MTY Food Group is a Canadian franchisor and operator of numerous quick service restaurants operating under 70 brand names, some of them through wholly owned subsidiaries. The number of enterprises carrying MTY brands reached 5,500 in 2017. Stanley Ma is the group founder and President CEO. MTY Food Group's ever-expanding brands include Thaï Express, Country Style, Groupe Valentine, Vanelli's, Extreme Pita, Cultures, La Cremiere, Sushi Shop, Veggirama, Caferama, O'burger, Tiki Ming, Vie & Nam, Au Vieux Duluth Express, FranxSupreme, ChicknChick, Croissant Plus, Koya Japan, Kim Chi, Panini, Tandori, Tutti Frutti, Villa Madina Mediterranean Cuisine, Sukiyaki, Taco Time, Yogen Früz and the Canadian branch of TCBY.
The number of restaurant locations using those brand names more than doubled between 2007 and 2010. Since opening the first Tiki Ming restaurant in 1984, MTY launched ten brands and acquired more than twenty others. Four of the restaurant chains--Vanelli's, Caferama, Sukiyaki, and La Cremiere--also operate in the Middle East. There used to be a computer and technology division named Gold Tech Computer Systems Ltd., but it was spun off in 2003, renaming itself MTY Food Group Inc.
Most of its restaurants are located in shopping mall and cinema food courts while others are in convenience stores. The company owes much of its growth to corporate takeovers (in 2013 80% of the company's revenue growth was attributable to acquisitions). It operates in Canada, United Arab Emirates, Jordan and Morocco and in 2009 revenue from franchise fees increased 75%. It joined the Toronto Stock Exchange as a debt-free company in June 2010. Prior to this it traded on the TSX Venture Exchange for 15 years under four different names.
Video MTY Food Group
History
In 1979, 29-year-old Stanley Ma opened a restaurant called Le Paradis du Pacifique on St. Martin Blvd in Laval, 11 years after he arrived in Canada from Hong Kong. In 1984 he opened the first of 56 Tiki Ming restaurants in Canada in Montreal's Rockland Mall. In 1986 the predecessor company was incorporated as Golden Sky Resources Inc. and publicly traded on the Vancouver Stock Exchange (now the TSX Venture Exchange) in February 1989. The name of the company was later changed to Golden Sky Ventures International Inc., then to iNsu Innovations Group Inc., and then to its current name MTY Food Group Inc. It moved from the TSX Venture Exchange to the TSX exchange under the symbol MTY in May 2010.
On November 30, 2010 the company created two new subsidiaries when it combined five former ones. Country Style Food Services Holdings Inc., Buns Master Bakery Systems Inc. and Melody Farms Specialty Foods & Equipment Limited were regrouped into one subsidiary, the other came from Mrs. Vanelli's Restaurants Limited and MTY Tiki Ming Enterprises Inc. The move improved short term cash flow by enabling it to take advantage of non-capital tax losses quicker.
On May 21, 2010, president, CEO, and chairman of MTY Food Group Stanley Ma opened the Toronto Stock Exchange.
Maps MTY Food Group
Tiki-Ming
Tiki-Ming was the first restaurant of the franchised brands of MTY. The company was launched in 1984 two years before MTY's predecessor, Golden Sky Resources was formed
Further Launchings and brands
In addition to the main Tiki-Ming brand, the pioneering brand of the group carrying typical Chinese cuisine and fast food, MTY Food Group has launched further fast food ethnic-based brand food chains including North American, European, Italian, Chinese, Japanese, Korean, Middle Eastern and South Asian menus.
- O'Burger - Canadian and American burgers and sandwiches
- Vie & Nam - Vietnamese cuisine
- Franx Supreme - French Canadian specialties including Quebec's famous "Poutine". Chain also offers chicken nuggets, salads, made to order sandwiches, hot dogs and burgers
- Chick 'n Chick - Canadian and American chicken products, French fries and fast food
- KimChi - Korean cuisine
- Panini Pizza - Italian and European sandwiches, pizza
- Tandori - Indian / South Asian cuisine
- Villa Madina - Arab / Middle Eastern / Mediterranean cuisine
- Sukiyaki - Japanese cuisine
Acquired brands (in alphabetical order)
- Au Vieux Duluth Express
- Big Smoke Burger
- Caférama - founded in 1979, the rights to the name in Saudi Arabia were purchased in 2003.
- Croissant Plus - acquired the franchise rights used by 20 locations in 2002
- Cultures - founded in 1977 and acquired by MTY Food Group on May 2, 2003 the restaurant chain has almost doubled in size to 55.
- Dagwoods Sandwichs et Salades - A subsidiary of MTY Food Group Inc. acquired Dagwoods for $3 million CAN.
- Jugo Juice - [branded in Quebec as Jus Jugo Juice] Calgary based franchise operating in the smoothie industry that oversaw 133 locations at the time it was acquired. Purchased in the summer of 2011 for $15.5 million. System-wide sales were $36.4 million in 2010.
- Koryo Korean BBQ - Franchise rights to the 20 unit chain of Korean quick service restaurants were purchased for $1.8 million cash by subsidiary MTY Tiki Ming Enterprises Inc (announced August 15, completed November 11, 2011). At the time, Koryo had annual sales of $8 million.
- Koya Japan Inc. - purchased in 2006 from the Sabbagh Family Trust of Winnipeg for over $3 million.
- La Diperie - acquired in 2016.
- Sushi Shop - acquired the 47 stores in 2007 for $7.6 million. The previous owner of the establishment was made vice president after the deal.
