Foodtastic Inc. signed a deal to acquire Freshii Chain as the restaurant franchisor seeks to extend its portfolio and boost sales.
The company based in Montreal behind brands like Second Cup, Pita Pit and Milestones reported it has signed a deal to buy Freshii Inc. FRII-T unchno change for $74.4-million. Peter Mammas, CEO of Foodtastic stated that Freshii will help the company expand.
“We want to grow and we have a platform to do that,” he said in an interview. “The way we’re structured, we can add more brands, and we looked at all the different segments we’re not really in yet and the healthy salad section was one of them.”
The acquisition will help put the company on track to reach its goal of a billion dollars in system-wide sales in Canada by next spring, up from about $100 million pre-pandemic, Mammas said.
The company acquired Quesada Burritos & Tacos earlier, after acquiring a majority interest in Shoeless Joe’s Sports Grill.
Other acquisitions that Foodtastic also made in 2021 are Pita Pit and Milestones, and in 2020 acquired La Chambre Micro Brasserie and Sports Bar, L’Gros Luxe and Les Rotisseries Fusee.
“We can leverage our size, our marketing department and also our culinary chefs to bring some new and trendy ideas to Freshii,” Mammas said. He added that Freshii’s acquisition will also benefit the company’s existing brands, he said.
The company could open new Freshii locations in underperforming Foodtastic locations, for example, or add a brand such as Second Cup to a Freshii location, Mammas said.
“There’s a wealth of opportunities to increase the unit level of profitability,” he said.
Foodtastic announced its plans to buy Quesada Burritos & Tacos, an acquisition that came about in an unconventional way.
“I have a 19-year-old son and he came to me and said he was spending all his money at Quesada,” Mammas said. “So I decided to try it and I sent some of my guys to try it and we all loved it.”
With no quick-serve Mexican restaurants in the Foodtastic portfolio, Mammas said the company made a bid to buy the brand.
“It’s great food and great people and we can leverage our operations team to support the franchisees,” he said.
Daniel Haroun, Freshii CEO, stated that the transaction “recognizes the tremendous value of the Freshii brand.”
“We believe that Freshii’s brand, franchise network and talent will benefit from Foodtastic’s greater scale,” he said.
Freshii operates 343 locations in North America and internationally, the company said.
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