportunity”. It is for information purposes only. Currently, there are at
                                                                            least fifteen (15) states in the United States of America (the “USA”), at least three (3) Canadian provinces, and at least 13 other countries that regulate the offer and sale of franchises. In all states
                                                                            in the USA, federal law requires pre-sale disclosure of franchises. If you are a resident of one of these states, provinces or countries, or of any jurisdiction that hereafter regulates the offer and
                                                                            sale of franchises, are receiving this message in the USA or the other countries listed above, or intend to operate a franchise or business opportunity in the USA or these countries, we will not
                                                                            offer you a franchise or business opportunity unless and until we have complied with applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction.
                                                                              No offer of a franchise by us to you will be binding on us, and no franchise will be granted by us to you, until both: (a) all conditions precedent to its offer and acceptance have been fully
                                                                            satisfied by you and us; and (b) we have delivered to you a fully executed area development agreement (“ADA”) signed by our President. Any action you take, or expenditures you make prior to
                                                                            your receipt of a fully executed ADA (and our notification to you that all conditions precedent to its execution have been met), are at your own risk.
The Total Package
ORIGIN                                                                              ROasTING & DIsTRIBUTION                                                            THIRD PaRTy DIsTRIBUTORs                         THe sTORes
farms and estates – We have personal                                                Our privately owned and operated facility is                                       Our 3rd party distributors are, equipped with    stores – Each new location becomes a part
relationships with the families that own and                                        located in Southern California. This state                                         a 50,000-square-foot warehouse located in        of the community and a welcome oasis for our
run the coffee farms and tea estates. As we                                         of the art plant is where all our whole bean                                       Compton, California, where our finished          customers. We’re passionate about our product
have become a part of their lives we have                                           coffees are tested and roasted fresh daily and                                     products are sent for distribution and           and proud of our company’s heritage.
gained access to parts of the land we may                                           where all of our whole leaf teas and flavored                                      shipping. Daily shipments to our stores ensure
otherwise not. Field 17 at the Bogawantalawa                                        infusions blended and packaged.                                                    the freshest, most satisfying coffee and tea
Tea Estate in Sri Lanka is considered to                                                                                                                               products available anywhere. Our Customer
produce the finest tea in the world. The tea                                                                                                                           Service department, which takes care of all
from that field never goes to auction, but                                                                                                                             orders for 20 countries, is also located here.
through our relationship with the estate, is
sold directly to The Coffee Bean & Tea Leaf®.
                           Coffee nursery, Costa Rica



                                                                                      Bags of green coffee, RAD                                                                                                                                          California




                                                                                                                                                                                                                                                                         Seoul, Korea




 Coffee farm, Costa Rica                                                                                          Roasting coffee, RAD




                                                        Direct Trade Relationships
                                                        Direct trade means that we maintain a direct relationship with                                                                                                                                   Austin, Texas

                                                        the actual producer. By maintaining a simple, direct, and honest
                                                        relationship with each of our suppliers based on our guiding
                                                        principals, we can assure ourselves and our customers of a fair and
                                                                                                                                                                       From the sustainable farms where our products originate to our strong and healthy
                                                        transparent supply chain. We’re part of the process from the seed
                                                                                                                                                                       distribution and supply chains, we’re a complete business solution.
                                                        all the way to when you take a sip from our freshly brewed tea.
                                                        | Bottom left photo: Paul Balzer, Vice President of Supply Chain, at the Bogawantalawa Tea Estate, Sri Lanka
Franchising Information
                                   The Coffee Bean & Tea Leaf® is a well known, highly
                                respected brand name. We’re located in many key markets
                                internationally and our business continues to experience
                                dramatic growth across the US and the world. We strive to
                                have stores everywhere our customers work, live and play.
                                With an ability to adapt to market-specific demands and
                                location-specific needs, we take into consideration the
                                environment, local community standards, cultural nuances,
                                customer habits and market demands. Each franchise store
                                is uniquely planned based on our brand standards and then
                                tailored to meet the individual requirements of every
                                new location.


                                Make our success yours.
