In Canada, Tim Hortons is king of coffee. The Oakville-based company reportedly sells 8 out of every 10 cups of coffee in Canada, but that doesn’t mean they should sit back and ride the wave of loyalty and success. Competition is fierce and the new blood over at Second Cup is eager to show it.
Second Cup, who’s head office is located in Mississauga, announced their quarterly and year-end 2013 results today. Alix Box, the company’s new CEO, took over the leadership of the coffee chain on February 24th and today declared plans to temper the losses and improve revenues ($27 million in revenue for the year and profits fell by $7 million).
The number of Second Cup locations dropped to 356 from 360 the year before. The company stated that they successfully opened 15 new locations, but closed 19 and also renovated 22.
Box communicated a standard line in the press release, noting that “I am excited for the opportunity to lead Second Cup. Our objectives are ambitious. Working with the Board of Directors, we intend to reinvigorate this iconic Canadian brand to become a best in class specialty coffee retailer. This mission is clear and I will be working closely with our franchise partners to establish the highest levels of excellence and innovation throughout the organization. Notwithstanding the near-term impact on profitability, I am committed to make the best decisions to maximize long-term shareholder value.”
We’re all for Canadian competition, but drink Timmies. It’s better for you.