MISSISSAUGA, Ont.— Second Cup has announced the first steps in the transformation of its economic model. The Canadian specialty coffee retailer aims to improve its performance, franchisee satisfaction and profitability.
The Second Cup executive team has taken steps to reduce the chain’s infrastructure by re-engineering its office. It also plans to increase franchisee profitability by reducing expenses of approximately $2.3 million annually through a combination of royalty reductions, co-op marketing fee reductions and procurement savings.
“If we look back at the history of Second Cup, the company had more stores and operated more effectively with a smaller Coffee Central team and lower overhead,” said Alix Box, president and CEO. “With this review we are correcting the imbalance and getting back to our entrepreneurial roots with a more efficient team who will make faster decisions and provide more responsive and better service to our franchisees.
The coffee chain has more than 350 stores across Canada.
