The 2016 Franchise Report
PIGGING OUT Meet the most versatile protein on the plate
THE MORPHING MOBILE PAYMENT SYSTEM Mobile payments are taking over the airways MADE TO ORDER Finding the ‘right franchisee’ is key to success FANNING THE FLAMES FIREHOUSE SUBS IS HEATING UP THE CANADIAN FRANCHISE LANDSCAPE
CANADIAN PUBLICATION MAIL PRODUCT SALES AGREEMENT #40063470 CANADIAN PUBLICATION foodserviceandhospitality.com $20 | FEBRUARY 2016 Brand Culture Marketing & Promotions 14-5250 Satellite Drive, Mississauga, Ontario L4W 5G5 T: 905 361 0305 F: 905 629 9305
REVISION: FA DATE: DECEMBETR 17, 2015 DOCKET: XXXX CLIENT: The French’s Food Company COLOUR: CMYK PROJECT: Table Top Ad TRIM SIZE: 8.125” x 10.875” DESCRIPTION: Foodservice & Hospitality (Kostuch) Ad BLEED SIZE: 8.625” x 11.375” CONTACT: Barbara MacDonald DATE REQUIRED: 2016 TYPE SAFETY: n/a
HOME GROWN
French’s supports Saskatchewan Farmers using 100% Canadian mustard seeds. French’s NOW also supports Southern Ontario Tomato Farmers with the addition of French’s Ketchup!
Contact us for a FREE sample & learn how we can support your business.
call 1 866 428 0119 email [email protected] visit www.frenchsfoodservice.ca
©2015 The French’s Food Company LLC VOLUME 48, NUMBER 11 FEBRUARY 2016 CONTENTS 29
24 31 Features
12 PIGGING OUT 29 GO WEST, YOUNG MAN! | 65 LIFE IN THE FAST LANE Dressed up or pared down, pork Popeyes begins exploration of new In 2016, the fast-casual segment is remains the most versatile protein Canadian markets By Danielle Schalk expected to remain an important player on the plate By Mary Luz Mejia in the Canadian limited-service 31 PIZZA FOR THE PEOPLE | restaurant category By Amy Bostock THE 2016 With limitless topping combinations, FRANCHISE REPORT Pieology is bringing its artisanal pizza 71 THE BOURBON BOOM offering to Canada By Amy Bostock B.C. and Ontario lead the way in 21 MADE TO ORDER | Canada’s rising bourbon sales Today’s franchisors know that finding 33 FRANCHISE REPORT LISTINGS | By Alan McGinty the ‘right franchisee’ will produce successful relationships that last 59 UNLEASHING POTENTIAL By Douglas P. Fisher Restaurants Canada’s annual tradeshow Departments taps into the next generation of chefs 24 FANNING THE FLAMES | and innovators By Jackie Sloat-Spencer New on the scene, Firehouse Subs’ 2 FROM THE EDITOR product, business model and ambitious 61 THE MORPHING MOBILE 5 FYI expansion plans are attracting potential PAYMENT SYSTEM 10 NOW OPEN: Jamie’s Italian, Toronto franchisees By Amy Bostock Now that the fear factor has gone, 11 FROM THE DESK OF mobile payment is taking over the ROBERT CARTER airwaves By Denise Deveau 72 CHEF’S CORNER: Jakob Lutes,
COVER PHOTO: MARGARET MULLIGAN [FIREHOUSE SUBS] Port City Royal, Saint John
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 1 FROM THE EDITOR
For daily news and announcements: @foodservicemag on Twitter and Foodservice and Hospitality on Facebook.
MAKING A STATEMENT
t’s still early enough in 2016 that it’s Panera releases a “no no list” of ingre- acceptable to talk about what lies ahead, dients, they too are making a statement Iand the changes we’re inspired to make — they care about what matters to their as we turn the page on a new year. customers and the eco system. Certainly in the past decade we’ve And when renowned New York restau- become accustomed to a dizzying rate of rateur Danny Meyer announced late last change, much of it fuelled by technology. year that his restaurants will eliminate tip- But while it may indeed be the catalyst ping and factor the cost of hourly wages driving change, or as some may claim, the into their menu prices, he too is making great disruptor, there’s infinitely more at a statement — he cares about his employ- play here. ees and wants to balance the earnings of Take a look at sustainability as an exam- the front of the house with the back of ple: while the trend, previously referred to the house, ensuring all staff is paid fairly, as greening, had its genesis more than two while forcing restaurant operators to take decades ago when consumers and busi- notice and examine their own business nesses alike started spewing the mantra model. Will tipping disappear? Not over- of reducing, recycling, and reusing, some- night. Will increased dialogue force the where along the way, our love affair with model to morph, evolve and change? You greening became broader based, encom- better believe it. passing more than just the basics of recy- In this new age of enlightenment, what cling. In fact, the term sustainability