Dive Brief:
- Alimentation Couche-Tard has signed a franchise agreement with The Briad Group to more than double Circle K’s presence in New York State, the companies announced on Friday.
- The Briad Group plans to open 40 stores in Upstate New York, adding to the 30 currently operating in the Empire State. Development of the new sites is slated to begin in 2025.
- This news comes as Circle K continues to pursue 7-Eleven in what would be one of the largest acquisitions the c-store industry has seen.
Dive Insight:
As Alimentation Couche-Tard works to reach a deal with Seven & i, parent company of 7-Eleven, it continues to pursue growth through a variety of avenues, from opening new locations to deals like this latest one.
This is The Briad Group’s first foray into convenience stores, a Circle K spokesperson confirmed via email. However, the company’s holdings include various restaurant and hospitality franchises across the country, such as Wendy’s restaurants and Marriott and Hilton hotels, in addition to a shopping center and several proprietary restaurants, according to its website.
“Their proven experience as restaurant and hotel operators and intimate knowledge of their guests will make them a tremendous asset for the Circle K brand as we accelerate our growth in the Northeast,” said Pat Fitzpatrick, vice president of global franchise for Circle K, in the announcement.
While Upstate New York in this case encompasses everything in the state outside the New York City metro area, much of Circle K’s current footprint in the state is concentrated around the Syracuse area.
Alimentation Couche-Tard’s stores operate primarily through company-owned, which account for over 62% of its total locations. However, the company still has more than 3,200 franchised stores worldwide, the spokesperson said.
During its first three earnings reports this calendar year, Circle K revealed it had completed construction of 55 stores. Additionally, in August it announced the $1.6 billion acquisition of GetGo Cafe + Market’s 270 locations.
