Second Cup will fully support its franchisees during the Covid-19 crisis

MISSISSAUGA, ON, Canada – The Second Cup Ltd. (the “Company” or “Second Cup”) (TSX: SCU) today announced additional measures to support the day-to-day operations of its Second Cup franchisees across Canada during the COVID-19 outbreak.

“Our most important priority remains protecting the health and wellness of our employees, our franchisee partners and our guests,” explained the Company’s President and CEO Steven Pelton.

“That said, we are well aware of the significant financial impact the COVID-19 outbreak is having on our franchisees across the country, and are taking additional action to support their day-to-day operations – and their livelihoods. Together with our franchisees, we are also calling on landlords, financial institutions, governments and our network of suppliers to do their part to show flexibility during this incredibly challenging time.”

­Specifically, Second Cup will:

• Defer the collection from franchisees the accrued royalties and cooperative advertising fund contributions – for the period of February 23 to March 21, 2020 – otherwise due on March 31, 2020 while the Company continues to understand and assess the impact of the COVID-19 pandemic.
• Support conversations on behalf of its franchisees with landlords and financial institutions to request deferrals of rent or loan repayments, as required.
• Working with the full network of Second Cup suppliers to arrange deferred payment terms to provide franchisees with additional flexibility to manage cash and payroll.
• Additionally, the Company today confirmed that its Second Cup cafés across Canada will offer take-out, delivery and drive-thru service only, effective immediately.

About Second Cup Coffee Co.

Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating franchised and company owned cafes across Canada. The company’s vision is to be the Canadian specialty coffee brand of choice across Canada, committed to superior quality, innovation and profitable growth. For more information, please visit www.secondcup.com or find the company on Facebook and Twitter.