Why U.S. Fast Food Chains Rush to Canada?
Canada is quickly becoming a hot spot for American fast food chains looking to expand. Shake Shack just opened shop in Toronto, with plans for 34 more spots by 2035. They're not alone in this northern adventure - sandwich shops Jimmy John's and Jersey Mike's are also eyeing the Canadian market.
Who's making the move?
Shake Shack is leading the charge, bringing their popular burgers along with some Canada-exclusive items like the "Maple Salted Pretzel Shake." Jersey Mike's isn't far behind, aiming to open 300 locations by 2034. Jimmy John's plans to debut in Canada mid-2024.
Other chains joining the expansion include Crumbl Cookies, Insomnia Cookies, Freddy's Frozen Custard & Steakburgers, and the Brazilian steakhouse Fogo de Chão.
Why the sudden interest in Canada?
For starters, Canada's population is booming. With new citizens pouring in thanks to immigration policies, the country's hit 41 million residents - a lot of potential customers!
McDonald's, the iconic burger chain, has taken notice. Jill McDonald, president of McDonald's international operated markets, stated, "Canada is one of my top markets. Looking at the shift in some of the population that's going on, we definitely see significant opportunities for growth in Canada, across the country."
Michael Kark, chief global licensing officer of Shake Shack, is equally pumped: "We have been eyeing this incredible opportunity in Canada for quite some time and are elated to have found exceptional partners to serve Shack classics and bespoke Canada-exclusive items to our sophisticated neighbours to the north."
Jimmy John's boss, Michael Haley, says: "Canada is one of the largest sandwich markets in the world. We are excited to launch the brand in Canada with Foodtastic — a leading Canadian restaurant franchisor."
How big is the market?
Big and growing! In 2022, fast food joints in Canada reached a record market size of US$33.6 billion. That's up 22% from the year before. And get this - in just one year, these restaurants saw 825 million visitors, a 28% year-over-year increase.
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During the pandemic, fast food became Canadians' go-to choice for dining out. Even as sit-down restaurants are making a comeback, people still turn to fast food during the times of economic uncertainty.
Is success guaranteed?
Not necessarily. Some chains that tried to crack the Canadian market ended up with egg on their face. P.F. Chang's and Carl's Jr. both struggled, while Krispy Kreme had a rollercoaster ride.
Canada's fast food scene is heating up faster than a deep fryer on a busy night. With a growing population and a taste for quick eats, it's no wonder U.S. chains are racing to plant their flags in the land of maple syrup.
