MarchApril 2022 Digital Issue
BIRD IS THE WORD Chicken remains a menu mainstay through tough times SINCE 1968 THE QSR REVOULTION COVID-19 has forced QSR operators to reevaluate the customer experience HELP WANTED Restaurant operators are scrambling to fill jobs CANADIAN PUBLICATION MAIL PRODUCT SALES AGREEMENT #40063470 PLUS THE 2022 FRANCHISE REPORT FOODSERVICEANDHOSPITALITY.COM THE ODD COUPLE ODD BURGER FOUNDERS ARE TURNING PASSION INTO PROFIT WITH NORTH-AMERICAN EXPANSION MARCH/APRIL 2022 FOODSERVICE AND HOSPITALITY I MARCH/APRIL 2022
- Page 2 and 3: BE TRUE TO THE FOOD ® TRUE INGREDI
- Page 4 and 5: FROM THE EDITOR CHANGING THE NARRAT
- Page 6 and 7: cheese& chicken Let’s connect Fin
- Page 8 and 9: NOW OPEN: SPICEBROS Montreal-based
- Page 10 and 11: CLIMBING THE RANKS The Fogo Island
- Page 12 and 13: MARKETING COMPETITIVE EDGE Operator
- Page 14 and 15: LEADERSHIP Forced Evolution Leaders
- Page 16 and 17: FRANCHISE REAL ESTATE THE LOCATION
- Page 18 and 19: FOOD FILE BY SARAH B. HOOD is the C
- Page 20 and 21: KFC’s Double Down Chicken Sandwic
- Page 22 and 23: pery chicken innovations, including
- Page 24 and 25: FOODSERVICE CHANNELS - MONTHLY TRAF
- Page 26 and 27: SUPPLIER VIEW Throughout the pandem
- Page 28 and 29: 26 FOODSERVICE AND HOSPITALITY MARC
- Page 30 and 31: MOST GEN Z AND MILLENNIALS SPEND 30
- Page 32 and 33: PROFILE Vasiliki and James McInnes
- Page 34 and 35: Odd Burger into a vegan meal-kit bu
- Page 36 and 37: PROFILE Take me to Church Church’
- Page 38 and 39: tion right now and will probably op
- Page 40 and 41: PROFILE Secret Sauce Redberry Resta
- Page 42 and 43: PROFILE Partners in Success Pür &
- Page 44 and 45: Connect with KML PRINT DIGITAL EVEN
- Page 46 and 47: THE 2022 FRANCHISE REPORT History,
- Page 48 and 49: THE 2022 FRANCHISE REPORT BLANCO CA
- Page 50 and 51: THE 2022 FRANCHISE REPORT Franchise
BIRD IS THE WORD<br />
Chicken remains a menu mainstay<br />
through tough times<br />
SINCE 1968<br />
THE QSR<br />
REVOULTION<br />
COVID-19 has forced<br />
QSR operators to reevaluate<br />
the customer<br />
experience<br />
HELP<br />
WANTED<br />
Restaurant<br />
operators are<br />
scrambling to<br />
fill jobs<br />
CANADIAN PUBLICATION MAIL PRODUCT SALES AGREEMENT #40063470<br />
PLUS<br />
THE <strong>2022</strong><br />
FRANCHISE<br />
REPORT<br />
FOODSERVICEANDHOSPITALITY.COM<br />
THE<br />
ODD<br />
COUPLE<br />
ODD BURGER FOUNDERS ARE<br />
TURNING PASSION INTO PROFIT<br />
WITH NORTH-AMERICAN<br />
EXPANSION<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY I<br />
MARCH/APRIL <strong>2022</strong>
BE TRUE TO THE FOOD ®<br />
TRUE INGREDIENTS. TRUE INNOVATION.<br />
TRUE PASSION FOR YOUR SUCCESS.<br />
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© <strong>2022</strong> Custom Culinary, Inc. All rights reserved.
VOLUME 55, NO.2 | MARCH/APRIL <strong>2022</strong><br />
THE FRANCHISE REPORT: A COMPREHENSIVE LISTING OF CANADA’S TOP FOODSERVICE FRANCHISES<br />
14 THE LOCATION EQUATION<br />
An endemic can impact land-control<br />
decisions for restaurant operators<br />
65<br />
16 BIRD IS THE WORD<br />
Chicken remains a menu mainstay<br />
throughout challenging times<br />
21 THE QSR REVOLUTION<br />
Experts weigh in on the evolving state<br />
of Canada’s QSR industry<br />
26 THE LABOUR REPORT<br />
Operators are scrambling to find staff<br />
as the industry re-opens<br />
16<br />
THE <strong>2022</strong><br />
FRANCHISE<br />
REPORT<br />
30 PROFILE: ODD BURGER<br />
34 PROFILE: CHURCH’S CHICKEN<br />
38 PROFILE: REDBERRY<br />
40 PROFILE: PUR & SIMPLE<br />
43 FRANCHISE LISTINGS<br />
76<br />
65 ROAD TO INCLUSION<br />
The industry continues to strive for a<br />
COVER PHOTOGRPHY BY MONIQUE WIENDELS<br />
FEATURES<br />
10 COMPETITIVE EDGE<br />
Operators need to increase their<br />
focus on guest engagement<br />
12 FORCED EVOLUTION<br />
Pandemic challenges have forced<br />
leaders to re-examine their strategies<br />
more diverse and inclusive future<br />
68 HIGHER LEARNING<br />
College and university foodservice<br />
programs have been forced to pivot<br />
71 SIGN OF THE TIMES<br />
<strong>Digital</strong> menu boards are gaining in<br />
popularity post pandemic<br />
72 GO WITH THE (AIR) FLOW<br />
Major system overhauls aren’t the only<br />
way to improve air flow in restaurants<br />
DEPARTMENTS<br />
2 FROM THE EDITOR<br />
5 FYI<br />
9 FROM THE DESK OF NPD GROUP<br />
76 CHEF’S CORNER<br />
Shannon Boyle, ShuckShuck,<br />
Vancouver<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 1
FROM THE EDITOR<br />
CHANGING<br />
THE<br />
NARRATIVE<br />
Professor and author Brené Brown has said “We are all<br />
mapmakers and we must be cartographers of our own<br />
lives.” These days, it’s hard for any of us to believe we<br />
have any control over our lives, let alone chart our own<br />
courses, however, as we now move towards recovery — and work<br />
creatively to re-open businesses — it’s becoming increasingly<br />
important to devote energy to create that roadmap, highlighting<br />
what you need to do to move forward on a new path.<br />
With labour shortages a pervasive threat to the sustainability<br />
of the foodservice industry, that roadmap will now need to take<br />
into consideration myriad new ways the industry can change the<br />
narrative to ensure it can successfully attract and retain employees.<br />
Unequivocally, that is the industry’s number-1 challenge.<br />
With the foodservice-and-hospitality industry experiencing<br />
a large exodus of workers from its ranks, it’s clear today’s<br />
employees are in the driver’s seat and are now looking for different<br />
considerations and incentives to not only lure them into the<br />
foodservice industry, but keep them there.<br />
While there’s ongoing debate as to whether money is, in fact,<br />
the biggest driver in attracting employees, according to a recent<br />
report commissioned by U.S.-based Beekeeeper, higher pay is<br />
clearly a common denominator cited by individuals,<br />
fuelling an increase in wages across<br />
many sectors. That same study also found that<br />
cash-strapped employees in the foodservice<br />
industry are looking for expedited pay, asking<br />
for same-day or next-day pay.<br />
It’s time employers become more creative in<br />
their quest to attract employees — especially<br />
where it concerns attracting Gen-Z applicants.<br />
Increasingly, says the study, employers are utilizing<br />
social-media platforms as a way to reach<br />
out to this new generation of workers while<br />
others are implementing incentive-driven referral<br />
programs to leverage their existing employee<br />
base as an additional avenue for recruitment.<br />
The report also found a disconnect between<br />
the needs of frontline workers and what their<br />
managers think they need. According to the<br />
survey, 80 per cent of frontline workers rated<br />
context about why and when things change as<br />
a key factor in their workplace happiness, while<br />
interestingly, only 13 per cent of managers rated context as a top<br />
management tool. And, not surprisingly, one in three workers<br />
rate under-staffed teams as their top stressor, underscoring the<br />
importance of maintaining adequate staffing to avoid burnout.<br />
Finally, the report confirmed frontline managers and team<br />
leads have a massive impact on the employee experience. After all,<br />
“they are responsible for creating a positive work environment,<br />
and play a pivotal role in employee retention and productivity.”<br />
ROSANNA CAIRA<br />
@foodservicemag<br />
facebook.com/foodservicehospitalitymagazine<br />
instagram.com/rosannacaira<br />
NICK WONG, LOCATION PROVIDED BY VIA CIBO<br />
2 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
EST. 1968 | VOLUME 55, NO.2 | MARCH/APRIL <strong>2022</strong><br />
EDITOR & PUBLISHER ROSANNA CAIRA<br />
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cheese&<br />
chicken<br />
Let’s<br />
connect<br />
Find us online for the Crispy<br />
Chicken Parmesan Sandwich Recipe<br />
and More Mouthwatering Inspiration!<br />
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MONTHLY NEWS AND UPDATES FOR THE FOODSERVICE INDUSTRY<br />
ISTOCK.COM/BET_NOIRE<br />
FEELING THE PINCH RESTAURANTS<br />
Rising food prices force operators to adapt menus<br />
BY NICOLE DI TOMASSO<br />
Rising food prices pose another<br />
challenge for Canadian<br />
restaurateurs, alongside<br />
supply and labour shortages. Canada’s<br />
Food Price Report <strong>2022</strong>, published<br />
annually by Dalhousie University, the<br />
University of Guelph, the University<br />
of Saskatchewan and the University of<br />
British Columbia, predicts a five- to<br />
seven-per-cent increase in food costs.<br />
The most significant increases are<br />
expected for dairy and restaurants at<br />
six to eight per cent and bakery and<br />
vegetables at five to seven per cent.<br />
Last year’s report, in comparison,<br />
predicted an overall food-price increase<br />
of three to five per cent in 2021.<br />
Food prices were rising pre-COVID-19,<br />
but the pandemic has accelerated the<br />
trend. Supply-chain disruption, rising<br />
shipping costs, poor growing conditions<br />
and high consumer demand are<br />
some of the factors behind the rise of<br />
food costs for restaurants, which are<br />
already suffering amid pandemic-related<br />
restrictions and closures.<br />
“Imagine how expensive food<br />
costs will be for cafés, coffee shops<br />
or pizzerias that require [large quantities<br />
of dairy products, for instance],”<br />
says Olivier Bourbeau, VP, Federal<br />
and Quebec, Restaurants Canada.<br />
“Restaurants are in a difficult situation<br />
with a pre-tax profit margin between<br />
two and three per cent. We are not<br />
in a position to manage food-prince<br />
increases, so we are forced to pass a<br />
little bit on to the customer.”<br />
To grapple with rising food costs,<br />
many operators will raise their menu<br />
ARE IN A<br />
DIFFICULT<br />
SITUATION<br />
WITH A<br />
PRE-TAX<br />
PROFIT<br />
MARGIN<br />
BETWEEN<br />
TWO AND<br />
THREE PER<br />
CENT. WE<br />
ARE NOT IN<br />
A POSITION<br />
TO MANAGE<br />
FOOD-PRICE<br />
INCREASES,<br />
SO WE ARE<br />
FORCED TO<br />
PASS A LITTLE<br />
BIT ON TO THE<br />
CUSTOMER<br />
OLIVIER<br />
BOURBEAU<br />
VP, FEDERAL<br />
AND QUEBEC,<br />
RESTAURANTS<br />
CANADA<br />
prices or cut down on menu offerings<br />
to reduce the amount of money<br />
spent on food. Some operators<br />
might avoid raising menu prices for a<br />
competitive edge, however, Bourbeau<br />
says the majority of consumers are<br />
understanding and willing to spend<br />
more on dining experiences after<br />
many months of takeout and homecooked<br />
meals.<br />
Moreover, obtaining food and<br />
supplies from local suppliers and<br />
minimizing food waste are additional<br />
solutions to help offset higher costs.<br />
“Restaurants are trying to maximize<br />
every ingredient they buy.<br />
Menus are becoming smaller, but restaurants<br />
will stick to offering<br />
best-sellers,” says Bourbeau.<br />
He also states labour shortages<br />
will continue to be “a challenge we<br />
have to work on for the upcoming<br />
years, not only months. Many restaurants<br />
don’t have enough workers to<br />
maintain [regular store hours.] Some<br />
might be closed between Monday and<br />
Wednesday, for instance.”<br />
He says more needs to be done at the<br />
federal and provincial level. “The provincial<br />
and federal governments have<br />
been supportive of our industry, but we<br />
need sector-specific support because<br />
one out of two restaurants is still at risk<br />
of closing,” says Bourbeau. “When restaurants<br />
operate at 50-per-cent capacity,<br />
with our small margin, they’re losing<br />
money or barely breaking even each<br />
day they’re open.” FH<br />
RECOVERY ROADBLOCK<br />
The Freedom Convoy protests in February worsened the already fragile food-supply chain, making perishable food products<br />
costly to farmers, businesses and consumers due to delays at the Canada-U.S. border. In addition, foodservice operators<br />
located in Ottawa’s downtown core were instructed to remain closed, further hindering the sector’s recovery.<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 5
NOW OPEN:<br />
SPICEBROS<br />
Montreal-based Indian concept, SpiceBros,<br />
opened its first Toronto location at Bloor St. W.<br />
and Islington on January 19. Its innovative menu<br />
offers twists on traditional Indian favourites, such<br />
as tandoori fried-chicken sandwiches, butterchicken<br />
poutine, Bro Bowls and battered chicken<br />
kebabs. Its “Frankie Rolls” are naan wraps that can<br />
be filled with protein options such as saag paneer,<br />
masala chickpeas, fish, cauliflower or chicken, then<br />
topped with various veggie and sauce options.<br />
SpiceBros, which currently has seven locations<br />
in Quebec, has launched three new products for<br />
the Toronto opening: chilli scorpion wings, Punjabi<br />
fried chicken and a fish filet “Ocean” burger. The<br />
company is planning to open five more locations in<br />
Ontario over the next 16 months.<br />
ALL IN THE FAMILY<br />
The Fuller family, a long-time investor in Cactus Club Cafe, has acquired full ownership<br />
interest in the company from Richard Jaffray, founder and president of the brand.<br />
After three decades, Jaffray will be stepping down as president as the Fuller family —<br />
which has been a silent partner in Cactus Club since its founding — assumes full ownership.<br />
“We have enormous respect for what Richard has built. Under his leadership, Richard<br />
and the Cactus team have established and grown an outstanding restaurant brand and<br />
concept, developing deep and lasting customer relationships in the process. Our family<br />
has been a partner in Cactus Club since the very beginning, and we are thrilled to be<br />
assuming 100-per-cent ownership of the brand,” says Stan Fuller. “Our commitment is<br />
to preserve and build on the work Richard has done to build the Cactus-Club brand into<br />
such a success. Cactus Club has always been independent, and it will stay that way, and<br />
as such we don’t intend to make any changes to the Cactus restaurants, brand or culture,<br />
and we are committed to Cactus Club’s talent. We value the relationship we have had<br />
with Richard and wish him nothing but the best for the future.”<br />
“I’m incredibly proud of the team that built Cactus Club into Canada’s leading casual<br />
find-dining brand,” says Jaffray. “There’s no finer team to be found anywhere, and I know<br />
they will carry the Cactus Club brand on to continued success in the future.”<br />
Jaffray opened the first Cactus Club in North Vancouver in 1988 and today there are<br />
32 locations across Canada, employing 5,000 people.<br />
GLOBAL ATTRACTION<br />
Don Alfonso 1890, located at Toronto’s Casa Loma, has been named Best Italian<br />
Restaurant in the World <strong>2022</strong> – Prosecco DOC Award by 50 Top Italy. The restaurant<br />
also received the Meal of the Year <strong>2022</strong> Mulino – Caputo Award for its multi-course<br />
prix fixe tasting menu.<br />
Don Alfonso was one of two Canadian restaurants recognized by 50 Top Italy,<br />
alongside Pino Posteraro’s Cioppino’s Mediterranean Grill in Vancouver. Since opening<br />
in 2018, Don Alfonso 1890 has been recognized with multiple national and international<br />
awards and honours from Gambero Rosso, La Liste, Restaurant Design Global,<br />
OpenTable and more.<br />
BREAKFAST<br />
IS SERVED<br />
Wendy’s breakfast will be<br />
available at restaurants across<br />
Canada this spring.<br />
“Canadians deserve a better, high-quality breakfast experience<br />
that is fast and affordable, without cutting corners. That<br />
is exactly what Wendy’s will deliver when we launch breakfast<br />
across Canada this spring,” says Abigail Pringle, president,<br />
International and Chief Development Officer, The Wendy’s<br />
Company. “We have done the work, immersing ourselves in<br />
what Canadian customers want from their breakfast and we<br />
will serve up hot, made-to-order, great-tasting food, using<br />
high-quality ingredients that have long set Wendy’s apart<br />
from the competition. We are confident that our breakfast<br />
experience will make Wendy’s their number-1 choice.”<br />
6 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
WE BRING<br />
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CLIMBING<br />
THE RANKS<br />
The Fogo Island Inn has appointed Timothy<br />
Charles as its new executive chef. Originally<br />
from Nova Scotia, Charles has been working<br />
at the Fogo Island Inn since 2012, starting<br />
out at the Kitchen Training Centre while the<br />
property was still under construction. Over<br />
the years, Charles climbed the ranks from<br />
sous-chef to executive sous-chef and now<br />
executive chef. During his tenure, Charles has<br />
cooked alongside Canadian and international<br />
culinary icons, such as Hugh Acheson, Jeremy<br />
Charles, Jamie Kennedy, Emma Cardarelli<br />
and Afrim Pristine.<br />
In his new role, Charles will lead his<br />
culinary team and explore time techniques,<br />
such as fermentation, salting, picking, aging<br />
and de-hydrating. With more than 80 per<br />
cent of ingredients sourced locally, Charles’<br />
approach to cooking is deeply rooted in the<br />
interconnected experiences of travellers.<br />
“Our guests want a hint of indulgence<br />
when visiting Fogo Island, but they also<br />
want to hike, explore and be active outdoors<br />
in nature,” says Charles. “Guests may have<br />
squid for dinner and later serendipitously<br />
see people out in boats jigging for squid, and<br />
that adds another layer to their experience.<br />
[Similarly,] they may be out picking berries<br />
with our outdoor adventure guide, Lorie,<br />
and then drop off their berries with us in the<br />
kitchen when they get back. Later they’ll find<br />
them gently pickled garnishing some smoked<br />
fish at the start of their evening meal.”<br />
DAILY DOSE<br />
Corona Canada has launched its first non-alcoholic beer with vitamin D, Corona Sunbrew,<br />
worldwide. It’s now available in a six-bottle pack at select grocery stores in Quebec and<br />
continues to be rolled out across Canada.<br />
“As a brand, Corona is all about getting outside and feeling the sun, and we know that<br />
this time of year, Canadians are missing that feeling,” says Mike Bascom, senior Marketing<br />
director, Corona Canada. “Corona Sunbrew provides an innovative way to remind people<br />
of that feeling and what they love about Corona, but now without alcohol. Corona Sunbrew<br />
— along with our other innovations last year — proudly showcase our ability to identify<br />
gaps, find solutions and seek opportunities for growth as a brand. Knowing that Corona<br />
Sunbrew is the only non-alcoholic beer that contains vitamin D in the world provides a<br />
unique opportunity in the market.”<br />
PASSING THE TORCH<br />
As of February 22, <strong>2022</strong>, Todd Barclay officially<br />
stepped down from his role as president and<br />
CEO of Restaurants Canada (RC).<br />
“On behalf of Restaurants Canada, we would<br />
like to thank Todd for his contributions to the<br />
organization and the critical role he played<br />
throughout the pandemic,” said RC Chair Cindy<br />
Simpson in a release. “During his tenure, Todd<br />
has worked alongside all our members to spark<br />
change, innovate and support the industry’s<br />
needs, helping to position Restaurants Canada<br />
as a leader through challenging times. It’s clear,<br />
especially after the past few years, that we are a strong and resilient industry<br />
and will only grow stronger together. We wish Todd well as he explores another<br />
opportunity within the foodservice and hospitality sector.”<br />
While the association begins its search for a new president, Restaurants<br />
Canada’s vice-president, Finance, Roy Little, will be stepping into the role of<br />
interim president and CEO, effective immediately, through to June 30.<br />
“To ensure a seamless transition and that our message and our achievements to<br />
date remain resolute, your regional vice-presidents will continue to be your main<br />
point of contact. We will continue to fight on behalf of the industry, demanding<br />
a seat at the government table to discuss all matters concerning our industry,<br />
including more accessible and immediate government support, solutions to help<br />
address the ongoing labour shortages, and more,” said Simpson.<br />
8 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
FROM THE DESK OF NPD<br />
INDEPENDENCE DAY<br />
Despite pandemic challenges, many independent<br />
QSRs have endured<br />
ISTOCK.COM/EPICIMAGES<br />
Doesn’t it sometimes seem that there<br />
is a quick-service restaurant (QSR)<br />
chain located on every street corner<br />
in Canada? I pass by as many as seven<br />
Tim Hortons, three McDonald’s and three<br />
Starbucks locations on my short 10-km drive<br />
to The NPD Group’s Toronto office, although<br />
it’s been months since I’ve made that trip.<br />
Our ReCount® restaurant census reports there<br />
were more than 26,000 QSR chain outlets in<br />
Canada at the end of 2020, while the number<br />
of independent restaurant outlets totalled just<br />
over 9,000. Each of these figures declined by<br />
about 1,000 units in 2020. When we launched<br />
ReCount in 1999, the number of chain and<br />
independent outlets were about equal at<br />
15,000. Chain outlets have grown every year,<br />
but since 2008, the number of independents<br />
has declined steadily.<br />
Against the seemingly endless expansion<br />
initiatives of the chains, how does an independent<br />
QSR compete? Better than you might<br />
expect. For calendar year 2021, our CREST®<br />
foodservice industry tracking service reports<br />
independent QSR restaurants captured just<br />
over nine per cent of total QSR occasions.<br />
That’s up by almost one full point from 2020<br />
and back in line with historical shares. It<br />
may not seem like much until you consider<br />
that each share point represents more than<br />
40 million occasions. Independent QSRs’<br />
revenue performance was even stronger, having<br />
returned to pre-pandemic levels ahead of the<br />
total QSR segment.<br />
Of course, increased visits and dollars<br />
don’t necessarily equal profitability. During<br />
this time of rising input and operating<br />
costs, the average spend per independent<br />
restaurant visitor has risen by just one per<br />
cent compared to a QSR segment average of<br />
three per cent. Many factors can influence<br />
this measure, but it seems the independent<br />
operator may be trying to use price to attract<br />
and retain customers. This can be an effective<br />
marketing strategy at times, but it could also<br />
become a trap.<br />
A more effective way to compete on price,<br />
without necessarily discounting, is through<br />
some sort of dealing, such as meal bundles,<br />
coupons (digital or paper) and buy-get offers.<br />
The deal rate has been rising in the QSR<br />
segment for many years, but it is an area<br />
where independents trail. These marketing<br />
techniques are a terrific way to deliver perceived<br />
value to the consumer and can be an<br />
effective way to mask a price increase.<br />
Marketing strategies cannot focus on price<br />
alone. Instead, this operator set should identify<br />
the characteristics that make them unique<br />
from their chain competitors and promote<br />
those features. It could be menu, service, quality,<br />
or authenticity. Offering meal kits, groceries, or<br />
cross-promotions with other local businesses<br />
is another unique way to stand out from the<br />
chains. Consumers tell us in our studies that<br />
they are eager to support local businesses.<br />
Promoting this “love of local” at every occasion<br />
can be an effective marketing tool.<br />
One final way for independents to compete<br />
against the big chains is through delivery,<br />
where they already capture 20 per cent share<br />
of this booming service, representing almost<br />
20 per cent of their orders. Even though all<br />
the major chains also offer delivery, they have<br />
relied on their drive-thru infrastructure to propel<br />
them through the pandemic. Consequently,<br />
delivery represents just three per cent of their<br />
orders. Delivery apps are the great equalizer:<br />
They permit any business to stand out in the<br />
digital world in a way they never could on a<br />
crowded streetscape.<br />
The plight of the independent restaurateur<br />
has been well reported since the early days of<br />
the pandemic. Facing lockdowns, operating<br />
restrictions, and the ongoing social and<br />
economic challenges that we all contend<br />
with, this group of business owners has<br />
sustained an unprecedented number of<br />
closures. While many of their challenges<br />
continue, it is encouraging to see many<br />
independent QSR restaurants have endured.<br />
That means my commute to the office, whenever<br />
it resumes, will continue to offer some<br />
diversity when it comes to restaurant selection. FH<br />
Vince Sgabellone is a foodservice<br />
industry analyst with The<br />
NPD Group. He can be reached<br />
at vince.sgabellone@npd.com<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 9
MARKETING<br />
COMPETITIVE<br />
EDGE<br />
Operators need to drive more<br />
meaningful engagement<br />
with customers<br />
BY BRANDON POOLE<br />
When I was running a well-known<br />
Canadian QSR brand, I used to dread<br />
the moment I would see a new TV<br />
spot from our competitors. Knowing<br />
we could never compete with even the most<br />
modest media budgets, I would watch the<br />
creative hook and dread the call from our<br />
leadership team to ask if I had seen it and why<br />
we refused to compete in traditional media.<br />
Opening my mailbox and finding a flood<br />
of new competitor flyers was worse, leading<br />
to panicked observations of “huge” competitor<br />
sales increases as our teams across Canada<br />
would watch coupon redemptions spur what<br />
appeared to be steady losses of trial and traffic.<br />
With the lowest ad fund in the industry, this<br />
cavalcade of advertising and promotional gimmickry<br />
became exhausting and demoralizing to<br />
confront. Then I realized, none of it works.<br />
Well, it does work on the surface, but the<br />
resulting awareness blips and short-term,<br />
artificial sales lifts are usually fleeting, and<br />
will almost always distract brand teams from<br />
actual business outcomes such as strategic,<br />
sustainable growth and permanent competitive<br />
differentiation. I didn’t realize this right away.<br />
It took a lot of observation, tracking and analysis<br />
of restaurant-success indicators against<br />
specific marketing and media spending before<br />
trends began to emerge.<br />
First, our biggest competitor, with 60 to 70<br />
times our marketing budget, was in a freefall,<br />
with tanking same-store sales, increasing<br />
annual store closures and shrinking averageunit<br />
volumes. Its downfall occurred despite<br />
TV spots, high-profile national sponsorships<br />
and a regular carpet bombing of consumer<br />
coupons through direct-mail campaigns.<br />
Second, an emerging group of unconventional<br />
QSR and fast-casual models were<br />
exploding south of the border. Droves of<br />
passionate customer brand advocates were<br />
driving up the stock prices, store volumes<br />
and unit growth of these upstarts. They<br />
accomplished all of this with a fraction of<br />
the ad budgets in comparison to traditional<br />
foodservice giants.<br />
Something had to give. Clearly, this new<br />
era of advocacy-driven brands knew something<br />
we didn’t. That’s when it hit me. Since<br />
these brands weren’t depending heavily on<br />
traditional ad and promo tactics to drive sales,<br />
they must, instead, be targeting factors that<br />
increased customer engagement through an<br />
entirely new marketing playbook.<br />
If you focus on communicating the<br />
elements of your brand that drive more<br />
meaningful connections with your customers,<br />
increases in conventional sales metrics will<br />
follow. This was proven in real time.<br />
This new normal inspired our team to<br />
completely overturn our traditional approach<br />
to strategic planning. Here’s how we did it.<br />
We began to embrace and lead with<br />
customer engagement and re-imagined<br />
marketing as a catalyst for creating upward<br />
advocacy. In other words, focusing our<br />
strategic planning around identifying customer<br />
-engagement segments and targeting them<br />
with tactics that increased engagement rather<br />
than increasing sales.<br />
We accepted and elevated the thinking<br />
that some customers are more valuable than<br />
others and our efforts as a team should be<br />
to reward and recognize these most valuable<br />
ISTOCK.COM/SASINPARAKSA<br />
10 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
customers (MVCs) and create more of them. MVCs are identified as<br />
those customers with the lowest acquisition cost and highest lifetime<br />
value. They buy more, visit more often and offer the highest levels of<br />
advocacy and engagement.<br />
There was a simple strategy that we could follow. Rather than building<br />
marketing plans around traditional tactics and outcomes, such as<br />
driving awareness, traffic and sales, we focused instead on targeting the<br />
variables we knew drove upward advocacy and created more MVCs<br />
— relevance, affinity intent and conversion. Relevance is always top<br />
of mind to solve a customer’s problem. Affinity is to commit to routines,<br />
behaviours and actions that inspire hyper-loyalty and advocacy.<br />
Intent involves increasing purchasing likelihood through the customer<br />
journey. Finally, conversion allows for maximizing seamless purchase<br />
opportunities and experiences at all customer touchpoints.<br />
Here’s what happened.<br />
Between 2014 and 2019, we climbed from number 5 in our category to<br />
number 2. Regular tracking of customer engagement metrics showed<br />
consistent year-over-year (YOY) growth in awareness, intent and loyalty<br />
compared to key category competition. Lastly, we outperformed the<br />
Top-200 industry and category averages in sales growth, unit growth<br />
and average-unit volume.<br />
Here’s what we learned (see MVC pyramid models below).<br />
Typical Brand<br />
Loyal Customers<br />
Medium Relevance- Medium<br />
Affinity - Medium Intent - 2<br />
Medium Conversion<br />
New Customers<br />
Low relevance -<br />
Low Affinity - Low 4<br />
Intent - Low<br />
Conversion<br />
MVC Brand<br />
Loyal Customers 2<br />
Medium Relevance- Medium<br />
Affinity - Medium Intent -<br />
Medium Conversion<br />
New Customers<br />
Low relevance - Low<br />
4<br />
Affinity - Low Intent -<br />
Low Conversion<br />
Most foodservice brands are focused on new customers, which is the<br />
bottom level of the pyramid. Therefore, the bulk of their customer base<br />
has low engagement characteristics: low relevance, low affinity, low<br />
Intent and low conversion. In other words, you may get their attention<br />
and gain a visit, but these customers are the least likely to be valuable<br />
to you in the long term. They typically have the highest acquisition<br />
FOODSERVICEANDHOSPITALITY.COM<br />
ADVOCACY<br />
MVC<br />
1 High Relevance- High Affinity -<br />
High Intent - High Conversion<br />
Transient Customers<br />
High Relevance- Low Affinity<br />
3<br />
-High Intent - Low Conversion<br />
MVC<br />
High Relevance-<br />
1 High Affinity -<br />
High Intent -<br />
High Conversion<br />
Transient Customers<br />
3<br />
High Relevance- Low Affinity -<br />
High Intent - Low Conversion<br />
cost and lowest lifetime value to your brand.<br />
This diagram demonstrates how MVC brands differ. By rejecting<br />
conventional thinking around low ROI awareness and promotional<br />
tactics, MVC brands build sustainable, long-term strategies around<br />
upward advocacy.<br />
So, what does the upward advocacy/MVC marketing model look<br />
like in action? Conventional thinking around heavy investments in<br />
awareness and sales promotion is replaced by actively cultivating and<br />
expanding advocacy inside of key customer segments to mobilize<br />
upward movement and increased engagement.<br />
MVC Marketing Model<br />
Repeat Customers<br />
become Loyal<br />
2<br />
Customers<br />
Creative and Communication<br />
Focused - Loyal, Emotional,<br />
Personal, Authentic, Judging<br />
Execution Focus - Personalization<br />
Surprise and Delight, Rewards<br />
Reach New Customers<br />
Creative and Communication Focused:<br />
Newness, Distinctiveness, Authenticity,<br />
Differentiation, Functionality<br />
Execution Focus: Branded Content,<br />
Partnerships, SEO/Customer Reviews,<br />
Communities, PR<br />
4<br />
ADVOCACY<br />
Loyal Customers become MVCs<br />
Creative and Communication<br />
Focused - Loyal, Emotional,<br />
Personal, Authentic, Judging<br />
Execution Focus - Personalization<br />
Surprise and Delight, Rewards,<br />
Insider “VIP” status and<br />
recognition<br />
New Customers become<br />
Repeat Customers<br />
Creative and Communication Focused:<br />
Passion, Emotional, Motivation,<br />
Belonging, Exceeding Expectations<br />
Execution Focus - Loyalty Introduction<br />
and Incentives, SEO/Customer Reviews,<br />
