Quebec-based multi-brand restaurant company Foodtastic acquires Canadian coffee giant Second Cup Coffee Co from parent company, Aegis Brands for $14 million CAD (approx. $11 million USD).
Second Cup Coffee, established in 1975 is Canada’s third largest coffee-chain, following Starbucks and Tim Hortons, with approximately 231 locations nationally, consisting of 200 franchises and 31 company-owned-and-operated locations.
In addition to Foodtastic’s extensive portfolio of brands with 130 franchise locations from its 17 restaurant and food brands, Second Cup Coffee is by far the biggest acquisition in terms of number of locations.
Foodtastic started when 3 friends with a passion for the restaurant industry, Lawrence Mammas, Jack Gaspo, and Peter Mammas launched their first concept, La Belle et La Boeuf in 2012. Foodtastic was born in 2016 when the team decided to become a multi brand restaurant company.
A first-time Canada report from the World Coffee Portal suggested the Canadian branded coffee shop market had shrunk by 22% in 2020 due to the ongoing Covid pandemic.
This acquisition suggests they are optimistic the sector will recover post pandemic.
Peter Mammas, President and CEO of Foodtastic said:
Second Cup has been a Canadian staple for almost 45 years and we’re excited to welcome them into the Foodtastic family.
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.
Following on from the sale of Second Cup, Aegis Brands who also owns Canadian fair trade coffeehouse chain Bridgehead Coffee plans to further develop the business along with its other brand, Hemisphere Cannibis Co, and to pursue future acquisitions.