came is the next area restaurateurs need to focus Certainly in the along to replace greening and suddenly we on? More than likely, it will be the shame- “ past decade became more interested in how we treat ful food waste we are producing, and we’ve become the planet, the food products we raise and the role the restaurant industry plays in grow, and, more recently, each other. this dilemma. According to statistics from accustomed to It’s a trend playing out in various seg- the United Nation’s Food & Agriculture a dizzying rate ments across the industry. For example, Organization, a total of 1.3 billion tons of change, much where once vegetarianism was rooted in of food is wasted annually. According a personal desire to eat lighter, today veg- to a recent story in Maclean’s magazine, of it fuelled by etarianism is equally about concern for Canadians waste $31 billion in food every technology the planet. So when a world-renowned, year. Already, several chefs and operators Michelin-rated chef such as French toque are taking steps to audit their waste and ” Alain Ducasse proclaims his fine-dining put more controls in place, with more restaurant at the Plaza Athénée in Paris is surely to follow. Undoubtedly, it speaks going meatless, it’s about more than just to a brave new world, or perhaps, a kinder offering a different menu model, it’s about and gentler world. making a statement — one met with widespread interest, fuelling increased attention from other like-minded chefs around the world now forced to look at this trend with a different set of eyes. Similarly, when restaurant chains such as McDonald’s, Starbucks, Burger King and others commit to move towards cage- free eggs, or when America’s biggest poul- Rosanna Caira try producer, Tyson, decides to eliminate Editor/Publisher human antibiotics use in chicken, and [email protected]
2 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM EDITOR & PUBLISHER ROSANNA CAIRA [email protected]
ART DIRECTOR MARGARET MOORE [email protected]
MANAGING EDITOR AMY BOSTOCK [email protected] ASSOCIATE EDITOR JACKIE SLOAT-SPENCER [email protected] EDITORIAL ASSISTANT 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/CANADA STEVE HARTSIAS [email protected] ACCOUNT MANAGER/CANADA MARIA FAMA VIECILI [email protected] ACCOUNT MANAGER CHERYLL SAN JUAN [email protected]
CIRCULATION PUBLICATION PARTNERS [email protected], (905) 509-3511
ACCOUNTING MANAGER DANIELA PRICOIU [email protected]
FOUNDER MITCH KOSTUCH
ADVISORY BOARD CARA OPERATIONS KEN OTTO CORA FRANCHISE GROUP DAVID POLNY CRAVE IT RESTAURANT 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 GUELPH 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
To subscribe to F&H, visit foodserviceandhospitality.com
VOLUME 48, NUMBER 11 Published 11 times per year by Kostuch Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont., M3B 3P6. Tel: (416) 447-0888, Fax (416) 447-5333, website: foodserviceandhospitality.com.
SUBSCRIPTION RATES: 1-year subscription, $55; U.S. $80; International, $100.
Canada Post – “Canadian Publication Mail Product Sales Agreement #40063470.” Postmaster send form 33-086-173 (11-82).
RETURN MAIL TO: Kostuch Media Ltd., 23 Lesmill Rd., Suite 101, Toronto, Ont., M3B 3P6. Member of CCAB, a Division of BPA International, Restaurants Canada, The American Business Media and Magazines Canada. We acknowl- edge the financial support of the Government of Canada, through the Canadian Periodical Fund (CPF) of the Department of Canadian Heritage. Printed in Canada on recycled stock. WHERE
THERE’S
HOSPITALITY
THERE’S
EPSON
WHERE THERE’S BUSINESS THERE’S EPSON Every day, hospitality operations around the world rely on Epson® Business Solutions to enhance productivity while improving the bottom line. Offering a full suite of innovative products, Epson Business Solutions are certified for the broadest range of software applications. Whether you require high performance in the most demanding service environments, or a solution custom-tailored to your POS platform, Epson provides the widest range of printers and connectivity offerings. For more information on how Epson Business Solutions are helping hospitality enterprises exceed their vision, visit epson.ca/forhospitality
EPSON is a registered trademark and EPSON Exceed Your Vision is a registered logomark of Seiko Epson Corporation. All other product and brand names are trademarks and/or registered trademarks of their respective companies. Epson disclaims any and all rights in these marks. Copyright 2015 Epson America, Inc.