Giveaways, Value- add, Suprise and<br />
Delight<br />
How does this thinking apply in the real world in terms of business<br />
re-setting and restaurant re-building? This is especially important<br />
as the industry continues to absorb regular disruptions and re-sets<br />
around a volatile marketplace. Here’s my advice for restaurant and<br />
foodservice brands starting a new journey or changing course with<br />
their own brand.<br />
IDENTIFY AND UNDERSTAND MVC PYRAMID SEGMENTS<br />
This is the biggest and best justification for implementing a loyalty<br />
platform. From my own experience, loyalty database growth through<br />
acquisition is important, but the most revealing and rewarding asset is<br />
the data pointing to customer segmentation. At each loyalty level, the<br />
most well-structured rewards platforms will reveal purchase behaviours,<br />
motivations and personalities which will, in turn, provide the<br />
foundation for impactful customer engagement planning.<br />
ALIGN YOUR TEAMS AROUND CUSTOMER-ENGAGEMENT VARIABLES<br />
It’s not enough to simply build a marketing plan around relevance,<br />
affinity, intent and conversion. These strategic customer engagement<br />
variables must be embraced inside of cross-functional leadership teams<br />
to intentionally and positively influence your brand culture.<br />
EMBRACE, INCENTIVIZE AND REWARD ADVOCACY<br />
In other words, implement an MVC marketing strategy. Effectively<br />
understanding, executing and tracking upward advocacy depends<br />
on a commitment to moving as many customers as possible into the<br />
highest level of MVC engagement. This means move away from plans<br />
that depend on a high customer-acquisition cost with low likelihood of<br />
retention and commit to an authentic relationship with your customers<br />
where you will regularly express appreciation for how valuable they are<br />
and share reasons for them to engage with you again. FH<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 11<br />
3<br />
1
LEADERSHIP<br />
Forced Evolution<br />
Leadership strategies have had to evolve to face pandemic challenges<br />
BY MATT ROLFE<br />
ISTOCK.COM/LERBANK<br />
THE PAST TWO YEARS have been the<br />
most challenging and turbulent the current<br />
generation of leaders has ever experienced.<br />
I deeply feel for hospitality entrepreneurs,<br />
leaders and managers who have experienced<br />
constant challenges, dealt with relentless and<br />
rapid changes, all while being put in a position<br />
to navigate forward through the unknowns.<br />
Now that we are navigating the next chapter,<br />
re-bounding and re-building from the pandemic,<br />
we as an industry need to ask even<br />
more from our leaders. That’s right, more now<br />
than ever before. Staff and management in<br />
restaurants are looking to their leaders for<br />
clarity so they can trust there is a path forward.<br />
Not just a path to re-opening our restaurants<br />
— but a path to having the team in place<br />
to properly operate our restaurants as well.<br />
I look at the pandemic like open-heart<br />
surgery. In the early stages, we knew something<br />
was not right, and when the diagnosis<br />
of COVID-19 was shared with the world, the<br />
initial closure of our industry, and repeated<br />
opening and closing, equated to surgery.<br />
They cracked open our ribs and reached into<br />
our businesses in a way that was incredibly<br />
invasive. The re-opening (as I write this, I<br />
hope this is our last re-open) could be viewed<br />
the mending of our ribcage, the stitching up<br />
of our chest, as we are now finally able to reopen<br />
our doors, and the restrictions are being<br />
removed. The great news is, we are moving<br />
forward. The challenge is, many of us have<br />
brought our staff back quickly and jumped<br />
right back into operations. I get it, we have to<br />
get the doors back open to survive. I do want<br />
you to be aware that most leaders, managers<br />
and staff have not had the chance to heal<br />
from the experience we just went through —<br />
both personally and professionally.<br />
Can you relate? If you take a minute and<br />
think about those questions, the chances are<br />
your breathing will shorten a bit, you might<br />
feel tightness in your body and you might<br />
have put your hands over your face. If<br />
you did any of those things, even just a few,<br />
you are not alone. Leaders have been put in<br />
a position to have the answers, fight everyday<br />
not knowing what was next. It’s to be<br />
expected that we would fee a little wounded.<br />
Certainly I know, we did not come this far to<br />
only come this far. As an industry, we have<br />
gone through challenges in the past, we will<br />
find a path to get through this and come out<br />
on the other side much stronger. I’m not<br />
trying to be your motivational coach in this<br />
article; I mean what I say. Those that choose<br />
to will come out of this stronger. If you agree<br />
with that statement, I’m excited for you. If<br />
you feel resistance to me saying it, that’s okay,<br />
too. I urge you to pay attention to your resistance<br />
though. If it’s showing up for you in<br />
your life, how else might you think your resistance<br />
is showing up to your managers and staff?<br />
However you feel, let’s get into how hospitality<br />
leadership has changed during the pandemic<br />
and what can be done to upscale your leadership<br />
skills to give you, your team, your guests<br />
and your operation the results you want and<br />
deserve in <strong>2022</strong>.<br />
It Starts with You<br />
Mental health and self-care have been thrust<br />
into the spotlight over the last two years. Let<br />
me start by saying COVID-19 did not create<br />
mental-health or self-care challenges for leaders<br />
in our industry, it simply magnified them.<br />
In order for you to take care of your people,<br />
you must first take care of yourself. The role<br />
of a leader is to be at service in support of<br />
your people. How can you do that if your<br />
emotional or physical tank is empty?<br />
I’ve spent the last decade in coaching<br />
programs with the world’s leading coach,<br />
Tony Robbins. After all of the work I<br />
have done with Robbins over the<br />
last 10 years, one of his messages<br />
has always stayed the same: 70 per cent of our<br />
results as leaders and managers are driven<br />
by our physical state, meaning the energy we<br />
bring into every room. This refers to every<br />
conversation and every interaction with our<br />
staff even before we say anything. Another 20<br />
per cent of our results are driven by our why or<br />
our purpose, and 10 per cent of our results are<br />
driven by our actual strategy.<br />
Your team can see your energy,<br />
your stress and the weight on<br />
your shoulders more than you<br />
would ever imagine. They’re<br />
concerned for you — an inconsistent<br />
leader erodes trust and is the<br />
number-1 cause of employee turnover.<br />
In times where manager and<br />
staff retention are the top challenge for most<br />
12 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
operators, we need to do everything we can to<br />
keep the people we want and need.<br />
● Block time every week for yourself:<br />
Study any celebrity leader from<br />
Mark Cuban to Sheryl Sandberg to<br />
Warren Buffet and you will find a relentless<br />
commitment to personal time and personal<br />
development.<br />
● Move your body: Personally, I have lost<br />
40 lbs since the start of the pandemic, and<br />
it’s not because I like working out. I looked<br />
at the leaders I admire most, and they all<br />
had a commitment to their self-care. Find<br />
ways to move your body every day.<br />
● Hire a coach and/or therapist:<br />
I am currently working with three<br />
therapists and one coach and it has<br />
changed my life. Having a proper support<br />
team is a strength not a weakness.<br />
● Make a commitment to consistent<br />
communication: I have worked with<br />
hundreds of leaders and managers<br />
throughout the pandemic and the number-1<br />
reason people cited for why they<br />
were not engaged, why they were<br />
considering leaving their position or<br />
why they left their restaurant or restaurant<br />
group, was the leader or leadership team’s<br />
inability to communicate with them and<br />
the team.<br />
Top-performing<br />
leaders communicate<br />
when they have<br />
answers, when they<br />
have updates, when<br />
they have clarity and<br />
direction, but they<br />
also continue to<br />
communicate when they don’t. COVID-19<br />
took away connection and community for<br />
most of us, which as humans we naturally<br />
crave and require to survive. Communication<br />
that is good, challenging or even unclear<br />
builds trust. Your people are not looking for<br />
you to be perfect, they want you to be real<br />
and the way to make them feel it, and the key<br />
word here is feel, will come from your commitment<br />
to communication.<br />
What Can You Do<br />
● Pull out your phone and shoot a video:<br />
Shoot a two to five-minute video on your<br />
phone and share it with your team. Tell<br />
the team how you felt during the last two<br />
years, share your ups and downs, and most<br />
importantly, be real. Share how much<br />
you appreciate them and why you appreciate<br />
them, and be sure to use real examples.<br />
Share your vision and/or excitement for<br />
<strong>2022</strong> and let them know that you need and<br />
want them to be a part of it.<br />
● Schedule a follow-up meeting: Bring<br />
your two or 200 employees together to<br />
go more in-depth into the message in your<br />
video; then allow your team in a safe and<br />
trusting space to share their pandemic<br />
experience. Don’t focus on what needs to<br />
happen later this week or this month; just<br />
create space for your team to share and be<br />
fully present.<br />
● Commitment to regular meetings:<br />
Communication is not an event, it is a<br />
process, and for it to be effective you need<br />
to have a meeting rhythm that works for<br />
you. Weekly, monthly and quarterly meetings<br />
should all be mapped out for <strong>2022</strong>. For<br />
direction on the ideal meeting frequency,<br />
shoot me an email for agendas,<br />
frequency and engagement tips.<br />
● Create an execution-focused strategy:<br />
I spend all day, every day, helping hospitality<br />
leaders and leadership teams build<br />
execution-focused strategies, goals and<br />
goals and plans, but this was not always the<br />
case. Early in my career, I worked with many<br />
teams that had great meetings, great discussions<br />
and great ideas but failed to achieve<br />
the results they wanted and deserved. This<br />
was not because they weren’t strong leaders<br />
and managers; it often came down to the fact<br />
that they were overcommitted. They had too<br />
many goals, projects and priorities that were<br />
all moving forward, but none of them seemed<br />
to be getting done at an excellent level. As a<br />
coach, I work with leaders and help them let<br />
go of over commitment, while moving away<br />
from the addiction of being busy. If you want<br />
to really move your business forward, you<br />
need to answer the three questions below.<br />
1. How does your team win in <strong>2022</strong>? In one<br />
to three sentences, you need to have a clear<br />
and measurable statement that can get<br />
your team focused and excited.<br />
2. Identify your three core drivers. What are<br />
the three activities, processes or projects<br />
that when done consistently will allow you<br />
to win <strong>2022</strong>?<br />
3. Measure, discuss, debate and celebrate<br />
progress. How do we know who won the<br />
football, baseball, or hockey game you last<br />
watched? There was a scoreboard that let<br />
you know exactly what happened. Not only<br />
did it provide the final outcome, the score,<br />
but in all areas of the game. Once we have<br />
a clear scoreboard, we can then discuss and<br />
debate what is needed to get better results<br />
in the next game.<br />
And don’t forget to celebrate when consistent<br />
execution or greatness shows up in your<br />
operation. People need positive reinforcement<br />
based on what we’ve all just gone through. To<br />
be a great leader, you need to create a culture of<br />
genuine recognition and celebration.<br />
The evolution of leadership starts with<br />
working on yourself so we can show up and<br />
be the leader that our operations need us to<br />
be. Not only to survive, but thrive as we rebuild<br />
and re-bound from the pandemic. We<br />
have intentionally packed a lot into this article<br />
but my wish for you is to commit to action<br />
the one idea or section that stood out most to<br />
you. If we want to change our results, we need<br />
to change our behaviours. FH<br />
Matt Rolfe is a coach, speaker,<br />
bestselling author and entrepreneur.<br />
For support or more<br />
leadership insights, email<br />
matt@mattrolfe.com<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 13
FRANCHISE REAL ESTATE<br />
THE LOCATION EQUATION<br />
An endemic can impact land-control decisions<br />
BY ALAN DICK<br />
LOCATION, LOCATION, LOCATION. Historically,<br />
this factor has been every bit as important as<br />
a predictor of success for a restaurant as it is<br />
considered to be in the selection of a personal<br />
residence. Yet, the best location in the world<br />
cannot overcome lockdowns and reduced<br />
capacities (and in some cases, may be detrimental<br />
given the higher rents that are often<br />
associated with premium locations). Against<br />
that backdrop, and for any government<br />
programs that might help reduce the impact<br />
of closures, the effect of having to pay some<br />
or all rents during a lockdown has proven<br />
devastating to many restaurants.<br />
In the franchising context, one fundamental<br />
decision that a would-be restaurant franchisor<br />
makes is who will hold the lease for the business.<br />
There are typically four options: the franchisor;<br />
the franchisee; an affiliate of the franchisor,<br />
which holds leases for the entire system and<br />
sublets premises to its franchisees; or a singlepurpose<br />
affiliate of the franchisor that holds<br />
an individual lease, which it sublets to a<br />
particular franchisee.<br />
There are traditional considerations, pro<br />
and con, impacting franchisors’ decisions for<br />
the land-control aspect of the design of their<br />
systems. These considerations are re-examined<br />
below in light of the approaching endemic.<br />
DIRECT OR INDIRECT FRANCHISOR CONTROL<br />
Franchisors looking to maximize control over<br />
their franchisees’ premises typically enter<br />
into leases directly or through either a leasing<br />
affiliate or single-purpose affiliate. In situations<br />
where the franchisee may be terminated or<br />
abandon the system, having land control is<br />
useful because it prevents the franchisee from<br />
remaining in possession of the premises and<br />
operating from a location previously affiliated<br />
with the system. In these circumstances, land<br />
control also helps to minimize the likelihood<br />
a franchisor will need to sue to enforce any<br />
applicable covenant not to complete.<br />
Landlords may require franchisors to<br />
provide an indemnity, or limited indemnity<br />
in duration or amount, if they are prepared<br />
to accept a franchisor’s affiliate as the tenant<br />
because these affiliates, typically speaking, are<br />
mere holding companies with no meaningful<br />
covenant to offer themselves. In this scenario,<br />
it’s the franchisor or its affiliate who is directly<br />
responsible for fulfilling the tenant’s obligations<br />
under the lease. To that end, franchisors<br />
often face the situation of funding rental<br />
payments when they terminate a franchisee’s<br />
sub-lease, pending their ability to re-franchise<br />
the location.<br />
In the age of an endemic, this strategy of<br />
holding leases, whether directly or indirectly,<br />
can create tremendous financial hardship on<br />
a franchisor where the sub-tenant franchisee<br />
may not itself be able to maintain its payments<br />
under its sub-lease and any franchisee<br />
indemnifier does not have the wherewithal to<br />
make good on any indemnity given under a<br />
sub-lease/franchise agreement.<br />
FRANCHISEE CONTROL<br />
The immediate reaction to the potential<br />
financial burden on a franchisor resulting<br />
from holding leases, whether directly or indirectly,<br />
is to instead require franchisees to lease<br />
their premises directly from their landlords.<br />
The decision to have franchisees lease directly<br />
as a matter of system design is not a standalone<br />
decision, but involves several other critical<br />
decisions:<br />
• Is the franchisee or the franchisor<br />
primarily responsible for seeking out<br />
suitable premises and negotiating<br />
the lease?<br />
• Is the franchisee or the franchisor<br />
responsible for the build-out of<br />
the premises?<br />
• Who will receive any tenant allowance<br />
which may be available to the tenant?<br />
Leaving these considerations aside,<br />
ISTOCK.COM/RAWF8<br />
14 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
allowing franchisees to lease premises directly<br />
from a landlord creates the following dynamics:<br />
• The franchisee will have the primary<br />
relationship with the landlord. The franchisee<br />
may not have the necessary gravitas<br />
or skill to negotiate with its landlord<br />
during an endemic;<br />
• There is a greater likelihood of a default<br />
occurring if the franchisee cannot sustain<br />
its rents with no, or limited, business;<br />
• If the franchisee is seeking to terminate<br />
its obligations with its franchisor, it will<br />
have control at first instance of its location<br />
and may have a positive relationship<br />
with its landlord who may support a<br />
de-identification;<br />
• A franchisee may be behind in their obligations<br />
for some time before the franchisor<br />
becomes aware of the default; and<br />
• It may be more difficult for the franchisor<br />
to negotiate for its receipt of tenant<br />
allowances or inducements.<br />
The experience from this endemic has overwhelmingly<br />
suggested that franchisors need to<br />
design their systems with the least exposure to<br />
lease liabilities and cross-defaults under their<br />
leases as possible. Funds that must be paid to<br />
landlords are needed for other purposes —<br />
innovation, franchisee support, wage support<br />
for key employees and maintaining corporate<br />
locations. Paying rent on closed or partially<br />
open locations can create a significant risk to<br />
the health and future of a franchise system<br />
very quickly.<br />
Assuming the endemic is here to stay, with<br />
the prospects of future variants and renewed<br />
partial or total closures, along with the unpredictability<br />
of government-support programs,<br />
the choices for franchisors on the matter of<br />
land control are narrowing. At this time, franchise<br />
systems should approach land control<br />
with the following design features:<br />
• Franchisees should be responsible for<br />
finding locations within the territory<br />
agreed to, subject to the franchisor’s<br />
approval. If suitable locations are not<br />
found within a specified period, franchisees<br />
should be entitled to a return of the<br />
initial franchise fees, in whole or in part;<br />
• Franchisors should provide guidance to<br />
franchisees on lease terms, and should<br />
either consider providing franchisees<br />
with an approved form of a letter of<br />
intent to be utilized by franchisees or<br />
take responsibility for the negotiation of<br />
the letter of intent and lease on behalf of<br />
the franchisees;<br />
• Franchisors should be entitled to approve<br />
the form of an offer to lease and lease,<br />
which the franchisee intends to enter<br />
into if they have not undertaken the<br />
negotiations themselves;<br />
• Franchisees will take the ultimate<br />
responsibility for the terms of any offer<br />
to lease or lease they enter into;<br />
• Franchisors should require franchisees<br />
as a term for their approval that they be<br />
given the following rights:<br />
1. To notice by the landlord if a breach<br />
of the lease occurs;<br />
2. to have the lease conveyed to the<br />
franchisor upon a termination of the<br />
franchise agreement;<br />
3. To have time to re-franchise upon a<br />
conveyance of the location and, during<br />
that intervening period, to be<br />
“dark” if necessary;<br />
4. To occupy the location under the<br />
franchise agreement in the event of a<br />
large group of defaults by a franchisee<br />
and to operate the business for the<br />
account of the parties as set out in the<br />
franchise agreement;<br />
5. To receive any tenant allowances to<br />
support construction;<br />
6. To control the construction at the<br />
franchisee’s expense;<br />
7. To take security over the tenant’s<br />
assets (to the extent permitted by any<br />
loan which a franchisee may need to<br />
procure to support the construction<br />
and store opening); and<br />
8. To act as the franchisee’s agent for an<br />
additional fee to negotiate with the<br />
landlord where necessary.<br />
These guidelines require a great deal of<br />
understanding on the part of franchisors and<br />
significantly impact the drafting of the default<br />
agreements utilized within the system.<br />
LEASE TERMS<br />
Franchisors will want to pay particular<br />
attention to the following matters if they<br />
allow their franchisees to lease their<br />
premises directly.<br />
Force Majeure: As a result of the<br />
pandemic, most landlords and franchisors<br />
re-visited the wording of the force majeure/<br />
unavoidable-delay provisions of their leases<br />
and other agreements. For a franchisor, to the<br />
extent possible, it will not want the tenant to<br />
be paying rent if the tenant is not receiving<br />
revenues of any significance or governmental<br />
assistance. More specifically, the franchisor<br />
will want to ensure that these provisions,<br />
which would suspend the tenant’s obligations<br />
to perform, include government lockdowns,<br />
whether formal or informal, and specifically<br />
do not require the tenant to pay rent during<br />
this time.<br />
Use Clause: Franchisors should confirm<br />
that the use clauses in their leases are limited<br />
to the activities of operating the system’s<br />
business but allow for sufficient flexibility to<br />
permit them to modify the business as they<br />
may need to.<br />
Insurance: Franchisors will want to<br />
ensure that the franchisee/tenant is carrying<br />
sufficient and appropriate business-interruption<br />
insurance.<br />
Formal Lease: If the franchisors’ entitlements<br />
are to be more specifically included<br />
in the formal lease rather than the offer to<br />
lease, they will not want their franchisees<br />
taking possession of the premises under the<br />
franchise agreements until the subject lease<br />
is fully executed.<br />
Landlord’s Work/Tenant’s Work: Whether<br />
in an offer to lease or lease, franchisors should<br />
ensure that they have approved all work that<br />
is expected to be performed by the landlord<br />
and the tenant. A franchisor’s form of letter<br />
of intent that its franchisees either utilize or<br />
are guided by should include these provisions.<br />
Land control is one of the most difficult<br />
pieces of franchise system design that a franchisor<br />
must understand, appreciate and gain<br />
expertise in. The decisions made around land<br />
control and the execution of these decisions<br />
can make the difference between system success<br />
and failure during a pandemic/endemic. FH<br />
Sotos LLP assists many franchisors<br />
in the design of their systems.<br />
Many of the aforementioned<br />
leasing considerations are also<br />
applicable to single unit or multiple<br />
unit non-franchised restaurant operations.<br />
If you have any questions about your leases or<br />
land control issues, please contact the author at<br />
adjdick@sotos.ca or 416-805-8989.<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 15
FOOD FILE<br />
BY SARAH B. HOOD<br />
is the<br />
CHICKEN IS THE MENU MAINSTAY WE ALL NEED IN TOUGH TIMES<br />
Hands up if you haven’t indulged in takeout or delivery<br />
chicken recently. Barbecued, deep-fried, topping a pizza, stuffing<br />
a taco or filling a rice bowl, “the consumption of chicken<br />
continues to increase, and we see it as one of the top menu<br />
items overall,” says Robert Carter, industry analyst with<br />
The StratonHunter Group in Toronto.<br />
16 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
Hot and Sweet<br />
Last spring, South-Korean chain NeNe Chicken<br />
opened its first-ever North-American stores with two<br />
locations in Vancouver. It’s just one of many Asian<br />
brands that have been fuelling the demand for adventurous<br />
fried-chicken choices, with flavours such as<br />
sweet-chili sauce, “Hot Bling” sauce or cheese powder.<br />
Many of these fall under the popular category of<br />
“swicy” flavours (sweet plus spicy) that is also driving<br />
menu offerings such as hot pepper-honey pizza.<br />
“We’re seeing that [trend] start to make waves,”<br />
affirms Lisa Bishop-Spencer, director of Brand and<br />
Communications for Ottawa-based Chicken Farmers<br />
of Canada (CFC), “savoury spices and heat plus sweetness,<br />
or an umami plus sweet: maple vinegar, honey<br />
vinegar. We’re going to see breaded chicken with sweet<br />
or umami notes, healthy with a side of indulgence.”<br />
Bishop-Spencer also notes an interest in fusion<br />
concepts such as Korean tacos or Japanese ceviche. For<br />
example, in September, Mucho Burrito introduced its<br />
Tandoorrito, a Mexican-Indian combination of hot<br />
Tandoori masala and pico de gallo. There’s still demand<br />
for “nostalgic comfort-food classics,” but with “more<br />
flavours like peri-peri or smoke applewood, hickory.<br />
Europe is really seeing that right now,” she says.<br />
“It’s about the flavour: cumin, ginger, influence<br />
from Asia and Middle-Eastern countries,” says Cinthia<br />
Nehring, international director of Marketing for<br />
Church’s Chicken, who is based in Toronto (see profile<br />
on p.34). Church’s Chicken brings in new items “every<br />
(top) McDonald’s habanero-powered Spicy Chicken McNuggets<br />
Piri Piri Rotisserie chicken legs (bottom)<br />
CNW GROUP [MCDONALD’S HABANERO-POWERED SPICY CHICKEN & PIRI PIRI ROTISSERIE CHICKEN]; ISTSOCKCOM/ LILECHKA75<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 17
KFC’s Double Down Chicken Sandwich<br />
Bright Ideas<br />
There’s more than one way to sell a chicken<br />
dinner. The restaurant industry has demonstrated<br />
remarkable resilience and flexibility<br />
over the past two years. Here are some particularly<br />
noteworthy examples:<br />
Chalet World Swiss Chalet has introduced<br />
AR entertainment for diners via its mobile<br />
app. “Chalet World” can be accessed by<br />
scanning the sticker seal on takeout packaging<br />
or directly through the Swiss Chalet<br />
app (available on the Apple Store or Google<br />
Play). It allows them to play trivia and guessing<br />
games, win prizes as they navigate an<br />
interactive “Canadian Chalet” environment or<br />
stream music.<br />
eight to 10 weeks,” such as a new garlicherb<br />
option.<br />
No End to<br />
Sandwich Wars<br />
Piquant, indulgent and<br />
admirably adapted for takeout<br />
dining, the spicy fried-chicken sandwich has<br />
been one of the pandemic’s star performers, and<br />
there’s no sign that the QSR category’s “chickensandwich<br />
wars” are slowing down.<br />
“The chicken-sandwich category is just<br />
exploding; it continues to have great traffic<br />
volume,” says Carter. Some chains, such<br />
as Church’s Texas Chicken, were ahead of the<br />
trend. “We’ve been doing sandwiches for over 15<br />
years,” says Nehring. Its signature Mexicana is<br />
Earls Cajun Blackened Chicken<br />
topped with spicy mayo, cheese, taco chips, diced<br />
onions, tomato and lettuce on a sesame bun. The<br />
brand has recently launched a Texas Dry Rub<br />
sandwich on a brioche bun.<br />
Other outlets have been experimenting with<br />
related menu offerings; for instance, last August,<br />
McDonald’s launched a limited-edition run<br />
of its new habanero-powered Spicy Chicken<br />
McNuggets, the first tweak to its nuggets offering<br />
since 1984. These follow McDonald’s other pep-<br />
A Moveable Feast In September, Jollibee<br />
and DoorDash unveiled a new mobile kitchen<br />
in Hamilton, Ont., located adjacent to the<br />
CF Lime Ridge Mall, a location selected by<br />
analyzing customer activity captured by<br />
DoorDash data. The 15-meter travelling<br />
kitchen – made from a converted flatbed<br />
trailer – will fulfill online pickup or delivery<br />
orders, eliminating the need for a full-service<br />
brick-and-mortar outlet.<br />
DIY Dinners Earls has found a new way to<br />
serve some of its dishes. The upscale casual<br />
chain has launched home-meal Chef Kits,<br />
designed for two diners, across most of its<br />
stores in both Canada and the U.S. Texample,<br />
the Cajun Chicken Kit for Two ($30) includes<br />
Earls’ proprietary Cajun spice and all the other<br />
ingredients to prepare Cajun Chicken with<br />
warm potato salad and coleslaw. Instructional<br />
videos featuring culinary cevelopment chef<br />
David Wong are posted online.<br />
CNW GROUP [KFC SANDWICH]; JOLLIBEE [CHICKEN SANDWICH]<br />
18 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
INTRODUCING THE ALL NEW<br />
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pery chicken innovations, including the Spicy<br />
Habanero McChicken (now a permanent menu<br />
item) and the occasional Jalapeño McChicken,<br />
Szechuan McChicken and Ghost Pepper<br />
McChicken sandwiches.<br />
In September, Jollibee launched its<br />
Chickenwich, topped with umami mayo, and<br />
the Spicy Jollibee Chickenwich with sriracha<br />
mayo and fresh jalapeños. In mid-October,<br />
Popeyes added kick to its chicken sandwich<br />
and newly unveiled nuggets with Megan Thee<br />
Stallion Hottie Sauce, an on-trend sweet-hot<br />
blend of honey, cider vinegar and Aleppo<br />
pepper produced in collaboration with the<br />
vibrant Grammy-winning performer Megan<br />
Thee Stallion. Meanwhile, KFC brought back<br />
its Double Down for a short time in October<br />
and November, featuring bacon and Monterey<br />
Jack sandwiched not in a bun, but between<br />
two pieces of fried chicken.<br />
Rapid Expansions<br />
In 2021, Jollibee opened its third Winnipeg<br />
location and its third in Calgary, bringing the<br />
brand’s total to 22 stores in Canada. Hi Five<br />
Chicken, a 24-hour QSR chain that launched<br />
in Vancouver in 2016, is adding six more<br />
locations to its existing three. In Montreal,<br />
Portuguese rotisserie chain Piri Piri has plans<br />
to expand from five rotisseries to 25 by 2025<br />
through franchising. The brand opened its<br />
first franchised store in November.<br />
Also expanding are Mary Brown’s and<br />
Chick-Fil-A, while “St. Hubert in Quebec<br />
is such a strong brand staple, and they’ve<br />
expanded into the ‘quick casual’, as they call<br />
it,” says Carter. “Their new concepts continue<br />
to do really well.”<br />
Although some previously successful<br />
businesses have faltered during COVID-19,<br />
“there are still going to be some really good<br />
chicken fast-casual concepts that will appear<br />
post-pandemic,” Carter says. With pre-cooked<br />
rotisserie chicken a number-1-selling grocery<br />
item, he believes rotisserie chicken still has<br />
a bright future, as well as “upscale<br />
fast-casual chicken places” ranging<br />
from Asian concepts to SoCal-style<br />
light and healthy menus.<br />
And — more good news —<br />
the supply chain is healthy, says<br />
Bishop-Spencer. “Canada produces<br />
the vast majority of the chicken<br />
that Canadians consume,” she says,<br />
and “96 per cent of Canadians<br />
feel good about buying food from<br />
Canadian farmers.”<br />
To capitalize on protein<br />
patriotism, she says, Chicken<br />
Farmers of Canada has recently relaunched<br />
its “Raised by a Canadian<br />
Farmer” logo in variations that<br />
reflect different standards of animal<br />
welfare, for use on menus and websites.<br />
The campaign ties the ongoing<br />
love of local together with the stillincreasing<br />
interest in farming conditions.<br />
But until the COVID-19 waves subside<br />
and dining-rooms are fully open again,<br />
the industry can count on an undiminished<br />
national enthusiasm for the comforting<br />
familiarity of chicken, livened up with a hit<br />
of flavourful condiments: a little bit of cheerful<br />
nourishment for both body and spirit. FH<br />
When Is a Chicken Not a Chicken?<br />
Jolibee has grown<br />
its “chicken joy”<br />
across Canada and<br />
currently operates<br />
22 stores; Popeyes<br />
is featuring Hottie<br />
Sauce with its<br />
chicken offerings<br />
in partnership with<br />
rapper Megan Thee<br />
Stallian<br />
In response to diners’ demands for healthy and sustainable foods,<br />
more plant-based chicken products are coming onstream – and<br />
