Mr. Sean Black reports

HAPPY BELLY'S YOLK'S BREAKFAST SIGNS 1ST TORONTO LOCATION AND 1ST MULTI-UNIT FRANCHISEE

Happy Belly Food Group Inc. has signed a 10th franchise agreement and secured a real-estate location for Yolks Breakfast that will see a new Yolks in the city of Toronto with its first multiunit franchisee. Yolks is a boutique restaurant brand serving delicious breakfast, brunch and lunch.

"As one of the fastest-growing segments in the restaurant industry, breakfast continues to gain momentum -- an opportunity we embraced with the acquisition of Yolks," said Sean Black, chief executive officer of Happy Belly. "Following the successful debut of Yolks in Ottawa's Glebe neighbourhood, we're excited to share that the franchisee has signed a second franchise agreement and secured a new location in Toronto's Bloor West Village. This will mark the brand's first multiunit franchisee, further reinforcing confidence in our ability to support and scale with our franchisees. Notably, this same franchisee already operates two other Happy Belly brands -- Heal Wellness and Lettuce Love Cafe -- within the same community, demonstrating strong alignment and belief in our portfolio of emerging brands.

"We love signing former restaurant locations like this that come with existing infrastructure as it shortens the build out time, as well as lowers the cost of entry. Focusing on return on invested capital (ROIC) for both corporate and franchised locations is a key component for the continued growth of the company.

"We continue to see an increased interest from both franchisees and landlords nationwide for Yolks. With a target demographic that resonates with our concept, Bloor-West Village offers an excellent opportunity to further extend the Yolks brand. This location is anticipating a Q4 2025 opening.

"Today's announcement marks another step forward in our expansion strategy for Yolks Breakfast as we further integrate our breakfast, brunch and lunch brand into our accelerated franchising framework. By leveraging our asset-light strategy and capitalizing on the surge of interest from potential franchisees, we are poised to accelerate our footprint in the breakfast category. This strategic approach not only strengthens Yolks' position but also sets the stage for it to become a leading national brand in the breakfast category.

"With 606 retail locations under contract -- spanning projects in development, under construction or already open -- our franchise pipeline is robust. By carefully selecting the right partners and prime real estate, we will maintain momentum and achieve our disciplined growth objectives through 2026.

"Our approach has always been to focus on the development and growth of emerging brands in the food sector. Yolks Breakfast was an accretive acquisition by Happy Belly Food Group, and it is anticipated that our franchising program will continue to deliver new franchised locations that will drive both top-line and bottom-line profitability for Happy Belly."

"We are just getting started," said Mr. Black.

About Yolks Breakfast

Chef Steve Ewing is a strong proponent of breakfast -- it is his favourite meal of the day -- which is why its so important to him and why he takes so much care and puts so much effort into its menu. Not only are the eggs free range, but the bacon is local and the hollandaise is not some quickie version, but the real deal, just one fast whisking away from le Cordon Bleu. Even the dijon is made in-house!

About Happy Belly Food Group Inc.

Happy Belly Food Group is a leader in acquiring and scaling emerging food brands across Canada.

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