Second Cup has reported that, in the final quarter of 2015, they were able to achieve their first profitable quarter since 2012.
Residents of St Catharines, who have just experienced the disappearance of the prominent Pen Centre location of Second Cup, may be surprised to hear about how well the larger chain is performing. The Pen Centre location had been a main feature in the centre of the mall, but closed down earlier this year.
On a national scale, the chain is doing very well compared to previous years. CBC reports that, in the final quarter of 2014, Second Cup reported a loss of over $400,000, but in 2015 they were able to perform much better and actually make an income of over $90,000. The fact that the company has managed to increase its income by almost half a million dollars since 2014 and pull itself into a profit for the first time in three years is a huge improvement for the Canadian business.
The company’s revitalization of its brand image and franchise network is being cited as one of the largest reasons for its improved sales.
Second Cup’s success is a good sign for people who are invested in the performance of Canadian businesses, or anyone concerned about the increased Americanization of Canadian culture and business.
The chain is one of Canada’s largest coffee brands, and is an important Canadian figure in a specialty coffee market that is increasingly becoming dominated by American chains such as Starbucks.
The chain, open since 1975, currently has over 325 locations in Canada. The company has also expanded outside of Canada with international locations worldwide, including the United States, Pakistan and Cyprus.
Second Cup’s improving financial situation is also a good sign for anyone interested in the ethical initiatives that the company promotes. All of the brand’s coffees are fairly traded, which means that the products are acquired from ethical sources that have minimal negative impact on other people, and sometimes even a positive impact on those in need.
According to the Second Cup website, “fairly traded coffee beans are beans that are purchased at a premium… [which] ensures that the producers are able to reinvest in their land and people to ensure sustainable development.”
Second Cup’s coffees are also almost all Rainforest Alliance Certified, meaning that they are produced in a way that is sustainable for both people and the environment. Some of their teas are also involved with the Ethical Tea Partnership.
The Rainforest Alliance is an international non-profit organization focused on worker rights and biodiversity. The products that receive their certification demonstrate a commitment to sustainability for the environment, farming economies, farming communities and farmers themselves.
The Ethical Tea partnership is focused on addressing the social and environmental implications of the tea industry and providing ethical solutions to these issues.
Whether customers are invested in Second Cup’s success because of their Canadian roots, their ethical investments, or just the taste of their coffee, their performance in the last quarter of 2015 bodes well for the success of the company. After years of financial struggle, it seems as if things are looking up for Second Cup.