Iit was scorching It's an August morning and we have to fight the heat. The trip to the coast was perfect. To fuel the three-hour drive, my family and I bought some caffeine: an iced green tea latte for me, a salted caramel latte for my cousin, and two boring but delicious flat whites for his parents, all from Second Cup. The branch, located near my uncle's house, was usually my first stop on the trip. It was also one of my favorite places to study when I was a university student. The upscale interior with beautiful furnishings, warm lighting and patient staff was also ideal for people watching. And while Second Cup is ubiquitous in Canada, it may come as a surprise to many to learn that my favorite branch is located in the historic Korba neighborhood of Cairo. This is one of more than thirty places in Egypt.
After many years of visiting Korba Second Cup on trips to Egypt, I decided to visit the coffee shop in my second home, Vancouver. I thought that a network that has gained such popularity internationally must be very popular in its country of origin. But I was very wrong. At the time, the only location in Vancouver was the BC Children's Hospital (it has since closed). And if a cup of coffee in a lobby reserved for sick children wasn't enough of a deterrent for me, images of the cafe on Google Maps gave it an uninviting vibe: sterile decor, a wall of beige pastries, and somehow unsavory pairs of plastic gloves and rubbing alcohol. Is this all that “Canada’s largest specialty coffee retailer” has to offer in a major city?
As it turned out, this standard was familiar to many of the Second Canada Cup. Looking through photos of places from Surrey to Calgary to Ottawa, I found that most of them were outdated, unattractive, or simply ordinary. None of the branches were similar to the previous one, and none of them seemed to recall the attractive experience I had at the Second Cup in Egypt.
In August of this year the company celebrated its fiftieth anniversary. But it's in a strange place: It doesn't speak the working-class language of Tim Hortons and doesn't exclusively employ well-trained Starbucks baristas—despite similar prices. It also evolved in different ways, but never coalesced into a single brand identity. In 2017, under the leadership of then-CEO Harry McDonald, Second Cup signed a licensing agreement with Pinkberry Canada that allowed it to roll out the frozen yogurt program to Second Cup cafes across the country. The following year, the board partnered with marijuana clinic operator National Access Cannabis to convert select Second Cup locations into cannabis dispensaries and possibly open a cannabis cafe once it became legal. Ultimately, seven stores opened in Ontario, six of which were in former Second Cup locations. More recently, Second Cup appeared in multi-brand stores along with Pita Pit and Chocolato.
Shortly after its acquisition by Foodtastic in 2021, one customer used TikTok to express their confusion over the brand's unstable identity. He's a drinker, but he's puzzled. “What is Second Cup doing? Why can't they pick a lane? Every time I see them, they change, they turn. They can't seem to decide who they are,” he says. Back in the 1980s and 90s, before Second Cup had much competition in the Canadian coffee market, it was considered high-end. People were eager to buy their drinks. “They start with an Italian soda, and then they want something stronger,” says The Walrus digital editor Monica Warzecha, who grew up thinking of Second Cup as “trendy.” However, many Canadian establishments currently do not offer the upscale service typically associated with specialty coffee shops: clean, modern interiors and fresh baked goods. So how has this Canadian business managed to grow and thrive internationally while its domestic brand has become impossible to define?
WITHfirst location of the second cup opened in August 1975 as a Toronto mall kiosk selling only whole coffee beans. It was founded by Tom Culligan and Frank O'Dea, whose business partnership began with a venture selling coin sorters to Catholic churches. Within a decade, Culligan had purchased O'Dea's shares and became the sole owner of the company. He then expanded Second Cup to a chain of nearly 150 stores before selling it to food and beverage entrepreneur Michael Bregman in 1988. Bregman built the chain into a pioneer in the coffee shop industry before selling it, too, in 2002. Since then, Second Cup Café has had a variety of owners, including Cara Operations Limited and Dinecorp Hospitality.
Online, coffee chain home page boldly proclaims that the chain is “proudly Canadian,” but the website does little to show us how that is. Their summer special menu included a Campfire Treats section, celebrating the nation's favorite seasonal activity and inspired by a Nanaimo bar. But they also offered ice-cold matcha with cold strawberry-rose foam and a few tropical spritzers whose Canadianness is hard to justify. The website doesn't really differentiate the company either: the food and drink images are fairly basic and some of the store information is outdated. What stands out the most, however, is their complete lack of international expansion and location.