Epson EBS Ad Food Hospitality Feb Issue.indd 1 2016-01-13 3:30 PM Docket #: T15-224 Trim: 8.125 inches x 10.875 inches Client: Epson Bleed: .125 inches all sides File Name: Epson EBS Food Service and Hospitality Typesafe: .25 all sides PH / Version: February Issue Colors: 4 /0 Process Colors Date: Jan 2015
C M Y K xxx xxx xxx MONTHLY NEWS AND UPDATES FOR THE FOODSERVICE INDUSTRY FYI THE CAFÉ STANDS ALONE BREAKFAST McDonald’s Canada introduces its new McCafé concept in downtown Toronto AND BEYOND
Torontonians who struggle to make it to McDonald’s before the breakfast cut-off can now rest easy. The new standalone McCafé locations offer customers the chance to enjoy an Egg McMuffin or bagel sandwich anytime. “The whole menu is an all-day menu,” explains Catherine Crozier, head of McCafé Platform (Business) at McDonald’s Canada. “This site gives us the flexibility to offer the Egg McMuffins all day and not surprisingly, there has been great demand for them.” All-day breakfast isn’t likely to be fea- tured at Canadian McDonald’s restaurants any time soon. Amid the BY DANIELLE SCHALK WITH FILES FROM AMY BOSTOCK hype caused by the roll- out of all-day break- cDonald’s Canada has ushered in the newest location features seating for 19, the next chapter of the McCafé allowing for a more relaxed café ambiance. fast at U.S. loca- Mbrand, opening North America’s “We’re putting the café in McCafé and tions, McDonald’s first standalone McCafé on Dec. 9 in making the brand a destination in its own Canada announced Toronto’s Union Station. right,” said John Betts (pictured above), presi- it currently has no The company launched the new concept dent and CEO of McDonald’s Canada. “The plans to implement all- with no pre-opening fanfare, opting for the new standalone McCafé locations allow us day breakfast at its restaurants. ‘build it and they will come’ approach. “This to build on our strong coffee credentials and is a concept we wanted to just bring to create even stronger connections with our multigrain bread and a croissant sandwich the public and wait for their reaction,” said brand by offering guests the more complete with apple, brie and honey — an item exclu- Catherine Crozier, head of McCafé Platform café menu they’ve been asking us for.” sive to the standalone locations. “We have a (Business) at McDonald’s Canada. “Public The “express” concept was designed to really innovative and comprehensive menu reaction has just been tremendous. It abso- meet the needs of the “on-the-go workday that is delivering on what guests were look- lutely has tapped into an unmet demand.” adult consumer,” Crozier says. To this end, the ing for, which is more things to go with their The second standalone location launched new McCafés offer a variety of grab-and-go [McCafé] beverages all day,” adds Crozier. a month later at Toronto’s First Canadian and easily portable menu items such as sal- All locations will also feature self-ordering Place in much the same fashion. Unlike the ads, sandwiches and wraps, as well as made- kiosks, mobile-device charging stations, and commuter-focused Union Station McCafé, to-order items such as a grilled cheese on free Wi-Fi.
THE McCAFÉ JOURNEY The concept for McCafé standalones was born in 2011, the same year that the McCafé brand launched in Canada. “It’s been a journey to get here,” says Catherine Crozier, head of McCafé Platform (Business) at McDonald’s Canada. “The time is right — we have built up so much momentum and demand [with McCafé] … so the time was right to branch out and we know we have a scalable concept.” The standalone locations also feature McDonald’s new McCafé Bakery items, including authentic French crois- sants, a Mini Chocolatine and cream-cheese Danishes.
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 5 FYI
FRIENDLY COMPETITION COMING
Junior Culinary Team EVENTS Canada welcomed its JAN. 29-FEB. 11: Winterlicious, various closest rivals to its home locations, Toronto. Email: spevspon@toron- base at Niagara College’s to.ca; website: toronto.ca/winterlicious Niagara-on-the-Lake Campus in January. The FEB. 4: CAFP Top Management Night, visit provided both national International Centre, Mississauga, Ont. Tel: 604-248-0215; email: national@cafp. junior teams with the ca; website: cafp.ca opportunity to practice for the 2016 Culinary Olympics, FEB. 11: Friends of We Care – Edmonton formally known as the Bowling Challenge, Ed’s Rec Room – West Internationale Kochkunst Edmonton Mall, Edmonton. Website: Ausstellung (IKA) Culinary friendsofwecare.org Olympics. Held every four years in Erfurt, Germany, FEB. 17-18: Ontario Fruit and Vegetable Convention, Scotiabank Convention the international competi- Centre, Niagara Falls, Ont. Tel: 905-945- tion is considered the pin- 5363; email: [email protected]; website: nacle of culinary excellence. ofvc.ca “This is an amazing opportunity to see the top cook apprentices in North America all in one kitchen for one event. The number of young talent is unprecedented and it’s an honour to FEB. 23-25: CFA Annual General Meeting, have them all here on campus,” says CFWI dean Craig Youdale who manages Junior Culinary Ottawa Marriott Hotel, Ottawa. Tel: 613- Team Canada. “This is the Olympic year and this is the perfect way to start our conditioning 236-3633; email: [email protected]; for the Olympics this fall.” During the American team’s stay, the two junior teams prepared website: cfa-fca.ca a six-course meal for a sold-out gala hosted at Niagara FEB. 27-MARCH 3: The Canadian Society College’s Niagara-on-the-Lake Campus, with each team of Club Managers’ 2016 National Food & NEW! responsible for preparing alternate courses. Beverage Conference, Fort Garry Hotel, Glenray® Premium Winnipeg. Website: cscm.org FEB. 28-MARCH 1: The Restaurants Canada Show, The Enercare Centre, Toronto. Tel: 416-649-4233; email: [email protected]; website: restaurantshow.ca
MARCH 1-2: Canadian Restaurant Investment Summit (CRIS), Hockey Hall of Fame and Hilton Toronto Hotel, Toronto. ●Fast heat-up with 800 watts; Tel: 866-887-4453; email: yalilabarreda@ rethermalizes refrigerated product to bigpictureconferences.ca; website: 160ºF in 42 minutes! MILESTONE OPENING restaurantinvest.ca ●Cook, warm, retherm and hold soup, Canada’s oldest and largest full-service restaurant stew or chili all in one kettle company recently marked a significant milestone. MARCH 1-2: Canadian Restaurant ●Improved interior insulation helps Cara Operations Ltd. celebrated the opening of its Operators Summit (CROS), Hockey Hall maintain product of Fame and Hilton Toronto Hotel, Toronto. 1,000th restaurant — a Fionn MacCool’s, located in temperatures Tel: 866-887-4453; email: yalilabarreda@ Oshawa, Ont. — in December. “Not only does this ●Cooler exterior bigpictureconferences.ca; website: surface new Fionn MacCool’s represent Cara’s 1,000th store, restaurantoperator.ca ●10.5 quarts it is one of 37 new restaurants Cara opened in 2015,” ●Stainless steel or says Grant Cobb, SVP, Casual-Dining Division at MARCH 2-3: 12th Annual North American black shell Cara. “Cara’s new restaurant growth includes openings Summit on Food Safety, International Order yours today! from Newfoundland to British Columbia and many Plaza Hotel, Toronto. Tel: 866-298-9343, reflect new modern designs that we are extremely ext. 200; email: customercare@ strategyinstitute.com; website: proud of.” Cara’s total restaurant count was recently foodsafetycanada.com P: 216-587-3400 ext. 235 bolstered by its acquisition of New York Fries, which [email protected] boasts 159 locations. MORE EVENTS AT http://bit.ly/FHevents