lab-grown meats may not be too far behind.<br />
In January, KFC Canada promoted its vegan chicken, using Maple Leaf Foods’ Lightlife<br />
plant-based fillets, to the permanent menu, after resounding approval in testing.<br />
Mary Brown’s Chicken is now using Lightlife for Tenders and Chicken Sidekick Snack<br />
Sandwiches.<br />
Zoglo’s Incredible Food Corp. and manufacturer Classic Touch Foods of Markham,<br />
Ont. have teamed up to produce co-branded plant-based and vegan lasagna, butter<br />
chicken, and spaghetti and meatballs for foodservice. In December, McCain and Strong<br />
Roots announced a partnership that will allow the plant-based frozen-food company<br />
to expand into the foodservice market through McCain’s network.<br />
Somewhat ironically, although “there is a perception that plant-based meat is<br />
healthier than single-ingredient meat,” says Lisa Bishop-Spencer of Ottawa-based<br />
Chicken Farmers of Canada, its research shows plant-based chicken has less protein,<br />
more fat and a lot more sodium than its animal-based counterpart.<br />
Meanwhile, in December, the future of lab-produced protein – grown from single cells,<br />
and touted as a sustainability solution – came one step closer as the Singapore Food<br />
Agency granted approval to CULT Food Science Corp. to sell its GOOD<br />
Meat chicken products, starting this year. CULT is part of the<br />
successful plant-based food producer Eat Just.<br />
“The quality is apparently quite good,” says Robert<br />
Carter of Toronto-based The StratonHunter Group.<br />
“The quantity is micro now,” he adds, but he predicts<br />
we’ll see more “over the next 10 to 15 years.”<br />
JOLLIBEE; CNW GROUP MARY BROWNS PANT BASED SANDWICH AND MEGAN THEE STALLION<br />
20 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong><br />
FOODSERVICEANDHOSPITALITY.COM
QSR<br />
The<br />
QSR<br />
foodservice-industry analysts, operators and suppliers<br />
weigh in on how covid-19 has forced quick-service operators<br />
to re-evaluate the customer experience<br />
BY AMY BOSTOCK<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 21
FOODSERVICE CHANNELS - MONTHLY TRAFFIC TRENDS<br />
QSR Restaurants lost more than 40% of their visits during the early days of the pandemic in 2020, or about<br />
half as much as FSR. Traffic began returning to all segments immediately, and QSR recovery has been steady<br />
ever since. FSR recovery has risen and fallen more based on the revolving lockdowns.<br />
In the years leading up to COVID-19, the<br />
quick-service restaurant segment was a growing<br />
industry. “Between 2014 and 2018, QSR<br />
was seeing average annual sales growth of<br />
5.8 per cent per year, which is exceptionally<br />
strong,” says Chris Elliott, senior economist<br />
for Restaurants Canada. “We were also seeing<br />
expansion in number of units and overall,<br />
there seemed to be this growing need for people<br />
wanting convenience and value. Breakfast,<br />
especially, over the last decade, was driving<br />
a lot of that foodservice spending — people<br />
were looking for that convenience on the way<br />
to work.”<br />
But in 2018, Elliott says higher menu prices<br />
began to impact the segment, especially in<br />
Ontario due to the minimum-wage increase.<br />
“Once you factor out inflation and unit<br />
SOURCE: STATISTICS CANADA AND RESTAURANTS CANADA<br />
140 %<br />
100%<br />
60%<br />
20%<br />
-20%<br />
-60%<br />
-100%<br />
growth, average unit volume adjusted for<br />
inflation was actually higher [in 2017] than<br />
in 2019. So, even though we saw the overall<br />
aggregate sales numbers were growing — and<br />
hit a record level in 2019 — at the operator<br />
level (total sales divided by the total number<br />
of units) sales have lagged the last few years.<br />
Economists would say ‘on the one side, sales<br />
are up; but on the other side, sales were flat.’<br />
CHANGE IN SALES SINCE JANUARY 2020<br />
FOODSERVICE CHANNELS - PCYA MONTHLY TRAFFIC TRENDS<br />
Feb'20 Apr ‘20 June ‘20 Aug ‘20 Oct ‘20 Dec ’20 Feb ‘21 Apr ‘21 Jun ‘21 Aug ‘21 Oct ‘21<br />
FSR<br />
QSR<br />
Full-service restaurants Quick-service restaurants Drinking Places<br />
SOURCE: THE NDP GROUP/CREST YE NOVEMBER 2021<br />
Overall, people were spending more at restaurants,<br />
but from the restaurant perspective,<br />
they weren’t seeing any improvement in sales.”<br />
A deeper dive shows that pre-COVID, the<br />
QSR industry was actually starting to slow<br />
down, agrees Vince Sgabellone, industry<br />
analyst, Canada Foodservice, The NPD<br />
Group. “The FSR industry was actually<br />
outpacing QSR in terms of traffic and dollar<br />
growth,” he says, adding over<br />
the last two years, he’s seen that<br />
accelerated evolution and change<br />
within QSR was coming anyway.<br />
“The digital, delivery and athome<br />
consumption revolution<br />
that we were all forced to adopt<br />
in March of 2020 was already<br />
taking place somewhat. Prior to<br />
COVID, more people were working<br />
from home, shopping from<br />
home and entertaining at home<br />
already, [which meant] meals,<br />
snacks and beverages at the<br />
office, on the way to the office or<br />
on the way home from the office<br />
— those were already starting to<br />
slow down. The coffee industry<br />
in particular was feeling that hit.”<br />
SIGNS OF THE TIMES<br />
In March 2020, the world shut<br />
down. Restaurants shuttered,<br />
office buildings sat empty as<br />
employees worked from home<br />
and sales across all foodservice<br />
segments plummeted. By April<br />
22 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM<br />
TOTAL
OPERATOR<br />
VIEW<br />
For Ryan Smolkin, founder and CEO of the<br />
Smoke’s Poutinerie brand, operating in<br />
the QSR space has not been the advantage<br />
everyone thinks.<br />
“It’s a misnomer,” he says.<br />
“Everybody’s been hit hard. [Being a<br />
QSR] has pros and cons for us. On the<br />
pro side, my locations are a little smaller<br />
— I can operate with one person in my<br />
locations as opposed to some of these<br />
10 to 20,000-sq.-ft. places that need 10<br />
staff on to even open their door. But at<br />
the same time, they can potentially do a<br />
lot more revenue than the little guy.”<br />
Smolkin says although it’s easier for<br />
QSRs to change on the fly to operate<br />
during lockdowns, “there’s just as many<br />
QSR that are going to be have gone under<br />
[as a result of COVID],” he says, adding<br />
“if you’re the big boys, there’s some<br />
bigger dollars so you’re able to weather<br />
the storm longer.”<br />
And while government-assistance<br />
programs have helped the<br />
segment, and the industry as a whole,<br />
Smolkin points out that not all operators<br />
reap the benefits, as many don’t meet<br />
the criteria laid out for qualification.<br />
“We’ve been hit pretty hard,” he<br />
shares, saying Smoke’s Poutinerie sales<br />
were down 60 to 70 per cent at one point.<br />
And while consumers assume QSRs are<br />
raking in the cash thanks to being welladapted<br />
to off-premise, for companies<br />
such as Smoke’s Poutinerie, which touts<br />
itself as a “pure entertainment company,”<br />
not having people coming in through its<br />
doors means the atmosphere Smoklin<br />
has worked hard to foster was lost.<br />
Another problem with shifting to delivery,<br />
he says, is the 30 per cent third-party<br />
delivery companies take off the top.<br />
“That’s 30 per cent that should have<br />
gone into the franchisee’s pocket but is<br />
now going into their pocket. So, I don’t<br />
get excited [about delivery]. Thirdparty-delivery<br />
platforms are doing<br />
great. Small QSRs are not doing great<br />
when it comes to delivery — they’re losing<br />
money hand over fist on every order<br />
that goes out.”<br />
FOODSERVICEANDHOSPITALITY.COM<br />
2020, QSR sales had dropped 40 per cent<br />
compared to pre-pandemic levels, according to<br />
data from Restaurants Canada.<br />
This compared to full-service restaurant,<br />
where sales were down about 77 per cent,<br />
and drinking places such as bars, taverns, and<br />
nightclubs, down almost 90 per cent. “Many of<br />
these [FSR and drinking place] operators had<br />
shut down completely because they didn’t have<br />
any type of off-premise service,” explains Elliott<br />
of the gap in segment performance levels. “They<br />
weren’t doing any type of delivery or takeout<br />
service.”<br />
Largely though, quick-service<br />
restaurants could stay open<br />
because they had takeout,<br />
drive-thru and delivery options,<br />
says Elliott, adding most of<br />
what was closed were food<br />
courts inside malls.<br />
Pre-pandemic, Sgabellone<br />
says 60 per cent of QSR business<br />
was off premise, meaning the<br />
segment was more than ready<br />
to pivot once lockdowns began.<br />
“It wasn’t as big a deal for them.<br />
Many of the big players also<br />
were already heavily invested<br />
in digital, so when the market<br />
went digital, they were ready<br />
with their digital platforms. And<br />
many of them had the drivethru<br />
already, which again, was<br />
BETWEEN<br />
2014 AND<br />
2018, QSR<br />
WAS SEEING<br />
AVERAGE<br />
ANNUAL<br />
SALES<br />
GROWTH OF<br />
5.8 PER CENT<br />
PER YEAR<br />
just a way to enhance that on-premise revenue.”<br />
When COVID-19 hit “that 60 per cent went<br />
up to about 80 per cent, so it actually grew<br />
in size, not just in share. The QSR industry<br />
was able to pivot very quickly, because it was<br />
already set up for off-premises — that was<br />
their meat and potatoes, especially at the chain<br />
level — although that wasn’t necessarily the<br />
case as much for the independents, who would<br />
have had to struggle a little bit more in the<br />
beginning as they didn’t have the digital platforms<br />
or the drive-thrus.”<br />
Throughout this pandemic, Elliott<br />
says he saw a much faster recovery for<br />
quick-service restaurants. In fact, by<br />
June 2021, foodservice sales in the<br />
QSR segment had returned to prepandemic<br />
levels.<br />
“One of the biggest factors driving<br />
these sales was not actually delivery,<br />
it was drive thru, which accounted<br />
for about 50 per cent of all sales<br />
at quick-service restaurants up to<br />
about April 2021. People were<br />
looking for that touchless, almost<br />
contact-free approach, so any<br />
restaurant that had a drive-thru<br />
outperformed those restaurants<br />
that did not,” says Elliott.<br />
And while delivery and takeout<br />
were touted as the saviours during<br />
pandemic times, digital and delivery<br />
sales had actually been experienc-<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 23
SUPPLIER<br />
VIEW<br />
Throughout the pandemic, the QSR segment has<br />
fared better than others. From a supplier point of<br />
view, Granett Douglas, vice-president Foodservice<br />
at GBS Food Service Equipment Inc., says equipment<br />
and complementary products supplied to the QSR<br />
segment “have thrived, comparatively speaking [as<br />
some] franchise entrepreneurs have been transitioning<br />
from dine-in style towards QSR concepts.”<br />
Douglas says QSR operators, to succeed, must<br />
operate lean and mean at all times; operating<br />
within the pandemic only amplifies this need,<br />
leading to the move towards easy-to-use, train<br />
and maintain equipment, as well as more energyefficient<br />
equipment to help reduce day-in, dayout<br />
operating costs.<br />
“These attributes can be seen in controller<br />
functions (multiple cook programs on fryers,<br />
for example), self- or semi-automatic cleaning<br />
systems (rotisseries and combi ovens), or selfdiagnostic<br />
equipment to assist in maximum up<br />
time (often we can troubleshoot issues without<br />
having to dispatch service).<br />
He points to the UltraFryer System, the only<br />
zero-recovery fryer in the market designed<br />
specifically for QSR operators. “The original<br />
company founder was actually the same founder<br />
of Church’s Chicken, who was unable to keep up<br />
with production requirements of his increasingly<br />
popular fried-chicken chain,” says Douglas.<br />
AccuTemp Products also provide significant<br />
value adds for QSR operations, with its groundbreaking<br />
Steam Griddle technology changing the<br />
game completely when discussing high-performance<br />
griddles. “Imagine a 24-inch griddle that<br />
can turn-out 240 double cheeseburgers in one<br />
hour, and cook a quarter pound frozen hamburger<br />
patty in under two minutes,” says Douglas.<br />
While COVID-19 has forced many operators to<br />
re-evaluate their equipment choices, Douglas<br />
says when the industry finally levels out, QSR<br />
operators will once again have infinite product<br />
options, with relatively quick availability.<br />
“Clients will expect to pay 20 to 25 per cent<br />
more money for a piece of equipment from<br />
pre-pandemic levels (I don’t see that decreasing<br />
after supply chains stabilize),” he says.<br />
“Equipment trends towards high-efficiency and<br />
innovative products that allow operators to “do<br />
more with less” are here to stay, and the desire<br />
for these goods should amplify exponentially as<br />
we move forward in time.”<br />
24 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong><br />
AVERAGE UNIT VOLUME IN CANADA (IN 2019 DOLLARS]<br />
$821,700<br />
$718,200 $849,200<br />
ing double-digit year-over-year growth long<br />
before COVID-19 appeared.<br />
“In the three years prior to the pandemic,<br />
[digital ordering] doubled from<br />
about two per cent to about six per cent<br />
of orders,” says Sgabellone. “And then in<br />
March [2020], it tripled again to about<br />
18 to 20 per cent and now it’s settling at<br />
about 15 per cent of orders.”<br />
While the digital trend is linked with<br />
delivery and third-party delivery apps,<br />
Sgabellone adds digital also means preordering<br />
your drive-thru order or coffee,<br />
which emerged as a growing trend<br />
during the pandemic.<br />
THE RISE OF GEN Z<br />
In his almost 15 years of<br />
following foodservice trends,<br />
Sgabellone says the top foods<br />
in Canada have remained<br />
fries, burgers, chicken<br />
sandwiches and pizza.<br />
“That’s not going to<br />
change,” he says. “Those top<br />
foods are always good to<br />
top foods, but now they’ve<br />
become a tremendous platform<br />
for new flavour exploration,<br />
whether it’s some sort<br />
of a global flavour or new<br />
preparation, [as well as] the<br />
meatless revolution.”<br />
One of the main drivers<br />
of flavour innovation to<br />
Quick-service restaurants<br />
$722,200<br />
SOURCE: STATISTICS CANADA AND RESTAURANTS CANADA<br />
$853,300<br />
$729,800<br />
$866,700<br />
$755,000<br />
BY APRIL<br />
2020, QSR<br />
SALES HAD<br />
DROPPED 40<br />
PER CENT<br />
COMPARED<br />
TO PRE-<br />
PANDEMIC<br />
LEVELS,<br />
ACCORDING<br />
TO DATA FROM<br />
RESTAURANTS<br />
CANADA<br />
Full-service restaurants<br />
$882,100<br />
$767,500<br />
$864,900<br />
$757,000<br />
$867,400<br />
2013 2014 2015 2016 2017 2018 2019<br />
$776,900<br />
emerge during COVID-19 was a shift in<br />
demographics. As the Gen-Z generation (24<br />
years old this year) leave the nest and enters<br />
the workforce, Sgabellone says the group’s<br />
influence on the foodservice market is growing<br />
exponentially. And not just in QSR,<br />
although he says that segment accounts for<br />
60 per cent of all Gen-Z visits.<br />
“Their behaviours are driving the market,”<br />
says Sgabellone. “[For example,] their<br />
demands for exploration of flavours —<br />
they’ve grown up with the proliferation of<br />
brands and flavours and that creates opportunities<br />
for the big [brands] to jump on<br />
board those flavour trends. But it’s<br />
also the opportunity for the little<br />
guys — the independents and<br />
the small chains.”<br />
He points to the growth in<br />
Indian, Mediterranean and<br />
Ethiopian cuisines “and this is<br />
from the little mom-and-pop<br />
independents to small chains.<br />
A lot of the influence in those<br />
flavour trends are coming from<br />
the back-end millennials and the<br />
front-end Gen Zs, who are less<br />
brand loyal and more interested<br />
in trying something new.”<br />
TALKING ABOUT<br />
A REVOLUTION<br />
As restrictions continue to be<br />
lifted and people feel more<br />
comfortable going out to eat in<br />
FOODSERVICEANDHOSPITALITY.COM
estaurants, Sgabellone says QSR operators<br />
will have to figure out how to keep those offpremises<br />
customers they gained over the last<br />
two years.<br />
“People have gotten used to ordering offpremises<br />
and some of that behaviour will<br />
stick. But at the same time, there’s all this<br />
pent-up demand for sitting down in a restaurant<br />
and enjoying the experience. And quick<br />
service has always been just as its name states:<br />
quick and convenient. So, once the experiential<br />
part of restaurant dining comes back into our<br />
consideration set, quick service is going to be<br />
diminished from consideration and [operators<br />
are] going to have to figure out how to how<br />
to do [experiential dining]. Otherwise, they<br />
risk going back to where they were pre-2019,<br />
which was slowly slowing down.”<br />
He says this could mean coming up with<br />
ways to bring an experience into the quickservice<br />
environment, or making sure operators<br />
hang on to their off-premise customers using<br />
loyalty programs, deals or new flavours.<br />
Elliott agrees it will be an uphill battle for<br />
the segment as the QSR revolution continues.<br />
“It’s a challenging revolution, because what<br />
you’re also seeing is other people looking<br />
at the quick-service-restaurant market and<br />
saying, ‘I can do that, too.’ And I’m thinking<br />
specifically grocery stores in the last couple of<br />
years, [and] convenience stores where they<br />
want to play in the same sandbox; they want<br />
to be able to provide value, lower-priced<br />
foods, convenience, where you can just pick<br />
COMMERCIAL FOODSERVICE<br />
SALES CANADA<br />
Quick -service restaurants<br />
% change<br />
p- preliminary; f- forecast<br />
SOURCE: STATISTICS CANADA, RESTAURANTS CANADA AND CONFERENCE BOARD OF CANADA<br />
up and go. So, that’s going to be a new era<br />
of competition for quick-service restaurants,<br />
compared to say, a decade ago. And because<br />
of that competition, quick-service, restaurants<br />
are looking for new ways to adapt and change<br />
and are being forced to look at new ways to<br />
remain relevant to the guests and customers.” FH<br />
Millions of Dollars<br />
2018 2019 2020 2021P <strong>2022</strong>F<br />
$32,310.3<br />
5.0%<br />
Full-Service restaurants $32,716.3<br />
5.0%<br />
Caterers $5,949.6<br />
4.2%<br />
Drinking Places $2,780.6<br />
0.7%<br />
Total Sales $73,756.9<br />
4.8%<br />
$33,734.8<br />
4.4%<br />
$34,289.7<br />
4.8%<br />
$6,306.9<br />
6.0%<br />
$2,694.3<br />
-3.1%<br />
$77,025.7<br />
4.4%<br />
$28,902.4<br />
-14.3%<br />
$21,524.7<br />
-37.2%<br />
$3,291.7<br />
-47.8%<br />
$1,401.0<br />
-48.0%<br />
$55,119.8<br />
-28.4%<br />
$33,419.5<br />
15.6%<br />
$26,324.5<br />
22.3%<br />
$3,836.2<br />
16.5%<br />
$1,523.6<br />
8.7%<br />
$65,103.8<br />
18.1%<br />
$34,999.4<br />
4.7%<br />
$31,171.0<br />
18.4%<br />
$4,959.5<br />
29.3%<br />
$2,044.4<br />
34.2%<br />
$73,174.3<br />
12.4%<br />
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26 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
LABOUR REPORT<br />
“ You<br />
used<br />
to be able to hang<br />
out a “Help Wanted”<br />
sign and have 50 people<br />
line up for the job.<br />
Now there are 50 “Help Wanted” signs and<br />
one candidate,” says Ian Milford, principal at<br />
Vancouver-based JRoss Recruiters.<br />
In fact, according to Restaurant Canada’s<br />
Outlook Survey for Q3 2021, 93 per cent of<br />
all restaurants across the country reported<br />
a staff shortage, with half declaring a “significant<br />
shortage.” Statistics Canada’s recent<br />
research cited more than 130,000 vacancies in<br />
the foodservice and lodging sector, with the<br />
majority being restaurant jobs.<br />
While a dearth of qualified candidates<br />
predates the pandemic, COVID-19 has made<br />
a bad situation worse, giving many workers<br />
pause and a chance to step back and reevaluate<br />
(often with the help of government<br />
subsidies) their lives and careers. Many used<br />
the time and money to re-train for entirely<br />
different, more stable, fields, such as tech and<br />
healthcare. Some retired, some returned to<br />
their home countries and, with lockdowns<br />
and visa challenges, can’t get back in. Others<br />
gravitated to the flexibility of the gig economy,<br />
working for food-delivery companies such<br />
as DoorDash, Uber Eats and Lyft. For those<br />
who remain, the table has turned. Now<br />
sought-after, they have demands — and those<br />
demands often go beyond cold, hard cash.<br />
“Money is a ‘satisfier’,” a starting point, says<br />
Milford. “More important for top candidates,<br />
number 1, is work-life balance. The expectation<br />
is that you’re at the restaurant every day,<br />
12 hours a day. While the restaurant may be<br />
[the owner’s] life, it doesn’t have to be, and<br />
shouldn’t necessarily be, the employee’s life.<br />
Number 2 is working for an organization that<br />
resonates with their beliefs and their core values.<br />
Banks and other organizations give staff<br />
time off to volunteer and do things meaningful<br />
to them, why not the restaurant business?”<br />
PERKS AND PROGRAMS<br />
Todd Barclay, former president and CEO,<br />
Restaurants Canada, acknowledges the shortages<br />
are not a new issue, “but absolutely it’s been exacerbated<br />
by what’s happening with COVID. When<br />
you take an industry across an entire country and<br />
effectively shut it down, some provinces for many<br />
months, getting folks to come back, even when<br />
they enjoyed their experiences, is really hard.”<br />
Making it easier will mean adding a little<br />
something extra to sweeten the pot. Many<br />
restaurants are offering signing bonuses to lure<br />
workers in the door, including McDonald’s,<br />
which has dangled anywhere from $200 to, in<br />
Quebec, up to $1,000, along with a 10-percent<br />
bump in salary. One sushi restaurant in<br />
Florida offered cryptocurrency just for coming<br />
in for an interview. Another paid a cash bonus<br />
to vaccinated hires. Others, such as Calgarybased<br />
Franworks Group, which operates<br />
some 100 restaurants in Canada and the U.S.,<br />
offered referral and signing bonuses, but has<br />
focused mostly on retention strategies.<br />
“Retention is critical, as it enables our<br />
businesses to respond to lifting restrictions<br />
and scale to full capacity faster,” says president<br />
Derek Doke. “Whenever possible, we’ve<br />
extended salary continuance to team members.<br />
In some cases, this was to bridge them to<br />
Employment Insurance; at other times we kept<br />
employees intact for the duration of provincial<br />
closures. We went back to the basics and made<br />
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MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 27
MOST GEN Z AND MILLENNIALS SPEND<br />
30 PER CENT OF THEIR WAKING HOURS<br />
ON PLATFORMS LIKE FACEBOOK,<br />
INSTAGRAM, SNAPCHAT, TIKTOK,<br />
GOOGLE AND YOUTUBE, IN ADDITION<br />
TO THE TRADITIONAL JOB BOARDS<br />
sure we were putting our people<br />
first when making tough business<br />
decisions.”<br />
Then there’s the annual salary,<br />
the “satisfier.” Advertising<br />
$50,000 for a dishwasher, as<br />
one Vancouver restaurant did<br />
last summer, is a nice enticement,<br />
but is it sustainable? And<br />
how will current staff, making<br />
minimum wage, react to that?<br />
But Barclay says, “It’s important<br />
to understand, most people<br />
in the restaurant industry are<br />
making more than minimum<br />
wage [except] servers, but servers<br />
make tips — up to $40 an<br />
hour. The highest-paid people<br />
in restaurants are servers. So, to<br />
continue to hear that this is an<br />
industry that is low paying, that<br />
is not true in aggregate.”<br />
In addition to a competitive<br />
salary, much more manageable<br />
long-term, many restaurant<br />
companies say, are perks<br />
and benefits. “Everyone<br />
across all industries<br />
is trying to provide<br />
great work experience<br />
and work environment<br />
for workers, and<br />
we’re doing that, whether<br />
it’s related to wages, shift<br />
[flexibility] or benefits,”<br />
says Barclay.<br />
Some of those perks already<br />
in place include flexible work<br />
schedules, shorter work weeks,<br />
paid vacation, medical and dental<br />
benefits, daily pay options that<br />
compete with the gig economy, free<br />
meals, as well as clear pathways to<br />
promotion. Some restaurants have,<br />
in fact, hired more junior candidates<br />
and devoted more time to<br />
training as a way to widen the net<br />
and propel promotions.<br />
Going the extra mile, such as<br />
allowing personal time off just<br />
to re-charge, can fend off burnout,<br />
which is on the rise since<br />
fewer workers can mean longer<br />
shifts. Those with deeper pockets<br />
can offer child care, paid skills<br />
training and upgrades, tuition<br />
reimbursement, staff-recognition<br />
events and sports getaways, as<br />
The Keg does, and, for executives<br />
and administrators, work-fromhome<br />
opportunities, are now<br />
made easier with apps such as<br />
Slack, Teams and Zoom.<br />
Once you snag that great hire,<br />
keep them by topping up with<br />
profit-sharing, extended medical<br />
coverage for physical therapy,<br />
massage therapy, wellness<br />
benefits, free meals for families,<br />
performance bonuses, or pension<br />
benefits, as Ottawa-based Aiana<br />
does, charitable endeavours or<br />
time off just to go see a concert,<br />
as Earl’s has done.<br />
THE SOCIAL NETWORK<br />
Vivian Wang, founder and CEO<br />
of Landed, a retail and food-<br />
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28 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong>
industry recruiter, says candidates<br />
are job shopping, not job hunting.<br />
So, you need to sell your<br />
company to them by employing<br />
three to five talking points that<br />
focus on pay, bonuses, shift<br />
flexibility, diversity and inclusion<br />
commitments and opportunities<br />
for advancement. And when<br />
casting your net for those elusive<br />
candidates, she says you need to<br />
source them where they are —<br />
social media.<br />
“Most Gen Z and millennials<br />
spend 30 per cent of their<br />
waking hours on platforms like<br />
Facebook, Instagram, Snapchat,<br />
TikTok, Google and YouTube,<br />
in addition to the traditional<br />
job boards,” she says. But hiring<br />
managers don’t necessarily<br />
need to also spend 30 per cent<br />
of their waking hours scrolling<br />
through these feeds; that’s<br />
where automation comes in.<br />
“[Implementing] a conversational<br />
AI component is basically<br />
a way to engage with candidates<br />
over SMS text message and push<br />
notifications to their phone,” says<br />
Wang. “AI essentially has conversations<br />
with candidates, answering<br />
questions, learning from<br />
the way they interact with that<br />
conversational AI, what’s resonating<br />
with them and not resonating<br />
with them, and iterating your<br />
recruitment strategy, highlighting<br />
different benefits. A ton of repeatable<br />
manual tasks, like sending<br />
out paperwork for onboarding,<br />
can be automated using AI,”<br />
freeing up general managers and<br />
staff to service their guests and<br />
hone other skills.<br />
PLEASE, COME IN<br />
Barclay says less restrictive<br />
foreign-worker visas would help<br />
clear the way for international<br />
candidates, and he’s called on<br />
government to organize a national<br />
staffing-development strategy<br />
that would make it easier to<br />
recruit from outside Canada.<br />
“We’re asking for extensions of<br />
contracts for temporary foreign<br />
workers; various things they can<br />
do to free up more people to<br />
work, changing the rules and regulations<br />
around the type of work<br />
that can be included in these temporary<br />
foreign-worker programs,<br />
for example. Including specific<br />
roles and responsibilities in restaurants<br />
within these lists are helping<br />
us get more people working who<br />
are already here and want to work<br />
and don’t want to leave. Things<br />
are moving in a better direction<br />
but we need more help.”<br />
TECH TOOLS<br />
Restaurant Canada’s Outlook<br />
Survey showed 37 per cent of<br />
restaurants added new technology<br />
last year to help streamline<br />
operations and support staff.<br />
Online ordering, food-delivery<br />
apps, and QR codes have been<br />
around a while, but investing<br />
in more advanced tech is<br />
becoming unavoidable.<br />
“Technology is growing<br />
and developing and there will<br />
be options for restaurants to<br />
take a look at ways in which to<br />
increase tech for servers as well<br />
as back of house,” says Barclay.<br />
“I wouldn’t suggest it’s anywhere<br />
near mainstream, but any<br />
restaurant right now is looking at<br />
ways in which to limit their costs.<br />
And if technology will drive some<br />
of those cost reductions, operators<br />
will look for ways to do that,<br />
because they have to survive.”<br />
Lucky Thalas, executive vicepresident<br />
for Markham, Ont.-<br />
based SilverWare POS, is more<br />
emphatic. “A proper guest-facing<br />
digital platform is critical to<br />
simultaneously optimizing sales<br />
and the guest experience,” he<br />
says. “Allowing the guest to scan<br />
a QR code and seamlessly view<br />
the menu, place orders and pay<br />
through their mobile phone while<br />
seated in the restaurant provides<br />
the option for a shared server/<br />
guest ordering experience. For<br />
example, guests can order appetizers<br />
and entrées on their mobile<br />
device, while the server orders<br />
beverages on the POS terminal or<br />
handheld device. Either guest or<br />
server can then manage the checksplitting<br />
or payment function.”<br />
Other tech tools for front-ofhouse<br />
include table-status indicators<br />
and floorplan systems that let the<br />
server know if the table is occupied<br />
or in need of clearing; selforder<br />
kiosks; digital reservation<br />
systems, which can integrate with a<br />
restaurant’s website; and apps that<br />
track where customers come from,<br />
how often they come, size of<br />
party, et cetera.<br />
Back-of-house tech includes<br />
kitchen display screens that<br />
replace printed tickets and verbal<br />
orders and allow all staff access<br />
in order to streamline communications;<br />
digital temperature<br />
sensors to ensure food safety; and<br />
digitized inventory-management<br />
systems to reduce food waste, and<br />
even re-order when inventory<br />
is low. And for cooks and chefs,<br />
smaller, multi-function systems<br />
that are fully programmable,<br />
such as multi-tasking combiand<br />
rapid-cook ovens, Thermomix<br />
appliances for cooking rice,<br />
thickening sauces, fermentation<br />
and sous vide applications, as<br />
well as the RATIONAL iVario<br />
platform — which integrates<br />
kettle, griddle, oven and skillet —<br />
all speed up service.<br />
If your recruitment efforts<br />
focus on the younger generation,<br />
Milford says you better autoup,<br />
because millennials expect<br />
a connected work environment.<br />
“They’ve worked with computers<br />
their entire lives and now they’re<br />
going into a business that is, in<br />
many cases, not tech-heavy at<br />
all. And if they have an opportunity<br />
to go somewhere that is<br />
better aligned with what they’re<br />
expecting and how they want to<br />
work, then that’s where they’re<br />
going to go.” FH<br />
37%<br />
OF RESTAURANTS<br />
ADDED NEW<br />
TECHNOLOGY<br />
LAST YEAR TO<br />
HELP STREAMLINE<br />
OPERATIONS AND<br />
SUPPORT STAFF<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 29
PROFILE<br />
Vasiliki and<br />
James McInnes<br />
30 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
Planting<br />
Odd Burger turns passion into profit<br />
with North-American expansion<br />
BY NICOLE DI TOMASSO | PHOTOGRAPHY BY MONIQUE WIENDELS<br />
Plant-based eating is quickly taking root in<br />
the fast-food industry as the COVID-19 pandemic drives more people to<br />
become ethical, environmentally conscious consumers. At the forefront<br />
of this movement is Odd Burger, one of the world’s first vegan fast-food<br />
chains to offer products modelled after its traditional competitors. While<br />
many restaurants were left to grapple with the devastating effects of the<br />
pandemic, Odd Burger’s restaurant model was already designed to better<br />
assist consumers during this dynamic time, leading to its momentous<br />
growth and continued expansion across North America.<br />
Founded by James McInnes in 2014, Odd Burger (formerly known as<br />
Globally Local) started out as an organic produce delivery service. One<br />
year later, McInnes partnered with his wife, Vasiliki, and they transformed<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 31