                                   With 50 years of experience in the specialty coffee segment,   The Special Distribution Store category
                                The Coffee Bean & Tea Leaf® has built a strong and complete
                                                                                                    The Coffee Bean & Tea Leaf® is a leader in developing non-traditional franchised locations that
                                business infrastructure and offers comprehensive franchise
                                                                                                  have won wide acceptance across the industry. We start by understanding the culture of the
                                resources. We have worldwide distribution capabilities and
                                an integrated supply chain - owning the experience from           specific location. We then embed a custom-configured The Coffee Bean & Tea Leaf® cafe within the
                                Farm to Customer. Exclusive and proprietary recipes for           footprint of a larger institution, i.e., grocery stores, airports, hotels, hospitals, or universities.
                                beverages, pastries, and café meals are created by our internal   Within the past year, our franchisees have opened nine new SDS locations, bringing the total
                                product development team who ensures each item is crafted         number of non-traditional locations throughout North America to 85. Recent openings include
                                to our premium standards. Our real estate and development         several prominent film studios, the University of Southern California, numerous airport
                                team assists in store designs, specs and construction. The
                                                                                                  locations and 50 cafes within Ralph’s Grocery Stores. This model allows our customers to
                                support team includes dedicated franchise trainers and
                                                                                                  find their favorite beverage everywhere they go, while improving the customer experience and
                                ongoing franchise support. We believe in finding the right
                                                                                                  increasing revenues for the institution.
                                partner and growing together. Our franchisees maintain the
                                integrity of The Coffee Bean & Tea Leaf® name and continue
                                to expand and strengthen the brand across the world.
| Top photo: California store
                                                                                                                                                                               | Left Photo: Singapore
| Middle photo: Vietnam store
                                                                                                                                                                               | Right Top to Bottom: Korea, Indonesia,
| Bottom photos: Mexico store                                                                                                                                                        Univeristy of California, Riverside
| Kio, a tea estate worker from Mukengeria, Kenya
                                                                                                                                                                      | Nariño, Colombia: Multi-purpose room is built for the children
                                                                                                                                                                             of local coffee families with the help of the Caring Cup program.


Charitable Initiatives                                                                                Caring Cup Origins
   The Coffee Bean & Tea Leaf® works with a selected number of charities                                 At The Coffee Bean & Tea Leaf®, quality product and quality of life go hand in hand. That’s why
through our Caring Cup initiatives, which benefit domestic and international organizations.           we insist that origin farms practice environmentally safe cultivation and offer fair wages to their
                                                                                                      workers, enabling them to provide for their family’s welfare. We also work closely with growers
The Help Group – This organization serves children with autism, Asperger’s syndrome,                  in origin countries to develop programs that give back to the local communities, ensuring that
learning disabilities, ADD/ADHD, mental retardation and emotional challenges. At The Coffee           revenue from the sale of our products is more fairly and equitably distributed all along the supply
Bean & Tea Leaf® store locations, customers are invited to sign a holiday-themed card in exchange     chain. Below you will find a selection of some of our most successful ongoing programs.
for a $1 donation and then “deck the walls” of the stores. 100% of the proceeds from these
                                                                                                      Kenya – Working with local authorities, The Coffee Bean & Tea Leaf®
donations are given to The Help Group. The company also donated an additional $1 from
                                                                                                      recently finished construction of a nursery school in the Mukengeria
every purchase of its whole bean, 16 oz. Holiday Blend coffee and Winter Dream Tea® tin to
                                                                                                      district of Kenya, where some of our most popular black teas are
The Help Group.
                                                                                                      cultivated. This school, is certain to offer new hope to local families,
support from Home – The Coffee Bean & Tea Leaf® stores in the U.S. recently participated              while reinforcing our company’s core values.
in a program developed to support military troops stationed overseas. Customers were invited
                                                                                                      Colombia – In collaboration with Empresas de Nariño, a local
to purchase a special coffee blend and write personalized messages right on the package. With
                                                                                                      coffee grower, The Coffee Bean & Tea Leaf® donates a portion of the
the help of the organization Soldier’s Angels and Fisher House™, the campaign was hugely
                                                                                                      proceeds from every one-pound bag of its Colombian coffee to build
successful– over 18,000 pounds of coffee were, purchased, and shipped to military personnel
                                                                                                      and improve schools in the Nariño region of Colombia.
overseas during this 3-month effort.