- Taco Time - acquired in 2008 from Calgarians Ken and Aarol Pattendent for $7.9 million.
- The Country's Best Yogurt Canada -- (TCBY Canada) - franchise rights purchased in 2005 for $1.3 million. At the time there were 91 locations.
- Tutti Frutti - acquired in September 2008
- Veggirama - acquired in 1999 when the franchise had 18 stores
Acquisitions
La Crémière
Under the name iNsu Innovations, it acquired the franchise rights to the brand La Crémière in November 2001, which oversaw 74 locations (all were in Quebec at the time). The naming rights which also included Beaver Tails, brought the company's system-wide sales up to $50 million.
Mrs. Vanelli's
MTY acquired the franchise rights used by 105 Mrs. Vanelli's locations in 2004 (when it had annual sales of $34 million) from Donato Food Corp. It operates under subsidiary Tiki Ming Enterprises.
Thai Express
Thai Express was acquired in 2004 from Tara Fung Holding Inc. of Montreal through then subsidiary Matoyee Enterprises Inc.
Yogen Früz
MTY owns exclusive Canadian franchise rights to Yogen Früz for 20 years that began in 2006 due to a $13 million agreement made with Coolbrands International.
Country Style
Country Style was acquired when it had 488 locations, in April 2009 for $7.7 million in cash and $6.9 million in debt.
Groupe Valentine Inc.
In September 2010 MTY Food Group bought Groupe Valentine Inc.'s Valentine restaurant brand for $9.3 million with Groupe Valentine becoming a subsidiary of MTY Food Group Valentine is a Canadian chain of over 100 privately owned restaurant franchises operating in the province of Quebec, Canada. The first restaurant opened in 1979 in Saint-Hyacinthe, Quebec. During the 1990s, the chain underwent a major renewal plan in which the restaurants' design changed along with the company's colours. The company's fare is typical Canadian fast food, such as burgers, fries, sandwiches and poutine.
Mr. Sub
Among the largest acquisitions made by MTY is the 2011 purchase of the Mr. Sub franchise; at the time it was a chain of 335 sandwich shops.
Mr Souvlaki Ltd
The 14 stores were acquired on November 26, 2012. 13 of the locations were in Ontario, the other was in British Columbia. At the time of the takeover system-wide sales were $4.5 million.
Extreme Brandz
On May 28, 2013, MTY Food Group Inc., said that its subsidiary MTY Tiki Ming Enterprises Inc. has struck an agreement to buy the assets of Mississauga Ontario-based Extreme Brandz, owner of Extreme Pita, PurBlendz and Mucho Burrito, for $45-million (U.S.) from the three co-founders, Alex Rechichi, Mark Rechichi and Sean Black. Extreme Brandz's 40 U.S. stores will be MTY's first stores in the United States. Of the 364 stores acquired 5 are corporately owned.
SushiGo
The agreement to acquire SushiGo, a small chain of five restaurants, was completed on May 31, 2013.
Café Dépôt, Sushi Man, Muffin Plus, and Fabrika
MTY Food Group announced on July 8, 2014 that it has completed the acquisition of the assets of Café Dépôt, Sushi Man, Muffin Plus, and Fabrika. The total consideration for the transaction was $13.9 million, paid from MTY's cash on hand and existing credit facilities. At closing, the chains were operating 101 stores, including 13 corporately-owned stores.
Madison New York Grill & Bar
Madison New York Grill & Bar is a subsidiary of MTY Food Group. The deal completed July 18, 2014 involved 14 franchised stores all located in Quebec. The acquisition gave the parent company another $40 million in system-wide sales. Cost of the transaction was $12.9 million.
Café Van Houtte
Deal completed November 7, 2014 involves 51 franchised stores all located in Quebec from Keurig Canada.
Manchu Wok
In December 2014, MTY said it would pay $7.9 million from cash on hand to acquire Manchu Wok, which had 133 stores in its operations, 114 of which were franchised and 19 corporately owned. During its most recent completed fiscal year, the network generated approximately $95 million in system sales.
Kahala Brands
In May 2016, MTY announced a friendly takeover deal with the Kahala Brands Ltd restaurant franchise company (2,800 stores worldwide). MTY could therefore add 18 American brands to its portfolio, including Cold Stone Creamery, America's Taco Shop and Kahala Coffee Traders. MTY will pay about US $300 million to acquire Kahala. The two companies generated near $2 billion in revenues in the previous year.
Expansion plans
In 2016, and in a bid for faster expansion, MTY offered to buy the Quebec-based St-Hubert chain of restaurants with its rich chicken product menu. MTY's offer was rejected in favour of the purchase of St Hubert brand by Ontario-based Cara Operations.
In December 2017 however, MTY announced that it was finishing a purchase deal of Imvescor Restaurant Group Inc., a Canadian company with restaurants and food outlets under the brands Mikes, Pizza Delight, Scores, Bâton Rouge, and Ben & Florentine. The purchase tag is reportedly 248 million Canadian dollars in a stock-and-cash deal and will add another 262 existing outlets of the said brands with a reported annual sales figures of 416 million Canadian dollars. The purchase will be finalized by February 2018. Imvescor chairman Francois-Xavier Seigneur said joining forces with MTY creates opportunities for Imvescor shareholders from an offer he described as representing a "full and fair value." The combined company is expected to generate about $2.9 billion in annual sales.
See also
- List of Canadian restaurant chains
Notes
- MTY Group Historical Storyline of expansion, acquisitions and milestones
References
External links
- Official website
Source of article : Wikipedia
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