Odd Burger into a vegan meal-kit business.<br />
“It was an awareness of what I was consuming,”<br />
says Vasiliki McInnes, co-founder and COO, Odd<br />
Burger. “The fact that they were once living<br />
animals and now being consumed – I just couldn’t<br />
do that anymore.”<br />
The husband-and-wife duo garnered attention<br />
at Ribfest in London, Ont. where their Famous<br />
Burger, a vegan spin on the Big Mac, sold out<br />
due to overwhelming demand. After the launch<br />
of a food-truck concept, the McInnes’ opened<br />
their first vegan fast-food restaurant in 2017 in<br />
London, Ont. Six months later, they opened the<br />
world’s first 24-hour vegan drive thru. The<br />
following year, the McInnes opened a facility to<br />
manufacture a portion of their products using<br />
locally sourced and sustainable ingredients.<br />
Fast forward to <strong>2022</strong>, Odd Burger already has<br />
locations in Toronto, Windsor, Vaughan, Waterloo<br />
and Hamilton, Ont. The company is currently in<br />
the process of doubling its presence, with additional<br />
franchised locations set to open this year in<br />
Toronto, Ottawa, Brampton, Ont., Whitby, Ont.,<br />
Calgary, Alta., Victoria, B.C., as well as its first<br />
U.S. location in Manhattan, N.Y.<br />
As part of its expansion plan, Odd Burger aims<br />
to open a manufacturing facility in each region<br />
it operates. “We manufacture about 29 products.<br />
These products are primarily plant-based proteins<br />
and sauces,” says James McInnes, co-founder and<br />
CEO of Odd Burger. “As we expand our business,<br />
our goal is to set up a production facility as close<br />
to our restaurants as possible to avoid [high]<br />
shipping and transportation costs.”<br />
The Odd Burger menu offers several kinds of<br />
burgers, substituting traditional beef, pork and<br />
chicken with chickpeas, oat flakes, tempeh and<br />
shredded jackfruit doused in barbecue sauce. Its<br />
menu also offers vegan breakfast sandwiches,<br />
salads, wraps and desserts.<br />
Devoid of a traditional grill, Odd Burger restaurants<br />
are largely automated to increase efficiency<br />
and streamline operations with fewer staff.<br />
Ranging from 750 to 1,200 sq. ft., new models can<br />
seat up to eight people. Odd Burger features selfcheckout<br />
kiosks, digital-menu boards, automated<br />
kitchen displays and cooking technology, such<br />
as rapid-cook ovens, auto-filtration fryers and<br />
specialized toasters. Its innovative takeout-anddelivery<br />
concept has proved its viability in a crisis.<br />
In fact, Odd Burger recorded more than $233,000<br />
in systemwide sales in October 2021, marking a<br />
41-per-cent increase over the previous month.<br />
“Our restaurant model has benefitted us<br />
throughout the COVID-19 pandemic,” says James<br />
McInnes. “We have a small footprint [as] a takeout<br />
business, so when the pandemic hit, we just<br />
MONIQUE WIENDELS<br />
32 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
did more takeout. Our staff can be as little as<br />
one person because we use the latest technology,<br />
which has changed how we make our food.<br />
We don’t even have a traditional grill in<br />
our restaurants.”<br />
Moreover, permanent restaurant closures<br />
over the past two years, combined with<br />
surging consumer demand, presented a<br />
unique time for franchising opportunities. To<br />
fuel its growth strategy further, loans of up<br />
to 90 per cent of opening a new Odd Burger<br />
location are available for eligible franchisees<br />
through the Canada Small Business Financing<br />
Program (CSBFP) administered by CIBC.<br />
Specifically, franchisees can be granted loans<br />
Hot Fudge<br />
Brownie Sundae<br />
Chickun<br />
Offerings<br />
of up to $350,000 for new-store financing and<br />
aren’t required to pay interest for six months.<br />
Previously, financing options were limited to<br />
only 66 per cent of costs.<br />
The cost of an Odd Burger restaurant<br />
varies depending on the restaurant size<br />
and location, but generally ranges between<br />
$500,000 and $800,000, according to Odd<br />
Burger’s website. The franchise fee is $35,000.<br />
The McInnes’ are passionate about creating<br />
delicious, plant-based food that benefits<br />
people and the planet.<br />
“We’re coming in with this new fast-food<br />
concept that’s different from other fast-food<br />
restaurants [that might not be fully aware of<br />
their environmental impact regarding food<br />
production, packaging or energy conservation,]”<br />
says James McInnes.<br />
To succeed in minimizing its environmental<br />
impact, Odd Burger is partnering with franchisees<br />
who truly want to help lead the industry to<br />
FOODSERVICEANDHOSPITALITY.COM<br />
widespread sustainable practices.<br />
“The most important thing is<br />
that our franchisees believe in our<br />
mission,” he says. “Our business has<br />
an ethical undertone, with a focus<br />
on the environment and sustainable<br />
food choices.”<br />
“On the operational side, we don’t require<br />
our franchisees to have prior restaurant or<br />
kitchen experience because we’re able to train<br />
them in all areas,” says Vasiliki McInnes.<br />
As a fast-growing franchise, the McInnes’ note<br />
their biggest challenge has been creating Odd<br />
Burger’s training program. They’re aware effective<br />
learning can’t be a one-size-fits-all approach.<br />
“Our biggest challenge has been articulating<br />
our knowledge to put in our training program<br />
that can be replicated and re-produced. It’s<br />
an ongoing process because what might be<br />
common sense to us might not be for someone<br />
else,” says James McInnes. “We’ve spent a lot of<br />
time developing and refining training<br />
programs and other materials over the last year.”<br />
The McInnes are hungry for a successful<br />
franchise system. Their goal is to have 20 Odd<br />
Burger restaurants operational by the end of<br />
<strong>2022</strong>. What they’ve accomplished so far shows<br />
they’re on the right track to achieve that goal.<br />
“In some ways, I feel like it’s been a long<br />
time coming,” says James McInnes. “We have<br />
the right business model at the right time.<br />
Now is the time when a lot more people are<br />
thinking about the environment, sustainability<br />
and the ethical treatment of animals, which is<br />
why we’re seeing such incredible growth and<br />
interest in our brand.” FH<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 33
PROFILE<br />
Take me to Church<br />
Church’s Chicken is taking Canada by storm<br />
BY AMY BOSTOCK<br />
In 1952, George Church opened his<br />
first takeout restaurant across from<br />
the Alamo, in San Antonio, Texas.<br />
Since then, Church’s Chicken has<br />
expanded domestically throughout<br />
the U.S. before coming to Canada, opening its<br />
first unit in Vancouver in 1979.<br />
“The brand has been in Canada for a really<br />
long time,” says Russ Sumrall senior vice-president,<br />
International Strategic Development at<br />
Church’s Chicken. “We operate 15 restaurants<br />
in Vancouver and those restaurants are wildly<br />
successful. We consider them the foundation for<br />
what eventually became the growth that we’re<br />
starting to realize now in other parts of Canada.”<br />
Today, the fried-chicken chain — known<br />
for its hand-battered fried chicken and honeybutter<br />
biscuits — boasts 686 restaurants<br />
across 25 countries, with Church’s Chicken<br />
operations in the U.S., Canada, Puerto Rico,<br />
Mexico and the Caribbean. In Asia, Europe<br />
and the Middle East, the company operates as<br />
Texas Chicken, thanks to copyright restrictions<br />
on the word “church.”<br />
“In Canada, specifically, we’re operating<br />
47 restaurants and have 61 sites [planned]<br />
for <strong>2022</strong>, which would more than double the<br />
size of the brand this year in Canada,” says<br />
Sumrall, adding the majority of those units<br />
will be in the Greater Toronto Area (GTA).<br />
“We began our effort to grow in the GTA<br />
back around 2018,” he explains, “and have<br />
brought many new franchisees on board since<br />
then. Those new franchisees are the ones that<br />
are predominantly developing in Canada in<br />
the GTA.”<br />
Now Church’s has expanded its Ontario<br />
development area, reaching southwest to<br />
Windsor and east to Kingston.<br />
“We’re trying to have a measured and controlled<br />
expansion of the brand, so we’re staying<br />
on top of supply chain and building brand<br />
awareness,” says Sumrall, adding the brand has<br />
been so successful in attracting franchisees;<br />
he’s now having to say ‘no’ to people who are<br />
asking to open more restaurants in Toronto.<br />
“In Ontario, when a franchisee is awarded<br />
development rights with us, they’re going to<br />
build at least five restaurants in three years, so<br />
I’ve got to make sure I’m not overselling the<br />
market. We’ve also got to a point where we’re<br />
being very selective; we’re looking for multiunit<br />
operators of existing brands that would<br />
complement, and not be a direct competitor,<br />
to Church’s. So, if you were say a Tim Horton’s,<br />
Wendy’s, or A&W franchisee interested in<br />
becoming a Church’s franchisee, we would love<br />
34 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong><br />
FOODSERVICEANDHOSPITALITY.COM
Franchise Costs<br />
(in U.S. $)<br />
Church’s Texas Chicken is the international sister brand of Church’s<br />
Chicken and is named to convey the global brand’s Texas origins.<br />
The two brand entities are part of the same corporate structure,<br />
with a single executive leadership team and a united approach to<br />
initiatives such as menu development, franchise expansion and<br />
other corporate-level business decisions.<br />
Development fee: $10,000<br />
Initial franchise fee: $15,000<br />
Real-estate purchase or lease: variable<br />
Site work: $5,000 to $50,000<br />
Building/improvements:<br />
$230,200 to $620,000<br />
Equipment and signage: $150,000 to $200,000<br />
Fees, misc., A&E services, deposits: $50,000<br />
to $150,000<br />
Initial training: US$23,000<br />
Opening supplies: $6,350 to $12,700<br />
Insurance: $7,500 to $10,000<br />
Utility deposits: $5,000 to $15,000<br />
Business licenses: $300 to $600<br />
Additional funds (three months):<br />
$10,000 to $20,000<br />
Estimated Total: $464,350 to $1,101,300<br />
that situation because those franchisees already<br />
know their market, the real estate and the supply<br />
situation. And we could then add in Church’s<br />
beneficial synergies to leverage their existing<br />
restaurant business infrastructure.”<br />
Apart from a few corporately owned<br />
restaurants in the U.S., Church’s has built its<br />
brand through franchising. “We’re focused on<br />
being the franchisor of choice.”<br />
And that focus is now firmly set<br />
on expansion into Manitoba and the<br />
Maritimes. While Sumrall says the brand<br />
already has developers secured for Alberta,<br />
Saskatchewan and for most of Ontario, “the<br />
new ground I’m seeking to expand to in<br />
Canada is in Manitoba, Nova Scotia, Prince<br />
Edward Island and New Brunswick.<br />
In the case of Manitoba, he says Church’s is<br />
seeking franchisees that will commit to building<br />
10 restaurants in five years. “When you<br />
think about the financial requirements that<br />
would go along with that, it’s different than<br />
someone who’s doing five stores in Ontario,”<br />
he says. “Typically, for a five-store deal, we<br />
would look for someone to have about $1.5<br />
million in liquidity, cash or cash equivalents.<br />
For a 10-store deal, I’m going to raise that up<br />
FOODSERVICEANDHOSPITALITY.COM<br />
to about $2 million. Now, most of the time,<br />
particularly in Canada, they’re going to leverage<br />
financing to build their restaurant, so<br />
they’ll need to have a certain portion of their<br />
own equity to go in. And then they can go to<br />
one of the banks we’ve got relationships with<br />
now to help our franchisees grow their brand.”<br />
Location, location, location<br />
When it comes to finding the real-estate sweet<br />
spot, Sumrall says drive-thrus are king.<br />
But, he admits, free-standing drive-thrus are<br />
very hard to come by, particularly in major<br />
areas in Canada, either due to the fact that<br />
they’re already taken, or there’s zoning restrictions<br />
that limit drive-thrus.<br />
“The [other type of location] we love is an<br />
endcap. You see this a lot with a Starbucks,<br />
where they’ll take the endcap of a plaza and have<br />
a drive-thru wrapped around the side of the<br />
building. We love those, too because it’s a lower<br />
investment to get in. But you still have<br />
the delivery channel, the takeaway channel, the<br />
dining channel and the drive-thru channel for<br />
sales — we can do everything there.”<br />
He says the bull’s eye for real estate is a<br />
freestanding restaurant of about 2,000 sq.<br />
ft. — a new<br />
build or a<br />
conversion. “If<br />
there’s another brand<br />
that, unfortunately, was<br />
not able to make it through<br />
COVID-19, we would happily take<br />
an existing footprint and convert that<br />
to a Church’s — that’s a much lower<br />
cost investment than if you were building it<br />
from the ground up.”<br />
The average number of seats for new units<br />
is around 20. Sumrall recognizes that in<br />
today’s climate, Canadians are “more about<br />
the grab-and-go” than dining in. “In certain<br />
countries, we need 200 seats because it’s still<br />
part of the culture to dine out. But in Canada,<br />
we’re seeing smaller dining-rooms are prevalent<br />
and more important is the delivery, the drive<br />
thru and the takeaway.”<br />
While finding good real-estate has taken on<br />
a Hunger Games feel in recent years, Sumrall<br />
says his franchisees have been tenacious about<br />
finding locations. “The fact that for this year,<br />
I’ve already got 61 sites in progress for Canada<br />
alone tells me they’re getting good real estate.<br />
Out of all of those, 14 are under construc-<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 35
tion right now and will probably open in the<br />
next two or three months; 38 are sites we’ve<br />
reviewed and approved and now the franchisees<br />
are in the process of finishing their drawings,<br />
hiring their general contractor, getting their<br />
permits, ordering their equipment and trying<br />
to get started; and nine restaurants are sites<br />
that have been identified, but have yet to be<br />
approved. We’ve been fortunate to be able to get<br />
good real estate. And as our brand continues<br />
to grow, my email keeps populating with realestate<br />
people in Canada sending me sites to<br />
consider, which is a good problem to have.”<br />
Pushing Ahead<br />
While many chains have slowed or halted<br />
expansion plans during the pandemic,<br />
Church’s is pushing forward with its ambitious<br />
growth plan.<br />
“We’re already set up with delivery — we<br />
have all of the major delivery aggregators as<br />
part of our system and they were here before<br />
COVID — and our dining-rooms are relatively<br />
small, so we weren’t like the casual-dining<br />
players that were competitive upon filling<br />
their dining room. We were in a very good<br />
position to thrive during COVID, and we did.”<br />
He says the biggest challenges have been<br />
keeping up with the labour/staffing situation<br />
and dealing with supply-chain issues. “We<br />
could probably have opened 10 to 15 more<br />
restaurants in Canada last year if it had not<br />
been for supply-chain delays on equipment.”<br />
While Church’s corporate philosophy is to<br />
buy local when feasible, Sumrall says there<br />
is an economies-of-scale problem when you<br />
have relatively few restaurants in a market.<br />
“For example, if we had a cup that is used<br />
for a soft drink, because today we only have<br />
47 restaurants in all of Canada, we don’t<br />
have very large purchasing power for a cup.<br />
But if we’ve got 1,000 restaurants in the U.S.<br />
with a single-source supplier that are buying<br />
thousands and thousands of cases of these<br />
cups they’re able to get that cup at a really low<br />
cost, much lower than if we were to go into<br />
Canada today with my 47 restaurants and say<br />
‘give us a low cost cup’.”<br />
But, he says, there’s always a break point<br />
where it would be more economical and a better<br />
decision to purchase in Canada rather the U.S.<br />
“Keep in mind, the number-1 item we sell in<br />
our restaurants is chicken and all of our chicken<br />
is sourced in Canada — it typically makes up<br />
more than half of our cost of goods.”<br />
He says the brand is seeking to partner with<br />
a Canadian kitchen-equipment supplier, as<br />
well as a company to build all of its interior<br />
decor, which currently comes from a supplier in<br />
Chicago. “There’s a company in Toronto we’re<br />
already talking with that should be able to build<br />
all of these design, decor and furniture elements<br />
for us, and do so at a competitive cost. That<br />
would be good for our franchisees.”<br />
While Church’s Chicken is facing an<br />
upward growth trajectory, the last two years<br />
have not been without setbacks. Governmentmandated<br />
lockdowns and closures impacted<br />
not only existing units, but also caused a<br />
backlog in permit applications and siteinspections<br />
that saw franchisees paying rent<br />
on non-operating restaurants.<br />
In response, Sumrall says Church’s implemented<br />
franchisee-support programs.<br />
“We told our franchisees shortly after<br />
COVID-19 spread, ‘we understand you have<br />
to pay your lease, you have to pay your people,<br />
you have to pay your food bills. So, take<br />
half of the money you would normally pay<br />
us and use that to help pay your employees<br />
and keep them with you.’ Essentially, we set<br />
a promissory note so that eventually, when<br />
times were better, they can come back and pay<br />
us … and they did.” FH<br />
Coming in<br />
May <strong>2022</strong><br />
Sustainable<br />
Solutions<br />
+ The New <strong>Digital</strong><br />
Consumer –<br />
Demographics<br />
& More<br />
• Plant-Based Dining<br />
(Alternative Proteins)<br />
• Walk-in Coolers<br />
& Refrigeration<br />
• Wines<br />
• Is Your Restaurant<br />
Instagrammable?<br />
36 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM<br />
• Airline F&B Programs
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All San Pellegrino trademarks are owned by Sanpellegrino S.p.A., San Pellegrino Terme (BG), Italy and used under licence. ©<strong>2022</strong> Sanpellegrino
PROFILE<br />
Secret Sauce<br />
Redberry Restaurants has found a recipe<br />
for success amidst COVID-19 challenges<br />
BY AMY BOSTOCK<br />
While the COVID-19<br />
pandemic battered the<br />
Canadian restaurant<br />
industry, Redberry<br />
Restaurants defied the<br />
odds, showcasing exceptional growth in 2021<br />
with the opening of 15 new Burger King<br />
locations, multiple Burger King renovations,<br />
one new Pizza Hut location, and the addition<br />
of a new brand to the portfolio through the<br />
acquisition of 14 Taco Bell restaurants.<br />
Redberry’s stellar performance even earned<br />
it Burger King’s coveted 2021 Franchisee of<br />
the Year award in its largest category (50-plus<br />
locations) — the first Canadian company to<br />
win the award.<br />
“In 2020 [when COVID first hit], a lot<br />
of companies, including Redberry, survived<br />
on adrenaline, really thinking<br />
[it would be] a situation that<br />
would last weeks or months,” says Ken Otto,<br />
CEO at Redberry Restaurants. “And, obviously,<br />
that didn’t happen.”<br />
Otto says 2021 was about “dealing with<br />
our people and the promises we made, and<br />
how to keep them going when day after day,<br />
week after week, month after month; the news<br />
was the same and not getting a lot better. We<br />
tried our hardest to communicate that we<br />
had a plan; we had a vision of what kind of<br />
company we wanted to be; and what kind of<br />
culture we wanted to foster. The overarching<br />
message was ‘let’s control what we can control.’<br />
We can’t control lockouts or the things we<br />
have no knowledge of, like what might be<br />
happening next week. What we can control<br />
are the promises we made to each other. What<br />
we can control is our quality of operations.<br />
What we can control is a quality of people<br />
that we recruit, hire and promote. This kept<br />
people focused on coming to work and saying<br />
we made a bunch of promises. Let’s do<br />
what we said we would do. And we did it.<br />
We focused on taking care of the guests; we<br />
focused on speed of service; we focused on<br />
running the best brands with our partners in<br />
Canada, as evidenced with a Franchisee of the<br />
Year award.”<br />
He adds the company also promised it<br />
would “build a bunch of restaurants” and<br />
despite supply-chain issues, Redberry did just<br />
that, announcing development agreements<br />
in 2021 to build 50 new Taco Bell locations:<br />
five Pizza Hut locations and 168 Burger King<br />
units over the next five years. It also entered<br />
into an agreement with Burger King to remodel<br />
62 existing units in the next five years.<br />
This will bring Redberry’s portfolio to more<br />
than 385 locations across five provinces.<br />
Redberry’s “secret sauce” for success has<br />
two ingredients, according to Otto.<br />
“The first is long-term thinking. And the<br />
second is that the underlying trends that are<br />
very bullish for restaurants in Canada, and<br />
particularly QSR, never went away.” This<br />
includes people’s propensity to eat out, their<br />
demand for convenience and the explosive<br />
population growth evident in Canada,<br />
compared to other parts of the world<br />
— especially in Ontario and urban<br />
centres. “None of these things went<br />
away. They were camouflaged<br />
Giving Back<br />
Redberry supports local community<br />
activities and is committed to the Burger<br />
King Foundation. Under the leadership of<br />
Sharron Fry, Redberry’s director of Marketing,<br />
the company’s donations to Burger King<br />
Foundation’s scholarship program increased<br />
over the last four years from $2,000 to<br />
$90,000. Redberry donated an additional<br />
$153,000 to Burger King Foundation’s Family Fund, an internal<br />
charity program for staff who are experiencing emergencies or<br />
hardship. Redberry’s combined contributions of $243,000 in 2021<br />
along with its dedication to giving back, was recognized by Burger<br />
King’s inaugural “King of Giving” Award at the end of 2021.<br />
38 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong>
y all the news of the pandemic and of<br />
course, during the pandemic, we had to be<br />
very focused on the near term. But the fundamentals<br />
of restaurant demand in Canada<br />
never changed.”<br />
He says Redberry put a lot of resources<br />
into thinking about what the company<br />
would look like in 2025. And rather than<br />
wait until 2025 to invest in those resources,<br />
it “invested now. And today, the size of our<br />
support teams for development, construction<br />
and real estate rival some of the biggest<br />
companies in Canada.”<br />
The second ingredient, he shares, was to<br />
embrace change, rather than fight it.<br />
“In year three of the pandemic, we<br />
continue to learn about new behaviours<br />
of guests, new expectations of our people,<br />
different ways to build a restaurant and to<br />
run the company.”<br />
For example, the use of third-partydelivery<br />
aggregators, while more expensive<br />
for operators because of the commissions,<br />
became a huge source of revenue for<br />
Redberry, “and really reflects what I think is<br />
a permanent difference in guest behaviour,”<br />
says Otto. “So, we embraced it.”<br />
Otto admits Redberry’s business model<br />
gave its restaurants an advantage during the<br />
pandemic. “When you’re in the business of<br />
drive thru, delivery and takeout, it’s a big<br />
advantage. And pizza was a perfect fit for<br />
when people were at home. [Our] brands<br />
provide a great meal for a great price, really<br />
fast — these things matter to people.”<br />
Looking beyond the pandemic, Otto says<br />
he sees a bright future for foodservice, citing<br />
people’s desire to get out and see each other<br />
and to spend money out of home.<br />
“For our brands — three very powerful<br />
companies, dominant in their space<br />
— there’s a lot of white space to grow in<br />
Canada, lots of provinces that need more<br />
Burger Kings, more Pizza Huts and desperately<br />
need more Taco Bells. And we’re going to<br />
leverage that with our unique financial structure<br />
backed by our private-equity sponsors and<br />
partners at City Capital Ventures. We have a<br />
long-term view on looking at real estate so<br />
our growth projections just accelerate over<br />
the next five to 10 years. So, we’re not taking<br />
our foot off the gas.” FH<br />
In 2021 Redberry<br />
successfully negotiated a<br />
revised credit facility of $147<br />
million. According to Robert<br />
Masson, Redberry’s CFO, “This<br />
credit facility, combined with<br />
the strong free cash flow<br />
generated by our existing<br />
portfolio of restaurants, has<br />
given us the balance sheet<br />
strength to fund our exciting<br />
growth opportunities across<br />
our three brands — and we<br />
have capacity for even more<br />
growth over the next<br />
five years.”<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 39
PROFILE<br />
Partners<br />
in Success<br />
Pür & Simple is focused on supporting its franchise partners<br />
BY AMY BOSTOCK<br />
Ritou Maloni knows you can’t<br />
be all things to all people. The<br />
co-founder of the Quebecbased<br />
breakfast chain Pür &<br />
Simple says while her corporate<br />
team is great at selling its brand,<br />
operating a restaurant requires a completely<br />
different skillset.<br />
“We’re very strong franchisors,” she says.<br />
“We’re great at brand building and we’re<br />
great at selling, but operating a<br />
restaurant is a completely different<br />
business model than franchising<br />
and sometimes you can’t<br />
do both. You can’t be<br />
everything to everybody.”<br />
So, with the brand gaining traction with<br />
investors, Pür & Simple’s parent company,<br />
Eat It! Brands, made the decision to “focus<br />
on what we’re great at, which is supporting<br />
our franchise partners, giving them a winning<br />
business model and growing the brand across<br />
Canada,” says Maloni.<br />
Pür & Simple currently boasts 35 units in<br />
Canada — all of them are franchised — with<br />
15 more under development. The breakfast<br />
chain spreads coast to coast, with 13 locations<br />
in Atlantic Canada, one in Quebec, nine in<br />
Ontario, one in Alberta and three in B.C. The<br />
brand has its sights set on Atlantic Canada<br />
for future expansion, followed by five new<br />
openings in Ontario.<br />
“We’re trying to find great franchise partners<br />
and once we find those, we give them the<br />
best opportunity for success in the geographic<br />
location they’re interested in,” says Maloni,<br />
adding the Atlantic provinces are attractive<br />
for expansion because of the lack of competition<br />
in the breakfast space.<br />
“Our head office is in Quebec and there’s<br />
so much competition here — every second<br />
corner has a breakfast place. But when I<br />
travelled out east, there was nothing there.<br />
You have Cora’s and that was it, so we saw an<br />
opportunity there,” she says, adding when Pür<br />
Pür & Simple Vancouver store<br />
40 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
SLUG HERE<br />
& Simple opened its first location in Atlantic<br />
Canada, “there was a lineup out the door and<br />
we had no idea how to serve the amount of<br />
people; we weren’t expecting it.”<br />
While COVID-related lockdowns and<br />
permitting delays have caused some new<br />
openings to be pushed back, Pür & Simple is<br />
planning an opening per month for the next 12<br />
months and have another 10 Ontario locations<br />
sold along with a unit in Burnaby, B.C.<br />
She says the brand has had a lot of franchise<br />
partners sign deals and now the challenge<br />
becomes finding the right real estate.<br />
“Our perfect spot is an endcap or a standalone<br />
building and our sweet spot is about<br />
3,200 sq. ft. with between 100 and 120 seats.<br />
But it feels like there’s not that much real estate<br />
available, so we’re trying not to be too picky.”<br />
She says the brand also does best in highly<br />
residential areas. “More than 50 per cent of<br />
our business is done on the weekends, so we<br />
need a good density of residential around<br />
us. And then the businesses from Monday<br />
to Friday just gives us that extra lunchtime<br />
clientele. We’re looking at smaller markets —<br />
we would like to be a big fish in a small pond.”<br />
To join the Pür & Simple family, potential<br />
franchise partners need approximately<br />
$300,000 of unencumbered cash. The turnkey<br />
cost of a restaurant ranges from $700,000 to<br />
$850,000. Certain factors, such as local labour,<br />
material cost, legal requirements, condition of<br />
the space to be leased and a landlord’s contribution<br />
towards leasehold improvements will<br />
determine the final cost. The initial franchise<br />
fee is $35,000 and a royalty fee of five-percent<br />
of gross sales is paid weekly.<br />
“We need hands-on operators, somebody<br />
that’s ready to work in their business and<br />
willing to build that loyalty,” says Maloni.<br />
“Yes, they need enough financial backing to<br />
be able to sustain during hard times — we’ve<br />
learned this the hard way during COVID —<br />
but they also need a passion for hospitality,<br />
need to be eager and hungry. We want that<br />
person that, during a snowstorm is going to<br />
wake up at 4 a.m., shovel themselves out and<br />
make sure they can get to the restaurant to<br />
serve their guests.”<br />
She says the ideal franchise partner also understands<br />
local marketing and the importance of<br />
being involved in their community.<br />
Maloni says even during the challenges of<br />
the pandemic, Pür & Simple never backed<br />
down from its commitment to growth.<br />
“We knew we had an amazing business<br />
model and we knew that once the dust settled<br />
and dine-in re-opened, we were going to do<br />
really well. We had a lot of deals signed pre-<br />
COVID and a lot of our franchise partners<br />
did not want to stop the evolution because<br />
they believed in the brand enough to even<br />
say, ‘we’re going to open up even during a<br />
lockdown where there’s takeout and delivery.”<br />
She adds that in some deals, “we didn’t<br />
have a choice but to keep going. Landlords<br />
weren’t as understanding as we needed them<br />
to be so a lot of the times we opened [new<br />
units] for takeout only.”<br />
As a result, Pür & Simple built a new<br />
business model based around takeout and<br />
delivery for breakfast. “When the pandemic<br />
started, less than one per cent of our sales<br />
were in takeout and delivery — now it’s over<br />
30 per cent. It’s become a new revenue stream<br />
and is added to the sales once we re-open.”<br />
With national expansion well in hand,<br />
Maloni says Pür & Simple is not ruling out<br />
international growth.<br />
“We would love to [open international<br />
units], but we want to ensure we grow<br />
properly. The goal would be to expand in<br />
the U.S. and other opportunities internationally;<br />
we just want to make sure our<br />
franchise partners are well supported. We’ve<br />
hired two new training and operations consultants,<br />
a director of Marketing, a director of<br />
Operations and a director of Procurement<br />
to support our franchise partners because<br />
we’re not going anywhere. Our franchise<br />
partners have invested all their hard-earned<br />
money into us and now we have to show<br />
them that, pandemic or no pandemic, we’re<br />
not going anywhere.” FH<br />
Waffle Banana<br />
Berry<br />
AvocadoLux<br />
THOMAS CHEVILLOTTE [WAFFLE BANANA BERRY]<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 41
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THE <strong>2022</strong> FRANCHISE REPORT<br />
THE <strong>2022</strong><br />
FRANCHISE<br />
REPORT<br />
ISTOCK.COM/DILOK KLAISATAPORN<br />
241 PIZZA (2006) LTD.<br />
77 Progress Ave.<br />
Toronto, ON M1P 2Y7<br />
416-288-8515<br />
Director of Franchising and Real-Estate<br />
Development: Tariq El-Noqrashy<br />
History, Plans<br />
- established in 1986 in Toronto<br />
- 63 units in Canada<br />
- four units under development<br />
Franchise Costs<br />
- franchise fee $30,000<br />
- training fee $5,000<br />
- architectural drawings $12,500<br />
to $20,000<br />
- equipment/leasehold improvements<br />
$160,000 to $195,000<br />
- signage fee $12,000 - $30,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
A&W FOOD SERVICES<br />
OF CANADA INC.<br />
171 W. Esplanade, Ste. 300<br />
North Vancouver, BC V7M 3K9<br />
604-988-2141<br />
Director of Franchising: Ryan Picklyk<br />
History, Plans<br />
- established in 1956 in Winnipeg<br />
