The Vancouver-based franchise group will serve Smile Tiger coffee across its existing café and restaurant locations and retain the roaster’s Kitchener coffee shop as a corporate-owned retail site
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Smile Tiger’s Kitchener site in Ontario | Photo credit: Smile Tiger Coffee Roasters
Canadian QSR franchise group Happy Belly Food Group has signed an agreement to acquire Ontario-based Smile Tiger Coffee Roasters in a deal worth $173,000.
In a press release, Happy Belly said the move represents its first coffee industry acquisition as it pursues a strategy of ‘purchasing cash-flow positive’ and ‘debt-free’ brands. The acquisition is expected to close in February 2025.
Specialty coffee roaster Smile Tiger was founded by Tony Rubino and Steve Sittler in 2015 and operates a roastery and single retail location in Kitchener, Ontario. Happy Belly said the coffee shop will operate as a corporate-owned retail location post-acquisition, with the group planning to serve Smile Tiger coffee across its existing QSR retail locations.
“With our diverse portfolio of breakfast, lunch, and dinner brands, Happy Belly consumes a significant amount of coffee, making this expansion a natural fit for cross selling,” said Sean Black, CEO, Happy Belly.
Founded in 2017, Vancouver-based Happy Belly’s brand portfolio includes brunch-focused café Yolks, 15-site acai bowl and smoothie operator Heal, plant-based café Lettuce Love, Greek restaurant chain Pi Rho Grill and fast-food chain Rosie’s Burgers.
Black said Happy Belly has ‘significant bench strength’ in the North American coffee industry, which will enable the smooth integration and ‘immediate acceleration’ of Smile Tiger.
Vice President of Restaurant Operations John Delutis has over 10 years’ senior management experience at Canadian coffee chain Second Cup while Chief Financial Officer Gary Fung held several senior finance roles at Ontario-based Tim Hortons before joining Happy Belly in May 2024.
Additionally, Brand President Randall Papineau is a former Vice President of Retail Operations at Canadian specialty coffee roaster and café group Balzac’s Coffee.