News

Canadian concept not named Tim Hortons or Starbucks plans to be ‘coffee authority’

November 3, 2014

Canadian-based The Second Cup coffee concept has announced a three-year strategic plan that seems to put Starbucks, Tim Hortons and McDonald’s in the crosshairs. As part of the plan, The Second Cup aims to be “the coffee brand most passionately committed to quality and innovation,” according to a news release.

The brand is also planning a share offering by way of private placement with the intention of raising up to $5M. The new capital will be used to accelerate the renovation of company-owned cafés in prime locations.  

According to the release, the three-year plan is built on five strategies:

• Reinvent the brand – The company wants “superior quality, community, creativity, collaboration and optimism will be reflected in every touchpoint.”
• Be the coffee authority – with innovative products and experiences.
• Deliver an “inspiring café experience” – with a warm and inviting environment and friendly and skilled baristas.
• Revitalize the network - cafés will reflect their neighborhoods in priority markets across Canada.
• Be world-class partners – to become an ideal franchisor and an attractive investment.

The strategic plan will be executed in two phases: The first phase will lay the groundwork for growth, driving same-store sales through product innovation, improved operations, brand and loyalty building initiatives, while commencing rollout of the café of the future concept through new locations and renovations. The first café of the future is scheduled to open later this year in downtown Toronto.

The second phase of the strategic plan will deliver significant growth ramping up in 2016 as a result of new café development and same-store sales growth, the company said. 

"With our three-year strategic plan, new vision and brand direction, we are entering an exciting phase of our transformation. Coffee will once again be at the core of our offering and by renewing our focus on superior quality, franchisee and customer relationships and innovation, we are confident that we will win the hearts of Canadians,” CEO Alix Box said in the release.

The Second Cup hopes to grow its annualized system sales by approximately $50 million to $234 million in 2017, and turn same-store sales positive by late 2015 and build to 5-plus percent by 2017.

Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating more than 345 cafés across the country.