6 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM
FYI
IN BRIEF RESTO BUZZ Kahala Brands has inked a deal Ayden Kitchen and Bar’s Jesse Zuber is set to launch a new to acquire California-based project in Saskatoon — Little Grouse on the Prairie. The res- frozen-yogurt concept Pinkberry. taurant is expected to open its doors this month, and will offer two The deal will also see the chain sizes of an alla famiglia menu, which will change regularly depend- operated from Kahala’s head ing on seasonal offerings…Oliver & Bonacini’s latest project, office in Scottsdale, Ariz… Beaumont Kitchen is set to open this month in Saks Fifth Avenue Subway has committed to serv- at Sherway Gardens in Toronto, featuring eclectic Californian cuisine. ing only eggs from cage-free Offering a range of relaxed and formal-dining options, the space will hens at all of its 30,000 North feature a warm atmosphere with a statement bar that runs through- Belsito Trattoria-Vino American locations by 2025. The out the restaurant…Gino Guercio has opened a new restaurant transition to cage-free eggs has in Kleinburg, Ont. The 76-seat Belsito Trattoria-Vino features a menu that fuses tradition with innovative cooking already begun in select markets techniques and combines authentic Mediterranean ingredients with premium local and imported products. Offerings in the U.S. and Canada…Boston include grana padano ($7) and linguini frutti di mare “al cartoccio” featuring P.E.I. mussels, littleneck clams, Thai black Pizza International Inc. has tiger shrimps, calamari, baby octopus, scallops, tomato and white wine sauce ($25)…Kupfert & Kim has opened a partnered with global restaura- fast-casual restaurant in Toronto. The brand, originally launched in 2013, offers a minimally processed vegan and gluten- teur HMSHost to open Boston free menu including a chipotle black-bean burger with lettuce, pickled jalapeño, pico de gallo, guacamole, chipotle aioli Pizza’s first airport location at and garlic cashew aioli ($11)... Plans for chef Masaharu Morimoto’s much-anticipated Toronto outpost have been Edmonton International Airport. scrapped. The project was expected to open in April 2016 in the Theatre Park condo development, but several building The new location offers a blend delays led to the plug being pulled on what would have been Canada’s first Morimoto Restaurant. of signature items, gourmet piz- zas and travel-friendly foods, Opening a new restaurant? Let us in on the buzz. Send a high-res image, menu and background information about the as well as a breakfast menu new establishment to [email protected]. for early-morning travellers…
EXPLORE THE ABUNDANCE OF NEW IDEAS AND FRESH THINKING
Discover it all at the Gordon Food Service® Show. Toronto • March 23 Toronto Congress Center, Hall A/B/C 9 a.m.–5 p.m. Register at gfs.com/show FYI
Paris-based website La Liste chef at New York City’s Daniel revealed its inaugural list of restaurant and as executive 1,000 Remarkable Restaurants chef of Café Boulud at the Four across the globe. Nine Canadian Seasons Hotel Toronto…Patrick restaurants on the list include Grismer will resign as CFO, Yum Hawksworth Restaurant, Brands, Inc., effective Feb. 19. Vancouver; Toque!, Montreal Grismer has served as CFO of and Initiale, Quebec City… Yum since 2012. Career Education Corporation (CEC) will begin a gradual pro- SUPPLYSIDE cess of discontinuing the opera- After spending 2015 refining tions of its Le Cordon Bleu North its product recipes, Parsippany, America colleges of culinary N.J.-based French’s Food arts. The closure of these CEC Company has announced that run campuses will not affect 90 per cent of its products are the operation of Le Cordon free from artificial flavours, Bleu International worldwide colourants, dyes or high- including the Le Cordon Bleu fructose corn syrup. The com- Ottawa…Uber is diving deeper pany has also premiered new into food delivery with its new products that include simple, standalone UberEats app, which local ingredients: French’s is exclusive to Toronto. The new Buffalo Ketchup and Garlic app will give users access to Ketchup, made with 100-per- Uber’s expanded foodservice, as cent Canadian tomatoes; as well as extended delivery hours well as French’s Super Yellow and an instant delivery option Mustard, made with 100-per- that promises lunch delivery cent Canadian mustard seeds in 10 minutes…Mobile meal and extra turmeric spice… delivery company Feast has Sheboygan, Wis.-based The officially launched its iOS app. Vollrath Company, LLC has The app will be used to deliver introduced the Mini Soft-Serve healthy, high quality meals — Freezer, ideal for small res- created by the Feast team — to taurants, delis, bakeries, food its customers…Thai Express is trucks and convenience stores set to open two new locations at looking to expand their frozen Calgary International Airport in and cold dispensed bever- the fall. It is scheduled to open age offerings without giving more than 285 locations across up valuable counter space. Canada and worldwide by the Operable with both commercial end of 2016. dry and liquid mixes, the Mini Soft Serve Freezer can make a PEOPLE variety of high-profit margin fro- Ottawa native Ben Ing is the new zen treats including ice milk, ice head chef of the famed Copen- cream, yogurt and frozen dietary hagen-based Noma. He will be desserts…Peach Glen, Pa.-based taking over during a transitional Knouse Foods has added four time for the restaurant as Noma new flavours to its Musselman’s closes its doors to focus on open- unsweetened Natural Apple Sauce ing a new space in 2017…Tyler line, including cherry, cinnamon, Shedden is the new culinary peach and strawberry. This 4.5- director for Chase Hospitality oz. line of products also includes Group. Shedden brings interna- the differentiated two oz. and six tional experience to the role — oz. sizes, as well as the squeeze most notably as private dining pouch and 4 oz. cups.
