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Exclusive Ranking of the Industry's Top Operators

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VOLUME 49, NUMBER 4 JUNE 2016 CONTENTS 67

30 72 Features

14 AROUND THE WORLD IN 80 BITES 35 THE POWER OF TWO Druxy’s Inc. 71 HOP TO IT With patio weather in full Street vendors across are seeks to broaden its Ontario pres- swing, craft-beer warriors share the bringing global flavours to their ence with the newly combined forces bevvys that are hogging the spotlight neighbourhoods By Mary Luz Mejia of Williams and Druxy’s Famous Deli By Jackie Sloat-Spencer By Danielle Schalk 2016 TOP 100 REPORT

37 THE “TOP 100 REPORT” Departments 23 STEALING SHARE With competition Compiled by Kostuch Media Ltd. intensifying, today’s Top 100 opera- 2 FROM THE EDITOR tors are looking to steal market share 61 FOOD FOR THOUGHT The casual- 5 FYI by getting more creative and dining segment is facing a unique 12 FROM THE DESK innovative By Rosanna Caira set of challenges By Andrew Speller OF ROBERT CARTER 72 CHEF’S CORNER: Daniel Burns, 30 SECOND CHANCES Retail veteran 67 TECH TALK Innovative tech solutions Luksus, New York City Alix Box is reinventing Second Cup are making life easier for foodservice By Jennifer Febbraro operators By Denise Deveau PHOTOS: NICK WONG [COVER, ALIX BOX], LAUREN COLCHAMIRO [DANIEL BURNS]

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 1 FROM THE EDITOR

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THE TIPPING POINT Late last year, the Ontario government has gained a strong following across passed Bill 12, An Act to Amend the the U.S. Operators such as Danny Employment Standards Act, 2000 (with Meyer of New York City’s Union Square respect to Tips and Other Gratuities). Hospitality, Thomas Keller of The French The bill becomes law this month, prohib- Laundry in Yountville, California and iting employers from withholding, mak- David Chang all support no-tipping. ing deductions from, or collecting tips or , the movement is gaining other gratuities from employees unless momentum, at the same time as the authorized under the Employment topic of fair wages gains traction. At last Standards Act, 2000. month’s Gold Awards, held at ’s The new legislation provides protection Four Seasons, Grant van Gameren, chef for tips employees receive. Ironically, the of Bar Isabel and Bar Raval, and winner notion of tipping is currently undergoing a of the Chef of the Year category, chose to radical transformation, fuelling one of the use his acceptance speech to warn attend- industry’s most important conversations. ees that paying staff more means we all So why is a model that has endured for need to be prepared to pay higher prices years now under such scrutiny? First off, for our food. He implored executives in recent increases to the minimum wage, the audience to “talk about the state of in both the U.S. and Canada, and higher pay for chefs, cooks and dishwashers. costs in general, are forcing operators Remember, there’s a lot of people sweat- to take a hard, long look at how they ing, working long hours and not being The notion of run their businesses. In theory, many able to enjoy life as much as other people. “ tipping is currently operators understand the importance of They deserve to be paid more,” he said. undergoing a radical paying staff living wages, but the reality Will the no-tipping movement con- is they know these increases place untold tinue to grow or will it fizzle? And, will transformation, fuelling pressure on their ability to turn a profit. Canadian operators follow suit? Time one of the industry’s Secondly, there is now greater awareness will tell. At the moment, it’s unclear most important among operators that the tipping model whether customers would accept paying is inequitable, rewarding front-of-the- higher costs for their meals to subsidize conversations house personnel at the expense of the the elimination of tips. But, given that back of the house. in Europe service compris has been the ” For Canadian-born Amanda Cohen, norm for years without customer resis- owner and chef of New York’s Dirt Candy, tance, chances are the tipping model will the decision to eliminate tipping in January eventually give way to a new reality. After 2015 was made to guarantee survival in all, we live at a time when disruption is the competitive New York market. “The de rigueur, and where the rules of the only way to get [staff] into my kitchen game — and sometimes even the game was to pay them more,” she told elle.com. itself — are changing daily. To do this, she launched a 20-per-cent administrative fee, added it automatically to every guest check, and then divided it among servers and cooks. But the move didn’t elicit the positive feedback she had hoped. “People were very critical,” she says. Still, she didn’t back down, and customers Rosanna Caira eventually came around. Editor/Publisher Since then, the no-tipping movement [email protected]

2 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM EDITOR & PUBLISHER ROSANNA CAIRA [email protected]

ART DIRECTOR MARGARET MOORE [email protected]

MANAGING EDITOR AMY BOSTOCK [email protected] ASSOCIATE EDITOR ANDREW SPELLER [email protected] ASSISTANT EDITOR DANIELLE SCHALK [email protected]

MULTIMEDIA MANAGER DEREK RAE [email protected] DIGITAL CONTENT MANAGER MEGAN O’BRIEN [email protected] GRAPHIC DESIGNER COURTNEY JENKINS [email protected]

SENIOR ACCOUNT MANAGER/U.S.A. WENDY GILCHRIST [email protected] ACCOUNT MANAGER MARIA FAMA VIECILI [email protected] ACCOUNT MANAGER MAGGIE SPENCE [email protected] ACCOUNT MANAGER CHERYLL SAN JUAN [email protected]

CUSTOMER SERVICE ASSOCIATE ELENA OSINA [email protected]

CIRCULATION PUBLICATION PARTNERS [email protected], (905) 509-3511

CONTROLLER DANIELA PRICOIU [email protected]

FOUNDER MITCH KOSTUCH

ADVISORY BOARD CARA OPERATIONS KEN OTTO CORA FRANCHISE GROUP DAVID POLNY CRAVE IT GROUP ALEX RECHICHI FAIRFAX FINANCIAL HOLDINGS LIMITED NICK PERPICK FHG INTERNATIONAL INC. DOUG FISHER FRESHII MATTHEW CORRIN JOEY RESTAURANT GROUP BRITT INNES KATIE JESSOP REGISTERED DIETITIAN LECOURS WOLFSON LIMITED NORMAN WOLFSON MANITOWOC FOODSERVICE JACQUES SEGUIN SCHOOL OF HOSPITALITY & TOURISM MANAGEMENT, UNIVERSITY OF BRUCE MCADAMS SENSORS QUALITY MANAGEMENT DAVID LIPTON SOTOS LLP JOHN SOTOS SOUTH ST. BURGER CO. JAY GOULD THE HOUSE OF COMMONS JUDSON SIMPSON THE MCEWAN GROUP MARK MCEWAN UNILEVER FOOD SOLUTIONS NORTH AMERICA GINNY HARE

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4/12/16 5:13PM

PHOTOS: RICK O’BRIEN MONTHLY NEWS AND UPDATES FOR THE FOODSERVICE INDUSTRY FYI COMING TOGETHER The Terroir Symposium returned to Toronto to explore innovative ideas and celebrate industry leaders BY DANIELLE SCHALK WITH FILES FROM ANDREW SPELLER

TO TOP THINGS OFF The Terroir Symposium’s 10th anniversary celebrations featured a collaborative Grand Dinner hosted at the AGO’s Frank restaurant and a Rural Retreat set in Durham Region. The dinner featured plates created by chefs Christine Flynn, Todd Perrin and Bertrand oronto’s annual Terroir Symposium industry tour of how restaurateurs can best Alépée using the bounty of Canada’s north- marked its 10th anniversary last communicate and reach their digital audi- ern climate. The Rural Retreat was hosted at month with an ambitious lineup ence. “An online brand is a living thing,” Ocala Orchards Farm Winery in Port Perry, and a new venue. Bruck said, explaining restaurants’ websites Ont. and treated Terroir10 delegates to an Hosted at the Art Gallery of Ontario should keep it simple while looking the part unforgettable day of eating, drinking and T(AGO), the symposium’s venue was an apt to suit their own individual brand. storytelling, complete with food preparation setting to explore this year’s theme — A Italian-Brazilian writer and chef Luciana at an outdoor feast cooked by — who else Feast of Art, Culture and Technology. The Bianchi’s session discussed the technological day featured a packed schedule of career- impact globalization has had on the restaurant, — Ontario chefs. development workshops, presentations, din- agricultural and food industry throughout the ing experiences and food-focused art tours. world. While the restaurant industry has ben- Momofuku Noodle Bar’s Hans Vogels, Jason Nearly 100 speakers from across the coun- efited from greater communication and better Bangerter of Cambridge, Ont.’s Langdon Hall try and abroad lent their talent and insight technology, Bianchi warned that the rise in and Michael Hunter of Antler in Toronto to the day’s events, including 28 separate technology and information-sharing shines a contributed innovative ideas to the event’s workshops/sessions on topics ranging from light into the darker corners of the industry — dining experiences, which included a “Bongo ideas for enhancing your restaurant/business animal cruelty, land grabbing in the undevel- Breakfast” and vegie-centric lunch. to bettering the industry and the world. oped world, as well as forced labour. The conference came to a close with art Canadian ex-pats turned New York City Chefs Amanda Cohen of Dirt Candy in presentations and a Turkish-themed cocktail Etsy gurus Maya Bruck and Aaron Paas took NYC, the AGO’s Renée Bellefeuille, Stephanie party hosted by Turkish chef Eyüp Kemal their audience on a virtual do’s-and-don’ts Duong of Roselle Desserts in Toronto, Sevinç and the Tourism Office of . l

REGIONAL ROOTS Among the seminars and presentations offered at Terroir10, was a panel of participants from last year’s Cook it Raw Alberta experience, which explored possibilities of regional cuisine through four principles: tradition, creativity, collaboration and sustainability. Panellists Jamie Kennedy, John Jackson, Connie Desousa, Cam Dobranski, Paul Rogalski, Fraser Abbott and Sal Howell relayed highlights of their experience participating in this multi-faceted event, where the group spent several days camping, foraging, hunting and, of course, cooking. PHOTOS: RICK O’BRIEN

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AN EVENING OUT COMING Canada’s first three locations to offer the Evenings menu, serving savoury plates and alcohol, EVENTS are in Toronto. The new menu features Canadian June 5-7: Ontario Dairy Council and international wines, craft beers and cider. Convention 2016, JW Marriott The Starbucks will also introduce a sharable plate option, Rosseau Muskoka Resort & Spa, which includes bacon-wrapped dates with balsamic Minett, Ont. Tel: 866-542-3620; email: glaze; artichoke and goat cheese flatbread; meat- [email protected]; website: balls with tomato-basil sauce; parmesan-crusted ontariodairies.ca chicken skewers; and truffle popcorn. Beginning at June 12-14: 2016 Canadian Poultry and 2 p.m. daily, these locations will also offer the com- Egg Processors Council Convention, pany’s exclusive limited-quantity Starbucks Reserve Halifax Marriott Harbourfront Hotel, — exotic blends from locations such as Halifax. Website: cpepc.ca Malawi, Vietnam, Guatemala, Cameroon and more. “Starbucks Evenings is focused on creating a new June 16: Kostuch Media’s Icons & afternoon and evening occasion where customers Innovators Breakfast featuring Cora can gather with friends or family or find a quiet spot by themselves to enjoy a sophisticated and Tsouflidou, Sheraton Centre Toronto welcoming environment,” says Rossann Williams, president, Starbucks Canada. The Starbucks Hotel, Toronto. Tel: 416-447-0888 x235; Evenings menu is available at three Toronto Locations: 3079 Bloor St. W., 446 Spadina Rd. and email: [email protected]; 1740 Avenue Rd. website: foodserviceandhospitality.com/ shop

June 16-19: IFT Food Expo, McCormick EASTERN EXPANSION Place, Chicago, Ill. Tel: 312.782.8424; email: [email protected]; website: am-fe.ift.org On March 31 Cara Operations Ltd. acquired Groupe St-Hubert Inc. for $537 million. “The two companies share similar management philosophy and fundamental values,” says Jean-Pierre Léger, June 26-28: Summer Fancy Food Show, chairman and CEO of Groupe St-Hubert Inc. “For Cara, this is also an opportunity to solidify a Jacob K. Javits Convention Center, New more significant presence in ,” says Bill Gregson, Chair of the Board and CEO of Cara York. Tel: 646-878-0301; website: Operations. Cara currently operates only six per cent of its total specialtyfood.com locations in Quebec, including Harvey’s, East Side Mario’s, Casey’s, Bier Markt and New York Fries. The deal also fuels the expansion of Sept. 15-18: Canadian Health Food Association East Conference and Trade St-Hubert’s retail food segment. The St-Hubert management team Show, Metro Toronto Convention Centre, will continue to oversee operations, while maintaining its two Toronto. Tel: 800-661-4510; email: info@ head offices in Laval and Boisbriand, Que. Groupe St-Hubert Inc. chfa.ca; website: chfa.ca owns 120 rotisserie restaurants in Quebec, Ontario and New Brunswick, as well as St-Hubert Retail, an agrifood division FOR MORE EVENTS, which produces and distributes food products in Canada. VISIT http://bit.ly/FHevents FYI

SAUCY NEWS A&W Food Services of Canada Inc. will be the first national restaurant chain to serve French’s Ketchup and Classic Yellow Mustard. “At A&W, we’re always looking to partner with Canadian suppliers and farmers who are producing natural ingredients,” says Susan Senecal, president and COO, A&W Food Services of Canada Inc. “The tomato farmers in Leamington [Ont.] and mustard seed farm- ers in Saskatchewan work hard to produce the best quality ingredients for French’s, and we are proud to add these locally sourced products to opportunities as a: the menu at all of our Canadian restaurants.” French’s is made without preservatives or artificial flavours and contains 100-per-cent Canadian • Operating Partner tomatoes and mustard seeds. • franchisee • investor RESTO BUZZ Build an exciting future with us. Join our team today! David Hawksworth’s newest restaurant, Nightingale, is scheduled to open in this spring. The 7,400 sq.-ft. restaurant will highlight local ingredients in globally inspired dishes. Nightingale’s menu includes fresh vegetables, sea- sonal salads and creative proteins, including a 24-oz dry-aged Alberta prime beef strip-loin ($129)…Tannis Ling of Vancouver’s Bao Bei has teamed-up with executive chef Joel Watanabe and sous-chef Alain Chow to open a new restaurant, Kissa Tanto. The menu at the 80-seat Japanese-Italian concept is inspired by the flavours of Japanese food fused with the warmth of Italian cuisine… wine bar Pullman is gaining a companion restaurant this month, as Bruno Braën and Catherine Bélanger are set to open Moleskine next door. The restaurant will fea- ture a take-out window serv- ing small plates and ice cream come summer. The two-floor venue will host a more casual You have spent time concept on its first floor and offer a more complete menu, building someone including wood-fired pizza, on Highwayman the second floor…The team else’s dreams. behind Halifax’s Field Guide restaurant launched a new eatery Highwayman inspired by an Alfred Noyes poem by the same name. The kitchen, helmed by Dan Isn’t it time you Vorstermans, produces dishes such as Boquerones (anchovies) and chips ($7); ravioli with whey and pine nuts ($16); and Crema Catalan ($9)…After 30 years built your own? of serving politicians, lobbyists and journalists, Hy’s Steakhouse & Cocktail Bar, located within a short walking distance of ’s Parliament Hill, closed its doors in February due to disagreements regarding lease-renewal terms.

call us Opening a new restaurant? Let us in on the buzz. Send a high-res image, JOES menu and background information about the new establishment to 1.877.567.5637 [email protected]. [email protected] FOODSERVICEANDHOSPITALITY.COM /ShoelessJoes @goShoeless Wo ot A century of awesome. Since 1886, Del Monte has been dedicated to bringing the best fruits and veggies from around the world to your door. As the leading pineapple 100 and banana supplier, as well as a top tomato marketer, go-to fresh cut producer and so much more, there’s no limit to how partnering with us can help you grow your future.

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th IN BRIEF Canadian chain Good Earth is celebrating its 25 Vancouver Magazine has released the results of its 2016 Restaurant anniversary. Since opening its first location in in 1991, Good Awards — naming Maenam Restaurant of the Year. The Thai restau- Earth has grown to include more than 45 locations in B.C., Alberta, rant also took home a collection of other honours including: gold for Saskatchewan and Ontario… East Side Mario’s launched its new Best Thai, silver in the Best Casual category and bronze for Best West national pick-up and delivery service, ‘Mario in Minutes.’ The brand Side…North 42 Degrees Estate Winery in Colchester, Ont.’s Essex created a guest team to handle all phone, web and mobile orders for County is gearing up for a $1-million expansion. The investment will this new initiative…The team at Joey Restaurants launched Joey allow the team to add a larger wine-tasting area, more retail space and Pay, its first proprietary mobile payment app for iPhones…The Eataly a restaurant… released two new maple-flavoured bever- franchise is scouting sites for its first Canadian property. While the ages for a limited time; The Creamy Maple Chill is a non-caffeinated location for the Toronto store is still unknown, the owners are alleg- beverage with maple flavour, while the maple Iced Capp adds an extra edly eyeing the trendy Yorkville area…The renowned Chicago-based touch of Canadiana by also using maple flavouring brewery, Goose Island, is coming to Toronto. The expansion marks the company’s first Canadian location, bringing the brew- ery’s core brands, such as Matilda, Sofie, Honkers Ale and Goose IPA to the Toronto market. The timelines for construction and opening have yet to be announced… Madisons New York Grill & Bar franchise is bringing its fine-dining experience to Canada. Opening in time REACH-INS for the spring season, Madisons Ottawa is the first Canadian outlet for the brand.