                                                                                                      sri Lanka – In 2003, The Coffee Bean & Tea Leaf® funded the
Local store Initiatives – Each store is provided a budget to give back to their local
                                                                                                      construction of the Bogawantalawa tea estate community center, where
communities. Whether it is donating product or a portion of the proceeds from sales on specific
                                                                                                      the company buys its Ceylon teas. Additionally a portion of the sales
items to charities, The Coffee Bean & Tea Leaf® strives to be a caring and compassionate
                                                                                                      of our Ceylon teas benefits the Aid Lanka Kids Foundation, which
corporate citizen.
                                                                                                      provides care and education to orphans at the Jeevanie School for Girls.
   In addition, many employees are active in the communities they serve and are often the ones
                                                                                                      ethiopia – Through sales of Ethiopian coffee, The Coffee Bean & Tea
who research and recommend the initiatives in which The Coffee Bean & Tea Leaf® participates.
                                                                                                      Leaf® donates to the Kidane Mhret Students’ Self-Help Association,
Employees are also encouraged to get to know their customers and build relationships so that
                                                                                                      which provides library services, tutoring, school supplies and
they’re aware of the local community’s needs. The Coffee Bean & Tea Leaf® often receives letters of
                                                                                                      educational facilities to local children.
appreciation from customers throughout the world detailing the positive impact these programs
have had-and continue to have.                                                                        India – Warm meals are often a rarity in the developing world where
                                                                                                      many of our products are grown and cultivated. The Coffee Bean & Tea
                                                                                                      Leaf® recently presented 150 petroleum stoves to be installed in the homes of tea pluckers working
                                                                                                      on the Shree Dwarika tea estate in Darjeeling, India.

                                                                                                      Papua New Guinea – A donation of funds above the premiums paid for our green coffee was
                                                                                                      made to build a new school on the world famous Sigri Estate in Papua New Guinea.
The Executive Team
        Sunny Sassoon               Mel Elias
        Executive Chairman          President and CEO
        of the Management
        Board




        Terry Mansky                Bob Kaufman
        Chief Administrative        Vice President of
        Officer, Senior Vice        Business Development
        President and General
        Counsel




        Paul Balzer
        Vice President of
        Supply Chain
                                    Mark Lindstrom
                                    Vice President of
                                    Operations
                                                              Simply the Best!




        Coralie Calvet Lewis        Tom Clemente
        Vice President of Finance   Vice President of Sales
The Coffee Bean & Tea Leaf® 1945 S. La Cienega Blvd., Los Angeles, CA 90034
coffeebean.com/franchise
Phone: 1-800-TEA-LEAF (1-800-832-5323)
Email: franchise@coffeebean.com
©2010 International Coffee & Tea, LLC.
                                                                                            coffeebean.com
The Coffee Bean & Tea Leaf® name and logo are registered trademarks of International Coffee & Tea, LLC.

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Our Story: Over 50 Years of Innovation and Quality

  • 2. Our Vision To be Simply The Best roaster and ™ global retailer of specialty coffee and tea. Our Mission To create a spirit within our Company that inspires our Team Members to provide our customers with a Total Quality Experience: Quality of Product, Service and Environment.
