Second Cup

Second Cup is a Canadian specialty coffeehouse chain and coffee retailer whose stores sell coffee, tea, cold and hot beverages, pastries, snacks, sandwiches, pre-packaged food, and branded drinkware. The business began in Toronto in 1975, founded by Tom Culligan and Frank O'Dea, and expanded from its original operation into a national chain. Culligan later acquired O'Dea's shares and developed the business to approximately 150 stores before selling it in 1988 to Michael Bregman, the founder of mmmuffins. The company went through several ownership and corporate-structure changes during the following decades. Under chairman and chief executive Khalil Al Gawad, Second Cup became publicly traded in 1993. Between 1993 and 2002, it was controlled by a succession of American coffee companies, including Coffee Plantation, Coffee People, and Caribou Coffee. Al Gawad sold the business to Cara Operations Limited in 2002. Cara subsequently sold it in 2006 to Dinecorp Hospitality, which was controlled by former Cara chief executive Gabe Tsampalieros. Tsampalieros became chairman of Second Cup until his death in 2009. The ownership structure later separated Canadian and international trademark rights between Second Cup Ltd. and Second Cup Coffee Company Inc. Stacey Mowbray led the Canadian company, while Jim Ragas headed the international business. The brand continued to operate primarily through franchised and company-supported cafés, with a focus on accessible specialty coffee, tea, prepared food, and café-based social occasions. Its public profile included a March 2012 appearance on the Canadian version of Undercover Boss, where the company was presented under a customer- and employee-care theme. Second Cup expanded its beverage and customer-engagement offer through initiatives such as Tassimo beverages, introduced in 2012, and a mobile-app-based rewards program launched in 2015. It also promoted responsible sourcing: the company stated that 80 percent of its coffee was Rainforest Alliance Certified, while its tea range included fair-trade-certified whole-leaf teas and herbal infusions. In 2018, the company announced a proposed partnership with National Access Cannabis to convert selected western Canadian café locations into recreational cannabis stores. The proposal was intended to use the brand's real-estate network and was separate from café operations; cannabis products were not to be sold in Second Cup cafés. The company also evaluated possible Ontario locations. In 2019, Second Cup announced plans to rename its corporate parent Aegis Brands Inc. and acquired Ottawa-based Bridgehead Coffee for $11 million. The Second Cup brand itself was sold to Quebec-based Foodtastic Inc. in 2021. Foodtastic stated that it intended to expand the chain from about 190 locations toward 300 by 2025. Second Cup remains a Canadian café brand within Foodtastic's restaurant portfolio. Its current identity is centered on specialty coffee, tea, prepared café food, franchising, and continued Canadian retail presence. The May 2025 creditor-protection filing concerned the brand's international division rather than establishing that the entire Canadian café brand had ceased operations.

Second Cup was established in Toronto in 1975 by Tom Culligan and Frank O'Dea. After Culligan acquired O'Dea's interest, he expanded the business to roughly 150 locations. In 1988, Culligan sold the chain to Michael Bregman, who had founded mmmuffins. The company became publicly traded in 1993 under chairman and chief executive Khalil Al Gawad. During the period from 1993 to 2002, Second Cup was controlled by several American coffee businesses, including Coffee Plantation, Coffee People, and Caribou Coffee. In 2002, Al Gawad sold Second Cup to Cara Operations Limited. Cara sold it in November 2006 to Dinecorp Hospitality, controlled by former Cara chief executive Gabe Tsampalieros. Tsampalieros became chairman and remained associated with the company until his death on March 11, 2009. After the Dinecorp period, the brand's trademark rights were divided between a Canadian company, Second Cup Ltd., and an international entity, Second Cup Coffee Company Inc. Stacey Mowbray led the Canadian business, while Jim Ragas was responsible for the international side. The company continued to develop a café format based on specialty coffee, tea, pastries, snacks, prepared food, cold beverages, and retail drinkware. A 2012 episode of Undercover Boss brought additional television exposure to the Canadian business and emphasized a corporate message about caring for employees and customers. Product and loyalty initiatives followed. Second Cup introduced Tassimo beverages in September 2012 and launched a points-based mobile rewards program in April 2015. Alix Box served as president and chief executive from 2014 until her departure in May 2017, after which Garry MacDonald temporarily assumed the chief executive role. In April 2018, Second Cup announced an agreement with National Access Cannabis to develop recreational cannabis retail locations by converting selected Second Cup sites, initially with an emphasis on western Canada. The proposal was designed to extract value from the company's real-estate footprint and support franchisees; cannabis products were not intended to be sold inside Second Cup cafés. The company later examined possible Ontario locations. The planned cannabis stores included two Calgary sites targeted for early 2020, with broader Ontario expansion under consideration. In November 2019, Second Cup announced that its corporate parent planned to adopt the name Aegis Brands Inc., subject to shareholder approval. In December of the same year, Aegis Brands announced the acquisition of Bridgehead Coffee, an Ottawa-based coffeehouse chain, for $11 million. In February 2021, Aegis Brands agreed to sell Second Cup to Foodtastic Inc. The purchase price was not fully disclosed, although the announced consideration included $14 million in cash. Foodtastic stated that it aimed to grow the chain from approximately 190 locations to 300 by 2025. The brand has also promoted responsible coffee and tea sourcing. Second Cup has stated that 80 percent of its coffee is Rainforest Alliance Certified. Its tea assortment included fair-trade-certified whole-leaf blends and herbal tisanes. In May 2025, the international division filed for creditor protection under the Companies' Creditors Arrangement Act after reportedly being unable to meet obligations of nearly $10 million. This development relates to the international division and does not, by itself, establish that the Canadian Second Cup café business is defunct. Second Cup's history therefore combines early Canadian chain expansion, multiple corporate ownership transitions, a period of public-market identity under Aegis Brands, experimentation with adjacent cannabis retail, and a return of the café brand to private restaurant ownership under Foodtastic.