PREP UNITS & PEOPLE UNDERCOUNTERS The team at Hockley Valley Resort’s signature restaurant Cabin and Adamo Estate Winery, welcomes renowned chef Roberto Fracchioni to its culinary team as head CHEF BASES chef. Fracchioni completed his culinary training in some of Canada’s most prestigious restaurants, including Scaramouche, Canoe, Auberge de Pommier and Niagara’s Inn on the Twenty. In his new position, he will oversee BAR the upscale dining restaurant Cabin, as well as the entire EQUIPMENT food program at the new Adamo Estate Winery, slated to open later this year…Alexandra Feswick, chef de cuisine at the Drake Hotel in Toronto, is the new Dairy Farmers of Canada’s (DFC) Grate Canadian Cheese Cook-Off champion. The biannual showdown took place on April 8 at DFC’s Canadian Cheese Counter at the Toronto Food & Market, where four top Canadian top chefs took to the stage to create the ultimate mac and There’s plenty in life to worry about. cheese using Canadian cheese. With Master-Bilt’s Fusion™ Series you don’t have to. SUPPLY SIDE Metalcraft reinvented its drinking vessel offerings with Food Costs & Safety Competitive Pricing the launch of more than 20 mugs, tumblers, cups and Dependable equipment keeps Fusion™ series is packed drink cans. Focusing on trendy looks in natural ele- food safe & reduces food with features but won't ments, the new lines of drinkware are made of antique spoilage and spending. break your budget. and shiny copper, stainless steel in satin and mirror finishes and black and gold with brass handles. The new Energy Efficient Quality drinkware is featured in American Metalcraft’s new Many of Master-Bilt's models Durably constructed to stand are ENERGY STAR qualified product brochure being introduced at the NRA Show up over time this month…Unilever Food Solutions is introducing the Hellmann’s Burger Route, an online marketing campaign which aims to provide restaurant operators with national exposure. Restaurants joining the initia- tive are promised eye-catching merchandise, social- 800.647.1284 | master-bilt.com media support and recipe ideas.

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BOTTOMS UP Beverage innovations are key to achieving growth

egory, which includes bev- dollars increasing at a rate of four per cent, erages such as carbonated ahead of all other regional year-over-year soft , has come under trends. In fact, sparkling category declines significant pressure over are seen across all regions, with the excep- the last few years. In 2015, tion of Ontario where sodas, soft drinks for example, total servings and other CSDs are up two per cent on declined two per cent year the year. over year. However, there are several growing/ There were a few win- emerging beverage categories worth keep- ners in 2015. For example, ing an eye on in 2016. For example, shakes, he past few years have been chal- bottled water servings were up 8.6 per cent, malts and floats have seen strong growth lenging for the foodservice sector in juice servings grew 2.6 per cent, iced/fro- year-over-year and are currently up 29 per Canada. In 2015, commercial food- zen/slush coffee servings increased 11.8 per cent compared to last year. Furthermore, PHOTO: DREAMSTIME.COM [GOURMET REFRESH LAYERED ICE LATTE WITH LEAF DESIGN WHIPPED CREAM] Tservice traffic was once again flat. In fact, cent and milk servings were up 2.1 per cent. frozen/slushy/iced coffee has also per- foodservice incidences — defined as the Some of the hardest-hit categories in 2015 formed well, up 16 per cent. Lastly, carbon- percentage of Canadians who visit food- were hot tea and alcoholic beverages, which ated bottled water has seen some strong service daily — have been consistently flat saw declines of 10.8 per cent and 5.4 per growth over the last year, and is currently since 2012. While there was some dollar cent respectively. The latter is a considerable up eight per cent. growth in national year-over-year sales at concern for FSR operators who rely heavily Opportunity still exists for savvy foodservice, the increase held steady at two on alcoholic beverage servings to help drive operators who are willing to implement per cent, in line with menu inflation. average eater check and improve overall new and innovative beverage offerings. Consumer beverage consumption at margins. Adding to these declines is the Increasing variety and focusing on new, commercial foodservice has also been chal- fact that tap-water servings were up 2.5 per unique beverages is especially impor- lenged of late. Total beverage servings have cent in 2015. tant in FSR and QSR, where alcohol remained flat compared to last year and While major trends in foodservice and has long been relied upon to drive up aver- only half of the top 10 beverage categories beverage consumption tend to be national, age eater check. As alcohol consumption are currently seeing any growth in servings there are some interesting regional patterns at foodservice continues to decline, bev- at all. to consider from province to province. For erage innovation can play a key role in Further compounding the issue is the example, the landscape in Ontario has seen helping to achieve growth in a traffic- reality that the sparkling beverage cat- an upturn in the latest year, with industry challenged market. l

Robert Carter is executive director, Foodservice Canada, with the NPD Group Inc. He can be reached at [email protected] for questions regarding the latest trends and their impact on the foodservice business.

12 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM PHOTO: DREAMSTIME.COM [GOURMET REFRESH LAYERED ICE LATTE WITH LEAF DESIGN WHIPPED CREAM] FOOD FILE AROUND THE WORLD IN 80 BITES

STREET VENDORS ACROSS CANADA ARE BRINGING GLOBAL FLAVOURS

TO THEIR NEIGHBOURHOODS AND SALSA] WITH PULLED PORK MEAT [APPLE GLOBE], DREAMSTIME.COM [SOFT SHELL TACOS PHOTOS: ALAMY.COM

14 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM FOOD FILE

STORY BY MARY LUZ MEJIA

STREET FOOD is the food of the people. Stalls, kiosks and trucks congregate around busy city streets the world over, filling the air with the scent of just-grilled skewers or glossy noodles tossed in blazing woks. Street food is synonymous with affordable, fresh fare that’s usually hand held, easy to transport and to eat. Most importantly, it’s food people want to eat — because it’s delicious. According to Australia-based IBISWorld’s report, Street Vendors in Canada, published in 2015 by Andrew Alvarez, the “Street Vendors industry has been one of the best- performing industries in the broader food- services sector during the past five years,” with revenues totalling $279.2 million and profits reaching $11.7 million.

HOT MARKETS| “Canadian Food Trends to 2020: A Long That’s the case with Grumman ’78, an CRAVABLE FALVOURS Sev Puri from the Bombay Street Food Company (top); ethnic salad options Range Consumer Outlook” prepared outfit credited with bringing street food back from Grumman 78 (below) by Serecon Management Consulting in to the streets of Montreal in 2010. It now Edmonton, Alta., notes that “Quebec and operates a bricks-and-mortar location in the Ontario have the largest share of street ven- St-Henri neighbourhood, in an old garage dors by an overwhelming margin, with 43.8 that used to house the city’s cavalry. But per cent and 37.8 per cent of establishments, when spring has sprung, you’ll find its lime respectively.” Most vendors, according to this green truck — the first in the city — hitting report, set up shop close to densely popu- the road and selling globally inspired tacos lated areas, such as office buildings or work (especially since 2013, when street food got sites, to get the most bang for their opera- its legal status in Montreal). tional buck. Hilary McGown is one of three partners in the Grumman empire (formerly creation is a riff on the bahn mi sandwich, a cook at Toronto’s Splendido res- made with roasted, pulled pork shoulder taurant, she now runs the business’ dressed in hoisin sauce and garnished with administration and accounting). For pickled daikon and carrot (one taco for $6 the Grumman team, street food is all on the truck or two for $14 at the restau- about the taco. “It’s one of the most rant). “Most people think we’re Mexican. We classic forms of street food — you eat use corn tortillas, work with jalapeños and it with your hands, it’s not expensive other chiles, but our driving force is what’s and it’s always delicious,” she says, delicious, rather than what would be cultur- adding, “When I go out to eat, I usu- ally relevant,” explains McGown. ally spend more than I wanted to. I’m just as satiated if I’d had a ceviche THE CRAVEABLE FACTOR| or a taco [instead]. You can eat well McGown’s observation is backed up by TACO FEVER A perennial favourite, without it having to be expensive.” Jill Failla, associate editor of Consumer tacos are the ultimate street food Team Grumman views the taco as an Research at Technomic Inc., who believes

PHOTOS: ALAMY.COM [APPLE GLOBE], DREAMSTIME.COM [SOFT SHELL TACOS WITH PULLED PORK MEAT AND SALSA] WITH PULLED PORK MEAT [APPLE GLOBE], DREAMSTIME.COM [SOFT SHELL TACOS PHOTOS: ALAMY.COM affordable, blank canvas. Its most popular it’s primarily consumers’ desire to try inno-

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 15 FOOD FILE

vative, global, “craveable” flavours that’s Omar. Her sister-in-law Seema Omar, who attracting them to street fare (versus just grew up in Bombay, adds, “Palates have lower prices). changed here in Toronto. People are accept- Seeking out discernible, regionally specific ing of new flavours; every food festival we’ve flavours is what keeps Torontonians com- participated in has given us a great response.” ing back for more at The Bombay Street The company’s daily, scratch-made cre- Food Company. Two sisters-in-law decided ations include various freshly made masalas to bring the street food of Mumbai (a.k.a (spice blends) and three, vibrant chutneys — Bombay) to Toronto, initially using festivals another reason people seek them out. Failla and farmers’ markets as testing grounds. notes vendors touting authentic, premium What they found was that their food ingredients can get away with higher prices, HAND-HELD DELIGHTS Kheema Par (top), a sandwich of spicy beef popular in appealed to former Bombay residents crav- even for street-food items. Scratch-made Mumbai is one of The Bombay Street Food ing nostalgia, as well as to Canadians who components such as aioli and slaws, or in Company’s best sellers; the Alley Burger made with ground heritage pork sausage, enjoyed the bright, fresh and bold flavours this case masalas and chutneys, add value in roasted garlic and Quebec cheese curds of the Indian city and who had begun to the minds of discerning clientele. (below) from Calgary-based Alley Burger crave them, too. At farmers’ markets, The Bombay Street “We don’t do fusion — we’re committed Food Company’s most celebrated dishes to authenticity. To us, that means being able include the keema pav ($8), a sandwich to fulfil the nostalgic food fantasies of former of spicy beef served on a griddle-warmed Bombay residents, using farmers’ market bun along with a farm-fresh salad. “This is fresh ingredients,” says co-owner Amreen a relatable dish,” says Amreen, “because it’s

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©2015 ConAgra , Inc. All Rights Reserved. R out e# Da t TEAM e: C Art Dir C Pr op R r . Dir oduc e A K y W t oucher e cco T yliner ec ec r a c rit tion un t t Prod or or er t R. Ortiz R. Hansen C. B A. W C. Gerth S. Martineau M. Sulliv S. Martineau ands ood an tr AD a C Introducing Campbell’s Scratch Starters™ –afulllineofflavourful broths,stocks and basesthatmake iteasytocreatescratchsoupsyour customerswillcrave. ALTS CA31156_P 1 Because whenyou startwithCampbell’s, every soupstoryendsdeliciously. Proofer/Writer Initial K erf ec tBeginningF e File Name yline Da ull& Learn more at CampbellsFoodservice.ca t e: 5.9 T hir AE dP . 16 gA d_FS&H.ai CD

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FLAVOUR FOCUS One sure way to differentiate yourself from the competition is to offer y ed house-made, quality condiments and sauces, focusing on flavour-forward t ingredients. Here are three ingredients making a splash for these alit

food operators. s Indica

# CCA31156 g CHUTNEYS Some say Indian street food is “powered” by the e & Hospit flavour bombs that are chutneys — the sauces or side dishes ervic that accompany a wide variety of snacks and plates. They’re con- Trackin ed @ 100% Unles oods sidered an off-shoot of Anglo-Indian cuisine, in which fruits, veg- t F Insertion: etables, herbs and spices get paired with vinegar and sugars to Prin

preserve them for later consumption and to heighten the flavour NOTES

Our flavourful, aromatic broths are 12 31/ ed: 1/ of dishes. At The Bombay Street Food Company, three chutneys t ea r

simmered with quality ingredients. Slug C in particular are made fresh daily (the Omars insist on no leftover

usage). “At our house, mom would make chutneys for lunch and dinner and they would be used up dur- With unlimited flexibility, they bring CMYK

ing the meals. We’re bringing that experience to our customers,” says Seema Omar. Specialties include a # CCA31155 simple, delicious flavour to any USE COLOR green chutney made of fresh corriander, mint and green chili; a ginger chutney; and a sweeter tamarind, soup recipe. g

date and jaggery (cane sugar) chutney. You’ll find these served with pakoras, sev puri and other scratch- 5" 5" 7 7 Billin 3 125" . . made specialties, adding both add depth and dimension. .8

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PIRI PIRI AIOLI At Calgary’s Charcut Roast House, Connie De 25" x 10 375 125" x 10 6 . Sousa’s Portuguese father is the keeper (and maker) of the family’s 8 . 8. 7 e tudio rim piri piri recipe. Piri piri, which means “pepper pepper” in Swahili, S Liv T

is a multi-purpose, fermented pepper sauce consumed in Bleed and various African countries, including South Africa, Mozambique SIZE and Namibia. It’s usually made with any combination of crushed

With rich, savoury flavour – and no CD chiles (traditionally African bird’s eye chiles), lemon juice, paprika, pimiento, oregano, onions, citrus peel, salt, pepper and bay leaves, artificial colours or flavours – our to name a few. It can be used as a marinade (for chicken and sea- d_FS&H.ai gA

versatile stocks are the perfect start 16 . AE food in particular), as a dipping sauce, or mixed with say, a garlicky dP

for robust, full-bodied soups hir T

mayonnaise, for a particularly delicious aioli of sorts. At Alley Burger, the piri piri is folded into the house e: 5.9 t aioli to create the eatery’s famous burger secret sauce. It also finds its way into other Alley Burger recipes and stews. ull& and various dishes at Charcut where a little layered, lingering heat is on the menu. yline Da File Name e tBeginningF

DRIED HIBISCUS FLOWERS In Spanish, hibiscus flowers (also ec erf known as rose mallow) are called flor de Jamaica. They grow in tropical Initial K Proofer/Writer regions around the world, are high in antioxidants and vitamin C and are

1 a completely natural, mild diuretic. In Jamaica, the flower is called sorrel CA31156_P ALTS C and used in hot and cold drinks. In Mexico, the red flowers are used to a make agua fresca (non-alcoholic, refreshing “waters” or juices) as well AD tr as rehydrated in a sugar syrup to make brilliant, crimson-hued dessert With our fully flavoured bases, an ood garnishes. You’ll also find dried hibiscus powder tinting everything from you can create custom soups just ands

sodas to women’s cosmetics. On its own, the reconstituted dried flower juice is tangy, almost mouth-puck- S. Martineau M. Sulliv S. Martineau C. Gerth A. W C. B R. Hansen R. Ortiz t

by adding a few ingredients. er or or Prod t t ering. Hence why it’s enhanced with sugar or honey and often lime juice to balance out the tartness. At u n tion rit a c r ec ec yliner

Try our wide range of classic and T cco e Montreal’s Grumman ‘78 (on both the truck and the sit-down restaurant), the dried flowers are turned into oucher t y W K A e oduc . Dir r R

simple syrups to garnish everything from drinks to desserts. op on-trend authentic flavours. Pr

C Art Dir C TEAM e: t Da like a burger or a Sloppy Joe.” The other This spring, it will be opening a fast- fan favourite is the vegan and lactose-free casual service location (with a take-out rice and lentil bowl with a vegetable salad component) on Bay Street in Toronto, ($6). It’s right on trend, according to the where it hopes office, hospital and univer- e# out IBISWorld report, which notes customers’ sity foot traffic will keep its 11 a.m. to 9 R 6 Campbell Company of Canada

health-conscious dining choices have been p.m. eatery busy. It is planning on pricing 1

swiftly answered by savvy operators willing a lunch combo, which will include a main ©20 to highlight vegetarian, vegan and other and a drink, at around $15.

