If things go according to plan, we’ll be seeing more Second Cup coffee stores around. I’m pleased about this because it’s a good coffee shop and Canadian, and I don’t think we Canadians need to give all our business to US Behemoth Starbucks, do we? (although for the record, I bought SBUX stock in the late 90s and its stratospheric rise enabled me to buy my condo. No joke).
Here’s the CEO’s 4-point plan to jump-start Second Cup:
1. Revert to a corporate structure
It was doing reasonably well, then in 2004 was structured as an Income Fund. If you don’t know what an Income Fund is, the name says the most important thing: it’s supposed to generate income for the shareholders. This means that the profits did not get reinvested in the company, but were distributed to shareholders.
As of January 2011, that changes. It’s converting back to a Corporation which means the company can do with its profits as it sees fit.
2. Set up more shops
In this case, it’s planning to ad 30% more stores.
3. Focus our attention more on its coffee instead of image
Look for more explicit information about their coffee. Personally, I don’t know how much that would draw me, but the next one will:
4. Go fair trade and eco-friendly
This one would draw me. I always buy Level Ground coffee for use at home because it’s fair trade. It’s one teeny way I hope to help the world be a better place. Similarly, if I knew there were shops that gave me fair-trade lattes, I’d most definitely pay (a bit of) a premium, and go (a bit) out of my way to find it.
I don’t think I’ll be investing in Second Cup just yet, but I’ll be keeping my eye on it.