FOODSERVICEANDHOSPITALITY.COM NOW OPEN
MANGIA! The first Jamie’s Italian restaurant in North America opens at Toronto’s Yorkdale Shopping Centre
THE JOINT VENTURE BETWEEN Jamie Oliver and The King Street Food Company, which owns Toronto’s Buca, Jacobs & Co. Steakhouse and The Saint, features a simple, fresh and authen- tic menu and a warm, welcoming atmosphere. The interior boasts high ceilings, an open kitchen and expansive bar (far left). Pasta is made fresh in-house daily and includes its famous prawn linguine (inset), available in full and half portions, featuring fried garlicky prawns, fennel, tomatoes, chili, saffron, fish broth and arugula ($10.50/$19.95). The cured meat selection (left) includes fennel salami, pistachio mortadella and prosciutto and schiacciata picante and is served on a plank with mini buffalo mozzarella, pecorino cheese and chili jam as well as a selection of pickles, olives and crunchy slaw ($11.95/per- son). Artisanal pizzas start at $14.95 and offer combinations such as prosciutto and arugula, Margherita and Fiorentina featuring lemony ricotta, sprouting greens, free-range eggs, anchovies and Parmigiano Reggiano. Jamie’s Italian also offers a kids’ menu, with items such as chicken lollipops and cheesy pasta bake (from $12.95).
10 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM FROM THE DESK OF ROBERT CARTER
SERVING UP PROFITS Studies show breakfast is still the most important meal of the day
t’s long been suggested that breakfast is the most important meal of the day. While this Iadage has its origins in health and wellness, the modern-day foodservice operator has also come to learn about the importance of breakfast as a daypart. Case in point, in mid-December McDonald’s Canada opened its first stand- alone McCafé in Toronto’s Union Station. STARTING THE DAY OFF RIGHT The breakfast daypart is becoming more profitable for operators, with Given the company’s recent successful intro- chains such as McDonald’s Canada exploring all-day breakfast offerings duction of all-day breakfast in the U.S., the move to expand its McCafé brand in Canada comes as no surprise. After all, in Checkout Tracking, analyzed a database to 47 per cent post-launch, according to the Canadian QSR market, breakfast/brunch containing receipts from more than 27,000 the NPD Checkout Tracking study. While is the fastest-growing daypart with 22 per McDonald’s static buyers who visited before all-day breakfast has not yet been rolled cent growth year-over-year. This number and after the McDonald’s all-day breakfast out in Canada, there is reason to believe the far outpaces the overall breakfast/brunch launch and found there was a sizeable lift in Canadian market would react positively to daypart growth rate of two per cent of total breakfast food orders throughout the day. an all-day breakfast offering; especially when foodservice. Similarly, in the U.S., breakfast/ Looking at the purchase behaviour of you consider the QSR breakfast/brunch seg- morning meal visits grew by five per cent McDonald’s breakfast buyers who purchased ment in Canada is worth approximately $5 in the year ending June 2015 over the same breakfast foods beyond traditional breakfast billion and savvy operators are continuously period last year (when visits grew by two per hours, NPD found a third of these buyers had looking for ways to win share and increase cent), according to The NPD Group. Quick- not purchased from McDonald’s at all prior consumer visits. Given the demand and service restaurants, including retail foodser- to the all-day breakfast launch on Oct. 6. the prospect for growth in the space, it’s vice, were responsible for most of the visit The study also found McDonald’s customers no wonder brands such as McDonald’s, gains at breakfast. did order breakfast foods beyond traditional Tim Hortons and Starbucks are competing breakfast hours, and were most interested in feverishly to stake a claim. There are also THE ARGUMENT FOR ordering these items at lunch — the chain’s a number of smaller operators in the fast- ALL-DAY BREAKFAST busiest time of day. Among consumers pur- casual space who are looking to make their In the U.S., an initial read on McDonald’s chasing breakfast foods at McDonald’s dur- mark on the breakfast segment. Regardless recent breakfast offering finds that, at the ing lunch hours, 61 per cent of receipts also of whether or not McDonald’s ends up outset, the program has been successful in included non-breakfast items, contributing bringing its all-day breakfast offering to attracting new or lapsed buyers and increas- to a bump in average check size. Canada, the popularity of the breakfast day- ing lunch visits. The NPD study, which Breakfast food orders throughout the part is sure to attract significant attention is based on its receipt-harvesting service, day increased from 39 per cent pre-launch in 2016. 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.