  • 3. Company History The concept for The Coffee Bean & Tea Leaf® stores was born during a trip the founders Herb and Mona Hyman took to Europe. After touring the many outstanding coffee shops throughout Europe, the couple decided to bring the specialty coffeehouse concept to America. The Coffee Bean & Tea Leaf® was established in 1963 opening their first store in Los Angeles, California which continues to operate today as one of our highest volume and highest profile stores. Over the next 35 years, Herb continued to grow his coffee business throughout Southern California. Flavor and a handcrafted feel became cornerstones of his business. He would blend coffee varieties per customer requests and roast them to their liking. These personalized requested have even been used in formulating some of our more popular blends today. In 1996 the company was franchised in Asia. The business did so well in Singapore and Malaysia that the company was purchased from the Hymans and our first franchisee became the franchisor. The Coffee Bean & Tea Leaf® has grown to be the largest and oldest privately held specialty coffee and tea retailer in the U.S. With over 800 stores worldwide, we have a strong presence and reputation for excellence as part of communities all over the globe. Company owned | The first The Coffee Bean & Tea Leaf® store in Los Angeles, California Circa 1963 stores are located in California, Arizona, Singapore and Malaysia. Our growing franchised locations, include stores in California, Hawaii, Michigan, Nevada, Texas, Australia, Brunei, China, Egypt, India, Indonesia, Israel, East Malaysia The Coffee Bean & Tea Leaf® has been innovating–and growing–since 1963. “Find Your Flavor” (Sabah), Kuwait, Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, South isn’t just our slogan; it’s a commitment to our customers and the foundation upon which Korea, United Arab Emirates and Vietnam. Each year, The Coffee Bean & Tea we operate. Taste matters and so does our culinary approach to flavor. Our handcrafted Leaf® serves over 100 million coffee and tea beverages worldwide. beverages can be made-to-order and customized to a customer’s preference. It’s not just about making the perfect drink, it’s about honoring the values of the communities we serve. Our Team Members are trained to listen and respond to each customer with a personalized beverage that sets the standard for excellence. The Coffee Bean | The first The Coffee Bean & Tea Leaf ® coffee roaster (top) and weighing scale (left), circa 1963 & Tea Leaf® prides itself on our innovation and quality, offering one of the most extensive selections of specialty coffee and tea from around the world. 1963 Founders Herb and Mona Hyman open 1980 Multi-store expansion begins, 1989 The Coffee Bean & Tea Leaf® first store, offering whole-bean coffee and offering a variety of coffee and tea beverages invents The Original Ice Blended® Drinks loose-leaf tea
  • 4. Our Stores Customers come to The Coffee Bean & Tea Leaf® to enjoy their favorite beverages delivered with outstanding service in a relaxing and friendly environment. Our cafés are warm, inviting places where everyone is welcome to hang out, relax, and savor the best coffees and teas in the world. Whether customers in your area tend to zoom in for a quick cup to-go or like to hang out and soak up the atmosphere, café environments can be scaled and styled to suit local customs and life styles. Team Members. Our Team Members, baristas and café servers, are enthusiastic and informed aficionados carefully trained to assist customers to “Find their Flavor” and favorite drinks. Our People At The Coffee Bean & Tea Leaf®, we put people first. From our coffee and tea origin suppliers to our retail store Team Members and loyal customers, we consider everyone part of our extended family. We provide specialized training so that each Team Member is able to build bonds of trust with our customers and their guests. By demonstrating our Core Values (known as FROTH, or Friendly, Respect, Ownership, Teamwork and Honesty), we inspire all employees to treat each other with respect and to provide the Total Quality Experience our customers have come to expect when they visit The Coffee Bean & Tea Leaf®. | This page: Our Team Members build relationships 1996 Singapore – the opening of 1998 The first franchisee becomes the franchisor – 1998 Launches 2001 First U.S. franchise 2004 Partners with Adopt-A- 2005 Establishes 2006 2006 2006 Debuts new non-dairy the first The Coffee Bean & Tea Leaf® private family consortium acquire ownership of Hot Tea Latte store opens (Las Vegas, Nevada) Classroom program throughout Caring Cup Global 400th store opens 500th store opens tea-based frozen beverage line: franchised store The Coffee Bean & Tea Leaf® corporate entity. outside California California, Nevada, and Arizona Charity Program Fru-Tea® Drinks
  • 5. Our Coffee and Tea Our Beverage, Retail & For over 47 years, The Coffee Bean & Tea Leaf® has been proudly offering Simply the Best™ coffee and Bakery Products teas in the world. From the mountains of Southern Colombia to the tea fields of Sri Lanka, our Since 1963, The Coffee Bean & Tea Leaf® has stood for fine ingredients, expert coffee and tea buyers travel the globe to find and secure the very best crops from small great taste and innovation. We source our products from the greatest artisan farms and private estates. places in the world, roast our coffees and blend our teas by hand and not From seed to cup, an equitable way to do the right thing. only allow our customers to customize their drinks but help them “Find Their Flavor” by tailoring beverages exactly to their liking. At The Coffee Bean & Tea Leaf®, our passion extends far beyond the crops we cultivate and the beverages our customers enjoy. From seed to cup, we constantly work to maintain a direct We are proud of our numerous industry firsts. The Original Ice Blended® relationship with our growing farms. Buying directly from the grower affords us exclusivity is the beverage that started the frozen coffee drink craze, creating a new as well