Second Cup, Canadian specialty coffee retailer, bought back 17 franchised cafés in Toronto areas. The acquisition will close on November 6.
The acquired cafés are owned by Debbie and Bob Riche, long-standing franchisees with a 20-year experience as operators. The Riches will join the Second Cup team as Director of Operations and General Manager for Corporate cafés and additional company-owned franchises.
Alix Box, The Second Cup Ltd. president and CEO, said that the deal will allow the company to revitalize the locations and to benefit from the Riches' expertise.
"Debbie and Bob will significantly enhance our ability to successfully operate company-owned cafés. While we remain committed to our franchising strategy, we will own some cafés, which we intend to operate to our highest standards of excellence," said Box.
Second Cup president said that the Riches' management talent, combined with the financial resources of the company, will provide creative opportunity to the coffee retailer.
Box said, "This transaction is expected to be accretive to earnings in 2015. It's all a part of the revolution that's taking place at Second Cup.
The franchised cafés will be acquired via a Property Security Act foreclosure which gave funds to Second Cup previously recorded worth approximately $2.2 million or $707,00 net provisions.
Debbie Riche said, "We have loved being a part of the Second Cup family for over 20 years and we are delighted to join the Coffee Central team." She added that they look forward to building a strong future with the coffee retailer.
The acquired cafés will allow for a smoother roll out of Second Cup's new concept "Café of the Future." More details on the coffee retailer's strategic plan be released in November.
"We look forward to rejuvenating these cafés and using them to showcase Second Cup innovation, while enhancing the ultimate coffee experience for customers," said Bob Riche.
