Happy Belly Food Group, a Canadian quick-service restaurant (QSR) franchise company, has signed an area development agreement with plans to establish 25 new franchised Smile Tiger Coffee Roasters outlets in Canada’s British Columbia (BC).
Happy Belly acquired the speciality coffee roaster in January 2025 and plans to leverage its existing QSR platform to enhance Smile Tiger's presence across Canada.
Smile Tiger was established in 2015 and currently runs a roastery and a single retail outlet in Kitchener, Ontario, reported World Coffee Portal.
Following the acquisition, Happy Belly outlined a strategy to scale the business and distribute its coffee across its QSR network, aiming to double earnings before interest, taxes, depreciation, and amortisation (EBITDA) within two years.
Happy Belly chief executive officer Sean Black said: “As we continue to focus on asset-light growth, it made so much sense to partner with Scott Grandin who is easily one of the top Area Developers in Canada’s QSR industry.
“We are committed to creating shareholder value across our portfolio with our disciplined approach to organic and inorganic growth as we are just getting started in the quick-service beverage industry. Acquiring cash-flow-positive brands that are debt-free and demonstrate positive same-store sales like Smile Tiger aligns with our low-risk strategy for delivering consistent returns.”
The company, with 446 contractually committed retail franchise locations across its emerging brands, is actively seeking to expand this pipeline in 2025 and 2026.
Black stated that a "disciplined approach" to growth is central to the company's strategy, focusing on selecting suitable franchise partners and prime real estate to meet development goals.
The company claims to acquire high-potential assets at reasonable prices and rapidly enhance their EBITDA.
This track record includes successful expansions of brands such as Heal Wellness, Via Cibo, Rosie's Burgers, and Yolks Breakfast.
In September 2024, Happy Belly Food Group completed its acquisition of the Canadian QSR brand IQ Foods, along with its four prime locations in downtown Toronto.