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FOODSERVICEANDHOSPITALITY.COM

FOOD FILE

SPEND PREDICTORS| flexible and look for value When consumers reign in their opportunities guests will appre- discretionary spending, sug- ciate and recognize, adding, “We gests the IBISWorld report, always look for ways to transfer they’ll likely opt for the creative, savings on to our guests and reasonably priced fare of food show great value for their dollar.” trucks and street-food options. The team at Grumman ’78 has When new and diverse food a similar philosophy. McGown options capture their atten- says she buys the best ingredients tion, clients quell cravings with she can for a fair price from repu- “niche product offerings, and table butchers and farmers; all high-quality gourmet options.” of which is reflected in her food. Calgary’s Alley Burger answered “I can’t sell a taco for $3, or I’ll both criteria with its initial go under. But I do try and give offering of $5 gourmet burgers, people the greatest $7 taco they’ve sold out of the alley behind its ever had,” she says. That price also sit-down Charcut Roast House. reflects staffing costs, truck and In the winter of 2011, hun- restaurant insurance and rent. dreds of burger lovers lined up “Because I have a truck and a res- for a taste of Connie De Sousa taurant, my costs are doubled.” and John Jackson’s must-try Why keep the truck then? burgers. The original Alley It’s profitable, says McGown, Burger, made with ground heri- bringing in about 10 per cent of tage pork sausage, whole chunks its sales, even though the break- of roasted garlic, spices, white even is high. “It’s expensive wine, Quebec cheese curds and running a truck, almost double a Portuguese piri-piri aioli made the cost of a restaurant, because daily by De Sousa’s dad ($6 you need bricks-and-mortar small, $10 regular), became an to run the truck. It’s an exten- instant hit. Listening to custom- sion of a dining room [but it’s] er demands, it also created the highly weather-sensitive,” she Whole Truck burger, a 7K Ranch explains. If there’s a rain storm, grass-fed beef burger that guests no one comes out to eat. The got to top their way ($8 small, truck is used more as an assem- $12 regular). Fries, “Spiced bly line, in which restaurant- Your Way” ($5) and a soup and cooked dishes (via sous vide sourdough bread option ($8) machines) are warmed on an round out the menu at its new immersion circulator on the Simmons Building location (it truck before going on a steam recently sold its burger food table and ultimately put togeth- truck in favour of a bricks-and- er and seasoned for the cus- mortar location). tomer. And for a business with Jackson and De Sousa’s food a short, seasonal window of reflects their love of charcute- opportunity (April to October), rie, while borrowing from their that’s a risky proposition. familial heritage and their travels The other reason it keeps to Europe. To keep innovating, the lime green mobile? “It’s Jackson says it’s all about keep- a roving billboard,” says ing its “incredible and passionate McGown. And in a town like team engaged and part of the Montreal that’s chock-full of conversation at the table.” To edible options, sometimes a keep clients coming back at a cheery, rolling, green salute to reasonable price point, he says your tastebuds is as good as l the operation tries to remain word-of-mouth kudos. DREAMSTIME.COM ILLUSTRATION:

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he winds of change continue to blow strongly in the foodservice industry, altering the land- scape and pushing operators to get more cre- ative in how they appeal to today’s increasingly demanding and fickle clientele. After several slow years, the industry is grappling with the reality that competition is tougher than ever. And with the millennial cohort, aged 18 to 34, now assuming an Tincreasingly important position, their likes and dislikes will help further shape and influence the foodservice landscape in ways never before imagined. According to statistics from Restaurants Canada, commercial foodservice sales increased by two per cent in 2015, for total sales of $60 billion, while total foodservice sales grew 4.1 per cent to $74.9 billion. Commercial sales are projected to increase by 3.5 per cent in 2016 to $62.1 billion, while total industry sales are expected to hit $77.5 billion, up by 3.5 per cent. This year’s Top 100 com- panies posted 2015 sales of $30 billion, up 5.6 per cent from last year’s $28.4 billion.

ILLUSTRATION: DREAMSTIME.COM ILLUSTRATION: Like many businesses across the economy, the foodservice

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 23 dominated this year’s Top 100 Report. past year was Montreal-based MTY, which now controls 41 different flags ranging from TOP 5 CONSOLIDATION IS THE Extreme Brands to Country Style Donuts. NAME OF THE GAME Last year the behemoth gobbled up Big The company making the most headlines Smoke Burger, a young brand in the über- in 2015 was Cara Operations Ltd., which competitive burger market. Unfortunately, acquired New York Fries, The Landing and MTY does not break out individual sales by CHAINS a 40-per-cent stake in Toronto celebrity chef brand, though it did reach total volume sales (millions) Mark McEwan’s food empire. According to of more than $1 billion for the first time in Bill Gregson, CEO, Cara, The New York Fries its history. To provide a realistic scope of the acquisition gave it “a strong track record of breadth of its holdings, F&H has provided growth, profitability and product develop- estimates for each of its brands. ment.” Earlier this spring, the company also It wasn’t just the big guys joining forc- acquired Montreal-based St. Hubert in a es in 2015. Late last year, two mid-sized move expected to give the company a stron- chains from the Next 25 came together when ger foothold in the Quebec market. Toronto-based Druxy’s acquired Guelph- Moving forward, the company’s strategy based Williams Coffee Pub, bringing these is to dispense of under-performing stores, two Ontario entities together to tap into convert to more successful brands and focus various synergies (see story on page 35). on improving its core business. This year, for But is consolidation the cure for the example, , the venerable brand industry’s ills? Not according to Doug Fisher. the company has owned since the 1950s, The Toronto-based foodservice consultant opened a total of 16 new stores, while add- says, “The acquirers all have something in McDonald’s Restaurants * $3,896.0 ing new items such as Butter Chicken and common — they are big and very well run 1 of Canada Ltd. Asian-inspired chicken stir fries to its menu. and operated and all have benefitted from Cara is also looking to add 30 new East Side their acquisitions in terms of economies of A&W Food Services $1,093.4 2 of Canada Inc. Mario’s units by converting the lower per- scale; and in some cases are benefiting from forming Kelsey’s locations. local management. However, the restaurants Wendy’s Restaurants * $623.7 Don’t expect the acquisition activity to under the brands are becoming more uni- of Canada Inc. 3 slow any time soon. Earlier this year, speak- form.” And, adds Fisher, “Consolidation is ing at the Canadian Restaurant Investment only good for shareholders and senior man- Canada * $370.0 4 (Redberry Franchising Corp.) Summit in Toronto, Paul Rivett, president of agement teams.” Fairfax Financial Holdings, owners of Cara Harvey’s $296.0 (Cara Operations Ltd.) and , told a room of foodservice BATTLE OF THE BURGER GIANTS 5 operators the company is looking to actively In an effort to steal share from competitors,

* Denotes estimate; ‡ Canadian-owned company whose operations pursue additional acquisitions. many of the Top 100 brands are extending outside Canada are reflected in gross sales and units Of course, the acquisitions spree started product lines and introducing new menu industry is facing a slew of challenges — in earnest in August 2014, when Restaurant offerings. Leading the way is McDonald’s, falling traffic counts, rising ingredient costs Brands International acquired iconic which had a busy 2015, launching a mod- and the impact of changing technology Canadian brand, Tim Hortons, and set up ernized guest experience featuring self-order and demographics. Over the past five years, shop in Oakville, Ont. amid a flurry of con- kiosks and the Create-Your-Taste burger sales in all industry segments have either troversy around relocating its head office for remained flat or declined. Total traffic vol- tax reasons. In its first full year of operation ume remains constant at 6.6 billion annual as a new business, the company set out to customers, with the QSR segment growing reduce its costs — downsizing its head- slightly by two per cent; within the FSR seg- office staff by approximately 1,000. It also ment, customer traffic declined by two per began to create price efficiencies by amal- cent while among retail, HMR and conve- gamating its Burger King and Tim Hortons’ ILLUSTRATIONS : DREAMSTIME.COM nience traffic declined by two per cent and purchasing functions and focused its sights one per cent respectively. on international expansion. In the past year, Not surprisingly, in order to combat a total of 155 new Tim Hortons popped up declining traffic counts, operators are now and the company also closed 27 U.S. under- being forced to steal share from each other performing stores in Portland, Ore. and through consolidation, menu innovation Syracuse, N.Y. and technological adaptation — trends that Another juggernaut making headlines this

24 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM menu — all while giving customers the PEOPLE MAKE ability to choose from 30 different options, THE DIFFERENCE including 12 toppings, two buns, a lettuce TOP 3 wrap and nine sauces. The company is hop- ing to rewrite the rules of guest service with customizable menu options, new technology and a best-in-class guest experience. The QSR chain also added the Mighty Angus, the first premium burger the com- pany has added to its menu since 2012. According to Anne Parks, director of Menu Development, “The very first item on the Franchisees are the key to Pita Pit’s success. According to Chris Fountain, CEO, Pita Pit menu in 1967 was a and at its Canada, the Kingston, Ont.-based QSR chain heart, McDonald’s has always been a ham- is selective about its franchisees, turning down burger company,” boasting that the QSR more than 80 per cent of applicants before company “serves more guests than all other even reaching the financial qualifications stage. national burger chains combined.” “A good portion of our success is how selective As consumers’ hunger for sustainable we are with picking the right franchise partners,” products grows, McDonald’s is hoping to CHAINS says Fountain. “We continue to look for people (millions) who can lead their team and connect with their community. We are investing heavily in giving Tim Hortons Inc. ‡$8,055.8 them better tools to do those two things.” TOP 5 1 (Restaurant Brands Pita Pit recorded sales of $296 million in International Inc.) 2015, up 31 per cent from $226 in 2014. * The brand added 54 new stores last year, Starbucks Coffee $1,200.0 Canada Inc. with the strongest performance occurring in the 2 Maritimes. “We’ve had some great success sto- The Second Cup Ltd. $174.9 ries across the country but the Maritimes was one 3 of our strongest markets in 2015. We are really excited to see continued growth there. We have * Denotes estimate; ‡ Canadian-owned company whose operations amazing franchise partners there that fully reflect outside Canada are reflected in gross sales and units they type of people we love working with.” Pita Pit has a unique approach to growth, satiate it with news it has funded a beef preferring to find good people first and then sustainability pilot program, which will help find them the right location. Expansion plans include growing the brand’s presence in every establish an independent verification process province — including the opening of the first for sustainable beef. That means the compa- store in the Yukon. ny is on track to purchase a large portion of “Rising costs will continue to affect every- its beef supply from sustainable sources. It’s one,” says Fountain of challenges facing his CHAINS also committed to fully transition to sourc- company in the coming year. “Prices will follow (millions) ing 100-per-cent-Canadian cage-free eggs input and labour costs and brands will have (free run) for its restaurants over the next to find a balance of providing extra value in a $1,060.0 decade. “Our decision to source 100-per- limited market.” International Inc. cent Canadian cage-free eggs reinforces the For its part, Pita Pit has launched a rewards 1 focus we’re placing on our food and menu to program. “Our national Pita Pit More rewards Pizza Pizza (Pizza $451.0 meet guests’ changing expectations, allow- program allows us to focus on regularly engag- 2 Pizza Limited) ing and rewarding our most loyal customers. ing them to feel better about the food they Over the next few months we will be extending $332.8 enjoy at our restaurants,” says John Betts, ILLUSTRATIONS : DREAMSTIME.COM that platform with pre-order and guest feed- 3 (PH Canada Company) president and CEO. The company will also back modules.” work closely with the industry to source Domino’s Pizza of Canada * $272.5 The company has also launched a new Pita 4 only chicken raised without antibiotics that Pit décor package for new builds and, Fountain are important to human medicine by the says, the company will continue to add tools Pizza Inc. $160.7 end of 2018. and training to enhance the capabilities of its 5 A&W Restaurants, which, three years ago franchisees. — Amy Bostock became the first chain to introduce beef and * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units chicken without antibiotics, spent the bet-

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 25 THE ACQUIRERS efforts exclusively on South St. Burger. Last “ year, in an effort to grow his dinner business ALL HAVE SOMETHING and appeal to a changing demographic, the TOP 5 IN COMMON — THEY company launched a craft-beer program. ARE BIG AND VERY “For the last seven to eight months, same- CASUAL-DINING WELL RUN AND OPERATED store sales have been on a roll,” boasts Gould. AND ALL HAVE BENEFITTED “Competition has slowed, or disappeared, CHAINS and I think we are being recognized by con- (millions) FROM THEIR ACQUISITIONS sumers as one of the best.” IN TERMS OF ECONOMIES OF SCALE BREAKFAST DAYPART CONTINUES TO SHINE ter part of 2015 reinventing itself, aggres- Despite market challenges and slump- sively adding 23” units across the country ing traffic, daypart usage continues to and becoming the first company to intro- shift. According to The Canadian Chain duce a new franchise program aimed solely Restaurant Review, produced by NPD and Boston Pizza $1,060.0 at millennials. Geoff Wilson & Associates, “Breakfast/ 1 International Inc. In recent years, competition in the burger brunch is performing strongly and is expect- segment has intensified as consumers’ love ed to continue to grow,” with double-digit Keg Restaurants Ltd. ‡$579.0 affair with better burgers continues to push growth, driven by both the casual-dining 2 new boundaries, spurred by the growth and QSR segments, becoming the norm Montana’s $239.0 of smaller niche operators such as Hero’s, in this segment. Among the best-growing 3 (Cara Operations Ltd.) South Street Burgers and the U.S.-based Five menu items are breakfast sandwiches, hash Guys. Since selling New York Fries to Cara, browns, bacon and sausage. Moxie’s Grill & Bar * $208.9 (Northland Properties) former owner Jay Gould is now focusing his After years of growing the breakfast mar- 4 ket in Quebec, Ontario and Alberta, the White Spot Restaurants $176.0 team at Chez Cora focused on product 5 (White Spot Limited) development last year, adding 20 new break- TOP 5 * Denotes estimate; ‡ Canadian-owned company whose operations fast items and introducing an early-bird SPECIALTY SNACK outside Canada are reflected in gross sales and units POPEYES LOUSIANA KITCHEN CHAINS SETS SIGHTS ON WESTERN CANADA (millions) WHILE SOME OPERATORS see challenges in recorded sales of approximately $103 million. the western market, Popeyes Lousiana Kitchen “Canada is very diverse and appreciates differ- sees opportunity. The Georgia-based QSR ent cultures — that’s something which gives us a chain, which currently operates 105 restaurants competitive advantage.” in Ontario, has already signed deals in Calgary In the last couple of years, the company and Edmonton — markets Robert Manuel, has made headway as far as real-estate and Popeyes’ Regional Leader – Canada says are marketing operations, leading to a growth which ripe for the picking. includes both core markets in and around the $638.0 “Asisde from what’s happening in the pres- GTA, such as Scarborough, Mississauga and 1 (International Dairy Queen) ent, the Alberta market is interesting,” he says. , as well as Ottawa. “It’s in an economic downturn as it relates to “We’ve had encouraging success in the last ‡ Coldstone Creamery $624.6 couple of years in the Ottawa market,” says (Kahala Franchising LLC) oil prices and business specifically focused in 2 Calgary, but QSR is performing really well there,” Manuel. “We opened three restaurants there in Yogen Früz ‡$360.0 a trend he says tends to happen in times of 2015, which are performing extraordinarily well.” (Yogen Früz Inc.) economic uncertainty as families trade down to So well, in fact, Popeyes will add three or four

3 ILLUSTRATIONS : DREAMSTIME.COM a value component. “But we’re seeing record low more locations in the nation’s capital in 2016. Pinkberry ‡$141.7 vacancy rates in Calgary for real estate and it’s a Continuing to make operational enhance- 4 (Kahala Franchising LLC) market which continues to do better than people ments is one of the chain’s biggest focuses for 2016. “We have a long-term vision where our Booster Juice $141.0 outside of Alberta seem to think it is.” 5 (AW Holdings Corp.) Manuel says Popeyes’ Lousiana heritage service experience equals that of our quality. We plays very well in the Canadian market and the want to have legendary service that rivals our numbers support his claim — in 2015, the brand chicken,” says Manuel. — Amy Bostock * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

26 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM program featuring 15 new items as well as its customer ordering apps; Second Cup seasonally inspired dishes. After focusing introduced a new rewards program to RISING STAR on westward expansion in recent years, the drive customer loyalty and frequency; and company is now setting its sights on the Starbucks led the way by introducing its U.S. market, with a new unit slated to open popular mobile-ordering app, which allows in Boston later this year and more to fol- customers to order before they even arrive at low. Sunset Grill opened nine locations to the store. According to a story in the Toronto bring its unit total to 127, while Eggsmart, Star, mobile payments now account for 20 the other Montreal-based breakfast chain, per cent of Starbucks’ business. The com- added three new units to its mix last year pany also debuted personalized drive-thrus and introduced a new menu. equipped with a two-way video screen that allows customers and baristas to see each ME–TOO MENTALITY CASUAL-DINING CHAIN Browns Socialhouse One of the key lessons Tim Hortons, has established itself as one of the fastest- McDonald’s and Starbucks have been forced growing companies in Canada, logging $105 TOP 5 million in sales in 2015 — up 51 per cent from to learn in recent years is in order to grow 2014 — and moving them up 13 positions in market share, you can’t rely on just one this year’s Top 100 rankings. strong product offering, pushing chains to “Our growth is primarily a result of adding become all things to all people. And, the new units,” says Bruce Fox, COO of Vancouver- trend is continuing. Last year, Starbucks based Browns Restaurant Group. “Since we went through a menu revamp, adding kale began our push to offer franchise opportunities and quinoa options at lunch, offering more (in 2010) we have had a tremendous response panini choices and debuting new low-cal from the type of experienced operators we items. It also introduced all-day breakfast were looking for.” sandwiches. On the beverage side, the cof- The brand opened 45 new units last year, many of which were in Alberta. “We added fee chain gave customers a carbonation more units in Alberta than anywhere else, option for its Teavana teas and fruit juices but new outlets were well-received wherever and introduced Starbucks Reserve Coffee. they opened.” Similarly, Tim Hortons continues to intro- Strong performance occurred in the com- duce new lunch items and, late last year, pany’s home market and in new communities. McDonald’s introduced its first standalone CHAINS In 2015, more new franchisees joined the orga- McCafé concept at Toronto’s Union Station. (millions) nization than ever before. Meanwhile, almost Alongside French croissants, a mini choc- all of Brown’s existing franchise owners will be olatine and cream cheese danishes made adding units in the next 18 to 24 months. “The KFC (Kentucky Fried $630.7 with real fruit, the McCafé also features Chicken Canada Company) best vote of confidence in any team is when 1 Egg Mcmuffins throughout the day and an existing players want more ice time,” says Fox. assortment of freshly prepared artisan sand- Swiss Chalet $560.0 Overall, the company expects to add at 2 (Cara Operations Ltd.) least 12 new units in 2016, pushing it over the wiches and salads. 60 unit mark. St. Hubert BBQ Ltd. * $359.0 “We are building where our franchisees TAPPING INTO TECHNOLOGY 3 want us to,” Fox explains. “There is plenty Through all the activity, there’s an underly- Popeyes Louisiana of undeveloped territory, so we will push on * $103.0 ing interest developing in technology. Not Kitchen according to franchisee demand. We expect surprisingly, apps, online services and in- 4 Western Canada to continue to be the focus store kiosks are the latest tools being used Scores (Imvescor $100.4 while we seek appropriate development to appeal to today’s tech-savvy millennials. 5 Restaurant Group Inc.) partner(s) for the Ontario market.” According to Robert Carter, executive direc- In the coming year, Fox says Browns * Denotes estimate; ‡ Canadian-owned company whose operations tor of Toronto based NPD, “Technology- outside Canada are reflected in gross sales and units Socialhouse will continue to drive guest counts ILLUSTRATIONS : DREAMSTIME.COM through culinary innovation, while still main- based digital door traffic has tripled in taining great price/value in a widening span the last four years — a disruptive revolu- other during the ordering process. of operating markets where labour and costs tion allowing savvy operators to steal share vary. “It’s not easy. It requires capable and from their competitors.” In fact, the “Digital MEASURED GROWTH committed franchisees. We are very pleased Door” now accounts for $1.2 billion in While new concepts continue to be launched that we have such a motivated group.” annual sales, growing at a rate of 20 per cent, (according to stats from NPD, the industry — Amy Bostock says Carter. managed to grow by 3,863 units in 2015, Last year, the Pizza Pizza team enhanced representing 4.2 per cent growth) take a

