CARA SEEKING MAJORITY STAKE IN SECOND CUP
By Adnews Staff
Cara Operations is adding coffee and croissants to hamburgers and chicken. The company has made a deal to buy a 37% stake in Toronto-based specialty coffee retailer Second Cup for $58 million. The agreement is subject to the approval of shareholders and the Toronto Stock Exchange. Cara owns the Swiss Chalet and Harvey's fast food chains, as well as a food service company called Beaver Foods. The purchase will generate more revenue for Cara and provide Second Cup with the spending money it needs to grow through acquisitions. If the deal is approved Toronto-based Cara will open at least 150 Second Cup kiosks over the next five years in locations where Cara already has outlets, such as universities, airports and hospitals. Second Cup coffee will be also be sold in the take-out section of Swiss Chalet restaurants, and may be available at Harvey's. Plans call for a third of the new coffee outlets to be open by June. The investment also buys Cara two seats on Second Cup's board. Currently Second Cup CEO Michael Bregman and his father, Louis, control about 41% of Second Cup. Their share will drop to 24% if the purchase is approved. Ambrose Carr Linton Kelly in Toronto handles Cara's advertising while while Second Cup has a stable of several agencies it uses on a project basis.