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Second Cup Coffee Co. acquisition is fantastic news for Foodtastic

February 09, 2021

Quebec-based Foodtastic is building on its stellar line up of franchise foodservice brands with the acquisition of Second Cup Coffee Co.
"Second Cup has been a Canadian staple for almost 45 years and we're excited to welcome them into the Foodtastic family," Peter Mammas, President and CEO of Foodtastic, said following the announcement.  
Think Retail congratulates the Foodtastic team on the strategic acquisition of this iconic Canadian coffee brand, which presenting exciting potential for growth and innovative partnerships. 
Foodtastic, a leader in the restaurant franchising industry, purchased the Canadian coffee brand from Mississauga-based Aegis Brands Inc. for $14 million in cash, plus a post-closing earn-out. The deal allows Aegis, formerly known as The Second Cup Ltd., to focus on its other businesses, including the Hemisphere Cannabis Co.
We see the Second Cup chain as the ideal partner for Foodtastic and the move is keeping with a mandate to ramp up growth with new and existing brands following a $47-million investment from Restaurant Royalty Partners in December 2018. 
Since then, Foodtastic has made several exciting announcements, including the addition of Ottawa’s Big Rig Kitchen & Brewery and Quebec-based Chocolato to its portfolio of marquee restaurant concepts. Foodtastic is well-positioned as a leader in the restaurant franchising business, with more than 130 restaurants—brands include, Au Coq, La Belle et La Boeuf, Monza, Carlos & Pepe's, Souvlaki Bar, Nickels, Rotisseries Benny and Bacaro—and $240 million in annualized sales.
"We look forward to working with all our new franchisees and emerging through this pandemic with a revitalized Canadian leader in the premium coffee segment. This acquisition is consistent with our strategy of acquiring quality Canadian brands with growth potential," explains Mammas. 
In 2020, Second Cup operated 244 locations across the country and pivoted quickly to adjust to the pandemic. It closed underperforming cafés, but also launched an ecommerce platform; announced plans to sell via retail locations; and outlined a plan to open 14 “non-traditional” locations in places such as hospitals. In August, it partnered with Petro-Canada to pilot three drive-through locations at gas stations in Ontario. 
Think Retail is honoured to work with Foodtastic as it builds its portfolio and charts innovative plans for its strong network of foodservice concepts. For more information about Foodtastic and its portfolio, visit the Foodtastic website or contact the Think Retail team