Freshii CEO says growth still underway, but bottlenecks forced revised timelines
Freshii sells salads, bowls, burritos, wraps, soups, juices, smoothies and frozen yogurt. (File Image)
The Canadian Press
Published Thursday, October 19, 2017 5:31PM EDT
CALGARY - The CEO of healthy fast-food chain Freshii says bottlenecks in new markets, delays from major franchise operators and the setback at outlets in Target stores combined to force the company's revised growth outlook late last month.
Speaking at a small business conference in Calgary today, Matthew Corrin says the combination meant fewer outlets could open this year, but that the stores are still going ahead.
He says the permitting and construction delays, along with slower than expected timelines for major franchise operators, pushed store opening timelines from the expected nine months to twelve.
Corrin says the company has made numerous new hires this year, and changed some policies to help store rollouts and that the timing is now back to nine months -- but not in time to recover the store opening numbers for this year.
On Sept. 26, Freshii revised down expected store openings for the year to between 90 and 95 from 150 to 160, and total expected stores open by the end of 2019 from at least 810 to 730.
The revision caused the company's share price to drop by about a third to around $5.50, where it has stayed largely flat since.