On Feb. 1, Starbucks closed down one of its locations in Burnaby.
The Starbucks on the second floor of the southwest end of Metropolis at Metrotown was closed as part of a plan to close hundreds of locations in Canada in the coming months.
Starbucks says its plan to close up to 300 coffee shops across Canada will be complete by the end of March. The Seattle-based coffeehouse and roastery chain announced the acceleration of its five-year "transformation strategy" last year as it responded to changes in consumer habits during the COVID-19 pandemic.
But as Starbucks is looking to close locations, possibly more in Burnaby, another coffee giant is looking to expand its footprint in Canada, and possibly Burnaby.
Quebec-based food franchising business Foodtastic Inc. announced a deal Monday to buy troubled coffee chain Second Cup Coffee Co. and has big plans for the brand, including opening more than 100 new locations.
Foodtastic CEO Peter Mammas said Monday the company is buying the Canadian coffee retailer and roaster from Aegis Brands Inc. - in part for its national infrastructure.
"Second Cup has operations teams across Canada and we want to take our other brands out of Quebec and Ontario and into other parts of Canada, so we're going to use that platform to do it," Mammas said in an interview.
"It gives us more of a national footprint."
Second Cup currently has two locations in Vancouver and one in Surrey, but none in Burnaby.
Mississauga-based Aegis Brands didn't disclose Second Cup's sale price but said it includes $14 million in cash, plus a post-closing earn-out.
Mammas said Foodtastic is also taking over a "very, very large lease liability."
Still, the franchisor of multiple restaurant concepts, including Big Rig Kitchen & Brewery, Chocolato, La Belle & La Boeuf, Rotisseries Benny and Souvlaki Bar, is planning to grow the Second Cup brand.
Foodtastic will begin selling Second Cup coffee in all of the company's 130 restaurant locations within six months of acquiring the chain, Mammas said.
The company also plans to expand the coffee chain to about 300 locations within 36 months, up from 190 locations currently, he said.
But the store count will likely drop before the expansion begins, Mammas said, as Second Cup first goes through a "stabilization period."
Currently, the coffee shop's locations are concentrated in downtown cores, malls and transit locations, he said.
Those locations are struggling the most, Mammas said, while the chain's suburban counterparts are faring better.
Some unprofitable locations will likely close, though they could reopen as one of Foodtastic's other brands, he said.
Some Second Cup locations just need to be renovated, Mammas said.
"Some locations look great but others look like they're still in the '80s," he said. "They haven't been renovated and they look a little worn out."
- With files from the Canadian Press
