MTY Food Group Profile
MTY Food Group Inc. franchises and operates quick service, fast casual, and casual dining restaurants in Canada, the United States, and internationally.
The company sells retail products under a multitude of banners. The company also operates two distribution centers and two food processing plants, which are all located in the province of Quebec. The company has corporate outlets in Canada and in the United States.
Target Market
The company’s network operates 4,059 locations in the United States and 2,818 in Canada. 496 locations are operating outside North America in 35 countries worldwide.
Strategy
The key elements of the company’s strategy is improve same store sales growth includes advertising, including increased online platform marketing, introduction of new products, innovation, excellence in operations and continued training, all with a focus of increasing customer count and average check; continue to innovate by introducing new menu items or new concepts and upgrading the image of its existing concepts; continue to improve customer service by gathering and implementing feedback on guest experience; intends to continue to open new locations of existing concepts in shopping malls, at street front locations and in non-traditional settings; intends to continue to develop at the international level through area master agreements; intends to continue to make acquisitions in the food service industry that complements and add synergies to its already existing brands; intends to continue creating and developing strategic partnerships with key media and digital platform partners and building on existing partnerships with food and delivery aggregators, to grow delivery sales; and intends to continue to diversify its retail division with the launch of new retail product lines across its grocery offerings.
Seasonality of System Sales
The company expects that seasonality would continue to be a factor in the quarterly variation of its results. The company is trying to offset this risk, it still expects seasonality and weather conditions to be a factor in the quarterly variation of its results. Sales have been historically above average during May to August due to its frozen treat category and its increasing percentage in street front locations. Sales for shopping mall locations are also higher than average in December during the holiday shopping period. The graphic below shows the seasonality of sales per type of outlet during the last twelve quarters.
Intellectual Properties
The intellectual properties are sublicensed by the company to franchisees. The intellectual properties owned and used by the company include trademarks that are registered or pending registration under the Trade-marks Act in Canada, under the Trademark Act of 1946 in the United States or other international trademark agencies, unregistered trademarks and other trademarks relating to the concepts Au Vieux Duluth Express, TCBY and Rocky Mountain Chocolate Factory are licensed by the company. The rights for the company to use these licensed trademarks and related intellectual properties, to operate and franchise the concepts Au Vieux Duluth Express, TCBY, Rocky Mountain Chocolate Factory, Van Houtte and Timothy’s World Coffee are governed pursuant to the following Master Franchise or Development agreements.
History
The company was founded in 1979. It was incorporated in 1986. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in 2003.