- 1,030 units in Canada<br />
- single franchise opportunities available<br />
with unencumbered cash investment<br />
from $250,000 to $450,000+<br />
Franchise Costs<br />
- Standard Franchise Program:<br />
- initial franchise fee $55,000<br />
(20-year term)<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
ALLO MON COCO<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 2001 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- initial Investment: $750,000 to $950,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- architecture/design<br />
- construction and equipment<br />
- lease negotiation<br />
- purchasing<br />
- research and development<br />
- site location<br />
- supplies<br />
- training/support<br />
APPLEBEE’S<br />
DINE BRANDS GLOBAL.<br />
450 North Brand Blvd.<br />
Glendale, CA 91203<br />
647-533-3333<br />
President: John Cywinski<br />
History, Plans<br />
- established in 1983 in Decatur, Ga.<br />
- 16 units in Canada; 2,200 outside<br />
of Canada<br />
Franchise Costs<br />
- initial franchise fee US$40,000<br />
- estimated build costs US$556,000 to<br />
US$2,600,000<br />
- national advertising fee 3.5%<br />
- royalty fee 4%<br />
Services<br />
- information available upon request<br />
AROMA ESPRESSO BAR<br />
AROMA ESPRESSO BAR<br />
CANADA INC.<br />
446 Spadina Rd., Ste. 300<br />
Toronto, ON M5P 3M3<br />
416-281-2233<br />
COO: Sam Wadera<br />
History, Plans<br />
- founded in 2007 in Toronto<br />
- 45+ units in Canada (nearly all<br />
franchised); 150+ outside of Canada<br />
Franchise Costs<br />
- initial franchise fee $55,000<br />
- start-up costs $527,500 to $1,495,000<br />
- advertising fee 2%<br />
- royalty fee 7%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
AU COQ<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Guyaume Arseneault<br />
History, Plans<br />
- established in 1960 in Montreal<br />
- 17 units in Canada<br />
- seven corporate units in Canada<br />
- new opportunities available<br />
across Canada<br />
Franchise Costs<br />
- initial franchise fee $15,000 to $25,000<br />
- investment required: QSR $500,000<br />
Full Service $950,000<br />
- project cost $500,000 to $700,000<br />
- royalty fee 5%<br />
- advertising fee 2%<br />
- local advertising fee 3%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BACARO<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Guyaume Arseneault<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 43
THE <strong>2022</strong> FRANCHISE REPORT<br />
History, Plans<br />
- established in 2015 in Montreal<br />
- franchising since 2016<br />
- 11 units in Canada<br />
- one corporate unit in Canada<br />
- new opportunities available across<br />
Canada<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
-investment required $500,000 to<br />
$800,000<br />
- project cost $400,000 to $600,000<br />
- royalty fee 5%<br />
- advertising fee 2%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BASKIN-ROBBINS<br />
INSPIRE BRANDS<br />
130 Royall St.<br />
Canton, MA 02021<br />
800-859-5339<br />
CEO: Paul Brown<br />
History, Plans<br />
- established in 1945 in Glendale, Calif.;<br />
first Canadian store opened in 1971<br />
- 104 units in Canada (all franchised);<br />
8,024 worldwide (all franchised)<br />
- expanding newly designed units<br />
primarily in Ontario (Toronto and Ottawa)<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
(20-year term)<br />
- total costs $93,550 to $401,800<br />
- advertising fee 5%<br />
- royalty fee 1%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BATON ROUGE<br />
MTY GROUP<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining:<br />
Marie-Line Beauchamp<br />
History, Plans<br />
- established in 1992 in Laval, Que.<br />
- 29 units in Canada (26 franchised)<br />
- plans to expand in Ontario and Quebec<br />
in 2021<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,960,000 to $2,500,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
BEAVERTAILS CANADA INC.<br />
3700 St. Patrick St., Ste. 106<br />
Montreal, QC H4E 1A2<br />
514-392-2222<br />
Development Director: Scott Reid<br />
beavertails.com<br />
History, Plans<br />
- established in 1978 in Ottawa<br />
- 180+ units worldwide<br />
- 31 new units signed in 2021<br />
- currently focusing on U.S. expansion and<br />
full shops throughout Canada<br />
Franchise Costs<br />
- initial franchise fee US$30,000<br />
- shops start at US$400,000<br />
- mobiles start at US$120,000<br />
Services<br />
- advertising/marketing<br />
- business development coaching<br />
- staff training<br />
BEN & FLORENTINE<br />
RESTAURANTS INC.<br />
MTY GROUP<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining: Marie-Line<br />
Beauchamp<br />
History, Plans<br />
- founded in 2008 in Montreal<br />
- 56 units in Canada (48 franchised)<br />
- plans to expand into Ontario and<br />
Maritimes, as well as continued growth<br />
in Quebec<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- equipment/site cost $562,000<br />
to $767,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BENNY ROTISSERIE<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
Directors, Franchising & Development:<br />
Nikki Arvanitakis; Guyaume Arseneault<br />
History, Plans<br />
- established in 1960 in Montreal<br />
- 17 units in Canada<br />
- seven corporate units in Canada<br />
- new opportunities across Canada<br />
Franchise Costs<br />
- initial franchise fee $15,000 to $25,000<br />
- project costs $500,000 to $950,000<br />
- royalty fee 5%<br />
- advertising fee 2%<br />
- local advertising fee 3%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BIG RIG BREWERY<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Scott McCannell<br />
History, Plans<br />
- established in 2012 in Montreal<br />
- franchising since 2019<br />
- three units in Canada (one corporate)<br />
- new opportunities available across<br />
Canada<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- project cost $1,000,000 to $1,300,000<br />
- royalty fee 5%<br />
- advertising fee 2%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
-supplies<br />
BIG SMOKE BURGER<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 2011<br />
- nine units in Canada; nine outside<br />
of Canada (two corporate)<br />
Franchise Costs<br />
- franchise fee $35,000<br />
- other costs $338,000 to $650,000<br />
- marketing/advertising 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BLENZ COFFEE<br />
2285 Clark Dr., Ste. 250<br />
Vancouver, BC V5N 3G9<br />
604-682-2995<br />
President: Marc West<br />
History, Plans<br />
- established in 1992 in Vancouver<br />
- 65 units in Canada<br />
Franchise Costs<br />
- franchise fee $35,000<br />
- store cost $200,000 to $300,000<br />
- advertising fee 2%<br />
- royalty fee 8%<br />
Services<br />
- advertising/marketing<br />
- operational support<br />
- training<br />
44 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
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THE <strong>2022</strong> FRANCHISE REPORT<br />
BLANCO CANTINA<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244 ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 2015<br />
- five units in Canada (4 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,000,000 to $1,450,000<br />
- advertising fee 1% national, 1% local<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
8915-51st Ave., Ste. 205<br />
Edmonton, AB T6E 5J3<br />
780-440-6770<br />
President & CEO: Dale S. Wishewan<br />
History, Plans<br />
- established in 1999 in Sherwood<br />
Park, Alta.<br />
- 400 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment/site development cost<br />
$280,000 to $320,000<br />
- total costs $310,000 to $350,000<br />
(turn key investment)<br />
- advertising fee 3.5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BOSTON PIZZA<br />
BOSTON PIZZA INTERNATIONAL INC.<br />
1 City Centre Dr., Ste. 708<br />
Mississauga, ON L5B 1M2<br />
905-848-2700<br />
History, Plans<br />
- established in 1964 in Edmonton<br />
- 396 units in Canada (392 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- equipment/site cost $1,500,000 to<br />
$2,500,000<br />
- 35% liquid funds required for<br />
investment<br />
- advertising fee 3% (food sales only)<br />
- royalty fee 7% (food sales only)<br />
Services<br />
- information available upon request<br />
BROWNS CRAFTHOUSE<br />
BROWNS RESTAURANT GROUP<br />
3540 W. 41st Ave., Ste. 207a<br />
Vancouver, BC V6N 3E6<br />
778-980-2440<br />
EVP - Business Development: Bruce Fox<br />
History, Plans<br />
- established in 2017<br />
- six locations in Canada<br />
(four franchised)<br />
- looking at two additional (franchised)<br />
locations for <strong>2022</strong> development<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- equipment/site costs $2,500,000<br />
- other costs $450,000<br />
- total costs $3,000,000<br />
- royalty fee 6% (all in)<br />
- no marketing/co-op fees<br />
Services<br />
- culinary development<br />
- lease negotiation<br />
- opening support<br />
- operational reviews and field support<br />
- POS and payment platforms<br />
- purchasing<br />
- site selection<br />
- supplies<br />
BROWNS SOCIALHOUSE<br />
BROWNS RESTAURANT GROUP<br />
3540 W. 41st Ave., Ste. 207A<br />
Vancouver, BC V6N 3E6<br />
778-980-2440<br />
EVP - Business Development: Bruce Fox<br />
History, Plans<br />
- established in 2004 in<br />
North Vancouver, B.C.<br />
- 69 units in Canada (3 corporate);<br />
- two new Ontario franchises to open in<br />
2021 (Ottawa and Waterloo)<br />
- primarily focused on Western Canada<br />
infill and Ontario expansion<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- equipment/site costs $2,500,000<br />
- other costs $450,000<br />
- total costs $3,000,000<br />
- royalty fee 6% (all in)<br />
- no marketing/co-op fees<br />
Services<br />
- culinary development<br />
- lease negotiation<br />
- opening support<br />
- operational reviews and field support<br />
- POS and payment platforms<br />
- purchasing<br />
- site selection<br />
- supplies<br />
(THE) BURGERS PRIEST<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244 ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 2010<br />
- 27 units in Canada (0 franchised)<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- total costs $365,000 - $665,000<br />
- advertising fee 2% national, 1% local<br />
- royalty fee 5%<br />
Services<br />
-advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
BK CANADA SERVICE ULC<br />
130 King St. W., Suite 300<br />
Toronto, ON M5X 2A2<br />
General Manager, Canada:<br />
Matthew Wright<br />
(416) 801-5914<br />
History, Plans<br />
- founded in 1954<br />
- 327 units in Canada; 18,700 locations in<br />
more than 100 countries<br />
Franchise Costs<br />
- initial franchise fee CAD $55,000<br />
- advertising fee 4.0%<br />
- royalty fee 4.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CAFE DEPOT<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 1994 in Montreal<br />
- 52 units in Canada (49 franchised)<br />
Franchise Costs<br />
- start-up capital required $125,000<br />
- franchise fee $25,000<br />
- other costs $243,000 to $460,000<br />
- royalty fee 6%<br />
- marketing/advertising 2%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CAPT. SUB.<br />
GRINNERS FOOD SYSTEMS LTD.<br />
105 Walker St.<br />
Truro, NS B2N 5G9<br />
902-893-4141<br />
History, Plans<br />
- established in 1972 in Charlottetown<br />
- 39 units in Canada<br />
Franchise Costs<br />
- franchise fee $30,000<br />
- total investment $204,500 to $278,500<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design/construction<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- supplies<br />
46 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
CAFE LANDWER<br />
LW COFFEE INC.<br />
5000 Yonge St.<br />
North York, Ontario M2N 7E9<br />
905-417-0707<br />
Jeff Young, Chief Development<br />
Officer<br />
jeff@landwer.ca<br />
franchise@landwer.ca<br />
647.888.8420<br />
History, Plans<br />
- established in Toronto, ON in<br />
1997. Formally re-launched a<br />
franchise program in 2021<br />
- Four units in Canada<br />
Franchise Costs<br />
- franchise fee $60,000<br />
- equipment/site cost $1,000,00 to<br />
$1,200,000<br />
- advertising fee 1.0%<br />
- royalty fee 6.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
CARLOS & PEPES<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Guyaume Arseneault<br />
History, Plans<br />
- established in 1984 in Montreal<br />
- franchising since 2014<br />
- three units in Canada<br />
- new opportunities available<br />
across Canada<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- project cost $700,000 to<br />
$1,000,000<br />
- royalty fee 5%<br />
- advertising fee 2%<br />
Services<br />
-advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CASA GRECQUE<br />
MTY GROUP<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining:<br />
Marie-Line Beauchamp<br />
History, Plans<br />
- established in 1980 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- initial Investment $750,000<br />
to $900,000<br />
- advertising fee 2%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies (central kitchen and<br />
distribution centre)<br />
CHICKEN CHEF FAMILY<br />
RESTAURANTS<br />
CHICKEN CHEF CANADA LTD.<br />
97 Plymouth St.<br />
Winnipeg, MB R2X 2V5<br />
204-694-1984<br />
President: Jeff Epp<br />
History, Plans<br />
- established in 1978 in Carmen,<br />
Man.<br />
- 39 units in Canada (all<br />
franchised)<br />
Franchise Costs<br />
- initial franchise fee $12,000<br />
(Canada only)<br />
- equipment/site costs $180,000<br />
- royalty fee 3% (Canada only)<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CHICKEN DELIGHT<br />
CHICKEN DELIGHT OF<br />
CANADA LTD.<br />
395 Berry St.<br />
Winnipeg, MB R3J 1N6<br />
204-885-7570<br />
President: Jim Cartman<br />
History, Plans<br />
- established 1958 in Portage<br />
la Prairie, Man.<br />
- 20 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $20,000<br />
- equipment/site costs $245,000<br />
to $270,000<br />
- total cost $273,000 to $306,000<br />
- advertising fee 4%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CHOCOLATO<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Guyaume<br />
Arseneault<br />
History, Plans<br />
- established in 2015 in Quebec<br />
- 22 units in Canada<br />
- one corporate unit<br />
- new opportunities available<br />
across Canada and the U.S.<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- project cost $300,000 to<br />
$550,000<br />
- royalty fee 6%<br />
- advertising fee 3%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
(THE) CHOPPED LEAF<br />
INNOVATIVE FOOD BRANDS<br />
531 North Service Rd. E.<br />
Oakville, ON L6H 1A5<br />
905-337-7777<br />
Brand President and Founder:<br />
Blair Stevens<br />
History, Plans<br />
- established in 2009 in<br />
Kelowna, B.C.<br />
- 100 units in Canada (all<br />
franchised); one international<br />
(U.S.) (franchised)<br />
- expanding to Quebec, Nova<br />
Scotia and U.S.<br />
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Robot Coupe USA, Inc.<br />
1-800-824-1646<br />
www.robot-coupe.com<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 47
THE <strong>2022</strong> FRANCHISE REPORT<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment/site cost $350,000 to<br />
$420,000<br />
- total costs $350,000 to $450,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
CHUCK’S ROADHOUSE<br />
BAR AND GRILL<br />
OBSIDIAN GROUP INC.<br />
1770 Argentia Rd.<br />
Mississauga, ON L5N 3S7<br />
905-814-8030<br />
Franchise Development<br />
Manager: Elaine Macheras<br />
History, Plans<br />
- established in 2015 in Ontario<br />
- 70 units in Canada<br />
Franchise Costs<br />
- franchise fee $50,000<br />
- estimated development cost $375,000<br />
to $750,000<br />
- advertising fee 1.25%<br />
- royalty fee 3.75% on gross sales up<br />
to $38,000/week; 7% on gross<br />
sales in excess of $38,000/week<br />
Services<br />
- advertising/marketing<br />
- design and construction<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- supplies & purchasing<br />
- site location<br />
- staff training<br />
CHURCH’S TEXAS CHICKEN<br />
980 Hammond Dr. Ne, Ste. 1100<br />
Atlanta, GA 30328<br />
Canadian Franchising Contact:<br />
Russ Sumrall<br />
History, Plans<br />
-Established in 1952 in<br />
-47 units in Canada<br />
Franchise Cost:<br />
- estimated development fee $ 10,000<br />
- initial fee $15,000<br />
- site work $5,000 to $50,000<br />
- building and Improvements $230,200 to<br />
$620,000<br />
- equipment/signs $$150,000 to $200,000<br />
- fees,Misc.,A&E Services, Deposits<br />
$50,000 to $150,000<br />
- initial training US$23,000<br />
- opening supplies $6,350 to $12,700<br />
- insurance $7,500 to $10,000<br />
- utility deposits $5,000 to $15,000<br />
- business licenses $300 to $600<br />
- additional funds – 3 months $10,000 to<br />
$20,000<br />
- estimated total $464,350 to $1,101,300<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
COFFEE CULTURE CAFE<br />
& EATERY<br />
OBSIDIAN GROUP INC.<br />
1770 Argentia Rd.<br />
Mississauga, ON L5N 3S7<br />
905-814-8030<br />
Franchise Development Manager:<br />
Elaine Macheras<br />
History, Plans<br />
- established in 2006 in Ontario<br />
- 35 units in Canada;<br />
Franchise Costs<br />
- franchise fee $35,000<br />
- estimated development cost $300,000<br />
to $400,000<br />
- advertising fee 2%<br />
- royalty fee 7%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
COFFEE TIME<br />
77 Progress Ave.<br />
Toronto, ON M1p 2y7<br />
416-288-8515<br />
Director of Franchising and Real-Estate<br />
Development: Tariq El-Noqrashy<br />
History, Plans<br />
- established in 1982 in Toronto<br />
- 71 locations worldwide<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- training fee $5,000<br />
- architectural drawings $15,000<br />
to $25,000<br />
- equipment/leasehold improvements<br />
$190,000 to $415,000<br />
- signage fee $15,000 to $30,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- purchasing<br />
- site location<br />
- staff training<br />
CORA BREAKFAST<br />
AND LUNCH<br />
CORA FRANCHISE GROUP INC.<br />
2798 Thamesgate Dr.<br />
Mississauga, ON L4T 4E8<br />
905-673-2672<br />
Manager, Operation Standards:<br />
Danica Varjacic<br />
History, Plans<br />
- established in 1987 in St-Laurent, Que.<br />
- 130+ units in Canada<br />
Franchise Costs<br />
- initial franchise fee $45,000<br />
- equipment/site costs $600,000 to<br />
$900,000+<br />
- advertising fee 3.5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
COUNTRY STYLE<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- established in 1963<br />
- 350+ units in Canada; one outside of<br />
Canada (358 franchised)<br />
Franchise Costs<br />
- franchise fee $30,000<br />
- royalty fee 4.5%<br />
- advertising fee 3.5%<br />
- total investment up to $517,000<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CRABBY JOE’S TAP & GRILL<br />
OBSIDIAN GROUP INC.<br />
1770 Argentia Rd.<br />
Mississauga, ON L5N 3S7<br />
905-814-8030<br />
Franchise Development Manager:<br />
Elaine Macheras<br />
History, Plans<br />
- established in 1996 in Ontario<br />
- 20 units in Canada<br />
Franchise Costs<br />
- estimated development costs $700,000<br />
to $850,000<br />
- franchise fee $35,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
CULTURES<br />
MTY FRANCHISING INC<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 1979<br />
- 50+ units in Canada (47 franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment $293,000 to $497,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
DAGWOODS<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- established in 1989 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $15,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- franchisee training<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
48 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
DAIRY QUEEN CANADA INC.<br />
1111 International Blvd., Ste. 601<br />
Burlington, ON L7L 6W1<br />
905-636-4741<br />
Director, Franchising: Tony Watters<br />
History, Plans<br />
- established in 1940 in Illinois<br />
- 674 units in Canada; 4,324 U.S. and 2,187<br />
international (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $45,000<br />
- investment range $1,083,525 to<br />
$1,850,425<br />
- advertising fee 5% to 6%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- site selection<br />
- staff training<br />
- supplies<br />
DENNY’S<br />
DENNY’S, INC.<br />
203 E. Main St.<br />
Spartanburg, SC 29319<br />
864-597-8705<br />
Senior Director of Global Franchise<br />
Development: Doug Wong<br />
History, Plans<br />
- established in 1953 in Lakewood, Calif.<br />
- 75 units in Canada; 1,628 outside of<br />
Canada (1,633 franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment/site cost $1,180,000 to<br />
$2,050,000<br />
- other costs $150,528 to $354,695<br />
- total costs $1,330,528 to $2,404,695<br />
(exclusive of land)<br />
- advertising fee 3%<br />
- royalty fee 4.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiations<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
DIXIE LEE FRIED CHICKEN<br />
DIXIE LEE CAPITAL CORPORATION<br />
RR 2 Bruce Mines, ON, P0R 1C0<br />
info@dixieleefriedchicken.com<br />
History, Plans<br />
- established in 1964 in Belleville, Ont.<br />
- 40+ locations in Canada<br />
Franchise Costs<br />
- initial franchise fee $36,000<br />
- advertising fee 5%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
DRUXY’S<br />
DRUXY’S INC.<br />
52 Abbotsford Rd.<br />
Gormley, ON L4A 2C1<br />
416-637-5976<br />
VP, Marketing: Peter Druxerman<br />
History, Plans<br />
- established in 1976 in Toronto<br />
- 25 units in Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total cost $175,000 to $225,000<br />
(full size café)<br />
- advertising fee 1%<br />
- royalty fee 6.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- franchisee/staff training<br />
- intranet and regional director support<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
EAST SIDE MARIO’S<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244, ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 1987<br />
- 69 units in Canada (65 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- average investment $1,300,000 to<br />
$1,600,000<br />
- advertising fee 3% national, 1% local<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
EDO JAPAN<br />
6807 Railway St. S.E. Ste. 310<br />
Calgary, AB T2H 2V6<br />
403-215-8822<br />
VP, Operations, Franchising: Terry Foster<br />
History, Plans<br />
- established in 1979 in Calgary<br />
- approximately 159 units in Canada (139<br />
franchised)<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- equipment/site cost $525,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- information available upon request<br />
EGGSMART FOOD CORP.<br />
77 Progress Ave.<br />
Toronto, On M1P 2Y7<br />
416-288-8515<br />
Director of Franchising and Real-Estate<br />
Development: Tariq El-Noqrashy<br />
History, Plans<br />
- established In 2008 in Toronto<br />
- 53 units in Canada<br />
- five units under development<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- training fee $5,000<br />
- architectural drawings $15,000 to<br />
$25,000<br />
- equipment/leasehold improvements<br />
$265,000 to $440,000<br />
- signage fee $15,000 to $30,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design/construction<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
EGGSPECTATION<br />
RESTAURANTS EGGSPECTATION<br />
CANADA<br />
7960 St. Denis St., 2nd Fl.<br />
Montreal, QC H2R 2G1<br />
514-282-0677<br />
President & COO: Jon Hinkle<br />
History, Plans<br />
- established in 1993 in Montreal<br />
- 15 locations in Canada<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- total cost varies<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
- local marketing 1%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
EXTREME PITA<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- established in 1997 in Waterloo, Ont.<br />
- 69 units in Canada (64 franchised); 11<br />
outside of Canada<br />
Franchise Costs<br />
- initial franchise fee $20,000<br />
- initial Investment $249,000 to $446,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
FAMOSO ITALIAN<br />
PIZZERIA + BAR<br />
FDF BRANDZ<br />
1901 Rosser Ave., Ste. 401<br />
Burnaby, BC V5C 6S3<br />
888-597-7272 (West)<br />
647-234-2363 (East)<br />
History, Plans<br />
- founded in 2007 in Edmonton<br />
- 29 units in Canada (one franchised)<br />
- plans to expand in Western and Eastern<br />
Canada and internationally<br />
Franchise Costs<br />
- initial franchise fee $45,000<br />
- initial investment $400,000 to $700,000<br />
- marketing fee 2%<br />
- Local Store Marketing 1%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 49
THE <strong>2022</strong> FRANCHISE REPORT<br />
FATBURGER<br />
FATBURGER - CANADA<br />
401-1901 Rosser Ave.<br />
Burnaby, BC V5C 6S3<br />
888-597-7272<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- information available upon request<br />
(THE) FORTUNATE FOX<br />
THE PEGASUS GROUP<br />
44 Upjohn Rd.<br />
Toronto, ON M3B 2W1<br />
terry@pegasusgroup.ca<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- advertising fee 1.5% corporate;<br />
1.5% local<br />
- royalty fee 6%<br />
History, Plans<br />
- founded in 1952 in Los Angeles, Calif.;<br />
first Canadian location opened in<br />
Vancouver in 2005<br />
- 63 units in Canada (3 franchised)<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- total required investment $425,000<br />
to $525,000<br />
- marketing fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
FAT FRANKS<br />
10560-114 St.<br />
Edmonton, AB T5H 3J7<br />
780-413-0278<br />
History, Plans<br />
- founded in 1995 in Edmonton<br />
- 18 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $10,000<br />
- minimum cash required $150,000, plus<br />
working capital and net worth >$300,000<br />
- total average investment $300,000, plus<br />
lease deposit<br />
- royalty fee 3%<br />
- advertising fee 2%<br />
Services<br />
- central purchasing<br />
- complete turnkey package<br />
- development and design<br />
- field support<br />
- inspection system<br />
- lease negotiation<br />
- management training<br />
- quality assurance<br />
- quality control<br />
- staff training<br />
- technical services<br />
FETA & OLIVES<br />
FETA & OLIVES MEDITERRANEAN GRILL<br />
1 Palace Pier Ct., Ste. 809<br />
Toronto, ON M8V 3W9<br />
416-251-3353<br />
President: Vicki Vasiliou<br />
History, Plans<br />
- established in 2006 in Barrie, Ont.<br />
- 13 units in Canada (all franchised)<br />
- opportunities available in Ont., Que.,<br />
N.S., B.C. and Alta.<br />
FIREHOUSE SUBS OF CANADA, LTD.<br />
12735 Gran Bay Parkway, Suite 150<br />
Jacksonville, FL, U.S. 32258<br />
1-888-289-6185<br />
CEO: Don Fox<br />
History, Plans<br />
- Established 1994 in Jacksonville, Fla., U.S.<br />
- Established 2015 in Oshawa, Ontario<br />
- More than 1,210 total units in the<br />
U.S., Puerto Rico and Canada; 50 units<br />
in Canada<br />
- Continuing global expansion through<br />
<strong>2022</strong><br />
Franchise Costs<br />
- Initial franchise fee: $30,000<br />
- System Advertising fee: 1%<br />
- Royalty fee: 6%<br />
- Local Advertising Fee: 2%<br />
Services<br />
- advertising/marketing<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
- other<br />
(THE) FIRKIN GROUP OF PUBS<br />
FIRKIN CAPITAL CORP.<br />
20 Steelcase Rd. W., Unit 1C<br />
Markham, ON L3t 1B2<br />
905-947-4444<br />
Director, Franchising: Paul Saraiva<br />
History, Plans<br />
- established in 1987 in Toronto<br />
- 27 units in Canada (18 franchised); one<br />
in U.S.<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment/site cost $800,000<br />
- other costs $100,000<br />
- total cost $830,000<br />
- advertising fee 1%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
History, Plans<br />
- established 2018 in Toronto<br />
- one unit in Canada<br />
- seeking franchise partners across<br />
Canada and internationally<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- royalty fee 4%<br />
- advertising fee 1.5%<br />
- estimated total costs $520,000<br />
to $1,700,00<br />
Services<br />
- accounting services (by request, billable<br />
service, not included in fees)<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
FOX & FIDDLE<br />
THE PEGASUS GROUP<br />
44 Upjohn Rd.<br />
Toronto, ON M3B 2W1<br />
terry@pegasusgroup.ca<br />
History, Plans<br />
- established in 1989 in Toronto<br />
- 13 units in Canada (12 franchised)<br />
- seeking franchise partners across<br />
Canada and internationally<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- royalty fee $3,000 to $4,000/month<br />
- advertising fee $500/month<br />
- estimated total costs $520,000<br />
to $1,700,00<br />
Services<br />
- accounting services (by request, billable<br />
service, not included in fees)<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
FRESHII<br />
2 Toronto St., Ste. 235<br />
Toronto, ON M5C 2B5<br />
Founder & CEO: Matthew Corrin<br />
History, Plans<br />
- established in 2005 in Toronto<br />
- 400+ units worldwide<br />
Services<br />
- information available upon request<br />
FROZU!<br />
GRINNERS FOOD SYSTEMS LTD.<br />
105 Walker St.<br />
Truro, NS B2N 5G9<br />
1-800-565-4389<br />
History, Plans<br />
- founded in 2013 in Truro, N.S.<br />
- 14 units in Canada<br />
- plans to expand in Atlantic Canada,<br />
Ontario and Western Canada; clip-on<br />
concept also available<br />
Franchise Costs<br />
- initial franchise fee $20,000<br />
- equipment/site cost $22,085 to $43,085<br />
- total costs $39,985 to $60,985<br />
- advertising fee 4%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease-negotiation advice<br />
- management training<br />
- purchasing<br />
- site-location training and support<br />
GABBY’S RESTAURANT & BAR<br />
URBAN DINING GROUP INC.<br />
41 Industrial St., Unit 204<br />
Toronto, ON M4G 0C7<br />
416-967-9671<br />
President: Todd Sherman<br />
History, Plans<br />
- established in 1989 in Toronto<br />
- 16 units in Canada (8 franchised)<br />
- two units set to open in <strong>2022</strong><br />
- plans to convert restaurants that have<br />
closed due to COVID-19 to Gabby’s brand<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- equipment/site cost $375,000<br />
- other costs $475,000<br />
- total costs $875,000<br />
- advertising fee is a flat fee<br />
- royalty feeis a flat fee<br />
Services<br />
-advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
50 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
GOOD EARTH COFFEEHOUSE<br />
GOOD EARTH CAFES LTD.<br />
4020 7th St. S.E.<br />
Calgary, AB T2G 2Y8<br />
403-294-9330<br />
Founders: Nan Eskenazi & Michael Going<br />
President & COO: Gerry Docherty<br />
Director of Franchising: Gerry Docherty<br />
History, Plans<br />
- established 1991 in Calgary<br />
- 50 units in Canada<br />
- plans to expand in Greater Toronto,<br />
Victoria, Winnipeg, Calgary and<br />
Edmonton in <strong>2022</strong><br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- site costs $395,000 to $595,000<br />
- advertising fee 3%<br />
- royalty fee 7%<br />
Services<br />
- commissioning support<br />
- design/construction<br />
- field support<br />
- lease negotiation<br />
- marketing<br />
- product development<br />
- site selection<br />
- staff training<br />
- supply chain management<br />
(THE) GREAT CANADIAN BAGEL<br />
P.O. Box 12053 Creditview<br />
Mississauga, ON L5C 4R7<br />
905-566-1903<br />
President: Ed Kwiatkowski<br />
History, Plans<br />
- established in 1993 in Toronto<br />
- 18 units in Canada<br />
Franchise Costs<br />
- initial franchise fee full $20,000<br />
to $30,000<br />
- equipment/site cost (full production)<br />
$300,000 to $350,000<br />
- non-production fee $85,000 to $175,000<br />
- advertising fee 1.5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
GRECO PIZZA<br />
GRINNERS FOOD SYSTEMS LTD.<br />
105 Walker St.<br />
Truro, NS B2N 5G9<br />
902-893-4141<br />
History, Plans<br />
- established in 1977 in Moncton, N.B.<br />
- 100+ units in Canada<br />
- plans to expand in Nova Scotia, New<br />
Brunswick, P.E.I. and Newfoundland<br />
Franchise Costs<br />
- initial franchise fee $20,000<br />
- equipment/site cost $85,000<br />
to $105,000<br />
- other costs $79,500 to $108,500<br />
- total costs $184,500 to $233,500<br />
- advertising fee 4%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation advice<br />
- management training<br />
- purchasing<br />
- site location training and support<br />
HARVEY’S<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244, ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established 1959 in Ontario<br />
- 289 units in Canada (279 franchised)<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- total costs $500,000 to $1,000,000<br />
- advertising fee 4% national; 1% local<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
-supplies<br />
HERO CERTIFIED BURGERS<br />
ANGUS INC.<br />
78 Signet Dr., Ste. 201<br />
Toronto, ON M9L 1T2<br />
416-740-2304<br />
President: John Lettieri<br />
History, Plans<br />
- established in 2003 in Toronto<br />
- 50 units in Canada; one outside Canada<br />
- System wide 50 locations including HERO<br />
VK. 28,000,000<br />
Franchise Costs<br />
- equipment/site cost $160,000<br />
- other costs $140,000<br />
- total costs $275,000 to $300,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
IL FORNELLO<br />
IL FORNELLO RESTAURANTS<br />
576 Danforth Ave.,<br />
Toronto, ON M4K 1R1<br />
416-920-9410, ext. 113<br />
President: Ian Sorbie<br />
History, Plans<br />
- established in 1986<br />
- six units in Ontario (four franchised)<br />
