COVID-19 Update from Second Cup Coffee Co.
MISSISSAUGA, ON, March 17, 2020 /CNW/ - The Second Cup Ltd. (the “Company” or “Second Cup”) (TSX: SCU) today announced additional measures to support the day-to-day operations of its Second Cup franchisees across Canada during the COVID-19 outbreak.
“Our most important priority remains protecting the health and wellness of our employees, our franchisee partners and our guests,” explained the Company’s President and CEO Steven Pelton. “That said, we are well aware of the significant financial impact the COVID-19 outbreak is having on our franchisees across the country, and are taking additional action to support their day-to-day operations - and their livelihoods. Together with our franchisees, we are also calling on landlords, financial institutions, governments and our network of suppliers to do their part to show flexibility during this incredibly challenging time.”
Specifically, Second Cup will:
- Defer the collection from franchisees the accrued royalties and cooperative advertising fund contributions – for the period of February 23 to March 21, 2020 – otherwise due on March 31, 2020 while the Company continues to understand and assess the impact of the COVID19 pandemic.
- Support conversations on behalf of its franchisees with landlords and financial institutions to request deferrals of rent or loan repayments, as required.
- Working with the full network of Second Cup suppliers to arrange deferred payment terms to provide franchisees with additional flexibility to manage cash and payroll.
Additionally, the Company today confirmed that its Second Cup cafés across Canada will offer take-out, delivery and drive-thru service only, effective immediately.
About Second Cup Coffee Co.™
Founded in 1975, The Second Cup Ltd. is a Canadian specialty coffee retailer operating franchised and company owned cafes across Canada. The company's vision is to be the Canadian specialty coffee brand of choice across Canada, committed to superior quality, innovation and profitable growth. For more information, please visit www.secondcup.com or find the company on Facebook and Twitter.
Forward Looking Statements
This press release may contain forward-looking information that represents internal expectations, estimates or beliefs concerning, among other things, future activities or future operating results and various components thereof. The use of any of the words “anticipate”, “continue”, ”expect”, “may”, “will”, “project”, “should”, “believe”, and similar expressions suggesting future outcomes or events are intended to identify forward-looking information. Certain information set forth in this news release including the expectations of management with respect to the potential impact of the deferral of collecting accrued royalties and cooperative advertising fund contributions on the Company’s is forward-looking information within the meaning of applicable securities laws.
The forward looking statements contained in this press release are not guarantees of future performance and are based on management’s estimates and assumptions that are subject to inherent risks and uncertainties, some of which are beyond the Company’s control, which could cause the Company’s actual performance and financial results in future periods to differ materially from the forward-looking information contained in this press release. These risks include that the outbreak of the COVID-19 coronavirus or any other similar illness could decrease the willingness of guests to patronize the Company’s cafes, cause shortages of employees to staff the Company’s cafes, interrupt supplies from third parties upon which the Company relies, cause us to temporarily close one or more of our cafes, result in governmental regulation adversely impacting the Company’s business and otherwise have a material adverse effect on the Company’s business, financial condition and results of operations. Such adverse effect could be rapid and unexpected.
Although the forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release concerning the timing of the transaction. A comprehensive discussion of other risks that impact the Company can also be found under the heading “Risk Factors” in the Company’s annual information form available at www.sedar.com.
All forward-looking information in this press release is qualified by these cautionary statements. Forward-looking information in this press release is presented only as of the date made. Except as required by law, The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Ba Linh Le
Chief Financial Officer
SOURCE The Second Cup Ltd.