as incomparable product quality. More importantly, maintaining these simple, direct drink category that is now world famous. and honest relationships assures our Company, our growers and our customers a fair and The Coffee Bean & Tea Leaf® did not settle for syrups when customers transparent supply chain. started requesting mochas, instead we created proprietary powders. COFFEE Our French Deluxe™ Vanilla and Special Dutch™ Chocolate powders are industry firsts that give our coffee drinks a flavor vastly superior to any We purchase specialty grade Arabica coffee beans from three distinct regions: Latin America, the Asia Pacific, and East Africa. How coffee looks, tastes and other – creamy and smooth. smells has much to do with where it comes from, and how it was grown. All our imported coffees have been cultivated at high altitude - between 3,500 and With our gourmet powders and hand blended teas as a base, the Chai 6,000 feet - because cooler temperatures slow the beans’ ripening time, and Latte and Tea Latte were invented and popularized by The Coffee Bean create more concentrated, flavorful coffees. & Tea Leaf® during the mid-1990’s. The unique components of our We personally travel the globe to find the best quality harvests. We nurture beverages are sold in our stores and online, helping our customers enjoy long lasting direct relationships with our growers, going beyond fair trade, The Coffee Bean & Tea Leaf® experience at home and around the world. not only for the high quality of their product, but also for their Earth-friendly growing practices and social responsibility standards in particular, the Our full line of baked goods is made from the highest quality conscientious way they treat their workers and families. ingredients, most of which are from our own proprietary recipes and baked with care at our company owned kosher bakery facility in Santa TEA Monica, California. The Coffee Bean & Tea Leaf® commitment to quality starts with going beyond fair trade with the direct relationships we build with our tea growers, continues From our hand crafted beverages to flavorful, freshly baked pastry, with the processing of our whole leaf teas, and extends to the handcrafted The Coffee Bean & Tea Leaf® always delivers a Total Quality Experience. world-class drinks we serve in our stores. We are very proud that many of our tea growers in countries such as Sri Lanka, India, Thailand, and Kenya practice environmental sustainability. | Top photo: Tamping of fresh espresso Our growers in Thailand, for example, use peanut shells and grass to cover | Middle photo: Unique tea blends are displayed in jars exposed land, reducing erosion, while preparing a healthy, robust soil for future seasons. | Bottom photo: Freshly baked goods in our case 2006 Enters new franchised territories 2007 600th store opens and for the 2008 Launches made-to-order 2008 Hits the 2008 Enters new franchised 2008 Runs “Support From 2009 Enters new franchised with store openings in Bahrain, Egypt first time franchise stores outnumber yogurt and oatmeal breakfast 700 store mark territories with store openings Home” campaign to support territories with store openings in Oman, and Qatar, internationally, and Ralph’s, company stores program in India, Mexico and Vietnam military personnel internationally, and Texas, domestically domestically
  • 6. Our Master Artisans Jay Isais Jesse Martinez-Beltran David De Candia Senior Director of Coffee, Master Coffee Roaster Director of Tea, Buyer Roasting, and Manufacturing & Master Blender Jesse is responsible for the careful roasting Jay combs the world’s finest coffee growing and blending of all coffee beans at our main David sources and develops our premium teas regions, from Latin America and East Africa facility in Southern California. Over the and is one of the world’s leading tea experts. to South Asia and the Pacific, sampling and past 15 years, Jesse has worked diligently to He has been an enthusiastic advocate on the selecting the regions’ best harvests, then become a Master Roaster. He oversees the daily benefits of tea — both in-house and to the overseeing our blending and roasting process. roasting to ensure each small batch is done general public. He travels the world to find the to perfection. He has traveled throughout finest ingredients and is constantly researching In sourcing the world’s greatest coffees, the coffee-growing regions of the world and and testing new flavor possibilities. David is a Jay travels from one end of the tropics to served as an International Juror for The Cup driving force in giving back to origin countries the other, from Costa Rica and Colombia to of Excellence®. He is also a member of the with programs that benefit local farmers, Ethiopia and Papua New Guinea, cultivating Specialty Coffee Association of America’s their families, and communities. David’s close relationships with local growers. The (SCA A) Roaster’s Guild and a licensed passion for tea and his artistry in creating new Coffee Bean & Tea Leaf® is proud to offer a range Q Grader. flavor combinations have been instrumental of specialty grade coffees we proclaim to be in keeping The Coffee Bean & Tea Leaf® on the Simply the Best™. cutting edge of beverage innovation. Jay is responsible for selecting and buying the highest-quality green coffee beans from the world’s finest growing regions, as well as the manufacturing, warehousing, and worldwide distribution of our coffee and tea products. He has over 25 years of industry experience, holding both operations management and buying positions in the coffee industry. Jay is a founding member of | Left photo: Jesse Martinez-Beltran (left) & Jay Isais (right) coffee tasting as they do for every roast, of every day. the Roasters Guild, a volunteer instructor for the SCA A, a certified judge for the Cup | Right photo: David De Candia smelling the sweet aroma of tea. of Excellence® program (A.C.E.), a licensed | Bottom right: David showcases the premium ingredients used in creating our unique tea blends. Q Grader, and an APICS Certified Supply Chain Professional.