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 27 look at the Top 100 as a barometer and B.C. Dairy Queen and Wendy’s both fol- it’s evident growth is measured these days. TOP 5 lowed suit, jumping on the renovation With fast food now entering its senior bandwagon. years (A&W celebrates its 60th anniver- Casual chain Brown’s Socialhouse, the sary this year, while McDonald’s turns 50 ASIAN fastest-growing company on this year’s in 2017), market saturation is a distinct Report (see story on page 27), with growth possibility. CHAINS of 51 per cent, also introduced an inno- Still, several of the top chains continued (millions) vation centre in Vancouver for culinary to proliferate in 2015. Tim Hortons development and added new units in took top expansion honours, adding Ontario and Alberta. And, after a few years 155 new units to its stable, followed of adding units in eastern Canada, Joey’s by with 99 units. Fuelled by expanded into California, opening splashy the growing ethnic foods movement, Thai new digs in the competitive Los Angeles Express opened 27 units while Pita Pit market and a unit in Canada’s capital — added a total of 15 new stores to its portfo- bringing its total unit count to 25. Not to lio. Boston Pizza, which has grown steadily be undone, Cactus Club made its Ontario in recent years, slowed somewhat, adding a debut last fall, opening a flagship location dozen new units across the country while in Toronto, a new unit in Calgary with Starbucks was forced to close about 133 plans for another Toronto unit scheduled cafes when Target Canada announced its to open at Toronto’s Sherway Gardens mall Canadian exodus, although the company later this year. says it plans to open 100 new units annu- So what’s on the horizon? Over the ally over the next few years. next five years, growth is projected at Many Canadian brands continued their less than one per cent annually, which fascination with the international market. means operators will continue to steal Smokes Poutinerie opened five new units Mandarin Restaurant $135.9 share through diversification. Already this in the U.S. last year, with 20 more in devel- 1 Franchise Corporation year, Starbucks threw down the gauntlet opment. It also debuted its new Wienerie, a when it introduced alcohol in three of its concept focused on the lowly hot dog with Thai Express (MTY * $98.1 Canadian cafés. “We’re constantly look- Food Group Inc.) more than 16 different options available. 2 ing for ways for customers to say: “Isn’t For others, renovations and innovations Sushi Shop * $52.5 that cool that Starbucks did something became the order of the day. St. Louis Ribs 3 (MTY Food Group Inc.) new?” said Rossann Williams, president of undertook a chain-wide renovation pro- Starbucks Canada in a recent story in the Teriyaki Experience ‡ $43.3 gram; Crabby Joe’s Tap & Grill introduced (Innovative Food Brands) Toronto Star. Whether other QSR chains a revitalized brand image, decor and menu 4 will follow suit remains to be seen but, with plans to roll it out across Ontario; ThaiZone * $34.8 with strong headwinds expected to con- and Vancouver’s perennial hamburger 5 (MTY Food Group Inc.) tinue and the millennial demographic set favourite, White Spot, introduced a new to exert more influence, one thing remains * Denotes estimate; ‡ Canadian-owned company whose operations west-coast prototype in Prince George, outside Canada are reflected in gross sales and units certain — more change is coming. l

Methodology

THE TEAM at Kostuch Media coming year. With the excep- in Canada and internationally consistency in our report and nies surveyed. We do our strives to present as accu- tion of several publicly listed (denoted on the chart with a provides as accurate a rep- best to explain anomalies or rate an overview as possible operations, which reported ‡) while American subsidiar- resentation as possible of the discrepancies, but we don’t of Canada’s foodservice on a fiscal-year basis, the ies only report sales achieved major players in the industry. always receive completed industry. Earlier this year, majority of the companies in their Canadian units. Almost half a century after information in a timely fash- hundreds of surveys were surveyed provided year-end In the cases where com- F&H produced its first Top ion, necessitating a great ILLUSTRATION: DREAMSTIME.COM emailed to chain restaurants sales. We have noted those panies refused to divulge 100, it continues to be the deal of time and energy across the country, asking companies reporting fiscal- sales figures, F&H has most authoritative barometer being expended to ensure restaurant executives to indi- year sales as part of the provided estimates based of the leading companies in they are included. We hope cate the number of units and company’s commentary. on the company’s historical the foodservice-and-hospital- when it comes time to fill out gross sales at their chains Keep in mind that data, industry growth aver- ity industry. However, it’s only the next questionnaire, your as of Dec. 31, 2015 as well Canadian-owned companies ages as well as average unit as good as the information company considers the value as expansion plans for the report sales for all their units volume sales. This ensures we receive from the compa- of this report.

28 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM ITIAL N I . n d C o e i L r 2016-04-11 4:29 PM t u u c c s U e e e i x TE n A a ve s e e D p a h m o u h n t s i f C t t yo n a o p o h u o t t y F r r n R a e E t s e D m G e i ON r I A r a T T E p c p i N VE R e I o b F U r T IO ER u A T D d r OO ODUC n R P CCO R . & WRI PR A STU P CRE t a g & R n n e Y a u r h r o a e t ER: s e Y : G h u w C o S E d * i n n . Y X d to u : a r h e h e ON: ) by T e u R : I g ** n z ” i d E T E Q T n s o r r T MANA t S t , Jo , Jo c : a N VE o r s s I n n C i i h U a T IO o E b o . U s s t i P J O d M A u o u u V D i K d o o C E ODUC O i v n P d F l l s j i a e a e R R r s h He P CRE La P Ba PR NA STU La AC D n f t e u a c o i n o . Y o r i R L t e & R e T d l Y r p “ m b o d ( o o e I s s j n c n C i e o h c p i : 4 f t O u S r l d w o R n n o / U f. o ye d i ello o o t O n S r e e L Cya Magenta Y Black t l r s ) a O e p ” e h C • Towing capacityTowing 2,000• lbs Meet the Transit Connect Transit Connect with Van • up to cu 148 ft of cargo space Standardslidingdual doors for• easy loading Maximumpayload 1,630lbs • s m t o s t n d d o n m e c r h y F s a r N , m a d t e te t e n h t e R i s W ” r ” ” y n a 5 5 5 p 7 o 7 7 o i r s 3 r t 8 e by t . . .3 u u d 1 0 i 0 c R P b e A B & x T 17 ” x 1 l a m yo ” x 1 Y e ” x 1 l 5 i “ 5 o 5 n e e r 2 2 2 o h 6 1 FSH 6 d ( . . N NA d w 664 d f e r t n . 7 8 8. n o te e w r a l M y f l e e R n C e o d A O : : r r D E e d : E d o E l a D : b o IN e a : l b D

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T h O h N o t T FO T M S F indd CL J D I R M REGION DOCKET # the TOP100 ChanceSecondS RETAIL VETERAN ALIX BOX IS REINVENTING SECOND CUP STORY BY JENNIFER FEBBRARO PHOTOGRAPH BY NICK WONG

30 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM ChanceS

f you know the enemy and know yourself, you need not fear the results of 100 battles.” The classic line, written in Sun Tzu’s Art of War in 6th century B.C. could just as easily have been spoken by Second Cup’s latest trailblazer Iand CEO, Alix Box. Fearless, determined, and pointedly stra- tegic, Box is the entrepreneurial superhero who is reinventing the Second Cup brand — one franchise at a time.

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 31 A seasoned vet at the retail game, Box’s business pany. She also instituted a policy whereby Second Cup’s acumen is like no other. With a résumé that touts, Coffee Central — or “main office”— was required most recently, executive roles as senior VP of Retail to respond to franchisee inquiries within a 24-hour at Holt Renfrew and a 10-year run as vice-presi- time-frame. “Part of the disconnect happened because dent of Operations at Starbucks Coffee Company — franchisees would call head office and sometimes never as well as earlier career stints at Michel’s Bagette hear back,” she says. Gemma and Kartik Alton, who and Mmmmuffins — Box has experience in the rein- own nine Second Cups between them, can testify to vention game. the huge changes Box has implemented. “She’s not At both Holt’s and Starbucks, Box cultivated a afraid of change,” says Kartik. “I really respect the fact renewed team spirit and drove up sales and growth. she increased our gains by about 2.5 per cent for every When she started at Starbucks in 1997, for example, the franchise. That’s quite dramatic. There has never been a company ranked third in Canadian sales and its green give-back like that in our company’s history.” siren-of-the-seas Seattle symbol wasn’t yet present on every street corner. All that changed under Box’s watch and it’s no coincidence she was the perfect choice for Second Cup: her intimate knowledge of its competition is, per- haps, the ultimate advantage. Second Cup’s chairman, Michael Bregman, was banking on it. When the brand’s founder tapped her for the position, Box hadn’t yet sat in the CEO chair. Since her assignment, Box has undertaken a top-to-bottom restructur- ing of the company, revealing an unwavering dedication to her corporate vision. It’s all part of a larger plan to reposition Second Cup as one of the major powerhouse coffee competitors in Canada. “The truth is, I have a passion for specialty retail and people,” says Box. “Second Cup always has been an iconic Canadian brand and at the core of that brand was unrivaled coffee quality. That’s at the heart of the whole concept.” Her first foray into Second Cup’s corporate culture was meeting with franchisee owners across the “It’s this kind of action that gives everyone renewed FUTURE FACING country. Box went into the conversation open-minded faith in the company,” says Gemma. “You get the sense The new upscale Café of the Future concept and ready to hear the worst. “I sat down with every she has our best interests at heart.” reflects Box’s vision for franchisee to hear their thoughts and feelings about the In June 2015, Box hired chief financial officer Second Cup’s evolution brand,” Box explains. “We especially needed to build Barbara Mallon to execute the restructuring plan. “She those relationships again. Overall, they were just really was looking for a partner to move the plan forward,” dissatisfied and frustrated.” explains Mallon, who is responsible for everything from From those meetings, Box took action to rem- IT, supply chain, real-estate planning and food catego- edy the recurrent franchisee stories of feeling neglected ries to legal issues. “We hadn’t known each other prior, and disconnected from the brand. Her first step was but were introduced through a member of the board. a direct show of appreciation to its front-line staff. Funnily enough, we met for a coffee.” “Within the first 115 days, we reduced our own royal- According to Mallon, Box’s leadership style is one- ties, allowing the franchisees to earn more,” she says. of-a-kind. “She’s a very good leader of people,” says It was a gesture that unanimously garnered Box the Mallon. “Her team is truly a team and she involves support she needed to bolster the energies of an already everyone. The fact that she works on a collaborative tired and disheartened franchise network. basis is huge. One person’s issue becomes all of ours “Second, we restructured our office to specifically to discuss, which is great because it means there are no cater to the needs of franchisees. We also renamed it silos created between staff.” ‘Coffee Central’.” This was a symbolic move on Box’s At the end of 2014, Box made the Second Cup’s part to decrease the hierarchal nature of the com- future tangible with the ultimate prototype café at King

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©2016 The French’s Food Company LLC Chef Graham Hayes and John Streets in Toronto. The contemporary, open- concept space features what Box was seeking to high- light — “a premium coffee experience from the music to the cups to the food.” Other than the reminiscent scents of Second Cup’s famous Paradiso blend, there is little resemblance between the old and new Second Cup aesthetic. The “Café of the Future” features natural lighting, a central baking case, a “slow bar” for coffee aficionados to converse with baristas while charging their various devices and an artisanal Steampunk machine. The space also offers a number of different seating arrangements — tables, benches and a bar area. Even the workers’ dress code has changed. “Originally, it was all black, which connotes a sort of fast-food feel,” says Box. “Now people can wear their own denim and a choice of a SECOND CUP ALWAYS HAS BEEN AN ICONIC white or black shirt.” New denim aprons are also part of “CANADIAN BRAND AND AT THE CORE OF THAT the more modern, hipster look. The operation has been open for two years and has BRAND WAS UNRIVALED COFFEE QUALITY. seen 46 per cent growth in each year since. Box hopes THAT’S AT THE HEART OF THE WHOLE CONCEPT the concept will be equally as successful in the newly renovated Commerce Court, Toronto Eaton Centre and ALIX BOX, CEO, SECOND CUP ” at Montreal’s Gare Centrale (Central Station) locations. “That was her baby from the start,” explains Mallon. connection to the local and to quality.” To lure them, “With the ‘Café of the Future’, when I look at that huge Box also installed a rewards program, a mobile app accomplishment, it all came from Box — her drive (subscribed to by over 200,000 users as of May 2016) for action.” Mallon credits Box with bringing the new and has cultivated a daily online presence on various vision for Second Cup to life, so it would be a state- social-media sites. It has also become the exclusive cof- ment not just to franchisees, but to the public. “Alix has fee brand of Air Canada. a strong bias for action,” says Mallon. “I have worked In keeping with the theme of supporting local busi- in other companies where you would meet on it again nesses, Box changed the Second Cup’s bakery selection and again. But Alix isn’t like that. If you want to change to reflect fresh-never-frozen treats. It was a tall order, something, she wants a timeline and you are held but sustainable if the very best local bakeries could be accountable. That’s not something you see every day.” sourced. At this point, 80 per cent of the baked goods In the cut-throat retail market, Box’s decision to rein- are sourced locally. “This allows us to feature local fla- vent Second Cup as upscale was especially astute. For vours or special dishes that are neighbourhood-driven,” one, it immediately withdrew the brand from directly says Box. “This means we can be relevant locally. If you competing with the Tim Hortons and McDonald’s want an almond croissant in Montreal, it should also be rivalry for the best value/ low price point coffee. It also baked in Montreal.” positioned itself to lure in more millennials through Though Second Cup’s coffee has always been Box’s commitment to local Canadian communities. Rainforest Alliance Certified, Box reviewed each step As the only Canadian-owned coffee franchise, Box of the coffee production line. “From sourcing to roast- wanted to highlight all things Canadian in its stores. ing to marketing, I reviewed each and every step to In May 2016, Second Cup launched “Batch 49” coffee, ensure we were delivering the best we could.” While which reflects Canada’s position — literally and figu- Box remains mum on what specifically she upgraded in ratively — in the world. As well, all renovated Second the coffee timeline from bean to cup, she says: “We are Cups will feature a mural by a local artist of its local focused on the entire process. We want to be the very monuments and neighbourhood landmarks. Canadian best at everything we do. Full stop.” music by emerging bands is also key. Box also col- By the end of her three-year plan (2018), nearly laborated with local artists — Matt Andres of British 30 to 40 per cent of Second Cups will be completely Columbia, Adrian Forrow of Ontario, and Zela Lobb renovated in line with Box’s vision for the “Cafés of the from Quebec — to design specialty paper cups. Future.” Not only is Second Cup’s redux bound to rock “The millennial customer is someone we want to the — it will make Canadians proud to be attract,” says Box. “And we know they respond to that part of the revolution. l

34 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM the TOP100 ThePower OfTwo DRUXY’S INC. SEEKS TO BROADEN ITS ONTARIO PRESENCE WITH WILLIAMS FRESH CAFE ACQUISITION BY DANIELLE SCHALK

cquisitions and mergers con- tinue to make headlines in the foodservice industry. Among the latest crop is Druxy Inc.’s acquisi- tion of Williams Fresh Cafe earlier this year, which combined the power of the two Ontario-based, regional chains. In the decades since launching its Druxy’s Famous Deli brand, the Druxerman fam- ily has established a strong presence in the (GTA) — boasting a “We didn’t know much about Williams. We year, noting that corned and roast-beef items total of 44 units in Ontario, which reported started looking at the business and discovered will be among the first. “In Williams, fran- $16 million in sales for 2015. what was, in our eyes, a very successful chain,” chisees and customers are looking for beef,” Acquisitions are new territory for the fam- explains Druxerman. “We quickly decided we he explains. ily-run company, but the opportunity to weren’t changing this brand.” While the company continues to examine expand the brand to new markets sparked the Not only did they discover the coffee chain crossover opportunities, Druxerman expects team’s initial interest. “Druxy’s has been based had a strong and loyal customer base (posting both restaurants to benefit from a more in the GTA for 40 years, where there’s lots of sales of $23 million for 2015), but the Druxy’s visible brand name and greater purchasing competition for good locations,” says Peter team also found Williams boasted many of power. “My first task is combining the supply Druxerman, VP of Marketing for Druxy’s. the same qualities the company was inter- [chain] for the two,” he says. “We are trying “We felt the possibility of growth through ested in exploring with its own brand, while to improve the financial situation of our acquisition was a better route than continu- sharing the deli chain’s philosophy of serving franchisees by lowering their purchase price ally trying to find new locations” high-quality products. for various products by having a larger base The company’s original intention was to Druxy’s will continue to operate the two [from which] to purchase.” convert the 26 exiting Williams units to chains as separate brands, but is actively Looking ahead, Druxerman says the Druxy’s locations, effectively bringing the exploring opportunities to capitalize on the Druxy’s team will continue to expand its brand’s unit count to 70 while simultaneously strengths each has to offer. The company understanding of the Williams brand and establishing the deli chain’s presence outside has already started testing Williams coffee what the two brands have to offer one anoth- of the GTA. However, the game plan quickly in select Druxy’s locations and Druxerman er. The company also plans to grow each changed as Druxerman and his brothers famil- says there are plans to begin testing Druxy’s brand by five to six units in Ontario over the iarized themselves with the Williams brand. sandwiches at Williams locations later this next 12 months. l

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 35 C

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

1 1 Tim Hortons Inc. (Restaurant Brands International Inc.) Oakville, ON 4,413 ‡ $8,055.8 ‡ $7,3 4 3.3 Tim Hortons Inc. is owned and operated by Restaurant Brands International Inc., the publicly traded parent company of Tim Hortons and Burger King with 3,650 Tim Hortons units in Canada and 763 units internationally. During the past year, the company added 155 new restaurants.

