Snakes & Lattes says it will be scaling back its distribution and retail activities to focus on the service-related part of the business. The company will continue its fulfillment operations in Canada, and will partner with US-based fulfillment centers as it looks to that market for growth. It will also continue publishing. It acquired Morning last year in a cash deal for $150,000 EUR.
The company will change their retail offerings to a “gift shop” format that relies top performing titles from the game library and on impulse buys. The company is testing the format at its Tempe, Arizona location.
The company also has reduced the size of its management team in an effort to reduce staff cost and provide efficiency. It is unclear how many people were impacted. The company has formed four operational departments, finance, leadership, growth, and operations.
Snakes & Lattes will continue its expansion into the US market. The company opened its first US venue in Tempe, Arizona last year, and is working on a second Arizona location in Tucson. The back-to-school opening for the venue has been delayed due to issues with the building renovation. The venue is now expected to open in Q4 of this year.
A lease has been negotiated and the company is exploring capital investment for a venue in Charlotte, NC. The company is also searching for a viable property in Cincinnati.
The company said it is also looking to acquire existing competitors, starting in the Canadian market, before the end of the year. The company says this strategy will reduce risk in new markets, while increasing brand awareness.
Amfil Technologies, the parent company of Snakes & Lattes, are still not provided timely financial releases to their shareholders. The last financial release was July 2018. While it is not a requirement of the OTC Pink market which lists them, they have had a ‘stop’ label attached to their listing.
Amfil management have blamed the delays on audits it is undertaking in the hopes of moving to a more prominent market. The company said it was confident those would be completed soon, but declined to say when. They do anticipate their 2019 financials will be released on time.