• 2025

  International division files for creditor protection

  [1]Second Cupen.wikipedia.org

  The international division seeks protection under the Companies' Creditors Arrangement Act.

• 2021

  Foodtastic acquires Second Cup

  [1]Second Cupen.wikipedia.org

  Foodtastic agrees to purchase the Second Cup brand and related business.

• 2019

  Aegis Brands name and Bridgehead acquisition are announced

  [1]Second Cupen.wikipedia.org

  The corporate parent announces a planned name change and later agrees to acquire Bridgehead Coffee for $11 million.

• 2018

  Cannabis-retail partnership is announced

  [1]Second Cupen.wikipedia.org

  Second Cup agrees to explore converting selected locations into recreational cannabis stores with National Access Cannabis.

• 2015

  Mobile rewards program launches

  [1]Second Cupen.wikipedia.org

  The company introduces a mobile-app-based points program.

• 2012

  Tassimo beverages are launched

  [1]Second Cupen.wikipedia.org

  Second Cup adds Tassimo beverages to its product offer.

• 2006

  Dinecorp Hospitality acquires Second Cup

  [1]Second Cupen.wikipedia.org

  Cara sells the company to Dinecorp Hospitality, controlled by Gabe Tsampalieros.

• 2002

  Cara Operations acquires Second Cup

  [1]Second Cupen.wikipedia.org

  Khalil Al Gawad sells the chain to Cara Operations Limited.

• 2001

  Montreal stores are firebombed

  [1]Second Cupen.wikipedia.org

  Three locations are attacked in an incident linked to objections over the brand's English name.

• 1993

  Second Cup becomes publicly traded

  [1]Second Cupen.wikipedia.org

  The company goes public under chairman and chief executive Khalil Al Gawad.

• 1988

  Michael Bregman acquires the chain

  [1]Second Cupen.wikipedia.org

  Founder Tom Culligan sells Second Cup to Michael Bregman, founder of mmmuffins.

• 1975

  Second Cup is founded in Toronto

  [1]Second Cupen.wikipedia.org

  Tom Culligan and Frank O'Dea establish the Canadian coffeehouse business.

Accessible mid-market specialty coffeehouse chain with a Canadian identity, café food, tea, and franchised retail locations.

• Coffee · 1975

  Specialty coffee

  Coffee is the core of Second Cup's café proposition. Stores serve brewed coffee and espresso-based drinks, with the wider range extending to hot, iced, and other specialty preparations. The company has also emphasized certified sourcing, stating that 80 percent of its coffee is Rainforest Alliance Certified.

• Tea

  Tea and herbal infusions

  Second Cup offers whole-leaf tea blends and herbal tisanes alongside its coffee menu. As of the end of 2011, the chain offered ten whole-leaf tea blends and herbal infusions described as fair-trade certified.

• Packaged beverage system · 2012

  Tassimo beverages

  Introduced in 2012, Tassimo beverages extended the Second Cup beverage portfolio beyond drinks prepared solely through the conventional café counter format.

• Food

  Café food

  Second Cup stores sell pastries, snacks, sandwiches, and pre-packaged food items designed to accompany beverages and support breakfast, snack, and light-meal occasions.