- plans to open franchised two locations<br />
in <strong>2022</strong> and four in 2023<br />
Franchise Costs<br />
- franchise fee $35,000<br />
- equipment costs $100,000 to $160,000<br />
- turnkey costs $350,000 to $800,000<br />
- advertising fee 1%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing - design<br />
- lease negotiation<br />
- management<br />
- operational support<br />
- purchasing<br />
- site location<br />
- social media<br />
- staff training<br />
- supplies<br />
IL FORNELLO PRESTO<br />
IL FORNELLO CORPORATION<br />
576 Danforth Ave.,<br />
Toronto, ON M4K 1R1<br />
416-920-9410, ext. 113<br />
President: Ian Sorbie<br />
History, Plans<br />
- new fast-casual/ quick-service concept<br />
based on the IL FORNELLO model<br />
- plans to open franchised two locations<br />
in <strong>2022</strong> and four in 2023<br />
Franchise Costs<br />
- franchise fee $35,000 (we may want to<br />
decrease to $25k or $30k for Presto)<br />
- equipment costs $80,000 to $140,000<br />
- turnkey costs $250,000 to $600,000<br />
- advertising fee 1%<br />
- royalty fee 4%<br />
Services:<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- operational support<br />
- purchasing<br />
- site location<br />
- social media<br />
- staff training<br />
- supplies<br />
JIMMY THE GREEK INC.<br />
1 First Canadian Pl.<br />
100 King St. W., P.O. Box 334<br />
Toronto, ON M5X 1E1<br />
416-214-9237<br />
President: Jim Antonopoulos<br />
History, Plans<br />
- established in 1985 in Toronto<br />
- 55 units in Canada (54 franchised)<br />
- continued expansion planned for Ontario<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- equipment/site cost available<br />
upon request<br />
advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- site location<br />
- staff training<br />
JOEY’S SEAFOOD / JOEY’S FISH<br />
SHACK / STREATS – TAQUERIA<br />
| POUTINERIE | FISH & CHIPS<br />
JOEY’S FRANCHISE GROUP<br />
3048 9th St. S.E.<br />
Calgary, AB T2G 3B9<br />
403-243-1216<br />
Vice-President: Max Gagnon<br />
History, Plans<br />
- established 1985 in Calgary<br />
- 58 units in Canada (56 franchised)<br />
- 15+ projected openings in <strong>2022</strong><br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- equipment/site cost $182,000 to $285,000<br />
- advertising fee 3%<br />
- royalty fee 5%of net sales<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
JUGO JUICE<br />
MTY FRANCHISING INC.<br />
A4, 416 Meridian Road SE.<br />
Calgary, AB T2A 1X2<br />
1-877-377-5846<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- founded in 1998 in Calgary<br />
- 133 units in Canada; two outside of<br />
Canada (132 franchised)<br />
FOODSERVICEANDHOSPITALITY.COM<br />
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THE <strong>2022</strong> FRANCHISE REPORT<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- initial Investment $210,000 to $358,000<br />
- marketing fee 4%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
JUNGLE JIM’S<br />
SAFARI EATERTAINMENT INC.<br />
657 Topsail Rd.<br />
St. John’s, NL A1E 2E3<br />
709-745-5467<br />
Partners: Stephen Pike; Barry Walsh;<br />
Sean Brake<br />
History, Plans<br />
- founded in 1991 in St. John’s<br />
- 24 units in Canada (all franchised)<br />
- plans to add one to two stores per year<br />
during the next two years<br />
Franchise Costs<br />
- equipment/site cost $600,000 to<br />
$750,000<br />
- advertising fee 2%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
KARMA<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 2019 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
(THE) KEG STEAKHOUSE & BAR<br />
KEG RESTAURANTS LTD.<br />
10100 Shellbridge Way<br />
Richmond, BC V6X 2W7<br />
604-276-0242<br />
EVP, Business Development:<br />
James Henderson<br />
History, Plans<br />
- established 1971 in North Vancouver, B.C.<br />
- 98 units in Canada; 10 units in the U.S.<br />
Franchise Costs<br />
- initial franchise fee $75,000<br />
- equipment/site cost $4,000,000 to<br />
$5,500,000<br />
- marketing fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
KELSEYS<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244, ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established 1978 in Ontario<br />
- 67 units in Canada (63 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,300,000 to $1,600,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
KFC<br />
KFC CANADA COMPANY<br />
191 Creditview Rd., Ste. 100<br />
Vaughan, ON L4L 9T1<br />
416-664-5200<br />
Sr. Development Manager:<br />
Jeremy Alexander<br />
History, Plans<br />
- established 1952 in Salt Lake City, Utah<br />
- 640 units in Canada; 22,600 outside<br />
Canada<br />
- expects to increase Canadian store<br />
count to 800 in the medium term<br />
Franchise Costs<br />
- initial franchise fee US$52,000<br />
- equipment/site cost available<br />
upon request<br />
- advertising fee 5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
KIM CHI<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., STE. 200<br />
St-laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 2007<br />
Franchise costs<br />
- initial franchise fee $30,000<br />
- initial investment: $340,000 to $555,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
KORYO KOREAN BBQ<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 2004<br />
- 16 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment: $375,000 to $563,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
KOYA JAPAN<br />
MTY FRANCHISING INC..<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 1985<br />
- 10 units in Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment: $375,000 to $563,000<br />
- advertising fee 2%<br />
- royalty fee 6% to 7%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LA BELLE ET LA BOEUF<br />
FOODTASTIC<br />
2365 Guenette St.<br />
Montreal, QC H4R 2E9<br />
514-856-5555, ext. 260<br />
info@foodtastic.ca<br />
VP Franchising: Guyaume Arsenault<br />
History, Plans<br />
- established in 2012 in Montreal<br />
- franchising since 2014<br />
- 16 units in Canada; one outside Canada<br />
(seven franchised)<br />
- new opportunities available across<br />
Canada and the U.S.<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- total $1,200,000 to $1,500,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LA BOITE VERTE<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 2018 in Montreal<br />
52 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LA CAGE - BRASSERIE<br />
SPORTIVE<br />
SPORTSCENE GROUP INC.<br />
1180 Place Nobel, Ste. 102<br />
Boucherville, QCJ4B 5L2<br />
450-641-3011<br />
President: Jean Bédard<br />
History, Plans<br />
- established 1984 in Montreal<br />
- 38 units in Canada (12 franchised)<br />
Franchise Costs<br />
- initial franchise fee $75,000<br />
- equipment/site cost $2,400,000<br />
- other costs $25,000<br />
- total costs $2,400,000<br />
- advertising fee national 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
LA CARNITA<br />
MONARCH & MISFITS INC.<br />
44 Upjohn Rd.<br />
Toronto, ON M3B 2W1<br />
terry@pegasusgroup.ca<br />
History, Plans<br />
- established 2011 in Toronto; franchising<br />
since 2015<br />
- six units in Canada (five franchised);<br />
two units outside of Canada<br />
- seeking franchise partners across<br />
Canada and internationally<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- advertising fee 1.5%<br />
- royalty fee 4%<br />
- estimated total costs $700,000 to<br />
$2,000,000<br />
Services<br />
- accounting service (by request, billable<br />
service not included in fees)<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
LA CHAMBRE<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Guyaume Arseneault<br />
History, Plans<br />
- established in 2013 in Montreal<br />
- two units in Canada<br />
-two corporate units in Canada<br />
Franchise costs<br />
- franchise fee $25,000<br />
- projected cost $600,000 to $800,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LA CREMIERE<br />
MTY FRANCHISING INC<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 1979<br />
- 47 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $25,000 to $30,000<br />
- initial investment $175,000 to $500,000<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LA DIPERIE<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 2014 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $25,000 (five-year<br />
agreement)<br />
- initial Investment: $127,000 to $173,000<br />
- advertising fee 2.5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LA PREP<br />
4500 Dixie Rd,<br />
Mississauga, Ontario L4W 1V7<br />
514-510-5001<br />
CEO: John Essaris<br />
VP of Franchise Development:<br />
John Beauparlant<br />
History, Plans<br />
- established in 2010 in Montreal<br />
- 55 units in Canada<br />
- expansion planned in Canada and U.S.<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- total cost $450,000 to $650,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
L’GROS LUXE<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
Directors, Franchising & Development:<br />
Nikki Arvanitakis; Guyaume Arseneault<br />
History, Plans<br />
- established in Montreal<br />
- seven units in Canada<br />
- three corporate units in canada<br />
Franchise Costs<br />
- franchise fee $30,000<br />
- projected cost $500,000 to $800,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
LIBERTY KITCHEN<br />
BROWNS RESTAURANT GROUP<br />
3540 W. 41st Ave., Ste. 207a<br />
Vancouver, BC V6N 3E6<br />
778-980-2440<br />
EVP - Business Development: Bruce Fox<br />
History, Plans<br />
- two franchised locations open in B.C.<br />
- one new location (Saskatoon, SK) under<br />
contract for late <strong>2022</strong> opening<br />
- three additional B.C. sites in negotiation<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- equipment/site costs $2,500,000<br />
- other costs $450,000<br />
- total costs $3,000,000<br />
- royalty fee 6% (all in)<br />
- no marketing/co-op fees<br />
Services<br />
- culinary development<br />
- lease negotiation<br />
- opening support<br />
- operational reviews and field support<br />
- POS and payment platforms<br />
- purchasing<br />
- site selection<br />
- supplies<br />
LITTLE CAESARS PIZZA<br />
LITTLE CAESAR OF CANADA ULC<br />
2301 Royal Windsor Dr.<br />
Mississauga, ON L5J 1K5<br />
905-822-7899<br />
Director of Real Estate & Franchise<br />
Development: James Jenkins<br />
History, Plans<br />
- established 1959 in Garden City, Mich.<br />
- 200 units worldwide<br />
- opportunities available across Canada<br />
Franchise Costs<br />
- initial franchise fee $20,000, and $15,000<br />
per unit thereafter<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- supplies<br />
LOADED PIEROGI<br />
839 Queen St. W.<br />
Toronto, ON M6J 1G4<br />
647-352-5060<br />
Owners: Adam Dolley; Bryan Bruke<br />
FOODSERVICEANDHOSPITALITY.COM<br />
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THE <strong>2022</strong> FRANCHISE REPORT<br />
History, Plans<br />
- established in 2014<br />
- opportunities available across Ontario<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- royalty fee 5%<br />
- marketing/advertising fee 2%<br />
- turn key locations $225,000+<br />
Services<br />
- available upon request<br />
LOOKOO<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
Directors, Franchising & Development:<br />
Nikki Arvanitakis; Guyaume Arseneault<br />
History, Plans<br />
- established in Montreal<br />
- two units in Canada<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- projected cost $350,000 to $500,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MADISONS<br />
MTY GROUP<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining: Marie-Line<br />
Beauchamp<br />
History, Plans<br />
- established in 2006 in Dollard des<br />
Ormeaux, Que.<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- initial Investment: $1,066,000 to<br />
$3,035,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MANCHU WOK<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- established in 1990<br />
- 75 units in Canada (all franchised);<br />
35 outside of Canada<br />
Franchise Costs<br />
- franchise fee $30,000<br />
- initial investment $375,000 to $563,000<br />
- royalty fee 6% to 7%<br />
- marketing fee 1%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MANDARIN RESTAURANT<br />
MANDARIN RESTAURANT FRANCHISE<br />
CORPORATION<br />
8 Clipper Ct.<br />
Brampton, ON L6W 4T9<br />
647-533-2610<br />
President: James Chiu<br />
History, Plans<br />
- established in 1979 in Brampton, Ont.<br />
- 29 units in Canada (28 franchised)<br />
Franchise Costs<br />
- initial franchise fee $300,000<br />
- equipment/site cost $1,500,000<br />
- other costs $1,200,000<br />
- total costs $3,000,000<br />
- advertising fee $10,000<br />
- royalty fee $25,000<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MARY BROWNS INC.<br />
100 Renfrew Dr., Ste. 200<br />
Markham, ON L3R 9W7<br />
905-513-0044<br />
franchising@marybrowns.com<br />
History, Plans<br />
- established in 1969 in St. John’s, NL<br />
- 200+ units in Canada<br />
- projected to reach 250 units by <strong>2022</strong><br />
Franchise Costs<br />
- initial franchisee fee $30,000<br />
- equipment/site cost $650,000 to<br />
$700,000<br />
- total cost $700K+<br />
- advertising fee 4%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design/construction<br />
- operations/marketing support<br />
- lease negotiation<br />
- management/staff training<br />
- purchasing/supply chain<br />
- site location<br />
McDONALD’S RESTAURANTS<br />
OF CANADA LIMITED<br />
1 McDonald’s Pl.<br />
Toronto, ON M3C 3L4<br />
416-443-1000<br />
Franchising Manager: Tom Marlow<br />
History, Plans<br />
- established 1967 in Richmond, B.C.<br />
- 1,450 units in Canada (85% franchised)<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MENCHIE’S FROZEN YOGURT<br />
YOGURTWORLD ENTERPRISES<br />
259 Yorkland Rd., 3rd Fl.<br />
Toronto, ON M2J 5B2<br />
416-645-5110, ext. 401<br />
President: David Shneer<br />
History, Plans<br />
- established in 2010 in Toronto<br />
- 58 units in Canada; 300+ outside<br />
of Canada<br />
- plans to expand throughout<br />
Maritime provinces<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- equipment cost $140,000<br />
- site cost/construction $150,000<br />
- total costs $300,000 to $350,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MICHEL’S BAKERY CAFE<br />
THREECAF BRANDS CANADA INC.<br />
55 Administration Rd., Unit 37<br />
Vaughan, ON L4K 4G9<br />
905-482-7300 or 1-877-434-3223<br />
Director of Operations: Ian McDougall<br />
History, Plans<br />
- established in 1979 in Toronto<br />
- five units in Canada (four franchised)<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- total costs $450,000 to $775,000<br />
- advertising fee 2%<br />
- royalty fee 7%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
MILESTONES GRILL AND BAR<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
francise@foodtastic.ca<br />
VP, Franchising: Scott McCannell<br />
History, Plans<br />
- established 1989 In B.C.<br />
- franchising since 1991<br />
- 44 units in Canada (15 franchised)<br />
- 27 corporate units<br />
Franchise Costs<br />
- initial franchise fee $75,000<br />
- total costs $2,000,000 to $3,000,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
54 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
MONTANA’S<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4k 0b8<br />
905-760-2244 Ext 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 1995 in Ontario<br />
- 100 units in Canada (96 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,400,000 to $1,800,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MONZA<br />
FOODTASTIC<br />
9245, rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
francise@foodtastic.ca<br />
VP Franchising; Guyaume Arseneault<br />
History, Plans<br />
- established in 2009 in Montreal<br />
- franchising since 2018<br />
- eight units in Canada (1 corporate)<br />
Franchise Costs<br />
- franchise fee $40,000<br />
- project cost $1,100,000 to $1,500,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MR. GREEK RESTAURANTS INC.<br />
44 Upjohn Rd.<br />
Toronto, ON M3B 2W1<br />
647-993-3266<br />
History, Plans<br />
- established 1988 in Toronto<br />
- 17 units in Canada<br />
- four new units planned in <strong>2022</strong><br />
in Ontario;<br />
- plans to expand in Ontario<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- start-up capital required >$150,000<br />
- total investment $300,000 (retro) to<br />
$400,000+ (new)<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- administrative support<br />
- advertising/marketing<br />
- design<br />
- construction (turn key)<br />
- lease negotiation<br />
- location<br />
- menu development<br />
- purchasing<br />
- training<br />
MR. MIKES RESTAURANT<br />
CORPORATION<br />
RAMMP HOSPITALITY BRANDS INC.<br />
3700 N. Fraser Way, Ste. 100<br />
Burnaby, BC V5J 5H4<br />
647-527-9574<br />
Director of Franchising: Ryan Lloyd<br />
History, Plans<br />
- established 1960 in Vancouver<br />
- 41 units in Canada, (38 franchised)<br />
- plans to open 30 units in Canada in the<br />
next five years<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MR. SOUVLAKI<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 1997<br />
- 16 units in Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment: $318,000 to $558,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- information available upon request<br />
MR. SUB<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 1968<br />
- 271 units in Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- initial Investment: $303,000 to $447,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MUCHO BURRITO<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established 2006 in Mississauga, Ont.<br />
- 119 units in Canada (all franchised); two<br />
outside of Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment $359,000 to $671,000<br />
- advertising fee 4%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
MUFFIN PLUS<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 1982 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
NEW ORLEANS PIZZA<br />
CHAIRMAN’S BRANDS CORP.<br />
77 Progress Ave.<br />
Toronto, ON M1P 2Y7<br />
416-288-8515<br />
Director of Franchising and Real-Estate<br />
Development: Tariq El-Noqrashy<br />
History, Plans<br />
- established 1978 In Waterloo, Ont.<br />
- 40 units in Canada (38 franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- training fee $5,000<br />
- architectural drawings $12,500 to<br />
$20,000<br />
- signage fee $10,000 to $15,000<br />
- equipment/leasehold improvements<br />
$160,000 to $195,000<br />
- advertising fee 3 %<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design/construction<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
NEW YORK FRIES<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4k 0b8<br />
905-760-2244, ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established 1983 in Toronto<br />
- 116 units in Canada; 13 outside of Canada<br />
(110 franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total costs $250,000 to $350,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 55
THE <strong>2022</strong> FRANCHISE REPORT<br />
NICKELS DELICATESSEN<br />
FOODTASTIC INC.<br />
9245 rue Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
VP Franchising: Guyaume Arseneault<br />
History, Plans<br />
- established 1990 in Montreal<br />
- franchising since 1991<br />
- 11 units in Canada (2 corporate units)<br />
Franchise Costs<br />
- franchise fee $50,000<br />
- investment required $800,000 to<br />
$1,000,000<br />
- project cost $700,000 to $800,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
(THE) OLD SPAGHETTI FACTORY<br />
OLD SPAGHETTI FACTORY CANADA LTD.<br />
55 Water St., Ste. 210<br />
Vancouver, BC V6B 1A1<br />
604-684-1287<br />
Director, Franchising: Ken Lobson<br />
History, Plans<br />
- established 1970 in Vancouver<br />
- 15 units in Canada<br />
Franchise Costs<br />
- information available upon request<br />
- royalty fee 5%<br />
- advertising fee 3%<br />
Services<br />
- marketing assistance<br />
- opening assistance<br />
- procurement<br />
- research/development<br />
- site approval<br />
- staff training<br />
- support and development<br />
ODD BURGER<br />
ODD BURGER CORPORATION<br />
505 Consortium Court<br />
London, ON N6E 2S8<br />
1-800-286-2145<br />
Sherrie Abrantes, Franchise Administrator<br />
sherrie@oddburger.com<br />
519-476-8409<br />
History, Plans<br />
- established in 2014 in London, ON<br />
- 6 units in Canada<br />
- 6 units under development in Canada<br />
Franchise Costs<br />
- franchise fee: $35,000<br />
- equipment/site cost: $100,000<br />
equipment; $300,000 to $400,000<br />
leasehold improvements<br />
- advertising fee: 2.5%<br />
- royalty fee: 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
-technology<br />
OPA! OF GREECE<br />
OPA! SOUVLAKI FRANCHISE GROUP INC.<br />
7235 Flint Rd. S.E.<br />
Calgary, AB T2H 1G2<br />
403-245-0033<br />
President, CEO: Dorrie Karras<br />
History, Plans<br />
- founded 1998 in Calgary<br />
- 106 units (all franchised)<br />
- plans to expand within Canada and<br />
the USA<br />
Franchise Costs<br />
Food court<br />
- initial franchise fee $25,000<br />
- equipment cost $181,000 to $186,000<br />
- total investments $441,000 to $510,000<br />
- advertising fee 3% of sales<br />
- royalty fee 6% of sales<br />
Street Front<br />
- initial franchise fee $25,000<br />
- equipment cost $205,000 to $231,000<br />
- total costs $466,000 to $565,000<br />
- advertising fee 3% of sales<br />
- royalty fee 6% of sales<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- franchisee training<br />
- ongoing operational support<br />
- opportunity for multi-unit franchisee<br />
operation<br />
ORIGINAL JOE’S<br />
RESTAURANT & BAR<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244, ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 1997 in Calgary<br />
- 57 units in Canada (35 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,400,000 to $1,700,000<br />
- advertising 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
- financial assistance<br />
PANAGIO’S ALL DAY GRILL<br />
PANAGIO’S INC.<br />
6085 Creditview Rd., Unit 17<br />
Mississauga, ON L5B 0C5<br />
800-265-6298<br />
History, Plans<br />
- established in 2008<br />
- four units in Canada<br />
- seeking franchisees for Ontario-wide<br />
expansion<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment/site cost $300,000 to<br />
$400,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- business development<br />
- lease negotiation<br />
- opening assistance<br />
- pricing/quality controls<br />
- procurement<br />
- research/development<br />
- site selection<br />
- training<br />
PANAGO PIZZA INC.<br />
33149 Mill Lake Rd.<br />
Abbotsford, BC V2S 2A4<br />
604-859-6621<br />
Director of Franchising: Nigel Beattie<br />
History, Plans<br />
- established 1986 in Abbotsford, B.C.<br />
- 195 units in Canada (187 franchised)<br />
- capitalizing on new market<br />
opportunities in Western Canada;<br />
building the momentum in key Eastern-<br />
Canadian markets<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- total costs $560,000<br />
- royalty fee 5%<br />
- advertising fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
(THE) PANTRY RESTAURANTS<br />
TRIUMPH HOSPITALITY GROUP<br />
33048 – 1583 Marine Dr. W.<br />
Vancouver, BC V7V 4W7<br />
604-281-1380<br />
History, Plans<br />
- seven units in Canada<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- information available upon request<br />
PARAMOUNT FINE FOODS<br />
10 Four Seasons Pl., Ste. 601<br />
Toronto, ON M9B 6H7<br />
416-695-8900<br />
Franchise Coordinator:<br />
Magda Chelminska<br />
History, Plans<br />
- founded 2006<br />
- 65 units globally<br />
- plans to expand across Canada<br />
and internationally<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- advertising/marketing<br />
- lease negotiations<br />
- regional operations support<br />
- site selection<br />
- supplies<br />
- training<br />
PARKER’S BBQ & PRIME<br />
RIB GRILL<br />
PARKERS BRANDS INC.<br />
1770 Argentia Rd.<br />
Mississauga, ON L5N 3S7<br />
905-814-8030<br />
Franchise Development Manager:<br />
Elaine Macheras<br />
History, Plans<br />
- established in 2020 in Ontario<br />
- five units in Canada<br />
Franchise Costs<br />
- estimated development costs $250,000<br />
to $400,000<br />
- franchise fee $30,000<br />
- advertising fee 1%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
56 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
PERKINS RESTAURANT<br />
& BAKERY<br />
6075 Poplar Ave., Ste. 800<br />
Memphis, TN 38119-4709<br />
901-766-6400<br />
VP, Franchising: Dave Blouin<br />
History, Plans<br />
- established 1958 in Cincinnati, Ohio<br />
- 16 units in Canada; 355 international<br />
- seeking to expand in Alberta, B.C.,<br />
Manitoba, Ontario, Quebec and<br />
Saskatchewan<br />
Franchise Costs<br />
- information available upon request<br />
- advertising fee 3%<br />
- local advertising commitment 0.5%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
PINKBERRY<br />
PINKBERRY CANADA INC.<br />
210 Shields Ct.<br />
Markham, ON L3R 8V2<br />
905-479-8762<br />
Chairman and CEO: Aaron Serruya<br />
History, Plans<br />
- established 2005 in Los Angeles<br />
- 93 units in Canada; 113 outside of Canada<br />
- plans to expand across Canada and<br />
internationally via traditional and<br />
non-traditional units<br />
Franchise Costs<br />
- initial franchise fee US$45,000<br />
- total costs US$150,000 to US$500,000<br />
- advertising fee 3% of gross sales<br />
- royalty fee 6% of gross sales<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
PITA PIT CANADA<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555<br />
franchise@foodtastic.ca<br />
VP Franchising: Scott McCannell<br />
History, Plans<br />
- established in 1995 in Kingston, Ont.<br />
-232 franchise units in Canada<br />
- 570+ units worldwide<br />
Franchise Costs<br />
- initial franchise fee $20,000<br />
- total investment $120,000 to $300,000<br />
- advertising fee 1%<br />
- royalty fee 5% of monthly gross sales<br />
Services<br />
- information available upon request<br />
PIZZA 73<br />
PIZZA PIZZA LIMITED<br />
4949 51 St. S.E.<br />
Calgary, AB T2B 3S7<br />
403-221-7373<br />
SVP of Operations and Development:<br />
Philip Goudreau<br />
History, Plans<br />
- established in 1985 in Edmonton<br />
- 90 traditional units in Canada; 14<br />
non-traditional locations<br />
Franchise Costs<br />
- initial partnership fee $50,000<br />
- advertising fee 8%<br />
- administration fee 3%<br />
Services<br />
- accounting/finance<br />
- call centre operations<br />
- IT infrastructure<br />
- operational support<br />
- payroll<br />
- real-estate development/renewals<br />
- training<br />
PIZZA DELIGHT<br />
MTY FRANCHISING INC<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining: Marie-Line<br />
Beauchamp<br />
History, Plans<br />
- established 1968 in Shediac, N.B.<br />
- 71 franchised units in Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000 (street);<br />
$15,000 (mall)<br />
- total costs $288,000 to $646,000<br />
- advertising fee 1.5% to 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
PIZZA HUT<br />
YUM! BRANDS INC.<br />
191 Creditview Rd., Ste. 100<br />
Vaughan, ON L4L 9T1<br />
416-664-5200<br />
Director of Development: Marco Moretto<br />
History, Plans<br />
- established 1958 in Wichita, Kan.<br />
- 419 units in Canada<br />
Franchise Costs<br />
- initial franchise fee US$24,200<br />
- application fee CAD$12,000<br />
- advertising fee 5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- site location<br />
- staff training<br />
1260 Lawrence Ave. East<br />
Toronto, ON M3A 1C4<br />
416-439-0051<br />
President: Domenic Primucci<br />
Franchise Development Manager:<br />
Meraj Jamal<br />
History, Plans<br />
- established 1963 in Toronto<br />
- 154 units in Canada (152 franchised)<br />
- continued expansion into key markets<br />
with plans to add up to 10 units<br />
Franchise Costs<br />
- franchise fee $20,000<br />
- site cost $450,000 to $505,000<br />
- total costs: $450,000 to $525,000<br />
- advertising fee 4%<br />
- royalty fee 6%<br />
Services<br />
-advertising/marketing<br />
-design<br />
-lease negotiation<br />
-management<br />
-purchasing<br />
-site location<br />
-staff training<br />
-supplies<br />
PIZZA PIZZA<br />
PIZZA PIZZA LIMITED<br />
500 Kipling Ave.<br />
Toronto, ON M8Z 5E5<br />
416-967-1010<br />
VP of Franchising: Chuck Farrell<br />
History, Plans<br />
- established 1967 in Toronto<br />
- 439 units in Canada (402 franchised)<br />
- 189 non-traditional locations<br />
- continued growth planned in B.C.,<br />
Maritimes and Quebec<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment/site cost $350,000 (depends<br />
on location; turnkey)<br />
- advertising fee 6%<br />
- royalty fee 6%<br />
Services<br />
- call centre operations<br />
- financing assistance<br />
- IT infrastructures<br />
- marketing support<br />
- operational support<br />
- real-estate development<br />
- training<br />
PIZZAVILLE INC.<br />
741 Rowntree Dairy Rd., Unit 1<br />
Woodbridge, ON L4L 5T9<br />
416-736-3636<br />
History, Plans<br />
- established in 1963 in Toronto<br />
- 85 units in Canada (83 franchised)<br />
Franchise Costs<br />
- total costs $300,000 to $450,000<br />
- flat-fee advertising (weekly)<br />
- flat royalty fee (weekly)<br />
- more information available upon request<br />
Services<br />
- information available upon request<br />
RESTAURANT BRANDS INTERNATIONAL<br />
5705 Blue Lagoon Drive<br />
Miami, Florida, U.S. 33126<br />
General Manager, Canada: Rob Manuel<br />
(289) 355-9745<br />
History, Plans<br />
- founded 1972 in New Orleans<br />
- 275 units in Canada; 3,300 worldwide<br />
- continuing global expansion through<br />
<strong>2022</strong><br />
Franchise Costs<br />
- initial franchise fee US$35,000-$50,000<br />
- advertising fee 4.3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
POULET FUSÉE<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
855-771-0177<br />
franchise@foodtastic.ca<br />
Directors, Franchising & Development:<br />
Nikki Arvanitakis; Guyaume Arseneault<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 57
THE <strong>2022</strong> FRANCHISE REPORT<br />
History, Plans<br />
- established in Montreal<br />
- 20 units in Canada<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- projected cost $500,000 to $700,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
PRESSE CAFE<br />
LES CAFES V.P.<br />
1422 Nôtre-Dame W.<br />
Montreal, QC H3C 1K9<br />
514-935-5553<br />
History, Plans<br />
- founded in 1994<br />
- 62 units in Canada; eight outside<br />
of Canada<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- total cost $200,000 to $400,000<br />
- minimum investment required 40% to<br />
50% of project cost<br />
Services<br />
- information available upon request<br />
PUMPERNICKELS<br />
JSF FRANCHISE GROUP INC.<br />
90 Adelaide St. W., Ste. 700<br />
Toronto, ON, M5H 4A6<br />
877-308-4889<br />
Franchising: Joel Friedman<br />
History, Plans<br />
- established 1986<br />
- 15 units in Canada<br />
- plans to expand in the Greater Toronto<br />
Area and other parts of Canada<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- advertising fee 2%<br />
- royalty fee 6.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
PÜR & SIMPLE<br />
EAT IT BRANDS INC.<br />
2035 Côte-de-Liesse, Suite 207,<br />
Saint-Laurent (Québec) H4N 2M5<br />
514.360.5228<br />
Sean Sarrami - CDO - 416-931-8090<br />
History, Plans<br />
- established in Quebec in 2016<br />
- 35 units in Canada<br />
- 15 units under development in Canada<br />
Franchise Costs<br />
- franchise fee $35 k<br />
- equipment/site cost $750k - 850k<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
-advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
QUESADA BURRITOS - TACOS<br />
QUESADA FRANCHISING OF<br />
CANADA CORP.<br />
1240 Bay St., Ste. 304<br />
Toronto, ON M5R 2A7<br />
866-854-2400<br />
President: Steve Gill<br />
History, Plans<br />
- established 2004 in Toronto<br />
- 165 units in Canada<br />
- 15 locations in development<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- equipment cost $68,000 to $73,500<br />
- construction cost $110,000 to $155,000<br />
- total costs $238,500 to $320,500<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- franchisee training<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
QUIZNOS<br />
QUIZNOS CANADA<br />
RESTAURANT CORPORATION<br />
1267 Cornwall Rd., Ste. 301<br />
Oakville, ON L6J 7T5<br />
647-259-0333<br />
Director, Franchising: Marc Choy<br />
History, Plans<br />
- established 1981 in Denver, Colo.<br />
- 750+ locations worldwide<br />
Franchise Costs<br />
- initial franchise fee $10,000<br />
- total investment $211,850 to $326,549<br />
- marketing fee 2%<br />
- royalty fee 5%<br />
Services<br />
- information available upon request<br />
RICKY’S GROUP OF FAMILY<br />
STYLE RESTAURANTS<br />
401-1901 Rosser Ave.<br />
Burnaby, BC V5C 6S3<br />
888-597-7272<br />
History, Plans<br />
- established 1962 in Vancouver<br />
- 79 units in Canada (77 franchised)<br />
Franchise Costs<br />
- initial franchise fee $45,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
ROBIN (2006) LTD.<br />
CHAIRMAN BRANDS CORP.<br />
77 Progress Ave. Toronto, ON M1P 2Y7<br />
416-288-8515<br />
Director of Franchising and Real-Estate<br />
Development: Tariq El-Noqrashy<br />
History, Plans<br />
- established 1975 in Thunder Bay, Ont.<br />
- 160 units in Canada (137 franchised)<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- training fee $5,000<br />