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 11 PIGGING OUT Dressed up or pared down, pork remains the most versatile protein on the plate
BY MARY LUZ MEJIA PHOTOS: CANADA PORK INTERNATIONAL
12 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM FOOD FILE
hen Canadians want a protein that sticks to their ribs, they turn to pork. Chefs, restaura- teurs and QSR company heads agree — pork remains popular because it’s the protein equivalent of the little black dress. It can be caramelized, pulled, smoked, roasted, braised, fried or barbecued, and transformed from an Wumami-rich burger topping to the headline attraction. Its various cuts provide a great fat cap to keep things moist, or remain so lean it can rival chicken. Today’s chefs across Canada are putting pork front and centre on the plate, dressing it up to suit diners’ tastes.
AN INCREASINGLY POPULAR PROTEIN CHOICE Jill Failla, associate editor of Consumer Research at Chicago-based Technomic Inc., says the menus of 177 of the Top 200 Canadian chains (or 89 per cent of them) feature pork in some way — and those that don’t are likely a dessert or beverage establishment. “Pork is a versatile protein, featured in a wide variety of dishes — from sausage on pizza, to bacon on just about anything. It’s also less expensive than beef, making it an appealing option for opera- tors,” she adds. The team at South St. Burger agrees. “As we are primarily a burger restaurant, our pork offerings consist of bacon and our recently launched Oktoberfest pork sausage ($5.25 solo, $9.95 combo),” says company VP Thomas McNaughtan. “Bacon is a staple in any burger shop and we are no exception, with over 25 per PIGGING OUT cent of our customers ordering — even our veggie burger.” While bacon atop a veggie burger might seem like a contradiction, McNaughtan believes there’s a real comfort food element associated with the salty strips. “Bacon can literally make anything taste better and really seems to make people happy,” he says. South St. Burger serves crispy, Applewood-smoked bacon sourced from Maple Leaf Foods atop its four-ounce True North Burger, along with cheddar, maple-infused
PHOTOS: CANADA PORK INTERNATIONAL onions and a house-made signature sauce
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 13 FOOD FILE
($7.15 solo or $11.85 for the combo). The recently launched Secret Menu features the Chicken Club, a grilled chicken breast topped with applewood-smoked bacon, Swiss cheese and the customer’s choice of toppings ($10).
GLOBAL FLAVOURS Michael Young, VP Technical Programs and Marketing Services for Canada Pork International (the parent company of Canada Pork) says pork’s underutilized cuts — including bellies, jowls and offal (entrails and organs) — have become more popular in the marketplace, both domestic and for export. Another trend he sees gaining momentum is domestic ALL DRESSED UP Pork is chef and retailer interest in export qual- front and centre in dishes ity pork that’s specifically selected based such as grilled collar butt on its marbling scores, fat colour and steak (bottom left), pork stir fry (below) and pulled pork meat colour (as well as texture and firm- tacos (right) ness). “This is excellent, high-end pork meat that’s being exported primarily to
WET OR DRY — THAT’S THE RUB Wet, dry, tangy, sweet or savoury, there’s a world of fla- vour for chefs to play around with when it comes to rubs. At Indochine Banh Mi in Halifax, it’s all about the wet rub, using Asian and Vietnamese flavours to highlight pork’s versatility in everything from sates to caramelized pork bellies. At The Stockyards in Toronto, owner Tom Davis is using less to get more. He used to dry rub and smoke — but not anymore. If you add a dry rub too early, he Japan and Korea,” says Young. “For this kind of meat to stay warns, the sugars in the rub here, it has to compete with the export market. When demand caramelize, creating a barrier increases, it will give producers and processors the signals they to your ribs or brisket that will need to get that quality to the domestic market.” And it seems add acrid flavour to whatever those most receptive to trying new iterations on the pork theme you’re smoking. Hence, his
skew towards a younger demographic. Failla says “Two in five PHOTOS: CANADA PORK INTERNATIONAL Texas-style approach, “You younger consumers (aged 18 to 34) want to try more pork have to make sure the skin on your meat is dry so that dishes made with ethnic flavours and ingredients.” smoke can penetrate it. We Liz Smith, owner/manager of Halifax-based Indochine add salt and pepper and then Banh Mi, agrees. Her clientele skews a bit older (24 to 40), offer house-made sauce on and she describes them as “adventurous eaters — people who the side, so you can taste have travelled or lived in other places,” and hence seek out the meat instead of a rub,” flavour-forward offerings. Her traditional Vietnamese menu he says. features 30 per cent pork-based items in everything from banh
14 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM 2016-01-17 6:31 PM