2 2 McDonald’s Restaurants of Canada Toronto, ON 1,443 *$3,896.0 *$3,888.0 A wholly owned subsidiary of McDonald’s Corp., McDonald’s Restaurants of Canada operates 1,443 units in Canada. In 2015, the company launched a modernized guest experience in its restaurants, featuring self-order kiosks, table delivery and the Create-Your-Taste burger menu. Late last year, it also launched the first location of its new stand-alone McCafé concept in Toronto’s Union Station.

3 3 Subway (Doctor’s Associates Inc.) Milford, CT 3,240 $1,534.4 $1,400.0 A privately owned company operated by Doctor’s Associates Inc., Subway operates 3,240 units in Canada and 41,423 outside of Canada. Last year, Subway added 99 new units in Canada.

4 5 Starbucks Coffee Canada Inc. Toronto, ON 1,358 *$1,200.0 $1,000.0 Starbucks Coffee Canada Inc. operates as a division of Starbucks Corporation with 1,358 units in Canada. During the past year, the company added 26 units in Canada. In late 2015, Starbucks launched its Mobile Order & Pay in Toronto and has since expanded the service to other Canadian markets.

5 6 A&W Food Services of Canada Inc. North Vancouver, 854 $1,093.4 $985.6 A&W Food Services of Canada Inc. is a privately owned company with 854 units in BC Canada. The team plans to continue its aggressive expansion across Canada, focusing on Ontario and Quebec. It also introduced a new urban franchise program for millennials.

6 4 Boston Pizza Inc. Richmond, BC 372 ‡ $1,060.0 $1,012.0 Boston Pizza International Inc. is a private, Canadian-owned operating company and franchisor of 372 restaurants in Canada. It opened 12 new Boston Pizza restaurants in 2015, including nine in Western Canada and three in Ontario. During the past year, Boston Pizza renovated 54 restaurants. There are currently five new locations under construction.

7 10 Dairy Queen Canada (International Dairy Queen) Minneapolis, MN 629 $638.0 $616.3 Dairy Queen Canada is a division of International Dairy Queen, which operates 629 units in Canada and 6,038 units outside of Canada. During the past year, 46 units participated in a remodelling program. In 2016, the company plans to open 26 units in Canada and remodel 29.

8 9 KFC Canada Company (Yum! Brands Inc.) Vaughan, ON 633 $630.7 $624.2 KFC Canada Company operates as a division of Yum! Brands Inc., a publicly traded company, with 633 units in Canada. In 2015, Yum! Brands, Inc. announced it will separate into two independent, publicly traded companies — Yum! and Yum! Brands.

9 8 Coldstone Creamery (Kahala Franchising, LLC) Scottsdale, AZ 1,253 ‡ $624.6 — Coldstone Creamery is operated by Kahala Franchising, LLC, a private, Canadian- owned company with seven units in Canada and 1,246 units outside of Canada. Coldstone Creamery is focused on expanding in international markets such as Sri Lanka, Cambodia and Bangladesh.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 37 the TOP100

RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

10 7 Wendy’s Restaurants of Canada (The Wendy’s Company) Oakville, ON 354 *$623.7 *$638.0 *$638.0 Wendy’s Restaurants of Canada, Inc. is a division of The Wendy’s Company, with 354 units in Canada and 6,016 international units. During the past year, the company focused on revamping its stores and fuelling franchise growth. In 2016, the company plans to open 10 units in Canada.

11 12 The Keg Steakhouse & Bar Richmond, BC 101 ‡ $579.0 ‡ $529.0 The Keg Steakhouse & Bar is a Canadian-owned company with 91 units in Canada and 10 units in the U.S. In 2016, it plans to open four new units. Y/E September 2015

12 11 Swiss Chalet (Cara Operations Ltd.) Vaughan, ON 217 $560.0 $546.0 Swiss Chalet is owned by Cara Operations Ltd., with a total of 217 units in Canada. In 2015, its parent company was taken public and the company opened 16 new restaurants in 2015.

13 13 Pizza Pizza Toronto, ON 636 $451.0 $413.3 A privately owned company, Pizza Pizza Limited operates 636 units in Canada. The company plans to add 15 new units in 2015 in Ontario, Quebec, Manitoba and Saskatchewan. During the past year, the team enhanced its mobile-ordering apps.

14 14 Burger King Mississauga, ON 281 *$370.0 $352.1 Burger King Canada is operated by master franchisee Redberry Franchising Corp., with 281 units in Canada. Last year, Burger King launched several new products including buffalo chicken fries. The company will continue to launch more new products in 2016 with a focus on fewer and more impactful products.

15 16 Yogen Früz Markham, ON 1,108 ‡ $360.0 ‡ $326.6 Yogen Früz is a privately owned Canadian company with 80 units in Canada and 1,028 outside of Canada. In 2015, the company introduced a new line of smoothies using coconut milk. The company plans to expand in Spain and Portugal in 2016.

16 15 St. Hubert BBQ Ltd. Laval, QC 120 *$359.0 *$345.0 St. Hubert is a privately owned company with 120 units in Ontario, New Brunswick and Quebec. In 2015, the company introduced a new catering service to serve corporate or private events. Earlier this year, Cara Operations announced it will be acquiring the rotisserie chain, with the deal set to be completed by summer.

17 17 Pizza Hut Canada Company (Yum! Brands Inc.) Vaughan, ON 370 $332.8 $313.4 Pizza Hut Canada Company operates as a division of Yum! Brands Inc., a publicly traded company, operating 370 units in Canada. In 2015, Yum! Brands, Inc. announced it intends to separate into two independent, publicly traded companies, Yum! China and Yum! Brands.

18 18 Harvey’s (Cara Operations Ltd.) Vaughan, ON 268 $296.0 $267.0 Harvey’s is owned by Cara Operations Ltd., a publicly traded company, with 268 units in Canada. In 2015, the company added seven units in Canada.

18 22 Pita Pit Kingston, ON 586 ‡ $296.0 ‡ $226.0 A privately owned Canadian company with 215 units in Canada and 371 units outside of Canada. In 2015, Pita Pit opened 15 new locations in Canada and implemented a new store design. Expansion is expected worldwide in 2016.

19 19 Domino’s Pizza of Canada Windsor, ON 408 *$272.5 *$256.5 The privately held company launched a new Apple Watch app and DXP delivery vehicle (Delivery Expert). In 2015 the brand opened its 400th Canadian location.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

20 21 Montana’s Cookhouse (Cara Operations Ltd.) Vaughan, ON 99 $239.0 $234.0 Montana’s Cookhouse is operated by Cara Operations Ltd., a publicly traded company, with 99 units in Canada. During the past year, the company added eight units in Canada.

21 23 Moxie’s Grill & Bar (Northland Properties) Vancouver, BC 65 *$208.9 *$205.7 A privately owned company operated by Northland Properties, Moxie’s Grill & Bar operates 65 units in Canada. In 2015, the team opened one new location.

22 26 Jack Astor’s (SIR Corp.) Burlington, ON 30 $191.7 ‡ $170.6 Jack Astor’s is owned and operated by SIR Corp., with 30 units in Canada. During the past year, the company added two units in Ottawa and completed renovations in two of its restaurants. It plans to open one new location. Y/E August 2015

23 25 White Spot Restaurants (White Spot Limited) Vancouver, BC 63 $176.0 $172.0 White Spot Restaurants is a private company owned by White Spot Limited. During the past year, the team introduced a new core menu. The company will continue to seek expansion opportunities for the brand in 2016.

24 24 The Second Cup Ltd. Mississauga, ON 310 $174.9 $182.8 The Second Cup Ltd. is a publicly traded company operating 310 units in Canada. During the past year, the company reduced its store count by 37 units and launched a new store prototype.

25 27 Milestones Grill + Bar (Cara Operations Ltd.) Vaughan, ON 55 $172.0 $169.0 Milestones Grill + Bar is owned by Cara Operations Ltd., a publicly traded company with 55 units in Canada. During the past year, the chain added two new units in Canada.

26 28 East Side Mario’s (Cara Operations Ltd.) Vaughan, ON 78 $170.0 $168.0 East Side Mario’s is owned by Cara Operations Ltd., a publicly traded company, with 78 units in Canada. In 2016, Cara Operations plans to add 30 new restaurants.

27 29 Joey Restaurant Group Vancouver, BC 25 *‡ $167.0 $159.0 A privately owned company operated by Joey Restaurant Group, Joey Restaurants added two more locations to the family in 2015; JOEY Lansdowne in Ottawa and JOEY Woodland Hills in L.A., bringing its total to 25 locations as of year-end 2015.

28 32 Cora Breakfast and Lunch (Cora Franchise Group) Mississauga, ON 130 *$162.5 $145.0 A privately owned Canadian company that operates 130 units. In 2015, the company introduced 20 new breakfast items and an Early Bird program added 15 specially priced menu selections. In 2016, the company plans to continue Canadian expansion and open a new unit in Boston, with more American units planned.

29 31 Panago Pizza Inc. Abbotsford, BC 192 $160.8 $153.6 Panago Pizza Inc. is a private company operating 192 units in Canada. During the past year, the company added nine units in Canada, with plans to open 10 units in 2016. The company plans to capitalize on new opportunities in Western Canada, Ontario and the Maritimes.

30 30 Kelsey’s (Cara Operations Ltd.) Vaughan, ON 71 $149.0 $157.0 Kelsey’s is owned by Cara Operations Ltd., a publicly traded company, with 71 units in Canada. In 2016, Cara Operations plans to add 30 new restaurants.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

31 20 Taco Time (Kahala Franchising, LLC) Scottsdale, AZ 268 ‡$145.9 ‡$121.3 Taco Time is operated by Kahala Franchising, LLC, a privately owned company with 124 units in Canada and 144 units outside of Canada.

32 34 Smitty’s (Smitty’s Canada Limited) Calgary, AB 100 $145.0 $140.0 Smitty’s is a privately owned company, operated by Smitty’s Canada Limited, which operates 100 units in Canada. In 2015, the team plans to open three new units in B.C., Ontario and the Maritimes.

33 – Pinkberry (Kahala Franchising, LLC) Scottsdale, AZ 265 ‡ $141.7 — Pinkberry is operated by Kahala Franchising, LLC, a private Canadian-owned company with five units in Canada and 260 units outside of Canada. In 2015, the Kahala team acquired Pinkberry and consolidated the California-based company. The company is now running its franchise operations from its head office in Scottsdale, Ariz.

34 35 Booster Juice (AW Holdings Corp.) Edmonton, AB 308 ‡ $141.0 ‡ $139.0 A private company operated by AW Holdings Corp., Booster Juice is a Canadian- owned company with 308 units in the country and seven internationally. In 2016, the company plans to add more than 30 new units in Canada and open in two new international territories.

35 37 Mandarin Restaurant Franchise Corporation Brampton, ON 25 $135.9 $125.0 A privately owned company, Mandarin Restaurant Franchise Corporation operates 25 units in Canada. During the past year, the company opened new units in Kingston, Ont., and Orleans, Ont. The company is currently renovating a unit in Nepean, Ont.

36 33 Country Style (MTY Food Group) St. Laurent, QC 404 *$130.7 *$143.1 Country Style is owned by MTY Food Group and operates 404 units across the country. Y/E November 2015

37 36 Ricky’s Group of Family Style Restaurants Burnaby, BC 90 $125.0 $130.0 Ricky’s Group of Family Style Restaurants is a private company operating 90 Ricky’s All Day Grill and Ricky’s Country Restaurants in Canada. In 2016, the company plans to open between three and four units in Western Canada, in addition to one in Burlington, Ont.

38 38 Pizza Nova Toronto, ON 150 $120.0 $112.0 Pizza Nova is a privately owned company with 150 units in Ontario. During the past year, it opened two restaurants and plans to continue its expansion in southern Ontario.

39 53 Browns Socialhouse (Browns Restaurant Group) Vancouver, BC 45 $105.0 $69.7 Browns Socialhouse is a private company, owned by Browns Restaurant Group, with 45 units in Canada. During the past year, it established an innovation centre in Vancouver for culinary development. In 2016, it plans to add 12 new units.

40 - Popeyes Lousiana Kitchen Atlanta, GA 103 *$103.0 — Popeyes Lousiana Kitchen is a publicly traded company with 103 units in Canada and 2,450 outside the country. In 2015, the company celebrated its 100th unit in Canada and unveiled a new restaurant design featured in 21 locations in 2015. This year, the company plans to open 20 units in Canada and open its first locations in Calgary and Edmonton.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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June_2016_FES_Canada_Ad_all_brands_v2.indd 1 5/12/16 1:09 PM the TOP100

RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

41 43 Sunset Grill Mississauga, ON 127 $101.6 $94.4 Sunset Grill is a private company operating 127 units in Canada. During the past year, the company opened nine locations in Canada. It plans to add three units in Alberta in 2016.

42 41 Trattoria di Mikes (Imvescor Restaurant Group Inc.) Montreal, QC 73 *$100.6 $102.0 Trattoria di Mikes (formerly Mike’s Restaurants) is operated by Imvescor Restaurant Group Inc., a publicly traded company, with 73 units in Canada. The company plans to renovate eight locations in 2016. Y/E October 2015

43 39 Scores (Imvescor Restaurant Group Inc.) Montreal, QC 41 *$100.4 $105.6 Scores is operated by Imvescor Restaurant Group Inc., a publicly traded company, with 41 units in Canada. The company plans to renovate eight locations in 2016. Y/E October 2015

44 40 Denny’s (Northland Properties) Vancouver, BC 58 *$99.0 *$103.0 A private company operated by Northland Properties, Denny’s operates 58 units in Canada. Last year, the company added three units in Canada; it plans to open an additional three units this year.

45 45 Thai Express (MTY Food Group) St. Laurent, QC 281 *$98.1 *$89.3 Thai Express is a banner operated by MTY Food Group, a publicly traded company, with 281 units. In the past year, the team added 27 units. Y/E November 2015

46 42 Bâton Rouge Steakhouse & Bar (Imvescor Restaurant Group Inc.) Montreal, QC 29 *$96.3 $96.3 Bâton Rouge Steakhouse & Bar is operated by Imvescor Restaurant Group Inc., a publicly traded company, with 29 units in Canada. In 2016, the team plans to renovate six locations. Y/E October 2015

47 44 Pizza 73 (Pizza Pizza Limited) Toronto, ON 103 $94.4 $90.2 A private chain operated by Pizza Pizza Limited, Pizza 73 operates 103 locations in Canada. During the past year, the team added two new locations in Canada and enhanced its customer-ordering apps.

48 47 Mary Brown’s Famous Chicken & Taters (Mary Brown’s Inc.) Markham, ON 130 *$91.8 *$84.8 Mary Brown’s Famous Chicken & Taters is a subsidiary of Mary Brown’s Inc., with 130 units in Canada. During the past year, the chain added 10 locations in Canada. It plans to continue its expansion coast to coast and double the number of stores during the next five years.

49 48 New York Fries (Cara Operations Ltd.) Vaughan, ON 159 *$85.5 ‡$84.5 In 2015, Cara Operations acquired NYF. The company currently has 159 units in Canada

50 46 Mr. Sub (MTY Food Group) St. Laurent, QC 291 *$83.0 *$88.8 Mr. Sub is operated by MTY Food Group, a publicly traded company, with 291 units in Canada. Y/E November 2015

51 50 Taco Bell Canada Company (Yum! Brands Inc.) Vaughan, ON 176 $78.9 $75.5 Taco Bell Canada Company operates as a division of Yum! Brands Inc., a publicly traded company, with 176 units in Canada. In 2015, Yum! Brands, Inc. announced it will separate into two independent, publicly traded companies — Yum! China and Yum! Brands.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

44 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

52 54 Triple O’s (White Spot Limited) Vancouver, BC 69 ‡ $78.0 ‡ $68.2 A private, Canadian-owned company operated by White Spot Limited, Triple O’s operates 57 units in Canada and 12 outside of Canada. Last year, the team intro- duced a new west-coast prototype in Prince George, B.C. In 2016, the team plans to add three units in Canada.

