Happy Belly's iQ Food Co. QSR Signs 25-Unit Area Development Agreement in Ontario

Rhea-AI Summary

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has signed a 25-unit area development agreement for iQ Food Co. in Ontario. This follows the recent 100% acquisition of iQ Foods and appointment of Randall Papineau as iQ Brand President. The company has also opened its first licensed location in collaboration with Oliver & Bonacini at CF Toronto Eaton Centre and signed agreements for 20 new stores in Alberta.

CEO Sean Black highlighted that Happy Belly now has 421 contractually committed retail locations across its portfolio brands. The company is focusing on an asset-light franchising model, with five restaurant brands currently under construction. iQ Food Co., positioned in the premium healthy eating sector, offers a range of wholesome options including bowls, smoothies, sandwiches, soups, and salads.

Happy Belly aims to continue its accelerated franchise growth, leveraging its partnership with Area Developer Scott Grandin, who oversees Central Canada development for multiple Happy Belly brands.

Positive

• Signed 25-unit area development agreement for iQ Food Co. in Ontario
• Secured 20 new store agreements for iQ Food Co. in Alberta
• Opened first licensed iQ Food Co. location in CF Toronto Eaton Centre
• Appointed Randall Papineau as iQ Brand President
• 421 contractually committed retail locations across all portfolio brands
• Five restaurant brands simultaneously under construction

Negative

• None.

Toronto, Ontario--(Newsfile Corp. - October 18, 2024) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leading consolidator of emerging food brands is pleased to announce that, as of October 17^th, 2024, it has signed an area development agreement for the province of Ontario to open 25 new franchised restaurants of the beloved Toronto-based QSR brand iQ Food Co. ("iQ"). These restaurants will offer a range of delicious and wholesome options, including healthy bowls, smoothies, sandwiches, soups, salads, and other flavorful clean-eating dishes that the entire family can enjoy.

iQ 1

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"We are teaming up with one of our existing Area Developers Scott Grandin who currently oversees our Central Canada development. Scott is already overseeing the franchise growth of our Pirho Fresh Greek Grill, Lettuce Love, Heal Wellness, Yolks Breakfast, Rosie's Smash Burgers, and now iQ Food Co.," stated Sean Black, CEO of Happy Belly. "Since March of last year, Scott has signed commitments for dozens of units across six (6) of our brands, and he has no signs of slowing down anytime soon. Scott brings a key element of executable success to our team that will enable Happy Belly to continue its accelerated franchise growth. It is a lot of fun putting the band back together as we maximize the value of our assets with the delivery of disciplined organic growth."

"Within just 30 days of completing our 100% acquisition of iQ Foods, we have made significant strides. We've appointed Randall Papineau, former Vice President of Growth and Operations at FRESH Restaurants, as iQ Brand President, opened our first licensed location in collaboration with Oliver & Bonacini (O&B) at the Queen's Cross food court in CF Toronto Eaton Centre, and signed area development agreements for major expansion. These agreements will bring twenty (20) new stores to Alberta and twenty-five (25) new stores to Ontario, bringing the total iQ store count to fifty (50), with five (5) already open and operating," said Sean Black, Chief Executive Officer of Happy Belly.

iQ 2

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"We remain focused on our growth roadmap for iQ, reinforcing our dedication to organic expansion. iQ stands as a leading brand in Canada's premium healthy eating sector, strategically positioned in urban and central business districts. Catering to thousands of health-conscious customers from local businesses, iQ is also expanding into catering services to reach an even broader audience in densely populated downtown areas. This approach has built strong brand recognition and a loyal customer base, driven by word-of-mouth and, crucially, satisfied customers."

iQ 3

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"We currently have 421contractually committed retail locations from area developers across all emerging brands in the Happy Belly Portfolio-whether in development, under construction, or already open. As we open new stores, the Happy Belly footprint continues to grow. Our team is committed to sourcing and evaluating real estate, reviewing franchisee applications, and collaborating closely with area developers to support our asset-light franchising model. At present, five of our restaurant brands are simultaneously under construction, and we are excited to announce multiple brand openings throughout 2024-2025. By focusing on securing high-quality franchisees and prime real estate locations across Canada, we will further strengthen our expansion efforts."

We are just getting started.

About iQ Food Co.
iQ is a flagship brand in Canada's premium healthy eating market and is strategically located in urban and central business districts. iQ serves a variety of delicious and wholesome food options such as healthy bowls, smoothies, sandwiches, soups, and salads, along with other flavorful clean-eating dishes that the whole family can enjoy. iQ caters to thousands of health-conscious customers from local businesses, while expanding into catering services to service an even greater audience in downtown densely populated areas. This strategy has fostered strong brand recognition and a loyal customer base driven by word-of-mouth and, most importantly, satisfied customers.

About Happy Belly Food Group
Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company") is a leading consolidator of emerging food brands.

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Happy Belly Food Group
Sean Black
Chief Executive Officer

Shawn Moniz
Chief Operating Officer

FOR FURTHER INFORMATION, PLEASE VISIT:

www: www.happybellyfg.com or email hello@happybellyfg.com
If you wish to contact us please call: (604) 737-2303

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227045

FAQ

How many new iQ Food Co. locations will be opened in Ontario under the new area development agreement?

Happy Belly Food Group Inc. (HBFGF) has signed an area development agreement to open 25 new franchised iQ Food Co. restaurants in Ontario.

What is the total number of iQ Food Co. stores planned after the recent expansion agreements?

After the recent expansion agreements, the total iQ Food Co. store count is planned to reach 50, with 5 already open and operating, 25 new stores in Ontario, and 20 new stores in Alberta.

Who has been appointed as the new iQ Brand President by Happy Belly Food Group (HBFGF)?

Happy Belly Food Group (HBFGF) has appointed Randall Papineau, former Vice President of Growth and Operations at FRESH Restaurants, as the new iQ Brand President.

How many contractually committed retail locations does Happy Belly Food Group (HBFGF) currently have across all its brands?

Happy Belly Food Group (HBFGF) currently has 421 contractually committed retail locations across all its emerging brands in various stages of development, construction, or operation.