Franchise Canada May/June 2023 Supplement

Restaurant Recharge

In 2022, Canada’s food service industry continued to rebuild after more than two years of extreme challenges. Still, segments like casual and fine dining are constantly evolving, so these sectors open for entrepreneurs to introduce new, exciting concepts for diners.

Whether the restaurant has an upscale vibe or is an in-and-out establishment, hungry diners are looking for more options outside the home to eat, drink, and socialize with their loved ones.

But some like it hot, and some like it cold. When franchising in the full-service restaurant industry, it can be hard to please people and nearly impossible to please everyone. Brands in the casual and fine dining worlds have been refining

the concepts they use to appeal to a taste-savvy, post-pandemic audience.

There are a range of casual options offering everything from global cuisine to classic burgers and fries and propelling consumer tastes into the next generation.

Meanwhile fine dining opportunities exist for franchisees who know that the flavours must match the tip-top experience of white-glove service. Despite only accounting for one per cent of the restaurant market, the fine dining sector is developing a wider audience as diners seek out experiential dining that’s just a cut above the rest. Read on to learn why an investment in casual and fine dining franchising is a delicious opportunity.

The food service industry overview:

There are more than 97,000 restaurants, bars, and caterers across the country. They generated $79 billion in 2019.

Canadians visit restaurants

22 million times every day.

1.2 million people are directly employed in the accommodation and food services sector, with an additional

273,400 indirect jobs (construction, maintenance, technology, etc.).

Alberta's food service industry is expected to surpass the $10 billion

mark for the first time in 2023.

Production and promotion: new trends in casual and fine dining

This is the first year that food service sales are expected to outgrow 2019 levels, and Restaurants Canada forecasts that the commercial food service industry is expected to grow by 5.3 per cent to $78.6 billion. The outlook shows increased spending at restaurants, caterers, and drinking places by households, businesses, and tourists.

Here are some relevant trends primed for food service growth in 2023:

Rewards programs:

Restaurants can leverage gift-giving and loyalty programs that align with the restaurant’s style, including a: subscriptionbased or points-based reward, item rewards, or even seasonal or event promotions that keep guests coming back.

Premium proteins:

Diners are willing to pay extra for premium ingredients such as wagyu beef and caviar. Both were up 32 per cent and 27 per cent respectively on Canadian food service menus.

Fusion cuisine:

Mashups like Rasta pasta (Jamaican and Italian), shawarma pizza, and Pad

Thai battered fish tacos are popular among a younger and more taste-savvy demographic.

Plant-based poultry:

The plant-based chicken segment is facing increased demand. Plant-based poultry is the fastestgrowing protein by popularity (up 45 per cent).

Swicy foods:

The blend of sweet and spicy provides a multi-layered taste drawn from Korean and Mexican cuisines.

Pro tip: Want to test a swicy flavour option in your franchise? Consider a snack, condiment, or dessert. They’re usually the cheapest way to introduce new flavours into a menu.

Clean eating/reductionism:

Whether it’s reduced fat, sugar, or salt in menu offerings, or using organic and sustainable ingredients, consumers are looking for easy-to-pronounce, healthy ingredients in the food they consume.

AND REMEMBER:

Guest engagement matters: The postpandemic trend in restauranting is trying to get diners back in restaurants, after being affixed to takeout and delivery for a long time.

OVERCOMING CHALLENGES TO BUILD SUCCESS

Vanh Kalong, principal, My-Thai Group, shares how the My-Thai brand has grown through lessons learned, experiences lived, and a willingness to embrace change

PLEASE CONTACT OUR TEAM

O U R B R A N D , Y O U R P A S S I O N .

INVEST IN THE AWARD-WINNING, MY THAI FRESH KITCHEN AND LET'S BUILD YOUR SUCCESS STORY TOGETHER.

FRANCHISE FEE: 35K

ROYALTY: 4%

MARKETING: 1%

TOTAL INVESTMENT: 559K-774K

NUMBER OF UNITS: 4

ALMOST EVERYBODY LOVES A GOOD BURGER. In fact, burgers are one of the most frequently consumed food items. Three out of 10 people say they’ve consumed more burgers in the last year, according to a survey. More than ever, consumers are ordering burgers at least once a month, be it at a restaurant or at home. Here’s a look at what makes burgers so ubiquitous and well-loved.

Better, higher-quality burgers

Nothing beats a delicious and juicy burger. Whether it’s fresh patties, premium ingredients, or exceptional types of cheese and condiments, consumers are expecting better taste, higher quality, and a variety of ingredients in their burgers. In recent years, consumer interest in burger trends such as better beef/protein grades and fresh, local ingredients has steadily increased and many QSRs have started to prioritize taste and quality above all to meet those demands.

Making it right

Clearly, consumers like their classic burgers done the traditional way with the usual fixings. They value the craft of preparation in addition to the taste and quality of the sandwich. They are drawn to restaurants like the iconic Fatburger who does just that—hand-pressing their fresh, never frozen, Alberta beef patties, individually cooking them on the grill to seal in the flavours, while keeping their juiciness using a basting lid, and crafting it just the way their customers want it, since 1952.