A quick Google search for “Second World Cup” reveals something completely different websiteunder different brands, covering about 170 chain stores in twenty countries. Unlike the first website, this one looks more expensive. It features aesthetic images of locations and menu items that highlight their quality and freshness. This version of Second Cup promises “a premium, eco-friendly café experience for each of our guests.” My curiosity was piqued and I started digging. Deep. And there, in several articles about the network, as if in some secret information, there was a clue: there are two Second Cups.
In 2003, Second Cup opened its first international stores in Kuwait and the United Arab Emirates, beginning a path of expansion that would eventually make Second Cup a globally recognized brand. The big split occurred in 2008. Following the death of company chairman Gabriel Tsampalieros, the rights to the Second Cup trademark were divided between Canadian and international rights. Jim Ragas, former vice president of international business development and operations, became president in 2011 and has led the global company ever since. Meanwhile, Canadian Second Cup has undergone several management changes – sometimes dramatically – until most recently the sale of Aegis Brands to Foodtastic, a Quebec-based restaurant franchisor operating twenty-seven brands. The concentration of Foodtastic's work in eastern Canada may be one factor explaining Second Cup's western alienation.
Nick Brown, founder Daily Coffee Newsonline news publication from Roast Magazine covering events in the specialty coffee industry, believes that such frequent changes in ownership and corporate leadership often lead to changes in priorities, which can lead to a “mutation over time” of the identity of a large company.
But what some see as an identity crisis is, according to Brown, an effective strategy. “Big coffee brands test concepts with customers all the time,” he says. “This is a pattern we see in successful networks.” Brown acknowledges that loyal customers may feel deceived or confused by these changes. “The reality, however, is that Second Cup, which began as a very loyal one-location kiosk in 1975, has transformed and evolved various corporate and global interests.”
Following the acquisition, Foodtastic promised to add 100 new Second Cup locations within thirty-six months to its then-current 211 locations. But with frequent announcements of openings and closings across the country, the number of active locations is constantly changing and nearly impossible to determine, especially because the list of locations on the company's website is outdated and inaccurate. It's also unclear how much of Foodtastic's growth can be attributed to Second Cup without access to the brand's financials. The company did not respond to interview requests.
Meanwhile, the international side of the Second Cup has not changed leadership since the companies split. For nearly two decades, the company tested new markets for the brand, with mixed results. It had a presence in the US, with offices in Boston and Florida, but all branches eventually closed. In the UK, Second Cup is now looking for a master franchise to re-establish its presence after all eleven properties it operated went out of business. In Pakistan, Second Cup celebrated its tenth anniversary and opened its fiftieth location in July this year. Ragas, CEO of Second Cup International, was present at the celebration.
Despite Second Cup's fluctuating performance in global markets, their commitment to offering high-quality products in upscale cafes has remained consistent over the years. Yahya Ghamdan, CEO of Maximum Stores, the master franchise operating Second Cup branches in Egypt, emphasizes that Second Cup is focused on customer experience. “Our store designs meet the needs of different customers, offering a variety of experiences,” he says. “We have indoor and outdoor seating areas, as well as study and smoking areas, all equipped for maximum comfort.” He is also committed to ensuring their success is achieved through the collaboration and leadership of the Canadian parent company.
But not everything is so rosy at the Second International Cup. On May 22, the company received protection under the Companies' Creditor Relations Act after its majority creditor, Arbat Capital Group Ltd., filed for protection. Arbat's shareholders and directors were increasingly concerned about Second Cup Company Inc.'s ability to repay your loans without restructuring. The CCAA procedure is designed to help companies stabilize their operations and explore debt restructuring options. Walrus' inquiries about the company's future plans in light of this process went unanswered. However, Gamdan claims that the situation does not affect the work of global locations. “The company involved us in the situation from day one and made it clear that they would resolve the situation without affecting the partners,” he says.
Conversely, all is not lost for the Second Canada Cup's signature style. Influenced by the trade war between the United States and Canada, many Canadians boycotting American companies have turned to Second Cup instead of Starbucks for their morning cup of Joe. Some of these customers are rediscovering Second Cup after years of being offline. Second Cup now has a unique opportunity to capitalize on its Canadian origins by reclaiming its identity and emphasizing it in its branding, menu and location strategy. A nostalgic Canadian identity, if you will. I hope they don't start selling hamburgers.