  • 7. Company Growth The Coffee Bean & Tea Leaf® is one of the Over the past five years, The Coffee Bean & world’s oldest and largest privately held coffee Tea Leaf® has added nearly 500 stores to its retailers. In 20 countries, The Coffee Bean & global network – growing from 304 stores Tea Leaf® serves more than 100 million coffee to over 776 at the end of 2009. That’s a and tea beverages each year and over 20,000 new store opening every four days. Ice Blended® drinks a day. In addition, our coffee line can be found in more than 500 grocery Key Statistics: stores throughout California and online • 39% Compounded Annual Growth Rate (cagr) throughout the US. • Over 500 stores operated by 30+ franchisees. • Serving 1,000,000 customers around the world each week. Store Growth 1000 900 800 776 722 700 635 600 stores 500 500 400 378 304 300 200 100 0 2004 2005 2006 2007 2008 2009 US Company Stores 138 164 192 201 189 180 Asia Company Stores 79 77 78 87 89 91 Franchise Stores 87 137 230 347 444 505 Total Stores 304 378 500 635 722 776 | Right: Interior of store in Austin, Texas | Left: Exterior of store in Austin, Texas
  • 8. Our coffees and teas originate from some of the richest and most fertile growing regions throughout the world: Dubai, UAE Austin, USA Saket, India Ho Chih Minh City, Vietnam Teas COffees sTORe LOCaTIONs Darjeeling India Brazil Nicaragua United states Middle east asia & australia assam India Colombia Papua New Guinea arizona australia Bahrain Cape south africa Costa Rica Tanzania California Brunei Thailand ethiopia Uganda egypt Hawaii Israel China Taiwan Guatemala Usa (Kona) China Indonesia - Michigan Kuwait India sri Lanka Java, sumatra, Bali Recent Limited editions Nevada Oman Indonesia Japan Jamaica Peru Texas Qatar Malaysia Brazil Kenya Nepal saudi arabia Philippines Kenya Mexico India Latin america Uae singapore ecuador (Galápagos) Mexico south Korea sri Lanka Vietnam This information is not intended as an offer to sell, or the solicitation of an offer to buy, a “franchise” or “business opportunity”. It is for information purposes only. Currently, there are at least fifteen (15) states in the United States of America (the “USA”), at least three (3) Canadian provinces, and at least 13 other countries that regulate the offer and sale of franchises. In all states in the USA, federal law requires pre-sale disclosure of franchises. If you are a resident of one of these states, provinces or countries, or of any jurisdiction that hereafter regulates the offer and sale of franchises, are receiving this message in the USA or the other countries listed above, or intend to operate a franchise or business opportunity in the USA or these countries, we will not offer you a franchise or business opportunity unless and until we have complied with applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction. No offer of a franchise by us to you will be binding on us, and no franchise will be granted by us to you, until both: (a) all conditions precedent to its offer and acceptance have been fully satisfied by you and us; and (b) we have delivered to you a fully executed area development agreement (“ADA”) signed by our President. Any action you take, or expenditures you make prior to your receipt of a fully executed ADA (and our notification to you that all conditions precedent to its execution have been met), are at your own risk.