™ ™ processors are CFIA are processors TM ): CANADA’S ON-FARM QUALITY ON-FARM ): CANADA’S promotes best-management practices practices best-management promotes ® ® AND SAFETY ASSURANCE SYSTEM. AND SAFETY ASSURANCE federally registered HACCP approved plants approved HACCP registered federally freshness, for standards the highest maintaining www.inspection.gc.ca quality and safety. for animal care and food safety to ensure the ensure to safety and food animal care for pork in the world. and safest quality best www.cqa-aqc.ca CQA THE CODES RESPONSIBLE ANIMAL CARE: HANDLING AND THE CARE FOR OF PRACTICE OF PIGS IN CANADA. developed nationally are of practice The codes transportation housing, care, guidelines for www.nfacc.ca and animal husbandry. CANADA: PIGTRACE IDENTIFICATION LIVESTOCK NATIONAL SYSTEM. AND TRACEABILITY to in North America country Canada is the only and a national swine identification implement participation with mandatory system traceability of level ensuring the highest by all producers, www.pigtrace.ca health and safety. herd HORMONES: RAISED WITHOUT ADDED GROWTH hormones do not use growth Canadian farmers pigs. raise to QUALITY AND PROCESSING SYSTEM: SAFETY ASSURANCE Pork Canadian Verified LOCALLY FARMED LOCALLY APPROVED FEDERALLY DISTRIBUTED NATIONALLY QUALITY ASSURANCE CANADIAN (CQA
FOR MORE INFORMATION ABOUT VERIFIED CANADIAN PORK ABOUT VERIFIED CANADIAN MORE INFORMATION FOR PORK PRODUCERS ALLIANCE OF INNOVATIVE PORK IS A NATIONAL CANADA DRIVING TRUST, CONSUMER BUILDING TO COMMITTED PROCESSORS MEAT AND CONSUMER DEMAND. AND GROWING MARKETING SOLUTIONS SUSTAINABLE CANADA PORK INTERNATIONAL PORK INTERNATIONAL CANADA T / +1 613 236-9886 E / [email protected] WWW.CANADAPORK.COM
FARM TO TABLE TABLE TO FARM ASSURANCE QUALITY
VERIFIED CANADIAN PORK CANADIAN
This material has been made possible through Growing Forward 2, a federal-provincial-territorial initiative VCP_FSHM_8.125x10.875_2016.indd 1
PHOTOS: CANADA PORK INTERNATIONAL FOOD FILE
mi Vietnamese sandwiches to the bun, or rice noodle bowls. “No Vietnamese menu would be complete without pork,” she says, adding, “Our most popular banh mi filling options are pork.” These include using local, lean ground pork combined with fresh basil, garlic, fish sauce and chilies in the pork meatball bahn mi, a marinated local pork belly that’s caramelized, or a traditional Vietnamese pork sate and oven-grilled pork option. And finally, there’s the recently introduced Spicy BBQ Pork banh mi, which combines Korean Gochujang chili paste with a chili flake mari- nade (all banh mi sell for $7.48). The sate and BBQ pork also make their way in the rice bowl or bun dishes ($9.95 to $11.95). “These are growing in popularity to the point that, someday, we hope people will order pork as much as they order the chicken options,” says Smith. At The Stockyards: Smokehouse and Larder in Toronto, owner SOFT ARTISAN BREAD Tom Davis offers a taste of home-style barbecue on a menu featur- ing 45 per cent pork. It makes its own sausages and terrines and the team is even developing its own Spam, which will be used on its version of an Eggs Benedict — featuring a seared slice of Spam, (Ctd. on p.18)
BISTRO
LOW AND SLOW Many pork cuts are ideal for CHERRY & GREEK YOGURT DANISH slow cooked comfort food such as osso bucco
THIS LITTLE PIGGY GOES TO MARKET Canadian producers will be offering a new brand of pork boasting high- quality protein backed by a traceability system and quality-assurance program. Now available for the Canadian foodservice market, Verified Canadian Pork is minimally processed and contains no growth hormones or trans fats. A Canadian Quality Assurance program ensures high stan- PHOTOS: CANADA PORK INTERNATIONAL dards will be met while an on-farm safety system promotes best practices with regard to animal care. Verified Canadian Pork is a member of Pigtrace Canada, which tracks pork products with ear tags or tattoos so they can be easily identified in the case of food-safety issues. Verified Canadian Pork is CHOCOLATE AVALANCHE managed and implemented by Canada Pork, and the product can currently be found at Conestoga Meat Packers Ltd., Donald’s Fine Foods, Maple Leaf Foods Inc., HyLife Foods LP, Olymel, Thunder Creek Pork Inc. and Sunterra Meats Ltd. At Bridor Inc., baking is a passion we
have shared for generations. FOODSERVICEANDHOSPITALITY.COM 450 641-1265 • 1 800 361-1450 • bridor.com PHOTOS: CANADA PORK INTERNATIONAL FOOD FILE
