Happy Belly Food Group Inc., a leading consolidator of emerging food brands, announced Friday that it has acquired 100 per cent of Toronto-based QSR brand iQ Foods Co. and all four iQ Foods locations following iQ’s filing for creditor protection recently.
iQ Foods offers a variety of wholesome options like healthy bowls, smoothies, sandwiches, soups, and salads, along with other flavourful clean-eating dishes.
“Today, we are pleased to announce the 100 per cent acquisition of iQ Foods. Alongside our wholly owned Lettuce Love Café brand, and our binding acquisition agreement for Salus Fresh Foods announced on July 29th, we are taking our first steps in executing the next phase of our business strategy by consolidating emerging brands within sectors, in addition to developing emerging brands,” said Sean Black, Chief Executive Officer.
“This is a key moment in our company’s growth as we embark on consolidating sectors, starting with the premium healthy and clean eating vertical. This approach aligns with our strategy, targeting a growth sector that is gaining market share and share of wallet amongst consumers, especially among health-conscious consumers in parts of Canada and the US.
“We see inspiration in category leaders like Sweetgreen in the US, which has grown significantly in business, store count, and achieved an impressive market cap of over $3.5 billion USD, not unlike how CAVA accelerated its expansion in the Mediterranean category by acquiring Zoe’s Kitchen. Our acquisition of iQ Foods establishes our Happy Belly platform as a strong foundation for our sector consolidation strategy.”
Happy Belly said iQ Foods is a cornerstone brand in Canada’s premium healthy eating market and represents the largest single acquisition of corporate-owned stores that Happy Belly has made to date.
“Strategically situated in urban and central business districts, iQ Foods serves the needs of thousands of customers who are focused on health and wellness from local businesses while also expanding into catering services, which generates additional revenue in major metropolitan centres. This approach has built strong brand awareness and a loyal customer base through word-of-mouth and most importantly, happy and satisfied customers.”
As part of the acquisition Happy Belly takes ownership of four downtown Toronto locations: 100 King Street West (First Canadian Place); 18 York Street (Financial Centre); 199 Bay Street (Equinox Gym and Fitness Center); and 55 Avenue Road (Yorkville Equinox Gym and Fitness Center). A location at Toronto’s Yorkdale Shopping Centre recently closed with a creditor protection filing.
“With our current and prospective new locations, we aim to grow and scale iQ Foods operations into 2025 and beyond. Our Happy Belly footprint continues to grow with each M&A transaction and every new store opening. With the iQ Foods acquisition, we will have 36 restaurants operating within the Happy Belly portfolio, which will increase to 45 following the closing of the Salus Fresh Foods acquisition. Additionally, five of our brands currently have one or more locations under construction, significantly boosting our organic growth. This combination of accelerated organic and inorganic growth positions us well for continued expansion. We look forward to announcing several new openings throughout 2024 as we continue to sign franchise agreements and secure prime real estate locations for our franchisees across Canada,” added Black.
