Yogurt Adds to Transaction Growth……

For its first quarter that ended in late March 2018, The Second Cup Ltd. reported continued improvement in financial its results.  The chain ended the quarter with 279 locations operating and system sales of cafes of $35.9-million(Cdn) compared to first quarter 2017 in which there were 293 operating cafes and system sales of $37.9-million(Cdn).  Same store sales were down by 2.2 percent in the first quarter, partially impacted by the shift in Easter in 2018. Same store sales in Ontario, Second Cup's largest region, were down by 0.6 percent.  The expansion of Pinkberry frozen yogurt in Second Cup cafes across the country is on track as planned with many more underway.  The frozen yogurt continues to be a strong contributor to overall sales and transaction growth.  In January Second Cup launched Clean Label beverages, with a commitment to eliminate artificial colours and flavours, preservatives and high fructose corn syrup from all beverages on the menu.  Clean Label beverages now comprise 85 percent of the menu.  Following the closing of the first quarter, Second Cup and National Access Cannabis announced a strategic alliance that provides the potential to convert select Second Cup cafés to NAC-branded recreational cannabis dispensaries initially across Western Canada, expanding to include additional provinces where legally permissible. This strategic alliance is an opportunity for Second Cup to leverage its select real estate assets.  Operating since 1975, the Second Cup locates in major cities across Canada, as well as some secondary markets that have a population over 50,000.  New units are averaging 1500 square feet.  End caps and freestanding units with patio and drive-thru capabilities are targeted in suburban markets.  Downtown sites with patios are also sought, especially in new condominium towers.  Malls over 400,000 square feet and non-traditional units are also a consideration.  Leasing Director Greg Cardwell is handling the leasing.

 

 

Second Cup Ltd., 6303 Airport Rd., 2nd Floor, Mississauga, Ontario L4V 1R8 (877/212-1818 www.secondcup.com)