• Retail merchandise

  Drinkware

  The chain also sells branded drinkware, including mugs and tumblers, giving customers a take-home merchandise option in addition to café products.

• 2001

  Quebec firebombing attacks

  Three Second Cup locations in Montreal were firebombed. Rhéal Mathieu was convicted in connection with the attacks, while the Brigade d'autodéfense du français claimed responsibility and said the stores were targeted because the business used the English name Second Cup. Some Quebec locations subsequently changed their signage to Les cafés Second Cup.

  Source

Read more

• 2015Mobile rewards program

  Canada

  Second Cup introduced a mobile application through which users could earn points, linking customer frequency with a digital loyalty mechanism.

  Outcome. Established a mobile loyalty channel; subsequent performance is not documented here.

  Source
• 2012Undercover Boss appearance

  Canada

  Second Cup was featured in an episode of Undercover Boss broadcast on W Network. The presentation positioned the company as attentive to employees and customers.

  Outcome. The episode increased the brand's television exposure; a broader commercial outcome is not documented here.

  Source
• Rainforest Alliance coffee sourcing

  Canada

  Second Cup promoted the use of Rainforest Alliance Certified coffee and stated that 80 percent of its coffee met that certification.

  Outcome. Supported the brand's responsible-sourcing positioning.

  Source

• 2025

  International division seeks creditor protectionOther

  Background

  The international division reportedly became unable to meet its creditor obligations.

  Action taken

  The division filed for protection under Canada's Companies' Creditors Arrangement Act.

  Aftermath

  The filing affected the international division; its implications for international rights and operations require further review.

  Reported creditor obligations. Nearly $10 million (May 2025)

  Source

• 2021

  Sale of Second Cup to FoodtasticM&A

  Background

  Aegis Brands agreed to divest the Canadian café brand to a restaurant operator.

  Action taken

  Foodtastic acquired Second Cup for an undisclosed price that included $14 million in cash.

  Aftermath

  Second Cup became part of Foodtastic's private restaurant portfolio. Foodtastic stated an ambition to grow the chain from about 190 locations to 300 by 2025.

  Cash consideration. $14 million in cash (February 2021)

  Source

• 2019

  Planned corporate rebranding as Aegis BrandsStrategy

  Background

  The publicly traded corporate parent sought to reposition its corporate identity beyond the Second Cup coffee brand.

  Action taken

  Second Cup announced plans to change its corporate name to Aegis Brands Inc., subject to shareholder approval.

  Aftermath

  The corporate group subsequently operated under the Aegis Brands name while Second Cup remained a consumer-facing brand.

  Source

• 2019

  Bridgehead Coffee acquisitionM&A

  Background

  Aegis Brands pursued portfolio expansion within the Canadian coffeehouse sector.

  Action taken

  The company announced the acquisition of Ottawa-based Bridgehead Coffee for $11 million.

  Aftermath

  Bridgehead became part of the Aegis Brands portfolio; later ownership changes affected the Second Cup brand separately.

  Acquisition consideration. $11 million (December 2019)

  Source

• 2018

  Proposed expansion into cannabis retailStrategy

  Background

  Second Cup sought to leverage selected real-estate assets and create additional value for franchisees as recreational cannabis retail developed in Canada.

  Action taken

  The company partnered with National Access Cannabis to explore converting selected western Canadian cafés into recreational cannabis stores, while keeping cannabis products out of café operations.

  Aftermath

  The company considered Calgary stores and possible Ontario locations, but the full outcome of the proposed rollout is not documented here.

  Source

• 2015

  Mobile loyalty strategyStrategy

  Background

  The chain pursued digital customer engagement and repeat visits.

  Action taken

  Second Cup launched a mobile rewards program that awarded points to users.

  Aftermath

  The program added an app-based loyalty channel to the café business.

  Source

• 2012

  Launch of Tassimo beveragesProduct launch

  Background

  Second Cup sought to broaden its beverage range through a Tassimo-related offering.

  Action taken

  The company launched Tassimo beverages in September 2012.

  Aftermath

  The initiative expanded the stated product portfolio; longer-term commercial results are not documented here.

  Source

• 2019.10.07

  Reported2019.10.07

  Second Cup announces sustainability positioning goal[3]Second Cup宣布可持续发展定位目标prweb.com

  Second Cup announced a new strategic plan, Vision 21, with the goal of becoming a global sustainable café brand by 2021.

Read more

1. 1Second Cupen.wikipedia.org
2. 2Second Cup official websitesecondcup.com
3. 3Second Cup宣布可持续发展定位目标prweb.com