Foodtastic continues to grow and is gearing up to acquire nearly all of Second Cup Café & Cie’s assets from Aegis Brands in Ontario. This deal includes 190 branches across the country.
“The Second Cup brand has been established in Canada nearly 45 years ago and we are happy to welcome it into the Foodtastic family,” said President and CEO Peter Mamas, looking to move the chain’s headquarters to Quebec, if all.
This will be a second big deal for Foodtastic in a few months. In December, the Quebec Corporation acquired Rôtisseries Fusée, which has 21 licensed restaurants.
To complete the acquisition of the Second Cup, Foodtastic will have to pay $ 14 million in addition to incurring rental debt. The deal also includes an indexing clause for future earnings based on royalties from some of the coffee shops that opened after the close.
Over the next few years, the administration wants to “modernize” and expand the brand further in Canada. There are currently around forty of these coffee shops in Quebec.
“We want to make it grow,” Mamas said. “There are many changes that we will be looking at. In Quebec, we can have a strong expansion. You can easily reach 80 selling points.”
The latter openly admits to his desire to compete with the giant Starbucks, which has closed several branches in recent months. He hopes Quibikers will buy more coffee from a local company.
Of the group’s 190 restaurants in Canada, there are about 20 corporate restaurants. Others are franchisees. Note that the deal does not include Second Cup outlets outside the country.
By the end of the year, Foodtastic is already promising to make more acquisitions. Four files on the table. Management claims it has approximately $ 85 million to complete its upcoming shopping.
“We should be able to conclude at least two of the four deals,” Mamas said. The businessman concludes, “We are interested in all sectors of the restaurant business that we are not present in, such as lunches or sushi.”
Aegis Brands shareholders must now agree to sell Second Cup. An extraordinary assembly is scheduled for March.
Foodtastic owns Au Coq, Rôtisseries Benny, La Belle et La Bœuf, L’Gros Luxe, Chocolato, La Chambre, Monza, Carlos & Pepe, Souvlaki Bar and Nickels signs. The group includes more than 130 restaurants with annual gross sales of more or less $ 240 million.