The coffee war has wounded Mississauga-based Second Cup. The wannabe Tim Hortons announced its Q1 2014 results today and sales decreased by a staggering 6.9% to almost $44 million. The company noted that “as with other retailers, Second Cup’s customer traffic was negatively impacted by the poor weather.” In addition, the number of cafés they have throughout Canada has also been reduced by 4 to 357.
Alix Box, President and CEO of The Second Cup, said, “a comprehensive strategic review is underway in all aspects of the company. Our ultimate goal is to create material gains and sustainable long-term value for our cafés, our franchisees and our shareholders. Our priorities include improving the company infrastructure, best in class talent, improving store and franchisee profitability, developing a store of the future that is world class in all respects and building trust and partnerships with our franchisees. While our objectives are aggressive and will take time, we are confident our goals are achievable.”
Apparently this “store of the future” will “be a very different Second Cup from what we see today” and “should have a re-invigorated brand identity with much higher standards of excellence.” That sounds like a good move. The plan is to renovate one of its corporate locations in the fall, then see how it goes.
Second Cup also rolled out a new loyalty program and also launched Second Cup coffee (whole bean and roast & ground) in grocery stores – both initiatives that Tim Hortons will be digging into soon.