53 51 La Cage Aux Sports (Sportscene Group Inc.) Boucherville, QC 49 $77.9 $74.9 La Cage Aux Sports is operated by the publicly traded company, Sportscene Group Inc., with 49 units in Canada. During the past year the company continued its strategic repositioning and implemented a new interior design. Y/E August 2015

54 56 St. Louis Franchise Limited Toronto, ON 47 $74.5 $65.0 St. Louis Franchise Limited is a private company with 47 units in Canada. During the past year, the company added five units in Canada, and undertook a chain-wide renovation program. In 2016, the team plans to open seven new units.

55 52 Menchie’s Frozen Yogurt (Yogurtworld Enterprises) Vaughan, ON 104 *$70.2 *$70.3 Menchie’s Frozen Yogurt is a private company franchised by Yogurtworld Enterprises, with 104 units in Canada and 400 outside of Canada. The chain plans to open new locations in Cochrane, Alta., Langley, B.C., Winnipeg and Brampton, Ont.

56 49 Crabby Joe’s Tap & Grill (Obsidian Group Inc.) Mississauga, ON 34 *$68.4 *$82.6 A privately owned company, managed by Obsidian Group Inc., Crabby Joe’s Tap & Grill operates 34 units in Canada. Recently the brand introduced a revitalized brand image, decor and menu with plans to roll it out across Ontario.

57 57 Prime Pubs (Cara Operations Ltd.) Vaughan, ON 33 $68.0 $63.0 Owned by Cara Operations Ltd., a publicly traded company, Prime Pubs operates 33 units in Canada. During the past year, the chain added three new units in Canada.

58 55 Pizza Delight (Imvescor Restaurant Group Inc.) Montreal, QC 84 *$64.3 $67.4 Pizza Delight is operated by Imvescor Restaurant Group Inc., a publicly traded company, with 84 units in Canada. In 2016, the team plans to renovate nine locations. Y/E October 2015

59 62 Cactus Club Vancouver, BC 29 *$63.5 *$59.2 A privately owned company with 29 units in Canada, Cactus Club recently opened its flagship unit in Toronto as well as a new unit in downtown Calgary. The team plans to open a new unit at Sherway Gardens in Toronto in 2017.

60 60 Shoeless Joe’s Sports Grill (Shoeless Joe’s Limited) Vaughan, ON 32 $62.8 $60.5 Shoeless Joe’s Sports Grill is operated by Shoeless Joe’s Limited, with 32 units in Canada. This year, the team is planning to expand in Western Canada while con- tinuing to build its base of restaurants in Ontario. Seven new units are planned to open in 2017.

61 65 Mucho Burrito (MTY Food Group) St. Laurent, QC 96 *$62.7 *$56.2 Mucho Burrito is operated by MTY Food Group, a publicly traded company, with 96 units. During the past year, the brand added 10 new Mucho Burrito units.

62 71 The Pickle Barrel Markham, ON 12 $61.5 *$51.5 Pickle Barrel is a privately owned company that operates 11 Pickle Barrel restaurants and one Glow Fresh Grill and Wine Bar. Sales figures also include catering receipts.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

63 59 Mr. Mikes SteakhouseCasual (RAMMP Hospitality Brands Inc.) Burnaby, BC 25 *$61.0 *$61.0 Mr. Mikes SteakhouseCasual is a privately owned company operated by RAMMP Hospitality Brands Inc., with 25 units in Canada. In 2016, the team plans to open 10 new units in Canada; 30 new units are planned for Western Canada during the next five years.

64 63 Five Guys Burgers and Fries Lorton, VA 63 *$60.0 *$59.1 A privately owned company with 1,000 units in the U.S. and 63 units in Canada. The Five Guys Burgers and Fries team plans to open a new unit on King St. in Toronto in 2016.

65 66 The Firkin Group of Pubs Markham, ON 36 ‡*$59.2 ‡ $56.0 The Firkin Group of Pubs is a privately owned Canadian company with 30 units in Canada and six outside of Canada.

66 74 Smoke’s Poutinerie Inc. Ajax, ON 90 ‡ $ 57.0 $ 49.5 Smoke’s Poutinerie Inc. is a privately owned company operating 85 units in Canada and five units outside of Canada. Smoke’s Poutinerie currently has more than 100 locations open or in development in Canada and more than 20 locations open or in development in the U.S.

67 68 Lone Star Texas Grill Oakville, ON 24 *$56.3 *$54.0 Lone Star Texas Grill is a privately owned company operating 24 units in Canada. During the past year, Lone Star opened one new unit in Canada.

68 67 Red Robin Gourmet Burgers, Inc. Burnaby, BC 18 *$55.8 *$55.8 Red Robin Gourmet Burgers, Inc. operates 18 units in Canada.

69 58 Coffee Time (Chairman’s Brands Corp) Toronto, ON 124 *‡ $54.6 *‡ $61.6 A privately owned, Canadian company operated by Chairman’s Brands Corp, Coffee Time has 98 units in Canada and 26 outside of Canada. During the past year, the chain introduced a new menu. In 2016, the Coffee Time team plans to add four new units.

70 69 Opa! of Greece Calgary, AB 91 $53.2 $52.1 Opa! of Greece is a privately owned company operating 91 units in Canada. Last year, the company opened three new franchised units in Canada, and rolled out its updated interior restaurant design and website. In 2016, the company plans to open seven units.

71 72 Sushi Shop (MTY Food Group) St. Laurent, QC 134 *$52.5 *$50.9 Sushi Shop is operated by MTY Food Group, a publicly traded company, with 134 units in Quebec and Ontario. During the past year, the chain opened four new locations.

72 78 Jimmy the Greek Inc. Toronto, ON 52 $52.0 $44.0 Jimmy The Greek Inc. is a private company operating 52 units in Canada. In 2014 the team opened three new units; it plans to continue its growth by three units in 2016. Select locations are set to offer breakfast menus in 2016.

73 73 Brewsters Brewing Company & Restaurant Calgary, AB 14 *$50.0 *$50.0 (Specific Gravity Hospitality Group) Brewsters Brewing Company & Restaurant is a privately held company operated by Specific Gravity Hospitality Group with 14 units in Canada.

* Denotes estimate; Ω Y/E Fiscal April 2013; √ Y/E Fiscal May 2013; ∂ Y/E Fiscal June 2013; ∑ Y/E Fiscal July 2013; ◊Y/E Fiscal August 2013; ∞ Y/E Fiscal September 2013; ∆ Y/E Fiscal October 2013; † Y/E Fiscal November 2013 * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

48 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

74 77 EggSmart (Chairman’s Brands Corp.) Toronto, ON 44 *$47.5 *$44.3 EggSmart is a privately owned company franchised by Chairman’s Brands Corp., operating 44 units in Canada. During the past year, the chain added three new units in Canada, and introduced a new menu. The company plans to open four new units in 2016.

75 61 Extreme Pita (MTY Food Group Inc.) St. Laurent, QC 169 *$46.7 *$60.0 Extreme Pita is owned by the MTY Food Group Inc. There are currently 169 units across the country.

76 64 Casey’s (Cara Operations Ltd.) Vaughan, ON 19 $46.0 $59.0 Casey’s is owned by Cara Operations Ltd., a publicly traded company, with 19 units in Canada. The company continues its Roadhouse brand strategy, winding down operations by closing units, or converting Casey’s units to other brands.

77 76 Jugo Juice (MTY Food Group) St. Laurent, QC 132 *$45.3 *$47.4 Jugo Juice is operated by MTY Food Group, a publicly traded company, with 132 units. Brand Culture Marketing & Promotions 14-5250 Satellite Drive, Mississauga, Ontario L4W 5G5 T: 905 361 0305 F: 905 629 9305 REVISION: 0 DATE: MAY 5, 2016 DOCKET: XXXX CLIENT: Reuven International COLOUR: CMYK PROJECT: Kaarage Asian Inspired Breaded Chicken Promotion TRIM SIZE: 8.125” x 5.5” DESCRIPTION: Kostuch FoodService & Hospitality 1/2 page horizontal Ad BLEED SIZE: 3.375” x 5.75” CONTACT: Barbara MacDonald DATE REQUIRED: 2016 TYPE SAFETY: .25” margin * Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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EXPERTS MONDIAUX EN VOLAILLE Follow us on LinkedIn Facebook.com/ReuvenInternational Follow us on Instagram The art of creating impressions 74 77 EggSmart (Chairman’s Brands Corp.) Toronto, ON 44 *$47.5 *$44.3 EggSmart is a privately owned company franchised by Chairman’s Brands Corp., operating 44 units in Canada. During the past year, the chain added three new units in Canada, and introduced a new menu. The company plans to open four new units in 2016.

75 61 Extreme Pita (MTY Food Group Inc.) St. Laurent, QC 169 *$46.7 *$60.0 Extreme Pita is owned by the MTY Food Group Inc. There are currently 169 units across the country.

76 64 Casey’s (Cara Operations Ltd.) Vaughan, ON 19 $46.0 $59.0 Casey’s is owned by Cara Operations Ltd., a publicly traded company, with 19 units in Canada. The company continues its Roadhouse brand strategy, winding down operations by closing units, or converting Casey’s units to other brands.

77 76 Jugo Juice (MTY Food Group) St. Laurent, QC 132 *$45.3 *$47.4 Jugo Juice is operated by MTY Food Group, a publicly traded company, with 132 units.

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

78 82 Humpty’s Family Restaurants (Humpty’s Restaurants International, Inc.) Calgary, AB 46 $44.7 $42.7 Humpty’s Family Restaurants is a private company operated by Humpty’s Restaurants International, Inc., with 46 units in Canada. During the past year, the chain added two locations. There are plans to open one unit in 2016.

79 80 Robin’s Donuts (Chairman’s Brands Corp.) Toronto, ON 146 *$43.8 *$42.9 Robin’s Donuts is a private company franchised by Chairman’s Brands Corp., with 146 units in Canada. During the past year, the chain grew by three locations. In 2016, the company expects to add 26 new locations in Canada.

80 81 Tutti Frutti (MTY Food Group Inc.) St. Laurent, QC 44 *$43.7 *$42.8 Operated by MTY Food Group Inc., a publicly traded company, Tutti Frutti has 44 units in Quebec, Ontario and Alberta. During the past year, the chain opened a new unit in Canada.

81 83 Teriyaki Experience (Innovative Food Brands) Oakville, ON 125 ‡ $43.3 ‡ $42.2 Teriyaki Experience is a private Canadian-owned subsidiary of Innovative Food Brands, with 101 units in Canada and 24 units outside of Canada. It plans to open five units in Canada in 2016.

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78 82 Humpty’s Family Restaurants (Humpty’s Restaurants International, Inc.) Calgary, AB 46 $44.7 $42.7 Humpty’s Family Restaurants is a private company operated by Humpty’s Restaurants International, Inc., with 46 units in Canada. During the past year, the chain added two locations. There are plans to open one unit in 2016.

79 80 Robin’s Donuts (Chairman’s Brands Corp.) Toronto, ON 146 *$43.8 *$42.9 Robin’s Donuts is a private company franchised by Chairman’s Brands Corp., with 146 units in Canada. During the past year, the chain grew by three locations. In 2016, the company expects to add 26 new locations in Canada.

80 81 Tutti Frutti (MTY Food Group Inc.) St. Laurent, QC 44 *$43.7 *$42.8 Operated by MTY Food Group Inc., a publicly traded company, Tutti Frutti has 44 units in Quebec, Ontario and Alberta. During the past year, the chain opened a new unit in Canada.

81 83 Teriyaki Experience (Innovative Food Brands) Oakville, ON 125 ‡ $43.3 ‡ $42.2 Teriyaki Experience is a private Canadian-owned subsidiary of Innovative Food Brands, with 101 units in Canada and 24 units outside of Canada. It plans to open five units in Canada in 2016.

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

82 - Famoso Neapolitan Pizzeria (Famoso Inc.) Richmond, BC 28 $42.6 — Famoso Neapolitan Pizzeria is a private company operated by Famoso Inc., with 28 units in Canada. The team is looking to expand into Saskatchewan, Ontario, Alberta and B.C., and add two units in the next year.

83 92 The Old Spaghetti Factory (Old Spaghetti Factory Canada Ltd.) Vancouver, BC 14 $42.0 $39.0 The Old Spaghetti Factory is a privately held company operated by Old Spaghetti Factory Canada Ltd., with 14 units in Canada. The team plans to add a new location in Calgary in 2016.

84 70 Gino’s Pizza Halton Hills, ON 79 *$41.9 *$52.0 A private company, Gino’s Pizza operates 79 units in Ontario. It recently opened a new unit in Brampton, Ont.

85 85 Fatburger (Frankie’s Burger Enterprises) Burnaby, BC 46 $41.0 $40.0 Fatburger is a privately owned company operated by Frankie’s Burger Enterprises, with 46 units in Canada. The team plans to add seven units in 2016.

86 86 Hero Certified Burgers (Angus, Inc.) Toronto, ON 59 ‡ $39.0 ‡ $39.0 A private, Canadian-owned company operated by Angus, Inc., Hero Certified Burgers operates 59 units in Canada. The company recently added a new unit in Buffalo, N.Y., and plans two more in 2016.

* Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units Invest in a brand that you can trust!

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

82 - Famoso Neapolitan Pizzeria (Famoso Inc.) Richmond, BC 28 $42.6 — 87 84 Applebee’s (DineEquity) Kansas City, MO 16 *$38.2 *$40.6 Famoso Neapolitan Pizzeria is a private company operated by Famoso Inc., with A division of DineEquity, the publicly traded parent company of Applebee’s and 28 units in Canada. The team is looking to expand into Saskatchewan, Ontario, IHOP, Applebee’s owns 16 units in Canada. The chain is pursuing development by Alberta and B.C., and add two units in the next year. expanding into new markets and increasing its presence in markets it’s already in.

83 92 The Old Spaghetti Factory (Old Spaghetti Factory Canada Ltd.) Vancouver, BC 14 $42.0 $39.0 88 91 Vanelli’s (MTY Food Group Inc.) St. Laurent, QC 95 *$36.7 *$33.3 The Old Spaghetti Factory is a privately held company operated by Old Spaghetti Vanelli’s is a banner operated by MTY Food Group Inc., a publicly traded company, Factory Canada Ltd., with 14 units in Canada. The team plans to add a new location with 95 units in Canada. During the past year, the chain added nine new units in Calgary in 2016. in Canada.

84 70 Gino’s Pizza Halton Hills, ON 79 *$41.9 *$52.0 89 79 241 Pizza (Chairman’s Brands Corp.) Toronto, ON 76 *$36.4 *$43.2 A private company, Gino’s Pizza operates 79 units in Ontario. It recently opened a A privately owned company operating 76 units in Canada, 241 Pizza is franchised new unit in Brampton, Ont. by Chairman’s Brands Corp. In 2016, the team plans to open four new units.

85 85 Fatburger (Frankie’s Burger Enterprises) Burnaby, BC 46 $41.0 $40.0 90 87 Joey’s Seafood Restaurants (Joey’s Franchise Group) Calgary, AB 52 $36.0 $38.0 Fatburger is a privately owned company operated by Frankie’s Burger Enterprises, Joey’s Seafood Restaurants is a private company operated by Joey’s Franchise with 46 units in Canada. The team plans to add seven units in 2016. Group, with 52 units in Canada. The team plans to add four units in 2016 and further develop the chain’s new brand, Joey’s Urban. Y/E Fiscal October 2015 86 86 Hero Certified Burgers (Angus, Inc.) Toronto, ON 59 ‡ $39.0 ‡ $39.0 A private, Canadian-owned company operated by Angus, Inc., Hero Certified Burgers operates 59 units in Canada. The company recently added a new unit in Buffalo, N.Y., and plans two more in 2016.

* Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

91 97 Eggspectation Restaurants Montreal, QC 20 ‡ $35.0 ‡ $30.9 A private, Canadian-owned company, Eggspectation Restaurants has 11 units in Canada and nine outside of Canada. In 2016, the team plans to expand by adding new locations in Quebec, the U.S., and U.A.E.

91 96 Jungle Jim’s Eatery (Jungle Jim’s Restaurants) St. John’s, NL 26 $35.0 $31.5 Jungle Jim’s Eatery is a private company operated by Jungle Jim’s Restaurants, with 26 units in Canada. In 2016, the chain plans to add two units in Canada.

92 88 ThaiZone (MTY Food Group Inc.) St. Laurent, QC 35 *$34.8 *$34.0 ThaiZone is a banner operated by MTY Food Group Inc., a publicly traded company, with 35 units. During the past year, the chain added one location in Canada.

93 107 Bier Markt (Cara Operations Ltd.) Vaughan, ON 7 $34.0 $27.0 Bier Markt is owned by Cara Operations Ltd., a publicly traded company with a total of seven units in Canada. The chain plans to open one new Bier Markt location in 2016.

93 89 Greco Pizza (Grinner’s Food Systems Ltd.) Truro, NS 96 $34.0 $33.7 Greco Pizza is a private company operated by Grinner’s Food Systems Ltd., with 96 units in Canada.