  • 9. The Total Package ORIGIN ROasTING & DIsTRIBUTION THIRD PaRTy DIsTRIBUTORs THe sTORes farms and estates – We have personal Our privately owned and operated facility is Our 3rd party distributors are, equipped with stores – Each new location becomes a part relationships with the families that own and located in Southern California. This state a 50,000-square-foot warehouse located in of the community and a welcome oasis for our run the coffee farms and tea estates. As we of the art plant is where all our whole bean Compton, California, where our finished customers. We’re passionate about our product have become a part of their lives we have coffees are tested and roasted fresh daily and products are sent for distribution and and proud of our company’s heritage. gained access to parts of the land we may where all of our whole leaf teas and flavored shipping. Daily shipments to our stores ensure otherwise not. Field 17 at the Bogawantalawa infusions blended and packaged. the freshest, most satisfying coffee and tea Tea Estate in Sri Lanka is considered to products available anywhere. Our Customer produce the finest tea in the world. The tea Service department, which takes care of all from that field never goes to auction, but orders for 20 countries, is also located here. through our relationship with the estate, is sold directly to The Coffee Bean & Tea Leaf®. Coffee nursery, Costa Rica Bags of green coffee, RAD California Seoul, Korea Coffee farm, Costa Rica Roasting coffee, RAD Direct Trade Relationships Direct trade means that we maintain a direct relationship with Austin, Texas the actual producer. By maintaining a simple, direct, and honest relationship with each of our suppliers based on our guiding principals, we can assure ourselves and our customers of a fair and From the sustainable farms where our products originate to our strong and healthy transparent supply chain. We’re part of the process from the seed distribution and supply chains, we’re a complete business solution. all the way to when you take a sip from our freshly brewed tea. | Bottom left photo: Paul Balzer, Vice President of Supply Chain, at the Bogawantalawa Tea Estate, Sri Lanka
  • 10. Franchising Information The Coffee Bean & Tea Leaf® is a well known, highly respected brand name. We’re located in many key markets internationally and our business continues to experience dramatic growth across the US and the world. We strive to have stores everywhere our customers work, live and play. With an ability to adapt to market-specific demands and location-specific needs, we take into consideration the environment, local community standards, cultural nuances, customer habits and market demands. Each franchise store is uniquely planned based on our brand standards and then tailored to meet the individual requirements of every new location. Make our success yours. With 50 years of experience in the specialty coffee segment, The Special Distribution Store category The Coffee Bean & Tea Leaf® has built a strong and complete The Coffee Bean & Tea Leaf® is a leader in developing non-traditional franchised locations that business infrastructure and offers comprehensive franchise have won wide acceptance across the industry. We start by understanding the culture of the resources. We have worldwide distribution capabilities and an integrated supply chain - owning the experience from specific location. We then embed a custom-configured The Coffee Bean & Tea Leaf® cafe within the Farm to Customer. Exclusive and proprietary recipes for footprint of a larger institution, i.e., grocery stores, airports, hotels, hospitals, or universities. beverages, pastries, and café meals are created by our internal Within the past year, our franchisees have opened nine new SDS locations, bringing the total product development team who ensures each item is crafted number of non-traditional locations throughout North America to 85. Recent openings include to our premium standards. Our real estate and development several prominent film studios, the University of Southern California, numerous airport team assists in store designs, specs and construction. The locations and 50 cafes within Ralph’s Grocery Stores. This model allows our customers to support team includes dedicated franchise trainers and find their favorite beverage everywhere they go, while improving the customer experience and ongoing franchise support. We believe in finding the right increasing revenues for the institution. partner and growing together. Our franchisees maintain the integrity of The Coffee Bean & Tea Leaf® name and continue to expand and strengthen the brand across the world. | Top photo: California store | Left Photo: Singapore | Middle photo: Vietnam store | Right Top to Bottom: Korea, Indonesia, | Bottom photos: Mexico store Univeristy of California, Riverside
