MISSISSAUGA, ON, Canada – The Second Cup Ltd. reported improved financial results for the first quarter ended April 1, 2017. Same store sales were -0.2 % in Q1. Excluding Alberta same store sales rose 0.9% in the quarter.
Ontario, Second Cup’s largest region, recorded positive same store sales in Q1 of 1.6%. After a soft January, same store sales were positive in February and March.
EBITDA of $60,000 represents the third consecutive quarter of positive EBITDA results. The Q1 net loss of $475,000 is an improvement of $131,000 over Q1 2016.
Second Cup launched a number of new products in the first quarter including a “Better For You” menu to meet the growing customer demand for healthier options. A line of smoothies is at the core of the program and based on strong customer adoption a third vegan, dairy and gluten free option was recently added.
“The Better For You program has opened the door to a whole new group of customers for our cafes,” says Tamara Bellamy, Second Cup franchisee and member of the franchisee Advisory Council. “I am proud of our new products that have had great reception to this innovative line.”
New Developments
In April, Second Cup launched Flash Cold Brew, its latest innovation in the fastest growing segment in the coffee market.
The unique brewing method produces superior taste for full flavour and incredible smoothness, available in Classic Black, Vanilla Bean and Mocca.
To drive awareness and trial this summer, an aggressive grassroots marketing program includes sampling events and coffee bike street teams.
Second Cup continues to innovate and market test Better for You products and fresh lunch innovation to meet growing customer demand and has seen encouraging results for sales growth.
On May 10th, 2017, Second Cup announced a management change with the appointment of Garry Macdonald as interim CEO. “I am excited about the new product and sales initiatives currently underway and working with our team I have identified additional growth opportunities to further increase store level sales and profitability”, says Mr. Macdonald.
Ms. Barbara Mallon, CFO, has made the decision to leave Second Cup on June 30th. Mr. Ba Linh Le, CPA, CGA will be Second Cup’s new Chief Financial Officer effective that date. Mr. Le joined Second Cup as Finance Director in January and a smooth transition is anticipated.
“We thank Ms. Mallon for her leadership and contributions over the past 2 years,” says Michael Bregman, Chairman of the Board.
