Sale of Canada’s fourth-largest coffee chain to restaurant group Foodtastic is completed following the announcement of the transaction in February 2021
Aegis Brands has completed the sale of Canadian coffee chain Second Cup Coffee Co. to restaurant franchise group Foodtastic Inc. for CA$14m ($11.4m).
"We are very excited to have acquired Second Cup and look forward to expanding the brand throughout Canada," said Peter Mammas, President and CEO of Foodtastic.
Second Cup is Canada’s fourth largest branded coffee chain behind Tim Hortons, Starbucks and Country Style, with World Coffee Portal data
showing the operator closed net 10 stores during 2020 and currently operates around 235 locations.
Aegis Brands' latest financial reporting shows Second Cup made a CA$14.7m ($12m) loss in 2020, compared to a CA$3.8m loss in 2019.
Amid ongoing Covid-19 trading pressures, Canada’s branded coffee shop market contracted by 22% in 2020 and is estimated to be valued at around C$9.5bn (US$7.5bn). World Coffee Portal forecasts the Canadian coffee shop market will return to growth in 2023.
Reporting annual sales of C$240m (US$181m), Quebec-based Foodtastic is the franchisor of more than 130 restaurants, including the Au Coq, La Belle et La Boeuf, Monza, Carlos & Pepe’s, Souvlaki Bar, Nickels, Rotisseries Benny, Chocolato, Big Rig and Bacaro brands.