  • 11. | Kio, a tea estate worker from Mukengeria, Kenya | Nariño, Colombia: Multi-purpose room is built for the children of local coffee families with the help of the Caring Cup program. Charitable Initiatives Caring Cup Origins The Coffee Bean & Tea Leaf® works with a selected number of charities At The Coffee Bean & Tea Leaf®, quality product and quality of life go hand in hand. That’s why through our Caring Cup initiatives, which benefit domestic and international organizations. we insist that origin farms practice environmentally safe cultivation and offer fair wages to their workers, enabling them to provide for their family’s welfare. We also work closely with growers The Help Group – This organization serves children with autism, Asperger’s syndrome, in origin countries to develop programs that give back to the local communities, ensuring that learning disabilities, ADD/ADHD, mental retardation and emotional challenges. At The Coffee revenue from the sale of our products is more fairly and equitably distributed all along the supply Bean & Tea Leaf® store locations, customers are invited to sign a holiday-themed card in exchange chain. Below you will find a selection of some of our most successful ongoing programs. for a $1 donation and then “deck the walls” of the stores. 100% of the proceeds from these Kenya – Working with local authorities, The Coffee Bean & Tea Leaf® donations are given to The Help Group. The company also donated an additional $1 from recently finished construction of a nursery school in the Mukengeria every purchase of its whole bean, 16 oz. Holiday Blend coffee and Winter Dream Tea® tin to district of Kenya, where some of our most popular black teas are The Help Group. cultivated. This school, is certain to offer new hope to local families, support from Home – The Coffee Bean & Tea Leaf® stores in the U.S. recently participated while reinforcing our company’s core values. in a program developed to support military troops stationed overseas. Customers were invited Colombia – In collaboration with Empresas de Nariño, a local to purchase a special coffee blend and write personalized messages right on the package. With coffee grower, The Coffee Bean & Tea Leaf® donates a portion of the the help of the organization Soldier’s Angels and Fisher House™, the campaign was hugely proceeds from every one-pound bag of its Colombian coffee to build successful– over 18,000 pounds of coffee were, purchased, and shipped to military personnel and improve schools in the Nariño region of Colombia. overseas during this 3-month effort. sri Lanka – In 2003, The Coffee Bean & Tea Leaf® funded the Local store Initiatives – Each store is provided a budget to give back to their local construction of the Bogawantalawa tea estate community center, where communities. Whether it is donating product or a portion of the proceeds from sales on specific the company buys its Ceylon teas. Additionally a portion of the sales items to charities, The Coffee Bean & Tea Leaf® strives to be a caring and compassionate of our Ceylon teas benefits the Aid Lanka Kids Foundation, which corporate citizen. provides care and education to orphans at the Jeevanie School for Girls. In addition, many employees are active in the communities they serve and are often the ones ethiopia – Through sales of Ethiopian coffee, The Coffee Bean & Tea who research and recommend the initiatives in which The Coffee Bean & Tea Leaf® participates. Leaf® donates to the Kidane Mhret Students’ Self-Help Association, Employees are also encouraged to get to know their customers and build relationships so that which provides library services, tutoring, school supplies and they’re aware of the local community’s needs. The Coffee Bean & Tea Leaf® often receives letters of educational facilities to local children. appreciation from customers throughout the world detailing the positive impact these programs have had-and continue to have. India – Warm meals are often a rarity in the developing world where many of our products are grown and cultivated. The Coffee Bean & Tea Leaf® recently presented 150 petroleum stoves to be installed in the homes of tea pluckers working on the Shree Dwarika tea estate in Darjeeling, India. Papua New Guinea – A donation of funds above the premiums paid for our green coffee was made to build a new school on the world famous Sigri Estate in Papua New Guinea.
  • 12. The Executive Team Sunny Sassoon Mel Elias Executive Chairman President and CEO of the Management Board Terry Mansky Bob Kaufman Chief Administrative Vice President of Officer, Senior Vice Business Development President and General Counsel Paul Balzer Vice President of Supply Chain Mark Lindstrom Vice President of Operations Simply the Best! Coralie Calvet Lewis Tom Clemente Vice President of Finance Vice President of Sales
  • 13. The Coffee Bean & Tea Leaf® 1945 S. La Cienega Blvd., Los Angeles, CA 90034 coffeebean.com/franchise Phone: 1-800-TEA-LEAF (1-800-832-5323) Email: franchise@coffeebean.com ©2010 International Coffee & Tea, LLC. coffeebean.com The Coffee Bean & Tea Leaf® name and logo are registered trademarks of International Coffee & Tea, LLC.