Second Cup, a Canada-based specialty coffee retailer and franchise, has reported total revenue of $6.38m in the third quarter (Q3) ended 29 September 2012 against the total revenue of $6.14m for the same period last year.

Net income was dropped from $1.65m in Q3 2011 to $0.75m in the latest quarter.

The decrease in net income was primarily due to the decline in Earnings before interest, tax, depreciation and amortization (EBITDA) and the increased amortization expenses.

System sales of cafes remained constant at $46.4m.

Second Cup president and CEO Stacey Mowbray said both the company and their franchise partners are experiencing the increasing competitive pressure on their same café sales through Q3.

"Our net profit in Q3 was adversely affected by the same café sales decline, provisions on two leases we plan to sublet as well as research and innovation expenditures for future growth initiatives and brand enhancements," Mowbray added.

"We have started and will continue to invest in our loyalty and customer communications capability, fully convinced that we will see the benefits of both in future sales and profitability.

"We have also started to invest in a new café design to further differentiate the brand, impacting on this year’s profitability. We plan to make further strategic payments towards these upgrades in the near future."