“In Quebec, when we think of wine, we think of SAQ. When you taste like beer, we want it natural for you to have a reaction to say there’s a Tite Frette in my corner.”
Carl Manioni and his partner Jeremy Boubarte are ambitious. They’re laying the groundwork for a chain of specialty beer stores at small breweries that must have at least 100 franchises across Quebec within five years. “I don’t understand why the consumption of small Quebec beer is so low,” asks Carl Magnoni, Tite Frette co-founder. I have traveled a lot and compared: there is good beer elsewhere, but it just unbelievable, the quality we find in Quebec. But I don’t know why it is still a little known among us! ”
Galvanized by their association with Steve Morency, founder of Yuzu Sushi chain, after they appeared on the show In the eye of the dragonCarl Magnoni and Jeremy Boppart decide to take Tite Frette to the next level. They already own four stores in Granby, Saint-Jean-Sur-Richelieu, Saint-Hyacinthe and Cowansville, and they are now offering franchises to investors from across the province, a process that has required a half-million dollar investment. Already, 21 projects are under implementation this year. The first store will open in Farnham at the end of April, followed closely by another in Victoriaville. In May, it will be in Saint-Romuald, Salaberry-de-Valleyfield and Saint-Nicéphore, near Drummondville.
“It presents big challenges for independent retailers,” says the young entrepreneur.
There is no school of how to open a store. The owners often have very little work experience, especially since they also need to be trained as a professional beer. Additionally, profit margins are not the same as in restaurants or in selling clothes, for example. The risk is greater.
Karl Magnone, co-founder of Tite Frette
This is why Tite Frette intends to offer support, a proven system, and differentiation strategy for franchisees, which includes standardized store design. “Our consultants will be trained at Académie Tite Frette, and they will all be beer bartenders,” Karl Magnone insists. They will also be able to improve their knowledge of cider and local products, which will also be for sale in stores. We will also ensure the continuous development of our franchisees. ”
Karl Magnone is clearly aware that there are indeed small beer stores that specialize in brewing, but insists there is room for a chain like Tite Frette. “Our market position is between the grocery store and the super specialty retailer,” says Mr. Magnone. We’ll settle in very busy roads that beer lovers aren’t looking for. We are not targeting the same clients as professional retailers. We are targeting Moulson and Lapat Mustache. Thus, Tite Frette supports helping increase the market share of microbrewery beer from 15% to 25%, which is the goal of the microbrasseries du Québec.
Just not happy
It is clear that the arrival of such a majestic actor does not only make people happy in Quebec. “It’s not because you open a store in an energy center that the Coors drink will get into the specialty beer business,” says Sebastien Lallande, president of the association Détaillants de bières Spécialités du Québec (DBSQ). Via Quebec. We don’t know where the market share Tite Frette intends to find is located, because there is currently no difference between their and ours. Currently there are two offerings in Quebec: grocery stores that target a large audience and independent stores that offer a somewhat more specialized option accompanied by tips. ”
Sébastien Lalande, who will soon open a sixth store for Espace Houblon with his partners, admits that he has resisted many offers to launch franchises for his local chain which has stores in Montreal, Laval and on North Shore. “The small breweries proudly claim to be independent,” says DBSQ President.
There is an atmosphere of camaraderie that has developed between the retailers and the brewers. Each store introduces new small breweries to its customers. This is how we turn macro drinkers into microphone enthusiasts.
Sebastian Laland, President of Quebec Beer Retailers Association
Carl Magnoni realizes that the arrival of Tite Frette will not only make people happy, but he believes his attack will help accelerate the development of the Quebec microbrewery.
“There are still many underprivileged places, especially in the regions,” he says. It’s like sushi restaurants a few years ago; We saw a lot of perks come suddenly when the market was mature enough. As for beer, we have seen concepts similar to ours emerging in the United States. We didn’t invent anything. ”
190 thousand dollars
This is the maximum price paid yet to open a Tite Frette franchise. Of that amount, $ 25,000 consists of royalty fees, and the remainder is used for renovations, furniture, fixtures, and marketing.