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

91 97 Eggspectation Restaurants Montreal, QC 20 ‡ $35.0 ‡ $30.9 94 90 Chicken Chef Family Restaurant (Chicken Chef Canada Ltd.) Winnipeg, MB 34 $33.0 $33.5 A private, Canadian-owned company, Eggspectation Restaurants has 11 units in A privately owned company, Chicken Chef Family Restaurant is operated by Chicken Canada and nine outside of Canada. In 2016, the team plans to expand by adding Chef Canada Ltd., with 34 units in Canada. It recently completed a pilot project by new locations in Quebec, the U.S., Qatar and U.A.E. adding a lounge component to its full-service dining offerings. It’s also designing a fast-casual express concept. The team plans to open three units in 2016. 91 96 Jungle Jim’s Eatery (Jungle Jim’s Restaurants) St. John’s, NL 26 $35.0 $31.5 Jungle Jim’s Eatery is a private company operated by Jungle Jim’s Restaurants, 95 98 The Works Gourmet Burger Bistro Oakville, ON 26 $32.5 $30.6 with 26 units in Canada. In 2016, the chain plans to add two units in Canada. A privately owned company, The Works Gourmet Burger Bistro has 26 units in Canada. The team plans to add two units in 2016 in Port Credit, Ont., and 92 88 ThaiZone (MTY Food Group Inc.) St. Laurent, QC 35 *$34.8 *$34.0 London, Ont. ThaiZone is a banner operated by MTY Food Group Inc., a publicly traded company, with 35 units. During the past year, the chain added one location in Canada. 96 101 Topper’s Pizza Canada (Topper’s Franchising Company Inc.) Barrie, ON 37 $32.2 $30.0 Topper’s Pizza Canada is operated by Topper’s Franchising Company Inc., with 37 93 107 Bier Markt (Cara Operations Ltd.) Vaughan, ON 7 $34.0 $27.0 units in Canada. Beginning in 2016, the team plans to add 15 new locations, with Bier Markt is owned by Cara Operations Ltd., a publicly traded company with a total aggressive plans to reach more than 100 units in Ontario by 2018. of seven units in Canada. The chain plans to open one new Bier Markt location in 2016. 97 94 Houston Avenue Bar & Grill (Houston Canada Inc.) Laval, QC 10 $32.0 $32.0 Houston Avenue Bar & Grill is a privately owned subsidiary of Houston Canada Inc., 93 89 Greco Pizza (Grinner’s Food Systems Ltd.) Truro, NS 96 $34.0 $33.7 with 10 units in Canada. The brand recently launched its new menu and plans to add Greco Pizza is a private company operated by Grinner’s Food Systems Ltd., with four new units in 2016. 96 units in Canada.

* Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

98 105 Symposium Café Toronto, ON 21 $31.5 $27.7 Symposium Café Inc. is a privately owned company operating 21 Symposium Cafés in Canada. In the past year, the company renovated five units. Five additional units are planned for 2016.

99 93 Valentine (MTY Food Group Inc.) St. Laurent, QC 100 *$31.3 *$32.9 A Quebec-based QSR operated by MTY Food Group, a publicly-traded company, with 100 units.

100 95 Café Dépôt (MTY Food Group Inc.) St. Laurent, QC 62 *$31.1 *$31.7 A café bistro concept, operated by MTY Food Group, with 62 units in Quebec.

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101 103 Wok Box Fresh Asian Kitchen Surrey, BC 56 ‡ $29.7 $29.0 102 104 Fox & Fiddle (Pegasus Hospitality Group) Toronto, ON 18 *$29.5 *$27.9 103 75 Dixie Lee Chicken Kingston, ON 48 *$28.4 *$47.5

104 100 Sawmill Prime Rib & Steak House Edmonton, AB 9 $27.9 $30.1 105 109 Cultures (MTY Food Group Inc.) St. Laurent, QC 60 *$27.2 *$26.3 106 106 Canyon Creek (SIR Corp.) Burlington, ON 8 $27.1 $27.5

* Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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RANKRANK COMPANYCOMPANY HEAD-OFFICEHEAD-OFFICE UNITSUNITS GROSS GROSS SALES SALES GROSS GROSS SALES SALES 2016 2015 LOCATIONLOCATION 20132015 20132015 (millions (millions) ) 20122014 (millions (millions) )

98 105 Symposium Café Toronto, ON 21 $31.5 $27.7 107 108 Baskin-Robbins Canton, MA 97 *$27.0 *$26.5

Symposium Café Inc. is a privately owned company operating 21 Symposium Cafés in 108 - Good Earth Cafes Ltd. Calgary, AB 44 $26.7 —

Canada. In the past year, the company renovated five units. Five additional units are 109 99 Au Vieux Duluth Express (MTY Food Group Inc.) St. Laurent, QC 11 *$25.8 *$30.5 planned for 2016. 110 116 South St. Burger Co. Toronto, ON 33 ‡ $25.6 ‡ $20.0

111 102 Timothy’s World Coffee (Threecaf Brands Canada) Vaughan, ON 52 *$23.8 *$29.3 99 93 Valentine (MTY Food Group Inc.) St. Laurent, QC 100 *$31.3 *$32.9 ‡ ‡ A Quebec-based QSR operated by MTY Food Group, a publicly-traded company, 112 112 Mr. Greek Restaurants Inc. North York, ON 20 $23.5 $24.0 with 100 units. 113 115 Villa Madina (MTY Food Group Inc.) St. Laurent, QC 45 *$23.3 *$21.3 114 111 Tandori (MTY Food Group Inc.) St. Laurent, QC 21 *$23.1 *$25.3 100 95 Café Dépôt (MTY Food Group Inc.) St. Laurent, QC 62 *$31.1 *$31.7 115 110 Williams Fresh Café (Druxys Inc.) Gormley, ON 26 $23.0 $26.2 A café bistro concept, operated by MTY Food Group, with 62 units in Quebec. 116 113 Tiki Ming(MTY Food Group Inc.) St. Laurent, QC 54 *$22.5 *$23.8

117 116 Don Cherry’s Sports Grill Inc. Parry Sound, ON 15 $22.0 $20.0 118 114 La Crémière (MTY Food Group Inc.) St. Laurent, QC 61 *$21.5 *$21.5

119 119 The Landing Group (Cara Operations Ltd.) Vaughan, ON 4 $19.0 $18.0

101 103 Wok Box Fresh Asian Kitchen Surrey, BC 56 ‡ $29.7 $29.0 120 116 Rock Creek Tap & Grill Regina, SK 7 $17.0 $20.0 102 104 Fox & Fiddle (Pegasus Hospitality Group) Toronto, ON 18 *$29.5 *$27.9 121 126 The Chopped Leaf (Innovative Food Brands) Oakville, ON 28 $17.0 $11.0 103 75 Dixie Lee Chicken Kingston, ON 48 *$28.4 *$47.5 122 117 New Orleans Pizza (Chairman’s Brands Corp.) Toronto, ON 43 *$16.1 *$18.8

104 100 Sawmill Prime Rib & Steak House Edmonton, AB 9 $27.9 $30.1 123 118 Druxy’s Famous Deli Gormley, ON 44 $16.0 $18.5 105 109 Cultures (MTY Food Group Inc.) St. Laurent, QC 60 *$27.2 *$26.3 124 121 Gabby’s (Gabby’s Franchise Systems Ltd.) Toronto, ON 14 *$15.0 $15.0

106 106 Canyon Creek (SIR Corp.) Burlington, ON 8 $27.1 $27.5 125 121 Alice Fazooli’s/Scaddabush (Sir Corp.) Burlington, ON 5 $13.8 $13.9

* Denotes estimate; ‡ Canadian-owned company whose operations outside Canada are reflected in gross sales and units

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Scan here to see a video featuring more Hatco Refrigerated Wells. People who serve, products that solve. ILLUSTRATION: DREAMSTIME.COM SEGMENT REPORT Food for Thought Casual-dining accounts for half of annual foodservice sales in Canada but the segment is facing a unique set of challenges

BY ANDREW SPELLER

asual-dining restaurants (CDRs) offer the ideal middle-ground for din- ers looking for the best of both worlds — good food at a reasonable cost. The wide- Cspread appeal of casual restaurants translates into sales numbers account- ing for more than half of all foodser- vice revenue in Canada. “In Canada, CDRs represent about $26 billion in sales annually,” says Robert Carter, executive director for Foodservice Canada with Toronto- based NPD Group Inc. “The overall foodservice industry in Canada is about $50 billion a year.” But while the dollar value of casual restaurants has increased, Carter says the traffic has As a result, Carter says restaurant operators are focusing marketing declined as people watch their expenditures more closely. “The per- efforts on the millennial cohort. “Millennials don’t have brand loyalty. capita consumption has decreased over the past three to four years. They’re jumping around to different restaurants all the time [and] So, people [aren’t] going out as much they used to, but they’re paying they’re the social-media users being targeted by casual restaurants. more when they do.” The game has changed dramatically in the past 10 years”. According to a report from Chicago-based Technomic, which sampled 20,651 Canadian consumers over 18 between Q2 2015 and COOK IT AND THEY WILL COME Q1 2016, 43.4 per cent of millennials are going to CDRs on a regular With customer preferences constantly evolving, CDR menus have basis — almost double the visits of generation Xers (22 per cent) and had to evolve with them to meet the demands of a new generation

ILLUSTRATION: DREAMSTIME.COM ILLUSTRATION: baby-boomers (21.8 per cent) combined. of diners.

FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY JUNE 2016 61 SEGMENT REPORT

According to Carter, while sharing platters, ethnic and spicy foods are all the rage, there are some surprises when it comes to what isn’t hot. “Alcohol and desserts are declining — con- sumers are more worried about drinking and driving and (drinks and desserts) increase the bill dramatically.” Jonathan Benjamin, vice-president of Development, USA & Canada for Texas-based Romacorp Inc., which operates the Tony Roma’s brand in more than 30 countries, including 26 in Canada, says healthier customer eating habits are also influencing his brand’s menu develop- ment. “Farm-to-table is becoming very popu- lar,” he says. “Our focus is on quality — we are [putting] fewer items on the menu and doing those things very well, as opposed to trying to be everything to everyone. There is [a] trend to [a] more hands-on approach and people are willing to pay more for hand-crafted cocktails as opposed to those put together with mixes.” Browns Socialhouse recognizes the importance of healthy and SUSTAINABLY SOCIAL Browns Socialhouse, recognizing consumer fresh food menu offerings. “We know people want food with integrity demand for transparency, has implemented sustainable food-sourcing practices; Tony Roma’s is going back to its brand roots with a renewed and ingredients from sources they can trust,” says Bruce Fox, COO of focus on ribs (below) Browns Restaurant Group. “We hand-craft more menu items every

WHAT’S FOR DINNER? According to Kristin Menas, associate editor, Canada and Adult Beverage at Technomic Inc. in Chicago, what’s old is new again when it comes to popular menu items. Bruschetta, pretzels and waffles are making a comeback on CDR menus across the country.

Since 2014, BRUSCHETTA mentions are up 11.1 per cent in entrées on Canadian casual restaurant menus. “In addition to offering it as a starter, bruschetta is topping everything from flatbreads to sandwiches,” says Menas. “Bruschetta adds an element of freshness to a dish. It’s also a more upscale preparation of tomatoes, particularly for sandwiches.” PRETZEL mentions are up a whopping 22.9 per cent on menus at CDRs in Canada. Menas says she is seeing operators experiment with the salty snack as a breading on proteins. For example, Toronto’s Bier Markt serves a pretzel-crusted and fried calamari with harissa aioli, complete with housemade remoulade and fresh lemon. Popular chains Montana’s and Kelsey’s have jumped on the pretzel bandwagon as well. Montana’s now offers a salted pretzel-caramel crunch dessert and Kelsey’s added Sweet & Salty Chicken Fingers coated in caramel sauce and crushed salted pretzels to its menu. “When used in a nontraditional way, pretzels are also a way to grab attention and add some fun to a menu,” Menas says. WAFFLES are once again serving as the foundation for sweet and savoury menu offerings in the casual-dining world. While waffle mentions are up 20 per cent, it’s the daypart which boasts the most surprising results — appearing in lunch and dinner items. Waffle batter can also serve as a hearty starch, which easily serves as a base for ingredients such as fried chicken or sauces.

62 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM SEGMENT REPORT

cycle. On the supply side, our shrimp is grown and harvested through an environmentally sustainable method and…our poultry is processed within 100 kilometers of the farms, shipped to the restaurants 100 per cent fresh, never frozen. We built a $500,000 Innovation Centre last year to house our dedicated culinary development team. Overall, we are on a mission to just ‘do it better’ every day.”

DAVID VERSUS GOLIATH While casual chains are thriving, independent mom-and-pop opera- tions aren’t faring as well. “Independents are closing their doors aggres- sively,” Carter says. “In the past year we saw more independent opera- tions close their doors more than ever before.” According to Carter, there are two major factors working in favour of popular chains such as The Keg or Milestones — social media and brand awareness. “Consumers are more educated and sophisticated than ever,” he says. “CDRs have to manage social media, PR, brand awareness and for independents it’s a real struggle.” Thanks to larger operating budgets, big chains have the manpower to handle social-media campaigns, allowing them to poach customers from smaller operators. “Big chains are literally stealing customers from independents [via these means],” Carter says. However, not all casual restaurants are increasing their social- media footprint. In fact, Browns Socialhouse is reducing theirs. “We are [like in many things] contrarians,” Fox says. “We are actually reducing our social-media output and are relying strongly on our franchisees’ execution to create [positive word-of-mouth]. Our goal is to never spend a dollar on paid [consumer-targeted] media and to focus all effort on delivering the best guest experience in the busi- ness. We know this is easy to say and not easy to do and we know it’s ambitious. But, it’s our strategy.”

ROOM TO GROW “We’re going to see acceleration soon in site selection,” says Benjamin, Showroom & Stocked in Oakville citing availability of retail space and leasing costs as ongoing chal- lenges for the segment. “Areas where there were casual restaurants in the past may not make sense anymore. These include shopping malls, as demographics and the market have shifted.” Use of space has also changed, he says. “Guest flow, kitchen ergo- Seating with Style... nomics and other design changes will allow us to capture the same [number] of table turns and income with less space. We have places with 7,000 to 8,000 sq. ft. built seven or eight years ago, as opposed to our new models, which are shifting to 5,200 to 6,000 sq. ft. This is the new [CDR] sweet-spot [for operating space].” Benjamin has also seen a decline in free-standing restaurants. “Gone are the days of one or two-acre places to accommodate space and parking — those are too expensive to continue these days.” He adds secondary and tertiary markets have more appeal to CDRs as the high cost of living in cities such as Toronto and Vancouver drives people to the suburbs. “It’s a huge trend swing,” Benjamin says. “For example, we just opened very successfully in Thunder Bay. We have a lot of locations in secondary and tertiary markets that are thriving.” Tony Roma’s is not only expanding in Canada, but worldwide; “We’re working on a five-year growth plan right now,” says Benjamin.

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grow its Ontario presence. A MATTER OF LOYALTY “The brand resonates with consumers,” says Fox. “We provide a guest experience they enjoy and we offer an interesting menu with While social-media marketing and brand awareness are shifting the entire great value. Our game plan is [to] constantly push the envelope. We patron-advertising paradigm of the sector, there are other factors in play. are not ‘cookie-cutter’ in our design and we intend to keep evolving CDRs are mimicking the hotel industry with regard to loyalty programs, our menu.” forging new relationships between operators and other entities such as Tony Roma’s game-plan to stay competitive hinges on going to Cineplex movie theatres. “You need to have an optimal price-point,” says back to what made them great in the first place, while simultaneously Robert Carter, executive director for Foodservice Canada with Toronto-based NPD Group Inc. “Casual-restaurant operators are struggling to figure this out embracing industry change. “We were the innovator and inventor of right now. But loyalty programs are taking off throughout the industry. Getting baby-back ribs when we opened in 1972,” says Benjamin. “You can’t existing customers to come back more often is a key to any operator’s suc- touch our ribs. A 66 per cent brand awareness [means that we have] cess and CDRs are looking to capitalize on this.” fierce customer loyalty, which translates into generational change.” Carter says these types of partnerships are poised to become more important than daily specials. However, specials still have a place on the menu, he says, citing the strategy being used by Cara’s current CEO Bill Gregson as an example. “Bill is using the same plan he had at the Brick at Cara — giving deals to get people in the doors”. A strategy which can snow- ball into good online reviews, social media chatter and increased foot traffic.

