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Second Cup: A Case Study

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In 2014 Second Cup introduced Cafe of the future, this expanded the customer's choice of coffee with the chance to interact with staff while observing how each drink was created. Among the success of this process management concluded it didn’t focus on out-of-store-experience.Such as mobile take out, loyalty programs, and rewards.Improving Second cups Cafe of the future includes an open-concept of the bar, new partnerships, and menus.
With Second Cups Loyalty program customers receive a free drink once 50 dollars is spent in stores additionally, they’re able to pay through the app while managing points. With expanding Second Cup one of the first partnerships of many is with Pinkberry. Pinkberry is a worldwide frozen yogurt company that has …show more content…
Under her management, Second cup introduced multiple improvements such as the luxury “cafe of the future”, slow bar, opened 14 stores and started the Loyalty Program. As a downfall Stock prices plunged 70%, the closure of 53 stores as the result of the lack of financial flexibility due to declining foot traffic. In January 2017 multiple bank contracts and debt obligations matured, ranking up to 6 million dollars, resulting Second cup to force generate funds.
With the newly appointed CEO, Gary Macdonald has an improved vision for second cup. Hoping to expand the brand by “relocating to high profile locations and upgrade second cups concept and menus”. His new management role has already helped Second cup partner with Pinkberry and has plans to expand too fast food restaurants.
To change their debt into equity on July__2017 Second Cup took out a term loan for common shares with SPE finance LLC for 8.0 million. There are multiple benefits with this term loan, such as annual cost saving, cancellation of 50% of previous warrants and save up to $800,000 in annual interest expenses. On August 10th, 2017 the debt exchange transaction closed, resulting in Second Cup being debt free. Having $3million in cash and up to $1million in reduced annual

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