July 5, 2022

The Queens County Citizen

Complete Canadian News World

Second cup cafes turn into cubocoies

Second cup cafes turn into cubocoies

Foodtastic continues to grow and is preparing to acquire all of its second-cup assets significantly from Aegis brands based in Ontario. There are about 190 branches across the country in this transaction.

“The Second Cup brand has been established in Canada for almost 45 years and we are delighted to welcome it to the Foodtastic family,” President and CEO Peter Mummas said Monday, looking to relocate headquarters. Social network in Quebec, if all goes well.

This will be the second big deal for Foodstatic in a few months. In December, the Quebec company acquired Retiseries Fuse, which owns 21 franchise restaurants.

To complete this new acquisition, FoodAstatic, the largest in its history in terms of branches, would have to spend $ 14 million and take on several commercial lease loans. It also includes an index rule on future profits based on royalties from certain cafes that open after the transaction closes.

Over the next few years, management wants to “modernize” the brand and grow further across Canada. Currently, there are forty of these cafes in Quebec.

“We want it to grow,” Mummas said. “There are many changes we are looking at. In Quebec, we have a strong expansion. You can easily reach 80 point sales,” he said.

The latter, who has been negotiating the deal for several months, has openly admitted that he wants to compete with the giant Starbucks, which recently closed several branches. He hopes Quebecars will buy more coffees from the local company.

Of the group’s 190 restaurants in Canada, 20 are corporate. Others are franchises. Note that there will be no sales of second cup points outside the country in the transaction.

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Other transactions

By the end of this year, FoodAustic already promises to make more acquisitions. Four files are on the table. Management says they have about 85 million to complete their next shopping trip.

“We need to be able to close at least two of the four deals,” Mummies said. “We are interested in all areas of the restaurant business that are not currently available, such as dining or sushi,” the businessman concluded.

Aegis Brands shareholders must now approve the second cup sale. An extraordinary assembly is scheduled for March.

Foodstatic includes Co Coke, Retisseries Benny, La Belle et la Buff, L’Gross Luxe, Chocolato, La Chambre, Monza, Carlos & Pepes, Sowlaki Bar and Nickels banners. The group has more than 130 restaurants, with total annual sales of $ 240 million.