Second Cup sees system sales drop 1.6 per cent in quarter

Canadian coffee company Second Cup saw its system sales drop 1.6 per cent in the fourth quarter of 2012, according to financial results released on 1 March.  Although sales dropped for the quarter, overall the company said that it saw a slight increase of  0.4 per cent for the full year.

“The quarterly results reflect the continuing intense competitive activity in the coffee category, as well as the continued investment in new initiatives, which include a loyalty program, coffee revitalisation and a new café design,” said Stacey Mowbray, President & CEO of Second Cup said in a statement. “These initiatives will go into test in 2013 and will roll out in the latter part of the year. With the investment in a point of sale system in 2011, we are able to better assess our business and are using the system as a platform for building café business plans, national plans, as well as, supporting our test initiatives.” In the quarter, Second Cup reported it earned revenue from a Kraft Tassimo partnership, based on a licencing agreement. The company said it was encouraged with the results so far, and is looking to expand the offerings in 2013. In 2012 the company said it continued to improve the café network, with the opening of 18 new cafés and the closure of 17, most of which were underperforming locations. Second Cup is the second largest specialty coffee retailer in Canada and largest franchisor.   

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