MarchApril 2022 Digital Issue

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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

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>


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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 />

MANAGING EDITOR AMY BOSTOCK<br />

ASSISTANT EDITOR NICOLE DI TOMASSO<br />

ART DIRECTOR COURTNEY JENKINS<br />

DESIGN ASSISTANT JENNIFER O’NEILL<br />

SOCIAL MEDIA MANAGER/EVENTS<br />

CO-ORDINATOR JHANELLE PORTER<br />

Have the<br />

top business<br />

headlines<br />

conveniently<br />

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every Monday<br />

& Wednesday<br />

morning<br />

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WENDY GILCHRIST<br />

ACCOUNT MANAGER ELEANOR SANTOS<br />

SALES AND MARKETING ASSISTANT<br />

KIMONE CLUNIS<br />

ADMINISTRATIVE ASSISTANT DANNA SMITH<br />

ACCOUNTING SERVICES DANIELA PRICOIU<br />

CIRCULATION PUBLICATION PARTNERS<br />

ADVISORY BOARD<br />

ASCARI HOSPITALITY GROUP, JOHN SINOPOLI<br />

CHARCUT RESTAURANT CONNIE DESOUSA,<br />

JOHN JACKSON<br />

LACATLIS CANADA IVEN ZANARDO<br />

MAPLE LEAF SPORTS & ENTERTAINMENT DAN MORROW<br />

MTY GROUP MARIE-LINE BEAUCHAMP<br />

NARAMATA INN NED BELL<br />

PARAMOUNT FINE FOODS MOHAMAD FAKIH<br />

PROFILE HOSPITALITY GROUP SCOTT BELLHOUSE<br />

SOTOS LLP ALLAN DICK<br />

THE HOUSE OF COMMONS JUDSON SIMPSON<br />

UNIVERSITY OF GUELPH, SCHOOL OF HOSPITALITY<br />

& TOURISM MANAGEMENT BRUCE MCADAMS<br />

WELBILT MARY CHIAROT<br />

To subscribe to F&H, visit foodserviceandhospitality.com<br />

Published eight times per year by Kostuch Media Ltd.,<br />

Mailing Address: Kostuch Media Ltd., 14 – 3650 Langstaff Rd., Ste. 33,<br />

Woodbridge ON L4L 9A8 Tel: (416) 447-0888, Fax (416) 447-5333,<br />

website: foodserviceandhospitality.com.<br />

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FOODSERVICEANDHOSPITALITY.COM


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 />

WWW.LACTALISFOODSERVICE.CA<br />

@LACTALISCANADAFOODSERVICE


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


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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


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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 />

THE CRISPY CHICKEN CHAMP<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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FOODSERVICEANDHOSPITALITY.COM<br />

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 />

ISTOCK.COM/SHIRONOSOV [JOB CANDATESU; ISTOCK.COM/MARCHMEENA29 [JOB SEARCH]<br />

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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FOODSERVICEANDHOSPITALITY.COM<br />

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 />

MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 51


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 />

MARCH/APRIL <strong>2022</strong> FOODSERVICE AND HOSPITALITY 53


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 />

FOODSERVICEANDHOSPITALITY.COM<br />

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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