Customization

Consumers also love having a burger made-to-order and customized with ingredients they want. Many are willing to pay more if they have the ability to modify their preferences. When dining out, many customers turn to fast casual burger chains like Fatburger, expecting not only a wide variety of topping options, but also feeling like they’re getting something they would make at home. n

OUR

Fine-china franchising: the fine dining sector in Canada

1.2 million people directly employed in the accommodation and food services sector

6.4% of the country’s total employment in 2019

Under 1 per cent of restaurants in North America are considered fine dining restaurants.

88% are independent establishments

40% offer seafood

Adjectives used to describe their high-end establishment’s ambiance

45% Upscale

41.5% Intimate

38% Romantic

35% Tourists

With regard to third-party delivery services at fine dining restaurants:

66.7% do not use a third-party delivery service

16.7% use one third-party service

16.6% use two or more third-party services

35% offer steak

76% have a wine list

34% Family/Kid-friendly

Toronto and Montreal are among the top metros in Canada for fine dining.

REDEFINING THE NEIGHBOURHOOD PIZZERIA

Famoso Neapolitan Pizzeria & Bar is a neighbourhood-style restaurant business seeking passionate, qualified franchisees who are looking to build a successful franchise business with an established local brand. Call us to help you start your own local Famoso pizzeria.

Famoso is a casual full service pizzeria + bar passionate in bringing authentic Neapolitan pizzas to your local neighbourhoods, along with delicious pastas, salads, and tapas. We believe in using fresh premium ingredients and serving great tasting pizzas, just like they do in Naples. With an open kitchen and bar, you can enjoy watching your pizzas cooked and drinks poured as you experience a unique and casual atmosphere that defines what a neighbourhood pizzeria should be.

WHAT WE PROVIDE

• Full Training & Support

• Turnkey site selection and construction

• Proven Operation System

• Innovative marketing strategy & advertising

Small bites: franchising in the casual dining sector

Casual dining trades in the white tablecloths for a relaxed atmosphere, more customizable menus, and family-friendly considerations (like special menus for children and seniors). The casual dining segment also makes up about 10 per cent of CFA membership. Trends to watch in the casual dining sector include:

Growing interest in gourmet and global cuisines.

More than three-quarters

(77%)

of diners view international foods as being more mainstream than they used to be.

In Q2 of 2022, global cuisines saw large year-over-year sales:

Chinese: +23%

Thai: +15%

European: +15%

Japanese: +12%

Italian: +11%

Technological advancements improving the

experience:

dining

Restaurants that pair the sit-down experience while still using online ordering and delivery systems see an average sales increase of 30%.

Consumers have been enjoying a steady return to the in-house dining experience, especially in fullservice restaurants, where the demand for on-premises dining is reaching pre-pandemic levels.

(Sources: CanadaTakeout; Food Service and Hospitality; Technomic; TouchBistro; StatsCan; Restaurants Canada; Mintel; Future Market Insights; Brizodata; Datassential Foodbytes)

Fat Bastard Burrito is Grabbing Attention!

With a name like Fat Bastard Burrito, you get noticed. People are curious, and that means immediate impact— and store traffic. In a busy quick-serve landscape, it’s a huge advantage to have a name that grabs attention. But while the name generates a lot of interest, what keeps guests coming back? Undoubtedly, it’s Fat Bastard’s delicious menu and commitment to great guest experiences.

PREMIUM MENU

Fat Bastard Burrito’s menu boasts fresh ingredients, quality proteins, and an abundance of premium toppings and sauces. In fact, the brand offers eight proteins, 12 toppings, eight sauces, and up to three tortilla options— which equates to millions of customizable options to suit any taste! Unique to the brand is Fat Bastard’s grilling style—all four burrito sides are grilled for warmer, more blended ingredients that guests love.

OPPORTUNITIES

Fat Bastard currently has about 85 stores in Ontario, with rapid growth underway. The brand plans to open 30 stores in the next 12 months. There are still many opportunities in Ontario, with expansion planned for Atlantic Canada, Alberta, and British Columbia. This is the ideal time to get in on the ground floor with limitless potential.

AFFORDABILITY

Fat Bastard Burrito offers a lower entry point than many franchises, coupled with a smaller, more affordable store footprint. It’s a turnkey investment, complete with a dedicated support team.

FAMILY SUCCESS

Fat Bastard Burrito is owned by MBI Brands, the same parent company as Mary Brown’s Chicken, currently experiencing remarkable growth and results across Canada. You can expect the same strategic path to success with Fat Bastard.

LET’S TALK

We’re seeking smart, savvy franchise partners who are driven to succeed. Bold, adventurous types are welcome. You must be committed to building great teams, providing a high-quality product, delivering outstanding guest service— and having fun along the way

franchising@fatbastardburrito.ca

That means your store STANDS OUT in a sea of sameness.

As we grow across Canada, we’re looking for smart, savvy Franchisees to join our family.