Freshii

The Montreal-based restaurant franchisor behind brands like Second Cup, Pita Pit and Milestones also recently announced plans to acquire Quesada Burritos ...

“I have a 19-year-old son and he came to me and said he was spending all his money at Quesada,” Mammas said. “We want to grow and we have a platform to do that,” he said in an interview. “It’s great food and great people and we can leverage our operations team to support the franchisees,” he said. With no quick-serve Mexican restaurants in the Foodtastic portfolio, Mammas said the company made a bid to buy the brand. “There’s a wealth of opportunities to increase the unit level of profitability,” 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.

The Montreal-based restaurant franchisor behind brands like Second Cup, Pita Pit and Milestones also recently announced plans to acquire Quesada Burritos & ...

has signed a deal to buy healthy fast food restaurant chain Freshii Inc. Stephen Smith, chair of a special committee of independent directors that oversaw the negotiation for Freshii, says the all-cash deal delivers immediate and certain liquidity to Freshii shareholders at a price that represents a significant premium to the market price of shares. Foodtastic Inc.

All-cash consideration of $2.30 per share delivers significant and immediate value to all Freshii shareholders Consideration represents a 148% premium to…

Although Freshii believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct, that the proposed transaction will be completed or that it will be completed on the terms and conditions contemplated in this press release. The anticipated dates indicated may change for a number of reasons, including the necessary court and shareholder approvals on several assumptions which give rise to the possibility that actual results could differ materially from Freshii’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. Freshii expects to call and hold a special meeting of shareholders late in the first quarter of 2023. Freshii has agreed to pay Foodtastic a termination fee of approximately $2.6 million in the event that the arrangement agreement is terminated in certain circumstances. It is currently expected that only approximately 1.5% of the Class A subordinate voting shares will be excluded from voting, and that none of the Class B multiple voting shares would be excluded. The transaction resulted from a process overseen by a special committee of independent directors of Freshii. Completion of the transaction is not subject to a financing condition. I echo Dan’s excitement about continuing to expand and enhance the great brand that he, Matthew, and the rest of the Freshii team have built. Daniel Haroun, Chief Executive Officer of Freshii, continued, “We believe that this transaction recognizes the tremendous value of the Freshii brand. “This all-cash transaction delivers immediate and certain liquidity to Freshii’s shareholders at a price that represents a significant premium to the market price of Freshii’s shares. The consideration represents a 148% premium to the 20-day volume-weighted average price per share for the period ending on December 16, 2022, and a 142% premium to the closing price on December 16, 2022.

Montreal-based restaurant franchisor Foodtastic Inc. just signed a deal to buy restaurant franchise Freshii Inc.

[Toronto Star reported that some of these virtual workers](https://www.thestar.com/business/2022/07/08/percy-the-virtual-cashier-founders-shrug-off-critics-and-plan-to-grow-start-up-into-a-multinational-company.html) processed orders from a Nicaraguan call centre nearly 6,000 km away, where they earned less than Ontario’s minimum wage. [video-calling device — called “Percy”](https://www.blogto.com/eat_drink/2022/04/freshii-virtual-cashier-nicaragua/) — attached to cash registers in several of the company’s locations across Ontario. [took orders despite not being physically present in the store](https://www.blogto.com/eat_drink/2022/11/freshii-virtual-cashier/). In a previous corporate filing, Freshii stated that it adopted this new virtual technology in hopes of “assisting [its] partners in managing costs and protecting profitability.” [Foodtastic Inc.](https://foodtastic.ca/our-brands/) just signed a deal to buy fast-casual restaurant franchise [Freshii Inc.](https://www.blogto.com/restaurants/freshii-liberty-village-toronto/) for a whopping $74.4 million. While Freshii is well-loved around the country for its grain bowls, superfood smoothies and burritos, the brand was embroiled in controversy earlier this year for its outsourcing of jobs.

The healthy fast-casual franchise has agreed to be sold to a growing Canadian restaurant operator for $54 million.

“We have been watching Freshii for some time,” Peter Mammas, CEO of Foodtastic, said in a statement. Freshii generated $135 million in global system sales last year, according to data from Restaurant Business sister company Technomic. Its same-store sales declined 11% in the third quarter, the worst performance of any publicly traded restaurant chain. The Montreal-based Foodtastic agreed to pay CA$2.30 per share for the 343-unit Freshii. Franchisees operate all of the chain’s locations. The deal “delivers immediate and certain liquidity to Freshii’s shareholders at a price that represents a significant premium to the market price of Freshii’s shares,” Stephen Smith, a board member with Freshii who chaired a special committee of directors that negotiated the deal, said in a statement.

Foodtastic, a multi-brand Canadian franchisor, will acquire Freshii, a Canadian fast casual brand with at least 37 U.S. units, for CA $74.4 million ($54.5 ...

Freshii is the second brand acquired by Foodtastic this month. According to the press release, Foodtastic operates about 1,200 Canadian and 150 international units. 2022, and its cash on hand fall from CA $37,091,000 ($27,180,000) to CA $22,419,000 ($16,428,000) during the same period, a 39.5% drop, according to filings with Canadian Securities Administrators. This was driven by an 11% contraction in same store sales, which Freshii attributed to diners returning to dine-in, lagging office traffic during the lunch and breakfast dayparts and high inflation. The Freshii acquisition is slated to close by the end of Q1 2023, “subject to receipt of the required shareholder and court approvals and other customary closing conditions.” [development pipeline of about 125 units](https://freshii.inc/press-releases/press-release-details/2022/Freshii-Inc.-Announces-Third-Quarter-2022-Results/default.aspx), sales from its North American franchise stores, the bulk of its unit count, [fell 7% year-over-year](https://seekingalpha.com/article/4556920-freshii-inc-frhhf-q3-2022-earnings-call-transcript) in Q3 2022.

Le franchiseur montréalais Foodtastic pense que l'enseigne Freshii, ébranlée par la pandémie, pourra croître davantage dans son giron.

L’acquisition survient tandis que la direction de Freshii affirmait qu’elle voyait des signes d’une éventuelle reprise dans les secteurs à proximité des tours de bureaux. «On a une équipe à l’interne qui s’occupe de la publicité. Autrement dit, à mesure que l’entreprise prend de l’expansion et génère plus de bénéfices, elle pourrait emprunter davantage pour financer d’autres acquisitions. «Quand on a acheté Second Cup, les ventes comparables étaient en baisse de 60% par rapport à 2019, raconte-t-il. Le président et chef de la direction de Foodtastic, Peter Mammas, croit que Freshii peut renouer avec la croissance. Foodtastic a annoncé, plus tôt lundi, une entente d’arrangement afin d’acquérir la chaîne de 343 restaurants rapides, qui servent des salades et des bols, pour un montant «approximatif» de 74,4 millions $, soit 2,30$ par action.