- architectural drawings $15,000 to<br />
$25,000<br />
- equipment/leasehold improvements<br />
$200,000 to $415,000<br />
- signage fee $15,000 - $30,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design/construction<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
ROTISSERIE BENNY<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555, ext. 260<br />
info@foodtastic.ca<br />
VP Franchising: : Guyaume Arsenaulty<br />
History, Plans<br />
- established in 1960 in Montreal<br />
- 17 units in Canada<br />
- seven corporate units in Canada<br />
- franchise opportunities across Canada<br />
Franchise Costs<br />
- initial franchise fee $15,000 to $25,000<br />
- project costs: $500,000 to $950,000<br />
- royalty fee 5%<br />
- advertising fee 2%<br />
- local advertising fee 3%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SALAD LOOP<br />
SALAD LOOP GROUP INVESTMENTS INC.<br />
124 W. 1st St., Unit 1002<br />
North Vancouver, BC V7M 3N3<br />
604-729-4717<br />
President: Sean Kim<br />
History, Plans<br />
- founded 2000 in Vancouver<br />
- 10 units in Canada<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- information available upon request<br />
SAN FRANCESCO FOODS<br />
28 Industrial St., Unit 203<br />
Toronto, ON M4G 1Y9<br />
416-535-7805<br />
History, Plans<br />
- founded in 1954 in Toronto<br />
- seven units in Canada<br />
- plans to expand in Southern Ontario<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- design/construction<br />
- purchasing<br />
- staff training<br />
58 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
SAWMILL PRIME RIB &<br />
STEAK HOUSE<br />
4180 Calgary Trail S., 2nd Fl.<br />
Edmonton, AB T6H 5H5<br />
780-463-4499<br />
Director of Operations: Len McCullough<br />
History, Plans<br />
- founded in 1976 in Edmonton<br />
- nine units in Canada (seven franchised)<br />
- continued growth in Alberta, B.C.,<br />
Saskatchewan, Manitoba, Ontario,<br />
New Brunswick, Nova Scotia, P.E.I.<br />
and Newfoundland<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- equipment/site cost $1,500,000 to<br />
$3,000,00 (based on size/location)<br />
- total costs $1,500,000+<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SCORES<br />
MTY GROUP<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining:<br />
Marie-Line Beauchamp<br />
History, Plans<br />
- established in 1995 in Montreal<br />
- 38 units in Canada (36 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,000,000 to $1,200,000<br />
- advertising fee 3%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- site location<br />
- staff training<br />
SECOND CUP COFFEE CO.<br />
FOODTASTIC<br />
6303 Airport Rd.<br />
Mississauga, ON L4V 1R8<br />
905-362-1818<br />
VP, Franchising: Scott McCannell<br />
History, Plans<br />
- established 1975 in Toronto<br />
- franchising since: 1980<br />
- 176 franchise units<br />
- 22 corporate units<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- Pinkberry fee $5,000<br />
- total costs $350,000 to $550,000<br />
- advertising fee 2%<br />
- royalty fee 7.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- regional operations support<br />
- site location<br />
- training<br />
SHOELESS JOE’S SPORTS GRILL<br />
SHOELESS JOE’S LTD.<br />
551 Jevlan Dr.<br />
Woodbridge, ON L4L 8W1<br />
905-760-1295<br />
VP Business Development:<br />
Danny Grammenopoulos<br />
History, Plans<br />
- founded 1985 in Toronto<br />
- 28 units in Canada (all franchised)<br />
- planning to expand across Canada;<br />
primary growth in the Ontario, Manitoba,<br />
Saskatchewan and Alberta; accepting<br />
opportunities for Nova Scotia,<br />
Newfoundland and B.C.<br />
Franchise Costs<br />
- initial franchise fee $45,000<br />
- development cost $1,000,000<br />
to $2,000,000<br />
- advertising fee 2%<br />
- royalty fee 5 to 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SMITTY’S CANADA INC.<br />
501 18th Ave. S.W., Ste. 500<br />
Calgary, AB T2S 0C7<br />
403-229-3838<br />
Franchise Development: Roger Aube<br />
905-441-2055<br />
History, Plans<br />
- established 1960 in Calgary<br />
- 80+ units in Canada<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- equipment/site costs $180,000<br />
to $300,000<br />
- leasehold improvements $100,000<br />
to $800,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- site location<br />
- staff training<br />
- supplies<br />
SMOKE’S POUTINERIE<br />
SMOKE’S POUTINERIE INC.<br />
85 Kingston Rd. E., Unit 5<br />
Ajax, ON L1S 7J4<br />
905-427-4444<br />
mark@smokespoutinerie.com<br />
The Global Dominator, Chief Operational<br />
& Business Development Officer:<br />
Mark Cunningham<br />
History, Plans<br />
- established 2008 in Toronto<br />
- 150+ units in Canada; nine additional<br />
countries with locations<br />
- aggressive expansion planned for<br />
Canada and international locations;<br />
traditional, non-traditional, sports and<br />
entertainment, educational and<br />
amusement portfolios<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total costs $350,000 to $450,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- operational support<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
- training<br />
SOUTH STREET BURGER<br />
MTY FOOD GROUP INC.<br />
2 Bishop St., Ste. 400<br />
Toronto, ON M5R 1N2<br />
416-963-5005<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established 2005 in Toronto<br />
- 40 units in Canada; one outside of<br />
Canada (20 franchised)<br />
- additional units planned in Canada and<br />
internationally<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- equipment/site cost $350,000 to<br />
$650,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SOUVLAKI BAR<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555 ext. 260<br />
franchise@foodtastic.ca<br />
855-771-0177<br />
VP Franchising: Guyaume Arseneault<br />
History, Plans<br />
- established 1990 in Montreal<br />
- 14 units in Canada<br />
- one corporate<br />
Franchise Costs<br />
- franchise fee: QSR $15,000 Full Service<br />
$25,000<br />
- investment required: QSR $350,000<br />
to $450,000 Full Service $600,000 to<br />
$1,200,000<br />
- project cost $700,000 to $800,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
ST. LOUIS BAR & GRILL<br />
ST. LOUIS FRANCHISE LIMITED<br />
2040 Yonge St., Ste. 200B<br />
Toronto, ON M4S 1Z9<br />
416-485-1094<br />
CEO/Founder: Brent Poulton<br />
History, Plans<br />
- established 2002 in Toronto<br />
- 70+ units in Canada<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- total costs $850,000 to $950,000<br />
- advertising fee 1.75%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 59
THE <strong>2022</strong> FRANCHISE REPORT<br />
STATE & MAIN KITCHEN & BAR<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244 ext 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 2012<br />
- 25 units in Canada (16 franchised)<br />
Franchise Costs<br />
- initial franchise fee $60,000<br />
- total costs $1,400,000 to $1,700,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
- financial assisstance<br />
STEAK FRITES ST.<br />
MTY GROUP<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining:<br />
Marie-Line Beauchamp<br />
History, Plans<br />
- established in 1986 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment: $750,000 to $800,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SUBWAY<br />
DOCTOR’S ASSOCIATES, INC.<br />
325 Sub Way<br />
Milford, CT 06461-3059<br />
203-877-4281<br />
Senior Vice President of Development:<br />
Steve Rafferty<br />
History, Plans<br />
- established 1965 in Bridgeport, Conn.<br />
- 3,000+ locations in Canada<br />
Franchise Costs<br />
- initial franchise fee $15,000<br />
- advertising fee 4.5%<br />
- royalty fee 8%<br />
Services<br />
- advertising/marketing<br />
- business development<br />
- design<br />
- ongoing training<br />
- site selection assistance<br />
- staff training<br />
SUKIYAKI<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded 1979<br />
- 10 units in Canada; nine outside of<br />
Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SUNNYSIDE GRILL<br />
2 Jane St., Ste. 202<br />
Toronto, ON M6S 4W3<br />
416-604-0650<br />
President: Jeff Parissi<br />
History, Plans<br />
- established 2004<br />
- 12 units in Canada (all franchised) plus 3<br />
non conventional F and B contracts<br />
- plans to grow by one to two units<br />
per year<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- total turnkey build-out cost $200,000<br />
- advertising fee 2%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- ongoing support<br />
- purchasing<br />
- site location<br />
- social media<br />
- staff training<br />
- supplies<br />
SUNSET GRILL<br />
RESTAURANTS LTD.<br />
5100 Erin Mills Town Centre<br />
P.O. Box 53036<br />
Mississauga, ON L5M 5A7<br />
905-286-5833<br />
CEO: Angelo Christou<br />
History, Plans<br />
- established 1985 in Toronto<br />
- 98 units in Canada (all franchised)<br />
- expansion planned across Canada and<br />
in the U.S.<br />
Franchise Costs<br />
- initial franchise fee $55,000<br />
- total costs $650,000<br />
- advertising fee 1%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SUSHI MAN<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- purchased in 2014<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SUSHI SHOP<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- founded 2000<br />
- 150 units in Canada (132 franchised);<br />
three outside of Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment $216,000 to $441,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SWEET JESUS<br />
HOLY SWEET INC.<br />
210 Shields Ct.<br />
Markham, ON L3R 8V2<br />
905-479-8762<br />
CEO: Aaron Serruya<br />
History, Plans<br />
- established in 2015 in Thornhill, Ont.<br />
- seven units in Canada; two outside<br />
of Canada<br />
- plans to expand across Canada<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- total costs $231,025 to $670,080<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
SWISS CHALET ROTISSERIE<br />
AND GRILL<br />
RECIPE UNLIMITED CORPORATION<br />
199 Four Valley Dr.<br />
Vaughan, ON L4K 0B8<br />
905-760-2244, ext. 2255<br />
VP, Franchising & International<br />
Development: Courtney Hindorff<br />
History, Plans<br />
- established in 1954 in Ontario<br />
- 193 units in Canada (180 franchised)<br />
Franchise Costs<br />
- initial franchise fee $35,000 To $75,000<br />
- total costs $1,100,000 to $1,400,000<br />
- advertising fee 4% national; 1% local<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
60 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
SYMPOSIUM CAFE INC.<br />
6021 Yonge St., Ste. 475<br />
Toronto, ON M2M 3W2<br />
416-449-3611<br />
Director of Franchising: Ron Ansett<br />
History, Plans<br />
- established in 1996 in London, Ont.;<br />
franchising since 2004<br />
- 24 units in Canada all franchised<br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- equipment/other costs $85,000<br />
to $130,000<br />
- total costs $625,000 to $675,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
TACO BELL<br />
TACO BELL CANADA COMPANY<br />
191 Creditview Rd., Ste. 100<br />
Woodbridge, ON L4L 9T1<br />
416-254-4266<br />
Development Manager: Alex Grudkin<br />
History, Plans<br />
- established 1952 in Downey, Calif.<br />
- 170+ units in Canada, (all franchised);<br />
7,000 outside of Canada<br />
- plans to expand throughout Canada<br />
Franchise Costs<br />
- initial franchise fee $49,100<br />
- equipment/site cost $700,000<br />
- build cost $1,200,000 to $1,400,000<br />
- other costs $500,000<br />
- total cost $1,249,100<br />
- marketing fee 4.7% of gross sales; 1%<br />
local store marketing<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
TACO TIME<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded 1978<br />
- 131 units in Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment: $288,000 to $506,000<br />
- advertising fee 4%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
TANDORI<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established 1979 in Montreal<br />
- 12 units in Canada (10 franchised); one<br />
outside of Canada (franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment: $294,000 to $570,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
TASTE OF MEDITERRANEAN<br />
T.O.M FRANCHISE INC.<br />
2 Toronto St., Ste. 324<br />
Toronto, ON M5C 2B5<br />
416-821-5561<br />
CEO: Sam Hussein<br />
History, Plans<br />
- established 2004 in Toronto<br />
- nine units in Canada; one outside of<br />
Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $12,000<br />
- equipment/site cost $99,000 to $175,000<br />
- no advertising fee<br />
- royalty fee $1,000 flat<br />
Services<br />
- financing<br />
- lease negotiation<br />
- marketing<br />
- site location<br />
- store set up<br />
- training<br />
TCBY<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established in 1980 in Little Rock, Ark.<br />
- established in Canada in 1990 in Montreal<br />
and Toronto<br />
Franchise costs<br />
- initial franchise fee $25,000; $10,000 for<br />
co-brand<br />
- initial investment $326,000 to $480,000<br />
- advertising fee included in cost of<br />
goods; 3% for co-brand<br />
- royalty fee included in cost of goods;<br />
5% for co-brand<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
TERIYAKI EXPERIENCE<br />
INNOVATIVE FOOD BRANDS<br />
531 North Service Rd. E.<br />
Oakville, ON L6H 1A5<br />
905-337-7777<br />
Director of Franchising: Jamie Nugent<br />
History, Plans<br />
- established 1986 in Toronto<br />
- 51 units in Canada; 7 outside of Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total costs $300,000 to $500,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training (assist onsite)<br />
THAI EXPRESS<br />
MTY FRANCHISING INC<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
Vice President: Dennis Ng<br />
History, Plans<br />
- founded 2000 in Montreal<br />
- 288 units in Canada; five international<br />
(all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total costs $336,000 to $714,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
THAI ZONE<br />
MTY FRANCHISING INC<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- founded 2007<br />
- 39 units in Quebec (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total costs $468,000 to $855,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplie<br />
TIKI MING<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded 1983<br />
- 30 units in Canada (28 franchised); 10<br />
outside of Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment $375,000 to $578,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- information available upon request<br />
TILTED KILT PUB & EATERY<br />
JSF FRANCHISE GROUP INC.<br />
3636 Bathurst St., Ste. 1611<br />
Toronto, ON M6A 2Y5<br />
416-819-2644<br />
VP of Franchising: Joel Friedman<br />
History, Plans<br />
- founded 2005 in Arizona<br />
- six units in Canada; 100 outside of<br />
Canada (all franchised)<br />
* Denotes <strong>2022</strong> updates were not received and information is current as of February 2021<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 61
THE <strong>2022</strong> FRANCHISE REPORT<br />
Franchise Costs<br />
- initial franchise fee $75,000<br />
- equipment/site cost $500,000<br />
- total costs $1,750,000<br />
- advertising fee 2% (national) 4% (local)<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
THE TDL GROUP CORP.<br />
130 King St. W., Suite 300<br />
Toronto, ON M5X 2A2<br />
1-888-601-1616<br />
President, Americas: Axel Schwan<br />
History, Plans<br />
- established 1964 in Hamilton, Ont.<br />
- 3,940 units in Canada; 1,197 units<br />
outside Canada<br />
- continuing global expansion<br />
throughout <strong>2022</strong><br />
Franchise Costs<br />
- initial franchise fee $50,000<br />
- advertising fee 4%<br />
- royalty fee 4.5% to 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- management<br />
- purchasing<br />
- staff training<br />
- furniture<br />
- equipment<br />
TIMOTHY’S WORLD COFFEE<br />
MTY FRANCHISING INC.<br />
55 Administration Rd., Unit 37<br />
Woodbridge, ON L4K 4G9<br />
877-434-3223, ext. 7314<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- established 1975 in London, Ont.<br />
- 39 units in Canada (32 franchised); two<br />
units outside of Canada<br />
- exploring potential sites in various<br />
markets<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- total cost $241,000 to $633,000<br />
- advertising fee 2%<br />
- royalty fee 9%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
TOMMY CAFE<br />
FOODTASTIC<br />
9245, St. Thimens<br />
Pierrefonds, QC H8Y 0A1<br />
514-856-5555 ext. 260<br />
1-(855) 771-0177<br />
franchise@foodtastic.ca<br />
VP Franching: Guyaume Arseneault<br />
History, Plans<br />
- established in Montreal<br />
- six units in Canada<br />
- one corporate unit<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- projected cost $400,000 to $600,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
TOPPER’S PIZZA<br />
TOPPER’S FRANCHISING COMPANY INC.<br />
551 Bryne Dr., Unit N<br />
Barrie, ON L4N 9Y3<br />
705-735-2127<br />
Franchise Development Manager:<br />
Anik Gaumond<br />
History, Plans<br />
- established 1982 in Sudbury, Ont.<br />
- 36 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- advertising fee 2%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
TOUJOURS MIKES<br />
MTY FRANCHISING INC.<br />
200, 8150 Trans-Canada Hwy.<br />
Saint-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining:<br />
Marie-Line Beauchamp<br />
History, Plans<br />
- established in 1967 in Quebec<br />
- 64 units in Canada (69 franchised)<br />
Franchise Costs<br />
- initial franchise fee $22,500 to $45,000<br />
- training fee $5,000<br />
- total costs $600,000 to $700,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
TURTLE JACK’S MUSKOKA GRILL<br />
MTY FRANCHISING INC.<br />
3370 S. Service Rd., Ste. 300<br />
Burlington, ON L7L 3M6<br />
905-332-6833, ext. 234<br />
CEO: Eric Lefebvre<br />
History, Plans<br />
- established 1992 in Burlington, Ont.<br />
- 19 units in Canada<br />
- one new unit under construction<br />
Franchise Costs<br />
- information available upon request<br />
Services<br />
- information available upon request<br />
TUTTI FRUTTI<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Casual Dining: Marie-Line Beauchamp<br />
History, Plans<br />
- founded 1996<br />
- 35+ units in Canada (32 franchised)<br />
Franchise Costs<br />
- initial franchise fee $35,000 to $40,000<br />
- initial Investment $578,000 to $830,000<br />
- advertising fee 3%<br />
- royalty fee 5% (6% Alta. and B.C.)<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
URBAN KITCHEN/SELECT<br />
SANDWICH<br />
SELECT FOOD SERVICES INC.<br />
155 Gordon Baker Rd., Ste. 214<br />
Toronto, ON M2H 3N5<br />
416-391-1244<br />
Director of Franchising: Carol Kahn<br />
History, Plans<br />
- established 1979 in Toronto<br />
- 11 properties in Canada<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- advertising fee 3%<br />
- royalty fee 7%<br />
Services<br />
- information available upon request<br />
VALENTINE<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 1984<br />
- 100+ units in Canada (95 franchised)<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- initial Investment: $229,000 to $462,000<br />
- advertising fee 2.5%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
VAN HOUTTE<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established 1919 in Montreal<br />
- 51 franchised units in Canada<br />
Franchise Costs<br />
- franchise fee $25,000<br />
- initial Investment $241,000 to $623,000<br />
- advertising fee 3%<br />
- royalty fee 5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
VERA’S BURGER SHACK<br />
42 W. 8th Ave., Ste. 3<br />
Vancouver, BC V5Y 1M7<br />
604-683-8372<br />
President: Gerald Tritt<br />
History, Plans<br />
- established 1977 in Vancouver<br />
- 11 units in Canada<br />
62 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
THE <strong>2022</strong> FRANCHISE REPORT<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total cost $164,500 to $353,000<br />
- advertising fee 3.5%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
VIA CIBO ITALIAN STREET FOOD<br />
VIA CIBO FRANCHISING INC<br />
808 York Mills Rd Toronto, ON M3B 1X8<br />
416-684-8645<br />
CEO Alex Rechichi<br />
History, Plans<br />
- established 2014<br />
- 15 units in Canada<br />
- plans to expand franchises in B.C., Alta.,<br />
Ont. and Que.<br />
Franchise Costs<br />
- initial franchise fee $35,000<br />
- equipment/site cost $500,000 to<br />
650,000<br />
- turnkey costs $600,000 to $750,000<br />
- advertising fee 1.5%<br />
- royalty fee 5%<br />
VILLA MADINA<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 2003<br />
- 43 units in Canada (all franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- initial Investment $318,000 to $558,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
WASABI GRILL & NOODLE<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of QSR: Jason Brading<br />
History, Plans<br />
- founded in 2012<br />
- advertising fee 4%<br />
- royalty fee 4%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- quality assurance<br />
- site development/location<br />
- staff training<br />
- supplies<br />
WHAT A BAGEL<br />
W.A.B BAKERY FRANCHISING LTD.<br />
7117 Bathurst Street Thornhill, ON L4J 2J6<br />
(905) 707-0101<br />
Jeff Young, Chief Development Officer<br />
jeffyoung@whatabagel.com<br />
franchise@whatabagel.com<br />
647.888.8420<br />
History, Plans<br />
- Established: Established in Toronto ON<br />
in 1997. Formally relaunched a franchise<br />
program in 2021<br />
- 11 units in Canada, 6 corporate,<br />
five franchised<br />
Franchise Costs<br />
- franchise fee: $45,000<br />
- equipment/site cost $600,00-$900,000<br />
- advertising fee: 1.5%<br />
- royalty fee: 3.5%<br />
- purchasing<br />
- site location<br />
- staff training<br />
TRIPLE O’S RESTAURANT<br />
WHITE SPOT LIMITED<br />
200 - 8223 Sherbrooke St.<br />
Vancouver, BC V5X 4E6<br />
604-321-6631<br />
Business Development Manager:<br />
Karen Dosen<br />
History, Plans<br />
- founded 1997 in Vancouver<br />
- 70 units in Canada (58 franchised)<br />
- focusing on growth in Western Canada<br />
and Ontario<br />
Franchise Costs<br />
- initial franchise fee $40,000<br />
- equipment/site cost approx. $1,100,000<br />
(depending on site)<br />
- total cost approx. $1,140,000<br />
(depending on site)<br />
- advertising fee 2.0%<br />
- royalty fee 6.0%<br />
- other fees 1.0%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- operational support<br />
- purchasing<br />
- social media<br />
- site location<br />
- staff training (opening)<br />
- supplies<br />
VIE & NAM<br />
MTY FRANCHISING INC.<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
Vice-President: Dennis Ng<br />
History, Plans<br />
- established in 2008 in Montreal<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Service<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
Franchise Costs<br />
- franchise fee $30,000<br />
- initial investment $375,000 to $563,000<br />
- marketing fee 1%<br />
- royalty fee 6% to 7%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
WENDY’S RESTAURANTS<br />
OF CANADA INC.<br />
5515 N. Service Rd., Ste. 201<br />
Burlington, ON. L7L 6G4<br />
905-331-0341<br />
wendys.franchising@wendys.com<br />
Manager: Steven McAnulty<br />
History, Plans<br />
- established in 1969 in Columbus, Ohio;<br />
established in Canada 1975 in Hamilton,<br />
Ont.<br />
- 405 units in Canada (all franchised)<br />
Franchise Costs<br />
- application/training fee $5,000<br />
(new franchises)<br />
- initial franchise fee $50,000<br />
- total investment $1,000,000 to<br />
$2,000,000<br />
Services<br />
- advertising/marketing<br />
- design<br />
- financial assistance<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
WHITE SPOT RESTAURANT<br />
WHITE SPOT LIMITED<br />
200 - 8223 Sherbrooke St.<br />
Vancouver, BC V5X 4E6<br />
604-321-6631<br />
Business Development Manager:<br />
Karen Dosen<br />
History, Plans<br />
- founded 1928 in Vancouver<br />
- 55 units in Canada (35 franchised)<br />
- focusing on growth in Western Canada<br />
Franchise Costs<br />
- initial franchise fee $75,000<br />
- equipment/site cost approx. $1,900,000<br />
(depending on site)<br />
- total cost approx. $1,975,000 (depending<br />
on site)<br />
- advertising fee 2.5%<br />
- royalty fee 5%<br />
- other fees 0.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
WILLIAMS FRESH CAFE INC.<br />
52 Abbotsford Rd.<br />
Gormley, ON L4A 2C1<br />
416-637-5976<br />
VP, Marketing: Peter Druxerman<br />
History, Plans<br />
- established 1993 in Stratford, Ont.<br />
- 19+ units in Canada (17 franchised)<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total cost $180,000 (express unit) to<br />
$650,000 (sit-down café)<br />
- advertising fee 1%<br />
- royalty fee 6.5%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- franchisee/staff training<br />
- intranet<br />
- lease negotiation<br />
- purchasing<br />
- regional director support<br />
- site location<br />
WIMPY’S DINER INC.<br />
160 Konrad Crest., Unit 1<br />
Markham, ON L3R 9T9<br />
888-594-6797<br />
GM: Vasco Andreevski<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 63
History, Plans<br />
- founded 1961<br />
- 54 units in Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- total cost $250,000 to $500,000<br />
- advertising fee 2%<br />
- royalty fee 4%<br />
Services<br />
- information available upon request<br />
WOK BOX<br />
FRESH ASIAN KITCHEN<br />
19074 22nd Ave., Unit 102<br />
Surrey, BC V3S 3S6<br />
778-545-0233<br />
CEO: Lawrence Eade<br />
History, Plans<br />
- established 2004 in Edmonton<br />
- 53 units in Canada<br />
- expanding in Western Canada during<br />
the next two years; planned growth in<br />
Ontario and Eastern Canada<br />
Franchise Costs<br />
- initial franchise fee $30,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
(THE) WORKS<br />
MTY FRANCHISING INC<br />
8150 Trans-Canada Hwy., Ste. 200<br />
St-Laurent, QC H4S 1M5<br />
514-336-8885<br />
COO of Fast Casual: Marc Benzacar<br />
History, Plans<br />
- established 2001 in Ottawa<br />
- 27 units in Canada (23 franchised)<br />
Franchise Costs<br />
- initial franchise fee $45,000<br />
- total costs $622,000 to $1,063,000<br />
- advertising fee 2%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- purchasing<br />
- site location<br />
- staff training<br />
YEH!<br />
YEH! WORLDWIDE INC.<br />
210 Shields Ct.<br />
Markham, ON L3R 8V2<br />
905-479-8762<br />
CEO: Aaron Serruya<br />
History, Plans<br />
- established 2008 in Quebec<br />
- seven units in Canada<br />
- plans to expand across Quebec<br />
Franchise Costs<br />
- initial franchise cost $32,000<br />
- total costs $219,850 to $399,500<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
YOGURTY’S<br />
YOGURTIINC.<br />
210 Shields Ct.<br />
Markham, ON L3R 8V2<br />
905-479-8762<br />
Founder: Aaaron Serruya<br />
History, Plans<br />
- established 1987 in Toronto<br />
- 15 units in Canada<br />
- plans to expand across Canada<br />
Franchise Costs<br />
- initial franchise fee $25,000<br />
- equipment/site cost $153,000 to<br />
$483,000<br />
- total costs $178,000 to $508,000<br />
- advertising fee 3%<br />
- royalty fee 6%<br />
Services<br />
- advertising/marketing<br />
- design<br />
- lease negotiation<br />
- management<br />
- purchasing<br />
- site location<br />
- staff training<br />
- supplies<br />
THE <strong>2022</strong> FRANCHISE REPORT<br />
DON’T SEE<br />
YOUR COMPANY<br />
INCLUDED IN<br />
THIS YEAR’S<br />
FRANCHISE<br />
REPORT?<br />
Email abostock@kostuchmedia.com<br />
to make sure you’re included<br />
in the 2023 edition<br />
64 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
DIVERSITY<br />
ROAD TO<br />
INCLUSION<br />
THE FOODSERVICE INDUSTRY CONTINUES TO WORK TOWARD<br />
A MORE DIVERSE AND INCLUSIVE FUTURE<br />
BY DANIELLE SCHALK | ILLUSTRATION BY GIOVANNINA COLALILLO<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 65
Over the past few years, many<br />
companies have made significant<br />
commitments to their HR policies<br />
with the aim of improving diversity<br />
and inclusion within the foodservice<br />
industry. These commitments have<br />
included increased measurement,<br />
accountability and transparency<br />
around workforce diversity.<br />
David Gibbs, CEO, Yum! Brands, Inc. stated in 2021 that, “2020 marked<br />
a turning point for communities and businesses around the world, as the<br />
pandemic deepened existing societal issues and inequalities.”<br />
“Since publishing our commitment to diversity in 2020, we’ve<br />
made strides to advance our actions,” shares Grace Turiano, senior<br />
manager, Internal Communications, Restaurant Brands International<br />
(RBI). “We own the outcome of our Diversity and Inclusion (D&I)<br />
journey and continue to measure our progress around hiring and<br />
representation, diversity in our advertising and in<br />
community support.”<br />
Hiring and Recruiting<br />
Though the foodservice-and-hospitality<br />
industry traditionally attracts a diverse<br />
workforce, that diversity has historically<br />
not been reflected in management and<br />
leadership roles. This has led many of the<br />
industry’s largest companies to publicly<br />
set targets in this area.<br />
For example, McDonald’s goals include<br />
increasing representation of historically underrepresented<br />
groups in leadership roles (senior director and above)<br />
located in the U.S. to 35 per cent by 2025. It’s also working to increase<br />
representation of women in leadership roles globally to 45 per cent in<br />
the same period, with the further goal of achieving gender parity in<br />
these roles by 2030.<br />
However, there has been ongoing debate surrounding the value of<br />
setting D&I targets that prescribe achieving a certain number of diversity<br />
hires. The main concerns revolve around tokenism and the risk of placing<br />
these targets above employees’ merit and achievements.<br />
In its Commitment to Diversity, RBI specifically calls out meritocracy<br />
as a core value of the company, stating: “We believe that you should be<br />
hired, promoted and compensated based on what you do and how you<br />
do it.” As a result, the company’s commitments focus on changing the<br />
way it recruits.<br />
In fact, over the past year, RBI has exceeded its target of “having 50<br />
per cent of final-round interview candidates for any role with RBI be<br />
demonstrably diverse,” shares Turiano. Since mid-2020, 70 per cent of<br />
final-round candidates globally were diverse, resulting in 62 per cent of<br />
all hires through the new process adding to the company’s diversity.<br />
Ian Vickers, Chief Operating Officer of Winnipeg-based Diversity Food<br />
Spotlight:<br />
Diversity<br />
Food Services<br />
Diversity Food Services is a multi-faceted<br />
foodservice company that operates<br />
University of Winnipeg’s foodservice<br />
outlets and offers catering services. This<br />
unique social enterprise is a joint venture<br />
of the University of Winnipeg’s Community<br />
Renewal Corporation and SEED Winnipeg (a<br />
non-profit agency that fights poverty and<br />
helps renew Winnipeg’s inner city), and has<br />
the primary purpose of maximizing social,<br />
cultural, economic and environmental wellbeing<br />
within its community.<br />
A key part of this aim is to provide meaningful<br />
employment and career development<br />
for marginalized individuals, including<br />
those with cognitive/physical disabilities,<br />
new immigrants/refugees, Indigenous<br />
peoples, individuals residing in inner city<br />
low-income households, people exiting the<br />
justice system, members of the LGBTQ+<br />
community and food-insecure students.<br />
Diversity Food Services’ Chief Operating<br />
Officer Ian Vickers explains that these values<br />
have fostered a culture of caring that both<br />
attracts and retains a diverse workforce.<br />
“As of September, 66 per cent<br />
of our employees self-identified as belonging<br />
to groups we’ve identified as being<br />
marginalized from traditional employment,”<br />
he shares, noting this is one of the lowest<br />
results Diversity has recorded in its history<br />
— attributed in part to pandemic-related<br />
circumstances. For comparison, in 2017,<br />
that number was 78 per cent.<br />
“We invest in people [and] we really<br />
value the different lived experiences that<br />
people bring to the table,” says Vickers.<br />
“We’re made a stronger company by<br />
having more diverse voices and opinions<br />
coming to us all the time.”<br />
66 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong>
Services, highlights connecting to the community<br />
and reaching out through channels that will reach<br />
marginalized groups as key to diverse recruitment.<br />
“By just starting our search there, we<br />
end up way ahead,” he says of the strategy<br />
employed by the social enterprise, whose<br />
vision includes “providing meaningful<br />
employment and career development<br />
for individuals traditionally marginalized<br />
in our economy” (see sidebar).<br />
Beyond creating diverse workforces<br />
that reflect the reality of the communities<br />
they operate within, ensuring equal<br />
opportunity and equal pay are important<br />
aspects of eliminating bias. And, this is an area<br />
where measurement is especially pertinent.<br />
On this front, Starbucks Canada has<br />
committed to achieving “equal pay for<br />
work of equal value.” On International<br />
Women’s Day 2021, Lori Digulla, president<br />
of Starbucks Canada, shared: “I’m pleased<br />