REGIONAL DISTRIBUTION OF DINERS WHO VISIT A CDR ONCE A MONTH OR MORE ONTARIO 4.6% QUEBEC 0.2% 6% BRANCHING OUT Tony Roma’s is focusing on growth in oversea PRAIRIES 5.6% markets, as well as B.C. and Ontario ATLANTIC 0.7% PURSUING SUCCESS NORTHERN TERRITORIES 0.1% Casual-dining operators are also facing competition from outside the segment as the emerging fast-casual restaurant category continues SOURCE: TECHNOMIC to gain momentum. “[It’s] putting pressure on casual restaurants because these [fast-casual operators] have found an area no one [has “Our growth of [late] has been more overseas. Asia, Europe, South tapped yet],” says Carter. “This year, it represented three to five per America and the Middle East — they’re all growing markets. As for cent of restaurant traffic and it’s growing at a huge rate. It also had Canada, we have 25 locations and a great footprint in Western Canada, greater than 10 per cent growth for customer traffic.” but we have a big gaping hole in B.C. and Ontario. Those are our two Where do shifting landscape, emerging trends and an unpredict- biggest growth markets [in Canada].” able future leave the Canadian CDR industry? “It’s really going to Browns Socialhouse had a strong year in 2015 and appears to be come down to customization,” Carter says. “CDRs can’t afford to have navigating the shifting tides in the industry with ease. The popular people saying they had a bad experience [on] social media. There will concept has experienced consistent and massive growth throughout be much more focus on training staff, [ensuring] servers [are] knowl- the past four years — from $33 million in 2012 to $105 million in edgeable and menu innovation. But, there’s no silver bullet. Discounts 2015. It had a 45 per cent unit expansion, bringing its total Canadian at happy hour are no longer cutting it. Loyalty programs [and B2B location numbers to 60 by year’s end. This growth was concentrated partnerships] are going to be huge. We’ll start to see more things like mostly in Western Canada, with outlets opening this year in the Cineplex movie theatres partnering [in B2B programs] with restau- Okanagan Valley, Vancouver Island, Greater Vancouver, Calgary, rants like Montana’s, so that they can feed off each other’s foot traffic Edmonton, Regina and Winnipeg, but the brand also has plans to and simultaneously grow their brands.” l

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Business Unit MCF FS Inks & Varnishes Match Colours App/Ver CS5.5 Description JMS Roller Grill Ad 4 Colour Process PMS Created At 100% Prints 4/4 Bleed 8.375” x 11.25” Finished Size 8.125” x 10.875” PMS PMS PMS Requestor Dieline NO DESIGNER Hayley Rostohar Watch these corporate Dieline Dies & Notes PMS PMS Rita Zietsma Production KC Printer ?? colours for accuracy. Colours (Do Not Print) Bleed YES 905-285-1991 Carefully check all copy and dielines. Once approved, the fi nal artwork will be proceeding to print. It is the requestor’s responsibility [email protected] Version1 Job# 17939RZ_a Date May 10, 2016 NOTE for any errors either in these materials or those resulting from their use. LowRes PDFs may not be actual size. Actual size is noted above. Maple Leaf Foods Inc. 6897 Financial Dr Mississauga, ON, Canada L5N 0A8 June 16, 2016 Sheraton Centre Toronto Hotel

influencers

THREE POWERFUL SEGMENTS THAT WILL INSPIRE THE WAY YOU DO BUSINESS

ICONS Listen and learn as KML editor and publisher has a candid conversa- tion with Cora Tsouflidou, founder of Chez Cora and queen of the fast- casual breakfast segment. Find out how this dynamic entrepreneur has build a successful breakfast concept from the ground up and learn what she’s doing to grow the brand in Canada and the U.S. market.

INNOVATORS TOP Join us for the Top 100 Awards presentation as KML recognizes this year’s top growth leader and fastest-growing company. Learn who this year’s leading chains are, what their plans for growth look like, and the 100 emerging trends from KML’s extensive pulse taking of the industry.

INFLUENCERS This is a unique time in our industry where digital savvy millenials are rapidly emerging as inspiring young innovators, entrepreneurs and thought leaders. Culled from out May “Top 30 Under 30” issue, we have assembled a dynamic panel of four millenials for an indepth dis- cussion about this growing and influential demographic. Learn what these influencers are looking for in terms of a career in foodservice and hospitality. Find out which brands they patronize and why? Find out why they can’t live without technology for even a nano second. And finally, discover what you need to do to target this growing cohort and SPONSORS compete in this new age of disruption.

This power-packed morning will kick off with a hot breakfast and unbeatable industry networking.

Register now at foodserviceandhospitality.com/shop, or buy tickets to both the spring and fall sessions (featuring George Cohon, founder and chair of McDonald’s Restaurants of Canada) and save.

I P FINAL A EQUIPMENT

InnovativeTECH tech solutions TALK are making life easier for foodservice operators

BY DENISE DEVEAU

here are countless innovations As a chef/consultant with B.C.- HEAD IN THE CLOUD Cloud-based POS and currently coming to market based ChefDBrown Ltd., Darren reservation systems allow to help foodservice operators Brown has always been a technology operators to stay on top of streamline tasks, improve customer buff. “Tech helps the industry in a huge operational efficiencies in T real-time service, or simply add a wow factor. way,” he says. “A lot of what’s out there Mobile devices are becoming all helps open the doors for folks getting things to restaurant owners and their in over their heads.” patrons — whether it’s a pre-ordering Kitchens are also heading to the and payment app, running a loyalty Cloud for everything from POS and program or POS system, or engag- ordering to monitoring and recipe ing in more targeted marketing. Even sharing, he adds. “We’re seeing more appliances — from ovens to ventilation and more software integration for systems — can be managed from afar. kitchen management.”

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Here are some exciting tech game needs to have the infra- offerings making waves in food- structure to support it so they service operations: don’t lose their regular clientele. “There’s a store in New York APPS GALORE called Sweet Greens that at 12:30 “Everything gets better and p.m. has a wall with five shelves smarter in a digital world,” says holding about 130 pickup Ray Reddy, co-founder and CEO orders. That’s a great example of of Toronto-based Ritual, devel- the system working well.” opers of an order-and-pay app For Chad Salyn, general for smaller businesses. “Ordering manager of Last Best Brewing and paying is the first big step & Distilling in Calgary, three that will take you beyond the apps play a key part in running digital wallet. We’ve seen the first the company’s four restaurant wave with Starbucks and soon operations (the other sites every QSR will be doing it.” are Jasper Brewing Company, STAY ON TARGET The HACCP Manager He cautions that anyone Wood Buffalo Brewing saves operators time getting into the order-and-pay Company and Banff Avenue and money

THE TRUCK STOPS HERE Brewing Company). The first is – AND HERE – AND HERE OpenTable Guest Centre, which “EVERYTHING has recently launched a Cloud- GIVEN THE FACT they are constantly on the move, food-truck operators GETS BETTER AND based version. “We switched to are the perfect candidates when mobile innovation comes knocking. SMARTER IN A At Bake Three Fifty, a Toronto food-truck concept offering custom ice- [this] app because we can have cream sandwiches and cupcakes, owner Jenn Burko manages all her instant knowledge of our reser- DIGITAL WORLD” transactions with the Square payment app — a small adapter that con- vations and it’s easily accessible. RAY REDDY, CO-FOUNDER nects to the headphone jack on a mobile phones and accepts Visa, The information we get lets us AND CEO OF RITUAL MasterCard, American Express and Discover cards. target promotional opportuni- “The app itself is very easy to use; it works like a calculator. You type in ties, drive sales and find out municate with customers more the amount to be charged, press the charge button and swipe the credit when we need to increase staff- through direct couponing, card, from there you have the option to email a receipt to each customer,” ing levels.” ordering and payment process- Burko explains. “The app keeps a log of all your transactions and you are He also utilizes a Micros in ing. The technology just gets emailed a copy of your total sales at the end of each day.” Motion app for monitoring easier and cheaper as it grows,” Gino Di Domenico, managing partner for Tacofino in Vancouver, didn’t restaurant sales in real-time, he says. make the leap to mobile POS for his including large voids, labour Gino Di Domenico, man- food trucks, largely costs and staff performance. aging partner for Tacofino in because of issues “It lets me keep a finger on the Vancouver, relies on apps like with Internet access in pulse of what’s going on.” His Nowait Host, a restaurant wait- some regions in which third pick is Optimum Control, list and table-management app they serve. But one a restaurant-based inventory app to text customers waiting for mobile app he’s happy to help monitor spending and tables and quickly check status to see is Street Food, usage. “That really helps to keep for his bricks-and-mortar loca- which gives customers our costs under control.” tions. “We also use the Lavu iPad up-to-the-minute infor- John Lettieri, president POS system designed for smaller mation on where their of Hero Certified Burgers in restaurants. It offers Cloud for trucks are located on any given day. “We’re Toronto, says this year will see a reporting which makes things seeing more and more big push for mobile apps. He’s so much easier as we expand, apps coming out,” he working with his POS provider, because we can get reports on a adds. “It’s a matter of Mississauga, Ont.-based ABS, daily basis.” choosing what saves to expand into mobile payment But, is the app world getting time — and lineups.” and loyalty apps this summer. to be too much? Not if restau- “We see it as a tool to com- rateurs play their cards right,

68 FOODSERVICE AND HOSPITALITY JUNE 2016 FOODSERVICEANDHOSPITALITY.COM TRY IT TODAY AT TOUCHBISTRO.COM/RELIABILITY-CAN (855) 440-7486 We’re the round pegs EQUIPMENT in the square holes. Reddy says. “A lot of merchants perature measurement very seri- can spend thousands on new ously. Alan Toong, production apps and devices, but if they manager, says the Marathon don’t know the value they’re Products EDL-RTD2 high tem- getting or [don’t] use it, then it perature data logger is a critical won’t deliver a return on invest- tool they can’t do without. “Food ment. That’s one of the biggest safety is a huge factor for us so challenges of new technology.” we use the handheld logger to measure temperature all the way MEASURE FOR MEASURE from production to transport.” Mobile apps may be getting most of the attention these OTHER STUFF days, but temperature-moni- One “really cool” area of inno- toring tools are also reaping the vation is on the sous-vide side, rewards of new tech and apps. says Brown. “Anova came out Danny Collis, president Collis with an affordable circulator Group Inc. in Richmond Hill, that starts at about $200. It’s Ont., says while they may not Bluetooth and Wi-Fi enabled be the most exciting item on a and can be controlled com- checklist, temperature-monitor- pletely with your phone — you ing tools are becoming essential just give it the parameters for $100+ Million in system wide sales in keeping things on track from cooking and remotely start the a health-and-safety perspective. machine.” 50+ locations | Spanning 5 provinces “Some temperature-monitoring The low cost makes it an ideal systems are very inexpensive and option for small franchises and can save a lot of labour. A kitch- protein cooking, he says. “You en with four walk-in refrigera- can get a couple for a countertop tors, for example could be rigged without adding hood fans. Joule for about $1,500.” is introducing an even more NotifEye, for example, is a compact sous-vide circulator wireless temperature-monitoring that is also mobile-enabled.” system for walk-in or reach-in A new tea lounge project in ur mission is to grow world class restaurant brands boxes that also sends alerts to a Vancouver’s Yaletown will be O mobile phone. The data not only among the first to showcase an that create wealth & opportunity for our partners. keeps managers up-to-speed on innovative tower tea brewing health-and-safety guidelines, the system from Alpha Dominche. Browns Socialhouse® now has over 40 franchised program will send notices via an Brown describes it as an old- internet gateway. school espresso maker in style, locations, and this year we are adding 13 more. With the HACCP Manager but the boilers underneath can from Cooper-Atkins, a handheld be controlled by an iPhone or Now we’re serving up fresh new concepts. data collection instrument for iPad. “If you want your water at recording food temperatures, 61 degrees, you can get there in data can be downloaded to a precisely 90 seconds,” he says. Our first London Bull location is up and running with ® computer for reporting and With so many options to two more under development. analysis. “It’s a huge labour sav- consider when it comes to tech- ings versus printing off a sheet. nology, Brown’s advice is to take Our next concept, Liberty Kitchen® is almost ready to make In one large chain operation a deep breath, sit back and see its appearance. Stay tuned... test environment, it has proven how things work over the longer to save 1.5 to two hours a day,” term. “I’m a big fan of trialing Collis says. new gadgets with the proviso it As a contracted producer of may not be the right solution. Franchise Development: nutritional meals to the child- The key is learning if something [email protected] care community in Toronto, works at the foundation level Food for Tots takes food tem- and build up from there.” l

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funky cheeses.” Craft Beer Market offers a series of rotating handles including the Sour Tower, which pours Lambic, Berliner Weisse or Flanders Red. Ort adds, “It’s acidic, tart and it’s not what you expect at all. It goes well with food and it’s refreshing — but difficult to make on a large scale.” The competition for shelf space at local liquor outlets and The Beer Store has led some TRENDS ON craft brewers to break into the TAP Craft Beer Market operates in foodservice industry. “I think Vancouver (right), the connection between craft Edmonton (bottom beer and food is getting closer,” right) and Calgary, offering 120 craft says Ort. “A brewpub will have a brews on tap restaurant where you will go and eat their food and drink their but David Ort, author of The Vancouver, offers 120 craft brews beer and also has a bottle shelf Canadian Craft Beer Cookbook, on tap, 50-per-cent of which are where you can buy beer to take HOP says there’s been a shift in drink- locally sourced. “There’s been home.” It’s a model that’s been TO IT ing habits. Whereas high-ABV such a big shift in the way people working for brewpubs such as With patio weather in full (alcohol by volume), hoppy are thinking right now,” when Brewsters in Western Canada and swing, craft-beer warriors IPAs (India pale ale) have been a it comes to seasonality, he says. Granite Brewery in Toronto for share the bevvys that are dominant seller for years, a new So next to the typical summer more than two decades. Guests hogging the spotlight bevvy is hogging the spotlight. best-sellers such as lagers, fruit- can dine on casual fare and then “One of the trends coming up, flavoured wheat ales and Belgian pick up a growler or bottles to BY JACKIE SLOAT-SPENCER especially for summertime drink- Witbier, the operator is noticing go. “The idea that breweries will ing, is Pilsners,” he says. “They’re the slow emergence of sour beers. own more of their chain of pro- arly this year, Restaurants lagers that originated in Czech “They’re an acquired taste, but duction and marketing will be an Canada released its annual Republic and are usually lower- they’re great for food-pairing important one,” says Ort. l “Canadian Chef Survey” alcohol, mildly sweet with a crisp as well. They Eand the number-1 trend in the finish. They’re great for hot days almost resemble foodservice industry was hardly because they go well alone or a wine because a surprise. Indeed, craft beer has with food.” of the acidity in taken the alcohol space by storm, Aside from pilsners, Rob them, so [they becoming the fastest-growing Swiderski, a certified cicerone, pair well with] category at the LCBO and rak- has been following the growing anything salt- ing in nearly $184-million in the popularity of sour beers. The based, such as past year. owner/operator of Craft Beer seafood, pork The craft-beer trends ebb Market, which operates loca- belly, cured and flow as the season changes, tions in Calgary, Edmonton and meats and

GLASS FROM THE PAST Libbey Foodservice’s glassware expert, Jerry Moore, is on a mission to get restau- rateurs to stop serving craft beer in a mixing glass. “That glass is an enormous seller for any glass manufacturer and for a lot of reasons: it’s really durable, it’s a great item for a lot of things, but it doesn’t do a beer any justice.” A better (and best-selling) option, he says, is to choose specialty glassware such as Belgian beer glassware, which pairs well with Belgian-style dubbels, porters and Russian imperial stouts. The rounded bowl allows for better heat transfer from the hand, allowing the beverage to warm slightly, plus, its curved rim traps the flavour and aroma of the beverage. “[Another] big trend is smaller-sized glassware, in terms of capacity and how much the glass holds. That’s a trend that goes along with the emergence of higher-gravity, higher ABV beers.”

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A WORLD OF

CanadianINFLUENCE chef Daniel Burns has made a name for himself with his Brooklyn, N.Y.-based restaurant Luksus BY DANIELLE SCHALK

fter finishing degrees in both mathematics and philosophy, test kitchen before embarking on his own venture in collaboration Canadian-born chef Daniel Burns decided his future was in with Danish brewer Jeppe Jarnit-Bjergsø. The restaurant, Luksus (the the restaurant business. Danish word for luxury), is tucked behind a sliding door in the beer APrior to his culinary-related epiphany, the now Michelin-starred bar Tørst (Danish for thirst). The 16-seat space offers a rotating tast- chef’s love of food had remained largely subconscious. “I didn’t really ing menu of seasonal, Nordic-influenced dishes ($125/person) with think about being a chef until after university,” he says. “I did like optional beer pairing (additional $55). The small eatery offers sched- cooking growing up and I helped out in the kitchen a lot, but it wasn’t uled seatings, with one slot available on Tuesdays and Wednesdays PHOTOS: LAUREN COLCHAMIRO [DANIEL BURNS], DREAMSTIME.COM [BITS & BITES] until later on that I realized I wanted to pursue it as a career.” and two Thursday through Sunday. The Halifax native traded the East Coast for the West Coast, The chef’s culinary style, which focuses on bright, fresh and clean where he apprenticed through Vancouver Community College and flavours, has been influenced by his wealth of experience in a num- Camosun Community College in Victoria, B.C. Burns then worked ber of famed European restaurants. “Consciously or unconsciously, briefly at Susur in Toronto before moving to the to when you prepare a dish it will be influenced by where you’ve further hone his culinary skills in a pastry position at the renowned worked, what you’ve seen, where you’ve travelled and who you’ve Fat Duck in London. cooked with,” he says. Until this point, Burns had trained exclusively as a savoury chef, In the past, Burns featured dishes such as pickled fiddlehead ferns but his time at Fat Duck began a pattern of strategically flip-flopping with spicy mustard; beef broth with thinly sliced beef heart, oyster between savoury and pastry positions at world-renowned restaurants purée and pickled pearl onions; salted plum purée with squab or around the globe, including St. John in London, England and Noma duck; and swirled bay leaf and carrot ice cream. in Copenhagen, , where he spent three years as the famed Burns’ goal for the restaurant is to keep it evolving and expanding. restaurant’s pastry chef. “I feel equally as confident on both sides,” As a result, the team at Luksus began growing its own vegetables in says Burns. “Pastry work is very organized and precise. I learned you both the restaurant’s quaint backyard and in a nearby rooftop garden. can apply many pastry work techniques back to the savory kitchen.” Burns and Jarnit-Bjergsø also plan to release a cookbook titled Food & In 2009, Burns moved to New York City to open Momofuku’s Beer, which delves into the duo’s beer pairing philosophy. l

BITS & BITES Ultimate Favourite comfort food: ingredient “Pasta or ramen” “English peas or fava beans”

Favourite/first Culinary bucket list: food memory? “I’m really excited to go to “Picking blueberries Mexico and would also like at my grandmother’s farm- to go to Peru and Japan” house in Bathurst, N.B.”

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