Franchise Canada March/April 2024 Supplement

Quick Service Restaurants: A Fast, Fresh Future

The continued rise of the quick service restaurant sector shows no signs of slowing. Learn why and how this franchise category is thriving—and why you should consider diving in

Though the pandemic is in our collective rearview mirror, the foodservice industry is still retuning in full force. Quick service restaurants (QSRs) have continued to see steady growth thanks to consumers’ shift to drive-thru and delivery orders. In fact, in November 2023, QSRs surpassed the monthly revenue of full-service restaurants ($3.6 billion versus $3.5 billion, respectively). Kim Evans, Statistics Canada’s lead analyst for food and drink sales, says factors that have spurred this change in preferences are largely economic.

“Customers switch to limited service during economic slowdowns or times of uncertainty to save money,” she explained in a July 2023 StatsCAN Plus blog post. “The other issue [during the pandemic] was accessibility, given that limited-service eateries were better positioned to serve customers during the lockdowns than full-service restaurants.”

And consumers’ tastes are changing as well. While pizza and other more calorie-laden menu

items were once the talk of the town, nearly one-third of Canadians say it’s important to have healthy options on fast food menus.

Looking ahead, Restaurants Canada reports that annual commercial foodservice sales are expected to rise by 3.4 per cent this year; however, real foodservice sales are forecast to grow by only 0.4 per cent. This doesn’t mean that holding off on investing until the country weathers its impending recession is the soundest idea. In reality, times of economic downturn are often the best environment in which to start a business, as you will be ahead of the curve once inflation steadies again.

In this special section, Franchise Canada is focusing on several emerging and established brands that are offering strong QSR opportunities for ambitious franchisees, as well as the stats and facts that will help you inform your own franchise journey.

A New Opportunity Bubbling Up

Introducing Moe Deol and Mo’cha Bubble Tea, the sensation that’s taking Ontario by storm! Born out of the challenging times of 2021, Mo’cha Bubble Tea emerged as a beacon of flavour and innovation amidst the chaos of COVID-19. From its humble beginnings, it has swiftly risen to become one of the fastest-growing bubble tea brands in the province, captivating taste buds and winning hearts across communities.

With 12 stores already delighting customers and five more in construction, Mo’cha Bubble Tea is expanding its reach to cities like Windsor, Sudbury, Simcoe, Kitchener, and Brampton in Ontario, as well as Saint John, New Brunswick. Its mission is simple:

to provide a unique bubble tea experience tailored specifically for the North American palate.

What sets Mo’cha apart from other bubble tea franchises is its menu, carefully designed to cater to the diverse tastes of the North American market. Whether you’re craving a classic milk tea, a refreshing fruit tea, or one of its signature specialty drinks, Mo’cha has something for everyone. Each beverage is crafted with precision and passion, using only the finest ingredients to ensure a burst of flavour in every sip.

Mo’cha Bubble Tea believes in more than just serving great drinks; it’s committed to creating memorable experiences for its customers. Its

welcoming atmosphere and friendly staff make every visit feel like a celebration. Whether you’re stopping by for a quick pick-me-up or catching up with friends over bubble tea, you’ll always feel right at home at Mo’cha.

Join the bubble tea revolution and discover why Mo’cha Bubble Tea is the talk of the town. Come taste the difference for yourself and experience the magic of Mo’cha. With every sip, you’ll understand why it’s not just another bubble tea franchise— it’s a movement. Visit them today and let the journey to flavour perfection begin! n

QSR Food Trends for 2024

Keep an eye out for these up-and-coming items that will be making waves on QSR menus this year, according to Nourish Food Marketing’s 2024 Trends Report.

Mocktails

Plant-based meals Ingredients that boost brain health

Climate-conscious ingredients and practices

Socially conscious ingredients and practices

QSRs By the Numbers

In 2022, Canadian QSRs took in $33.6 billion USD.

From 2022 to 2023, the number of QSR locations in the country grew by 0.7%

According to a Canadian Franchise Association survey,

16%

of prospective franchisees were looking to invest in a QSR system.

Made in CA, an online repository of small business stats, reports that nearly

400,000 Canadians currently work at a QSR, while 30 per cent of Canadians have worked in the sector at one point in their lives.

16%

of Canadians shop at fast food outlets every day—that’s more than six million people.

The provinces with the most QSR locations are Ontario

14,296 Quebec

6,481 and British Columbia

4,422

When the Foundations Are Strong, Jump In

You see it in real estate: if the foundations are sound, advisors will encourage you to look more closely at the property. The same holds when investing in a restaurant franchise. But what constitutes a solid foundation? At Pizza Nova, the answer has been consistent since day one: its values.

“Quality, service, community, and innovation—part of our core values—have been ingrained into our DNA since our early years,” says Domenic Primucci, president. “I’m grateful to our founders for this and am humbled by the fact that our franchise prospects can not only take our word for it but can experience it for themselves, or simply ask around.”

Pizza Nova, after all, has enjoyed a long runway for living and communicating its values. Last year, it celebrated its 60th anniversary, and

the company had the opportunity to showcase its values to the public through many activities.

One of these was a video that featured Domenic preparing a pizza and reminiscing about the company’s founding, its jingle, and community engagement. The video features a cameo from founder Sam Primucci.