to confirm once again this year that<br />
Starbucks Canada is pay-equity compliant,”<br />
adding, “Our compensation practice also<br />
requires each role to have a set pay grade regardless<br />
of the partner who fills the position, and we review<br />
and validate our pay grades both internally and<br />
against external market data annually.”<br />
Franchising<br />
Among the large restaurant franchisors, workforce<br />
commitments/targets tend to focus on corporate<br />
employees. However, there have also been commitments<br />
to franchisee diversity.<br />
Recipe Unlimited’s 2020 Corporate Social<br />
Responsibility Report includes a commitment to<br />
work with its franchisees to inform and enhance the<br />
company’s diversity goals, “including the development<br />
of programs to attract and better support<br />
diverse franchisees.”<br />
McDonald’s also includes franchisee diversity<br />
in its Diversity, Equity & Inclusion strategies.<br />
In 2021, the company announced a franchiseerecruitment<br />
initiative for McDonald’s U.S. and all McDonald’s<br />
International Operated Markets (including Canada) with the goal<br />
of helping to increase the number of franchisees from historically<br />
underrepresented groups.<br />
Last year, Yum! also launched the Yum! Center for Global Franchise<br />
Excellence at the University of Louisville. A key focus of this first-ofits-kind<br />
education and research centre is educating under-represented<br />
people of colour and women on the possibilities of franchising as a<br />
pathway to entrepreneurship.<br />
On the Ground<br />
While large chains play a significant role in the industry, it’s important<br />
to acknowledge that small foodservice operators do not have the<br />
In 2021,<br />
Yum! Brands<br />
accelerated<br />
its goal of<br />
reaching<br />
gender<br />
parity among<br />
its senior<br />
leadership,<br />
bumping its<br />
target from<br />
2030 to<br />
2025.<br />
resources or scale to approach D&I the way big<br />
franchisors have. As foodservice operations often<br />
lack formal human-resources departments, these<br />
issues have long been a challenge.<br />
However, Vickers shares that policies and targets<br />
are not the only way to achieve an inclusive culture.<br />
“We’re not a policy-driven company, we are a culturedriven<br />
company,” he explains. “We start off with that<br />
underlying idea that we’re going to pay the true value<br />
of products all the way along the supply chain —<br />
inclusive of our own people.” And, through this holistic<br />
approach, he says, “we sort of bake that equity and<br />
inclusion piece into the recipe right from the start.”<br />
This approach is centred on inviting everyone to<br />
the table and valuing each team member and their<br />
unique perspective through a culture of “participative<br />
management.” (This is evident in the company’s<br />
menus, which feature family recipes from employees<br />
past and present.)<br />
There are also external resources that operators can leverage to aid<br />
the development of inclusive workplace culture, including training and<br />
accreditation programs and collective commitments.<br />
Kostuch Media Ltd. has formed an Anti-Racism Framework in partnership<br />
with Easton’s Group of Hotels, which is intended to help the<br />
foodservice-and-hospitality industry create a more equitable and just<br />
workplace, while also ensuring that diversity and inclusion are part of<br />
the fabric of their businesses. Companies can sign this commitment<br />
document stating their intention to “actively support a culture of antiracism<br />
equity and inclusion for all.” FH<br />
foodserviceandhospitality.com/anti-racism-framework/<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 67
Higher Lea<br />
SEGMENT REPORT<br />
When COVID-19 forced<br />
college and university<br />
students to evacuate<br />
campuses to curtail its<br />
spread, campus dining<br />
was left in the dust.<br />
As part of its portfolio,<br />
Smoke’s Poutinerie, for example, has roughly 40 franchised<br />
campus locations in partnership with foodservice providers<br />
such as Compass Canada, Aramark and Sodexo. Unable<br />
to serve its core demographic, all campus locations were<br />
temporarily shut down at the onset of the pandemic<br />
and suffered severe revenue losses.<br />
“A fraction of them re-opened in September 2021,<br />
but we’ve been hit hard again [with the rapid spread of<br />
the Omicron variant,] says Ryan Smolkin, founder and<br />
CEO of Smoke’s Poutinerie.<br />
In response, operators kicked digital innovation into<br />
high gear to fuel economic recovery, meet safety standards<br />
and offer students and faculty convenient and flexible<br />
food options that align with their busy schedules.<br />
“We’ve adapted our services throughout the pandemic<br />
to best meet the needs our students,” says Brandon<br />
Cebulak, Compass Canada’s general manager at George<br />
Brown College. “As we welcome students back, we know<br />
they’re looking for pre-packaged and contactless options.”<br />
College and univer<br />
operations in respo<br />
BY NICOLE DI TOMASSO<br />
ISTOCK.COM/SIPHOTOGRAPHY<br />
RE-IMAGINED FOOD DELIVERY<br />
Although campuses have a number of fast-food and<br />
casual-dining options, Smolkin says some students will<br />
continue using third-party apps to get food delivered<br />
from a restaurant off campus. In turn, campus-based<br />
operators will struggle to boost their bottom line.<br />
“Now, students can be sitting in a campus food<br />
court amongst all these different brands, but they’ll<br />
get something else delivered to campus,” says Smolkin.<br />
“Operators can’t just assume that because the customer<br />
is there, they’ll come to your restaurant.”<br />
To compete with the heightened demand for thirdparty<br />
food delivery, post-secondary institutions are<br />
creating their own.<br />
68 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
ning<br />
sities pivot foodservice<br />
nse to COVID-19<br />
FOODSERVICEANDHOSPITALITY.COM<br />
In spring 2021,<br />
the University of<br />
British Columbia (UBC) launched<br />
UBC Eats, a meal-delivery subscription<br />
service that’s proven to be a successful<br />
concept among upper-year students,<br />
staff and faculty.<br />
“The demand for food delivery surged, with more<br />
than 1,000 individual meals delivered on campus daily<br />
through third-party services like Uber Eats, DoorDash<br />
and SkipTheDishes,” says Colin Moore, director of<br />
Foodservices at UBC Vancouver campus. “In response,<br />
we created a new revenue stream called UBC Eats. It’s<br />
a more sustainable answer to food delivery because<br />
it’s coming directly from our kitchens on campus and<br />
there’s no delivery charges or tips.”<br />
Generally speaking, the Agri-Food Analytics Lab<br />
(AAL) at Dalhousie University estimates that more than<br />
$12 billion has been committed to online-interface<br />
services, from delivery apps to curb-side grocery pickup,<br />
in Canada’s food industry for the next five years.<br />
SELF-SERVICE TECHNOLOGY<br />
Self-service technology is critical to help campus operators<br />
recover from the pandemic. Kiosks, mobile apps<br />
and other technologies will improve order accuracy and<br />
speed while also promoting physical distancing and safe<br />
environments.<br />
In March 2021, Humber College<br />
launched food lockers at its North<br />
Campus in collaboration with Chartwells Canada, the<br />
education division of Compass Canada, and Apex Order<br />
Pickup. Students can order from Grill & Co using Boost,<br />
a mobile-ordering app created by Compass <strong>Digital</strong> Labs,<br />
and have their meals delivered to a food locker for convenient<br />
and contactless pickup. Once an order is ready,<br />
students will receive a QR code to unlock and retrieve<br />
their meals from the lockers. This concept is the first of<br />
its kind at any post-secondary institution in Canada.<br />
“With the increased role of digital technologies in<br />
foodservice, we recognize the need to meet students<br />
where they are, which is increasingly on their mobile<br />
devices,” says Brandon Cebulak, Compass Canada’s<br />
general manager at George Brown College. “Early on<br />
in the pandemic, we realized that ordering food with a<br />
mobile device was no longer a ‘perk’ but a requirement<br />
to prevent crowding and get food to students safely and<br />
efficiently. Last year alone, we processed 570,000 transactions<br />
from our mobile apps.”<br />
Similarly, UBC partnered with Nutrislice, an online<br />
menu software, to offer safe and convenient mobile<br />
ordering from its residential dining halls.<br />
“We’ll also be introducing online ordering, payment<br />
and pickup at three of our retail locations,” says Moore.<br />
“It allows students to order from our full-service restaurants<br />
like the Point and Mercante Pizza, as well as some of<br />
our national brands.”<br />
In addition, UBC recently partnered with UpMeals to<br />
install fresh-food vending machines to provide students<br />
with healthier food options, such as salads, entrée bowls<br />
and cold-pressed juices, and further reduce traffic in<br />
dining halls and cafeterias.<br />
ENHANCED DIGITAL MARKETING<br />
Campus operators must ramp up digital-marketing<br />
efforts to drive customer loyalty and provide incentives<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 69
to encourage repeat ordering once pre-COV-<br />
ID-19 campus activity resumes.<br />
“Campuses are the ultimate database,” says<br />
Smolkin. “If there’s 50,000 students, that’s a<br />
50,000 person database, so [operators] have<br />
to step it up with loyalty apps and push-pull<br />
messaging. Accessing that data base allows for<br />
better targeting and student support, both on<br />
and off campus.”<br />
“Social-media marketing will continue to<br />
be part of our digital toolkit to make sure<br />
we’re getting the right message to our students<br />
at the right time,” says Cebulak. “We<br />
know students rely heavily on online reviews<br />
and testimonials when considering food<br />
options, which is why we focus on quality and<br />
exceptional customer experience, along with<br />
advocacy from trusted on-site influencers, to<br />
support the decision-making process and help<br />
us stand out.”<br />
FUTURE FORECAST<br />
Currently, return-to-campus dates vary from<br />
province to province. Although the winter<br />
semester will be wrapping up shortly, campus<br />
operators are excited to welcome back students<br />
next fall.<br />
“We’re hopeful that we’re nearing the end<br />
of this new wave and we’ll be able to welcome<br />
students back to campus soon with smiling<br />
eyes and a warm meal,” says Cebulak.<br />
“[The] majority of our campus locations<br />
are just sitting and waiting,” says Smolkin.<br />
“I’m not expecting a lot of [activity] in the<br />
next two or three months. Realistically, it’s<br />
going to be a September gig.”<br />
“We’ll continue to pivot along the way,”<br />
says Moore. “The good thing is we’ve already<br />
learned how to do that over the last two years,<br />
so whatever the next thing is, we’ll be more<br />
than ready to change and innovate. We’ve<br />
learned a lot throughout the pandemic, and<br />
we’re a lot stronger because of it.” FH<br />
Canada’s Most Trusted<br />
<strong>Digital</strong> Menu Board Provider<br />
Netvisual is a technology company and a full service provider of digital menu boards.<br />
Learn how to increase your revenue at Netvisual.ca
TECHNOLOGY<br />
Sign<br />
of the<br />
Times<br />
<strong>Digital</strong> menus are taking hold in the<br />
post-pandemic foodservice world<br />
BY ANDREA VICTORY<br />
ISTOCK.COMSIBERIANART<br />
The appeal for digital menus is clear. Patricia Rodriguez,<br />
director of Marketing & Sales at Netvisual Corporation,<br />
an Oakville Ont.-based digital-signage company, makes<br />
the point clearly: “What you show is what you sell.”<br />
But prior to the pandemic, digital signage wasn’t the<br />
hot ticket it is today. The pandemic placed extraneous<br />
demands on the foodservice industry and part of the response has<br />
been demand for technology to step in and fill the gaps.<br />
Going <strong>Digital</strong><br />
<strong>Digital</strong> signage is becoming more the rule than the exception thanks<br />
to COVID-19. Graydon Stock, executive director of Account Services<br />
for Toronto-based Cineplex <strong>Digital</strong> Media, notes a significant increase<br />
in demand for digital menu boards over the past couple of years.<br />
“With the recent pandemic pressures, businesses are looking for a<br />
more efficient way to manage their bottom line, while still providing<br />
exceptional experiences for their customers. <strong>Digital</strong> menu boards are<br />
the solution that meets those needs.”<br />
He says there’s been an increased interest in digital drive-thru as<br />
well, attributing this to operators looking to handle in-store restrictions<br />
and closures. “<strong>Digital</strong> drive-thru offers the convenience factor for the<br />
customer while still driving ROI for the business,” he says.<br />
In addition to convenience, digital menus offer agility. Operators are<br />
able to instantly update menu items that have been 86’d or are unavailable.<br />
“Many restaurants had to make modifications to their menus over the past<br />
two years due to a bevy of issues ranging from supply-chain issues to the<br />
cost and availability of supplies and staffing shortages,” says Keshav Kiran,<br />
senior director of Global Strategic Partnerships at Oracle Food and Beverage,<br />
“<strong>Digital</strong> menu boards make it easy for restaurants to make these modifications<br />
with a few clicks so the customer can see what’s available before they<br />
try and order it — only to be disappointed when it is not available.”<br />
Growing Up Fast<br />
The surge in demand means the technology is quickly improving.<br />
FOODSERVICEANDHOSPITALITY.COM<br />
“We’ve seen a marked increase in everything digital over the last 24<br />
months. From kiosks, self-checkout, QR-code menus and ordering,<br />
and digital payments, the omni-channel environment is teeming with<br />
innovation”, Kiran says. “We’ve made several investments in this area<br />
of the business to help brands stay agile to test and deploy new digital<br />
experiences quickly, and with very little IT resourcing. Customers are<br />
able to tap into these endpoints exceptionally fast due to our open API<br />
architecture and robust partner ecosystem.”<br />
All About Experience<br />
<strong>Digital</strong> menus can provide opportunities for customer engagement<br />
through upselling or featuring promoted items. But the opportunity<br />
to go beyond is also present. “It’s all about the harmony between<br />
touchpoints on the customer journey,” says Stock. “At Cineplex <strong>Digital</strong><br />
Media, we’ve proven that experience design strategy does create a more<br />
engaging and impactful menu-board experience that drives results.”<br />
He notes CDM’s in-house Experience Design Team is solely devoted<br />
to experience design. “Our ability to design user-friendly touchpoints<br />
with optimization strategies based on things like eye movement and<br />
customer behaviour, matched with our strategic digital creative-design<br />
capabilities, makes for engaging menus that go beyond just linear text.”<br />
For those still on the fence, Kiran says tech will just keep getting<br />
more personalized. “In the future, don’t be surprised when sensors in<br />
your car can talk to the digital display,” he says. “My trip in a drive thru<br />
may start with the display showing “Hi Keshav, welcome back...can I<br />
get your usual?” and then showing my regular order.” FH<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 71
EQUIPMENT<br />
GOING<br />
WITH<br />
THE AIR<br />
FLOW<br />
Major system overhauls aren’t the only way to improve ventilation in foodservice operations<br />
BY DENISE DEVEAU<br />
A<br />
ir quality and ventilation may be making daily<br />
headlines, but for many operators, the prospect<br />
of investing even more resources in large<br />
system changes is simply out of the picture.<br />
“From my observations, major air-handling equipment<br />
overhauls are simply not an affordable option<br />
at this point for operators,” says Doug<br />
Feltmate, principal, Planned Foodservice<br />
YOU KNOW YOU<br />
HAVE AIR FLOW ISSUES<br />
WHEN….<br />
•<br />
The doors are sticking –<br />
that’s a sign of an imbalance<br />
in the supply and exhaust air<br />
•<br />
Odours are emanating from<br />
the kitchen into the front of<br />
house<br />
•<br />
There are temperature<br />
differences between the<br />
ceiling and the floor<br />
Solutions in Ottawa. “While the publicly<br />
funded institutions like schools and<br />
long-term-care facilities are getting the<br />
money to make these changes,<br />
restaurants and other businesses are<br />
only seeing wage and rent subsidies, and<br />
nothing for air-quality improvements.”<br />
Operators are not putting in new<br />
ventilation equipment unless they<br />
are mandated to do it, observes Mark<br />
McEwan, Western Canada sales director<br />
/executive chef for Food Service<br />
Solutions in Calgary. “It’s just another<br />
extra expense on an already strapped<br />
industry. They’re not really interested<br />
in allocating more dollars.”<br />
As the owner of two smaller restaurants<br />
in Edmonton, Dave Manna says he can’t afford<br />
to rip apart his Rosso and Bianca restaurants for new<br />
ventilation systems. “It’s just too expensive. We’re a small<br />
business and margins are tight. There are lots of higherpriority<br />
items.”<br />
However, ventilation-system investments are becoming<br />
a necessary evil, says Joel Primeau,<br />
mechanical engineering consultant and<br />
ASHRAE instructor in Ottawa. “The<br />
industry is at a point where people care<br />
about ventilation. Operators appreciate<br />
that premises can make people sick if<br />
they’re not well ventilated.”<br />
The good news is, not every<br />
improvement has to involve expensive<br />
equipment, he says. Optimizing air flow<br />
is the key. In some cases, conditions<br />
can be improved at a relatively low cost.<br />
Typically, restaurants have negative<br />
pressure in the kitchens, where supply<br />
air is provided in the eating area and<br />
gets exhausted through the kitchen<br />
hoods, explains Primeau. “That means<br />
everybody gets exposed to the same air.<br />
In a regular setting, that’s usually not a<br />
72 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
problem. In the pandemic era, it is spreading potential bacteria.<br />
That has really raised the bar on ventilation requirements for<br />
restaurants and public areas.”<br />
The underlying goal is to replace as much air as possible<br />
throughout the day, he adds. “That involves re-thinking air flow<br />
patterns in your space in the right quantities. If you have proper<br />
air flows, you should be able to generate a comfortable and<br />
clean environment.”<br />
He recommends operators work with an air-balancing<br />
professional to determine the ratio of outside air coming in<br />
and exhaust air going out. “You want to find out how much air<br />
is being moved, how much is supplied from outside, and how<br />
much is re-circulated.”<br />
Next, check the filtration system and how well it is operating,<br />
and upgrade filtration where required. Replace filters often.<br />
“Keep in mind that improving filter efficiency also requires<br />
changing the power of the fans pushing the air through because<br />
they are thicker and denser,” he cautions.<br />
Open restaurants tend to have poorer ventilation because the<br />
warm air rises to the ceilings, especially in the winter, he adds.<br />
“It’s very common to see both ceiling diffusers and return grills<br />
near the ceiling. It makes a lot of sense to move the return grills<br />
closer to the floor because it forces the air to sweep the occupant<br />
area. It just requires adding some ductwork which isn’t that big<br />
of an expenditure.”<br />
Primeau also suggests extending HVAC equipment operating<br />
hours. “Start it up sooner than the time people come in and run<br />
it a few hours after closing to make sure you really clear the air<br />
in the space” If possible, program your equipment to increase<br />
the amount of outside air.<br />
Some operators are investing in UV lighting in their air<br />
filtration or UVC lighting sanitizers, says McEwan. “They can<br />
sanitize air as it comes through. The problem is, UV lighting<br />
needs exposure time, which depends on fan speeds and the ability<br />
for it to really saturate the air.”<br />
McEwan believes there is some validity in investing in<br />
portable air quality and air exchangers in smaller spaces, but<br />
you have to do it right. “There is no point putting in a basic<br />
entry-level filtration system that doesn’t do multiple exchanges<br />
a day. It would need to be commercial grade.”<br />
There are two main factors to consider when assessing airexchange<br />
systems: fan speed and level of filtration. “It has to<br />
have a powerful enough motor to push air through a commercial<br />
grade filter,” says McEwan.<br />
Manna did a test run of a Jasp’r Air plug-in unit for his Rosso<br />
Pizzeria. “Our space was small, so our options were limited. We<br />
brought in an air-exchange unit at the beginning of COVID to<br />
improve the air quality and to help people feel safe.”<br />
Manna says that beyond the cost of equipment, awareness<br />
is also a challenge. “There has to be a demand from customers.<br />
It takes time for people to educate themselves on health<br />
and wellness.”FH<br />
Breath of Fresh Air<br />
Toronto’s Miller Tavern has re-opened with new COVID-19-fighting<br />
air purifier to help reassure customers and staff of a safer indoor<br />
environment. The Miller Tavern is the first restaurant in Canada to<br />
install Aura Air, which has already been successfully deployed at<br />
several SUBWAY restaurants, as well as select Sheraton and Hilton<br />
hotels in the U.S., and the Vogue Hotel in Montreal. The technology,<br />
developed in Israel, uses a four-stage purification process to filter and<br />
treat airborne pathogen droplets.<br />
“COVID-19 is airborne, therefore, technology is needed to ensure<br />
continuous protection against this particular type of transmission,”<br />
says Yehuda Ordower, managing partner for Aura Canada. “The Aura<br />
Smart Air technology includes air-quality monitoring and reporting<br />
capabilities where, via its app and QR code, users can see IAQ<br />
performance in real-time.”<br />
Two independent studies from the U.S. and Israel confirmed the Aura<br />
Air system can destroy 99.99 per cent of airborne COVID-19 in the test<br />
facility within 60-minutes.<br />
“Air purification is emerging as an important part of the defence<br />
against COVID-19. This is especially true for restaurants and other<br />
places where masks need to be removed,” says Ordower. “But when<br />
customers and staff know they are in an environment with a technology<br />
proven to remove 99 per cent of COVID-19, this can only be good for<br />
business. It could be the way back for the hospitality industry.”<br />
Alonzo stresses that all designs meet ASHRAE standards that meet<br />
COVID requirements.<br />
FOODSERVICEANDHOSPITALITY.COM<br />
MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 73
Humber College<br />
IS UPPING ITS AIR QUALITY<br />
At Humber College’s culinary labs and restaurants, ventilation improvements<br />
are an ongoing process. Daniel Alonzo, associate director of<br />
Facilities Management at Humber says because ventilation rates need to<br />
be “very, very high” in those environments, they require specialized design<br />
requirements. Here are some of the projects that are helping improve<br />
ventilation, reduce energy costs and keep occupants safe and comfortable.<br />
To achieve proper air pressurization between the North Campus baking<br />
and culinary labs and adjacent corridors, Humber implemented a building<br />
automation control strategy to manage supply and exhaust airflows. This<br />
required the installation of a quick-acting HVAC system to maintain the<br />
proper air pressurization of the building.<br />
In the Business School’s demonstration kitchen, Humber’s energy team<br />
replaced an air-handling unit, and introduced heat recovery into the HVAC<br />
System. The system has improved energy costs and reduces contamination<br />
of the supply air.<br />
The main foodservice kitchen is being renovated to help maintain proper<br />
room temperature while cooking. Humber’s new kitchen will have a separate<br />
variable refrigerant flow (VRF) system to supplement the cooling. The VRF<br />
system adjusts to the temperature of the room, making the staff feel more<br />
comfortable while working.<br />
Alonzo stresses that all designs meet ASHRAE standards that meet<br />
COVID requirements.<br />
74 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
POURING FOR PROFITS<br />
Beer sales volumes may be climbing, but profitability is suffering<br />
BY DENISE DEVEAU<br />
The Canadian beer industry<br />
has been suffering multiple<br />
hits since the start of the<br />
pandemic, particularly on the<br />
brewpub and restaurant front.<br />
Even where revenues are growing,<br />
profitability is shrinking in many<br />
quarters, with observers saying<br />
the challenges will continue for<br />
the foreseeable future.<br />
Beer Canada, based in<br />
Stittsville, Ont., reports that<br />
nationally, the beer industry is<br />
running at 3.8 per cent below<br />
pre-pandemic volumes, with<br />
the hardest-hit regions being<br />
B.C. and Alberta, while Atlantic<br />
Canada is the least affected.<br />
“Nobody is doing great,” says CJ<br />
Hélie, president of the Stittsville,<br />
Ont.-based association.<br />
While Beer Canada does not<br />
have breakout data on licensed<br />
bars and restaurants compared<br />
to home consumption, a telling<br />
indicator is draught-beer sales,<br />
as they are exclusively consumed<br />
on premise, he notes. “They are<br />
down 55 per cent from prepandemic<br />
volumes. All<br />
of the draught-beer occasions<br />
are gone because of the<br />
restrictions, and<br />
people drinking beer at home<br />
was not enough to offset the<br />
on-premises loss.”<br />
“When bars and restaurants<br />
closed, all draught-beer sales<br />
dropped, which is probably the<br />
most profitable [sales channel]<br />
for brewers,” confirms Scott<br />
Simmons, president, Ontario<br />
Craft Brewers Association in<br />
Toronto. “Even if you replace that<br />
with bottles and cans, grains and<br />
packaging costs are up 20 to 30<br />
per cent so profitability is being<br />
hammered.”<br />
Brewpubs were the hardest hit,<br />
says Jason Fisher, owner of Indie<br />
Ale House in Toronto’s Junction<br />
area. “We’re down 80 per cent in<br />
revenues because we haven’t been<br />
able to operate our 140-seat<br />
restaurant fully in more than a<br />
year-and-a-half. The largest part<br />
of our revenues went to zero.”<br />
However, Rick Dalmazzi,<br />
executive director of<br />
the Canadian Craft Brewers<br />
Association in Ottawa, reports that<br />
overall, 2021 volumes are starting<br />
to approach what they were in<br />
2019, especially for larger brewers<br />
with established distribution<br />
channels. “Some of the larger ones<br />
have approached or are exceeding<br />
their numbers. The largest brewers<br />
increased bottle and can sales 115<br />
to 120 per cent during COVID.<br />
Even with that, we’re talking<br />
revenues, not profitability.”<br />
Some initiatives are helping<br />
bring numbers back, including<br />
policy adjustments to allow home<br />
delivery and takeout, and designating<br />
the industry as an essential<br />
business. “Without breweries<br />
being named essential businesses,<br />
the industry would be gone right<br />
now,” says Simmons. “It’s been a<br />
life-saver for our industry.”<br />
Home delivery was a big<br />
winner for brewers as well, says<br />
Fisher. “A lot our deliveries<br />
were done by our own employees.<br />
It has also worked to grow our<br />
LCBO sales. Eataly has also been<br />
a huge partner for us. However, it<br />
takes time to build those channels.”<br />
Breweries have also seen<br />
growth in some unexpected areas,<br />
such as ready-to-drink (RTD)<br />
and non-alcoholic beer offerings.<br />
But the struggles will continue<br />
in the coming months. Hélie says<br />
the industry took another hit<br />
when the federal government’s<br />
automatic escalator raised beer<br />
excise duties during the pandemic.<br />
“That didn’t help anybody.”<br />
The problems moving forward<br />
will be increased costs and supply-chain<br />
delays and shortages,<br />
says Dalmazzi. “Smaller breweries<br />
will be hit harder because they<br />
don’t’ have the accessibility and<br />
economies of scale the biggest<br />
players have.”<br />
Although closures may have<br />
been relatively few for the craft<br />
beer industry to date, Simmons<br />
says it too early to say things are<br />
improving. “A lot of businesses<br />
are highly leveraged and the<br />
money will be coming<br />
due. We’re not out of the<br />
woods yet.” FH<br />
ISTOCK.COM/KUZMIK_A<br />
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MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 75
CHEF’S CORNER<br />
SUSTAINABLE<br />
SOLUTIONS<br />
Chef Shannon Boyle promotes<br />
sustainable food choices, one<br />
shuck at a time<br />
BY NICOLE DI TOMASSO<br />
Chef Shannon Boyle started her culinary career in her<br />
teens as a garde manger at a small hotel in her hometown<br />
of Hudson, Que. She went on to obtain a Bachelor of<br />
Education at McGill University, where she worked as chef<br />
de cuisine at Bar Tapas Taza Flores and as sous chef at<br />
Bistro La Société in the Vogue Hotel in Montreal. Since<br />
moving to Vancouver three years ago, Boyle was most recently chef and<br />
manager at Meat & Bread before opening and becoming executive chef<br />
and general manager at ShuckShuck, a sustainable oyster bar, in 2020.<br />
“The original concept was to promote oysters as a sustainable food<br />
source by making them more accessible to people who might be intimidated<br />
by the confines of a traditional oyster bar. This is the reasoning<br />
behind our flagship product, the topped oysters,” says Boyle. “Since then,<br />
we’ve adapted, as many restaurants do in their early days, to expand our<br />
menu and include other sustainable-seafood options, as well as local<br />
wines and craft beers.”<br />
ShuckShuck now offers various seafood<br />
dishes, in addition to its traditional oysters<br />
and toppings, such as Calamari Noodle Salad<br />
($11), Oyster Chowder ($12.50) and Steamed<br />
Clams & Lap Cheong ($18).<br />
At the onset of the pandemic, ShuckShuck<br />
pivoted to takeout and delivery. Served in<br />
compostable packaging, ShuckShuck provides<br />
customers with EZ Shuck oysters, which are<br />
raw, high-pressured oysters that are easy to<br />
shuck by hand.<br />
“It’s important to me to create a sustainable<br />
environment in our restaurant. We source<br />
local products and minimize our use of plastics<br />
and waste. We also work closely with Ocean<br />
Wise to make sure we stay up to date with their<br />
recommendations,” says Boyle.<br />
Boyle is passionate about creating a healthy and sustainable food<br />
system as more consumers become conscious of where their food<br />
comes from. That said, she says all chefs have an opportunity to fuel<br />
“<br />
IT’S IMPORTANT TO ME<br />
TO CREATE A SUSTAINABLE<br />
ENVIRONMENT IN OUR<br />
RESTAURANT. WE SOURCE<br />
LOCAL PRODUCTS AND<br />
MINIMIZE OUR USE OF<br />
PLASTICS AND WASTE. WE<br />
ALSO WORK CLOSELY WITH<br />
OCEAN WISE TO MAKE SURE<br />
WE STAY UP TO DATE WITH<br />
THEIR RECOMMENDATIONS<br />
”<br />
positive changes in eating habits that benefit both consumers and<br />
the environment.<br />
“Many chefs are starting to adopt this culinary style. With climate<br />
change [intensifying], it’s our responsibility as chefs to do our part in<br />
helping people choose healthy, sustainable<br />
options,” says Boyle.<br />
Among her hundreds of kitchen gadgets,<br />
Boyle’s indispensable tool is tweezers for<br />
stability and precision, allowing her to bring<br />
plating visions to life. “When it comes to<br />
beautiful plating or small items like our oyster<br />
toppings at ShuckShuck, my tweezers really<br />
come in handy,” says Boyle.<br />
Moving forward, Boyle wants to further<br />
educate herself as she re-imagines what the<br />
future of sustainable restaurants might look like.<br />
“I want to continue to expand my knowledge<br />
of sustainable food options and practices to<br />
share with our community,” says Boyle. “I’m<br />
most proud when I see what I create bringing<br />
people together.”<br />
When she’s not working, Boyle enjoys visiting<br />
farmer’s markets and exploring different cuisines with her husband,<br />
who’s also a chef. If she isn’t in a kitchen, Boyle can be found boxing,<br />
reading, painting or enjoying various outdoor activities. FH<br />
76 FOODSERVICE AND HOSPITALITY MARCH/APRIL <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
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