Franchisees are the cornerstone of Pizza Nova’s success, benefiting from operations, marketing, and

continuous training and innovation. But while technology and systems are important, nothing is more valuable than the company’s values and philosophy.

“We make good food fast, not fast food,” concludes Domenic. “This is one of the most important messages we share with our franchisees. Those who agree with our values tend to stay and invest with us. That’s when the magic begins.”

Franchisees have had a considerable impact on the success of the company. In total, Pizza Nova has 120-plus franchisees who, collectively with the Primucci family, own the company’s 150 locations.

“As we look ahead, we invite a new generation of franchisees to join our adventure. With this foundation, we can expect another 60 years of continued success. So, jump right in.” ■

The Health Halo

Though the term has received a bad rap, customers are increasingly choosing brands that make ecoconsciousness a core part of their identity, especially millennials and those in Gen Z. From compostable packaging and materials to sustainable ingredients, consumers are making a statement with their wallets, preferring to spend their money with companies that put social and environmental concerns at the forefront of their model. Seventy per cent of Canadians say they are “sustainable consumers,” and nearly one in five say they are looking to reduce their meat intake, the production of which produces enormous amounts of carbon emissions. This means that having vegetarian and vegan options on QSR menus is more important than ever to capture this segment of the population that is “hungry” for change. Ingredients that have traditionally been associated with health benefits, like cinnamon and ginger, as well as ones backed by research are also on the rise in both consumers’ at-home and out-of-home eating habits.

Salads Become Starters

Salads have long been a mainstay appetizer, but growing portion size and reliance on premium ingredients could see salads take up a bigger share of the main dish. Some fast-growing ingredients in salads include:

Discover the Potikki’s Franchise Opportunity: Where Indo-Canadian Culinary Fusion Meets Operational Excellence!

Embark on a culinary journey with Potikki’s—the quick service restaurant that seamlessly blends India’s favourites with a Canadian twist. Established in 2022 in Halifax, Nova Scotia, Potikki’s has quickly become one of Atlantic Canada’s most diverse and exciting franchises currently on the market.

Savour the fusion

Explore an exciting world that offers a delicious fusion of flavours with glutenfree, vegetarian, and vegan options that are filled with an equal amount of rich flavours and delights. Potikki’s is

led by founder Wade Bruce, who brings his long history as a successful multiunit franchisee and operator of a franchise distribution company, and commercial real estate development guru David Wilson, who has been brought on as the VP of franchise development. Together, Wade and David have had success in expanding influential Canadian franchises such as Quiznos, Extreme Brandz, Orangetheory Fitness, and Smoke’s Poutinerie. Potikki’s fresh and innovative concept will soon be expanding across Canada, bringing India’s favourites with a Canadian twist—are you ready?

Operational precision

Potikki’s comprehensive franchise operations model will be your guide to maintaining the highest standards of quality and consistency while delivering the very best experiences and memories to your customers. You will discover the company’s perfected process for effective inventory management, waste minimization, and cost reduction that leads to profit maximization. As a Potikki’s franchisee, you are not just a business owner; you are a vital part of a thriving community dedicated to culinary innovation. ■

Get ready to join the Potikki’s family in creating a Canadian culinary legacy across Canada. Email franchising@potikkis.com for opportunities to be part of the Canadian dream.

Any Way You Want It

Canadians know what they want—and when they want it, and they want it now. QSRs are ensuring that consumers’ cravings are always satisfied, in a multitude of ways, including expanded pickup and delivery options implemented at the start of the pandemic.

78% of surveyed consumers reported picking up takeout within the previous month

62% reported dining at a restaurant

58% reported ordering food delivery

51% of Canadians use thirdparty delivery apps two to four times a month

10% of Canadians use them five to seven times a month

To Have and to Hold

As post-pandemic lifestyles increase in pace, one-handed meals and snacks that cater to multi-taskers and mobile eaters are seeing a resurgence. As these audiences seek the convenience of eating on the go, 29 per cent of consumers are visiting QSRs more often than they were a year ago, with one in five visits eaten in a car.

It’s All in the Timing

When it comes to takeout and delivery, Canadians are most likely to order at dinnertime, followed by lunch, snacks, and breakfast. But suppertime had better watch its back: late-night snack orders have increased 68 per cent year-over-year, and breakfast is hot on its heels with an increase of 53 per cent.

Other interesting takeaways:

Friday is the most popular day to order from restaurants, while 6 p.m. is the most popular time of day, no matter the day of the week.

Gen Alpha Pulls up a Highchair

The impact of Generation Alpha, born between 2011 and 2023, on foodservice is already being felt, with their international and trend-influenced tastes driven by their millennial parents:

35% of foodservice operators say Gen Alpha is “very” or “extremely” important to their business

31% of Gen Alphas are already eating on-trend ingredients like plant-based foods (oat milk, Beyond Beef, etc.) several times a week

84% of Gen Alphas are viewing content on YouTube, and 51% are on TikTok, according to their parents

56% of Gen Alphas parents say they buy their kids new foods they’ve seen on TV or online

Sources: FranNet, Statistics Canada, Restaurants Canada, Made in CA, IBISWorld, Nourish Marketing, Statista, Food and Hospitality, Mintel, Kerry Group, ScrapeHero, Datassential, Statista, DoorDash, Simplot Foods