(Ctd. from p.16) served over a grit corn cake and topped with a deep-fried poached serves from the pantry). Chef Guillermo Anderson is the in-house egg and red-eye gravy Hollandaise ($13 to $14). Most of its break- charcutier and cured pork is featured in several of his preparations. fast items feature pork (house dry-cured smoked bacon or sausage) “Charcuterie is the enduringly popular choice as it’s an artisan and the burgers are often topped with bacon. One of its sleeper hits product that’s difficult to prepare and is well respected; charcuterie is Brussels sprouts roasted in bacon fat, served with crisped bacon strongly reflects the quality of the base ingredient.” slivers and tossed in Sriracha ($6). The type of pork used is crucial to the final product, says Heinrich. Davis says while pork remains less expensive than beef and Richmond Station only buys antibiotic and hormone-free whole lamb, its price has increased 25 to 27 per cent since last year. The hogs from small, local producers and ideally heritage breeds such as price of pork bellies, used to make bacon, replete with what Davis Berkshire or Tamworth. Larger, older animals, whose meat has what calls bacon’s dopamine inducing scent, has increased in particular. the chefs assert as “more flavour.” are preferred. A healthy fat cap on “I’m seeing corporate QSRs quick to pick up on pork trends and a hog means other, usually leaner meats such as chicken or venison independent chef-owned restaurants, too. There’s a Korean pulled get confited in pork fat. Heinrich says it’s common for ground meat pork at Subway and I see a rise in Korean-style barbecue sauce. in stew, sausage or a pâté to contain pork as well. Its pulled pork ravi- Pork products are versatile and cheaper than beef or chicken, which oli ($25) served with romesco sauce, kale and baby leeks is on high makes them a popular choice.” rotation right now, but Heinrich’s favourite is the Presskopf, or “press head.” “We take the pig’s head and poach it until it’s falling off the GOING WHOLE HOG bone, then pick off all the meat and skin and mix it with mustard, Instead of choosing less expensive cuts, the team behind Toronto’s pickles and herbs before pressing into a terrine,” he explains. The sliced Richmond Station buys a whole hog and breaks it down in-house, “headcheese” can also be breaded and fried to be served on a salad, in once a week. “We are constantly working on new methods for the a sandwich or with a chutney on the charcuterie board ($16). cookery and butchery of pork. Since we only buy the whole animal, Any way you slice it, restaurateurs are making good use of every we have a great deal of freedom to play around with our tech- cut — from the lean bits such as tenderloin to the animal’s fat nique,” says chef/owner Carl Heinrich. The restaurant’s most popu- cap — putting flavour first and giving diners an infinite number of lar conduit to selling pork is its charcuterie plates ($16 with pre- ways to enjoy this versatile protein. l
The next geneaton
Come see us at the Restauants Canada Show Febuay , & ach Booth
The ony ntegent cookng system wodwde that senses, ecognzes, thnks ahead, eans fom you, and even communcates wth you to ceate pefect esuts evey tme. Gves a ot. Demands tte. The pefect assstant.
www.atonacanada.com Cook on wth us! s On!
18 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM
Ad_3375x4875Zoll_Food_CAN_engl_Messe.indd 1 19.01.2016 08:44:48 APPLIED SCIENCE. MAGICAL RESULTS. Safety . Mobility . Efficiency . Precision
With the industry’s most complete line of awarding-winning induction cooking and warming products, Vollrath is changing the way you look at cooking and warming. To learn more, visit VLRTH.CO/VOLLRATH-INDUCTION. franchise opportunities
when opportunity + passion come together, you control your own destiny.
Live the emotion. visit us Experience the thrill. shoelessjoes.ca/franchising/ Enjoy the teamwork. /ShoelessJoes @goShoeless Join our team today! THE 2016 FRANCHISE REPORT MADE TO ORDER
Today’s franchisors know that finding the ‘right franchisee’ will produce successful relationships that last
BY DOUGLAS P. FISHER
here are approximately ers within the Canadian market. But These four companies alone rep- 1,300 franchise brands while it may look like more, a little resent more than 25 per cent of the operating more than more than 40 per cent (31,200) of franchise units within the restaurant 78,000 franchise outlets franchise units in Canada are in the sector. With the addition of the other in Canada — generat- foodservice sector. Of those, 3,800 major operators such as Burger King, Ting more than $68 billion in revenue operate Tim Hortons locations; Wendy’s, Yogen Früz, Boston Pizza, every year. More than one million 1,800 operate McDonald’s locations; Pizza Pizza and The Keg, it becomes Canadians are employed directly or 2,000 operate MTY locations under apparent that approximately 10 res- indirectly by the franchise sector, 30 brands; and 1,000 operate Cara taurant companies are operating making it one of the largest employ- locations under eight brands. more than 50 per cent of the food-
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 21 THE 2016 FRANCHISE REPORT
service franchise units in Canada. The logic FINDING THE ‘RIGHT FRANCHISEE’ here suggests the remaining 50 per cent of For franchisors — and for potential fran- THE HIT LIST units (approximately 15,000) are operated by chisees looking for a new opportunity — a Canada’s top franchise as many as 260 to 300 brands — or about 52 matchmaking process that assesses a variety performers by sales units per brand. Many have five units, some of personality and business acumen-related in 2014 are as follows: have 10, 20 or 30 — but all are considered matters is an important decision-making small relative to the overall market. tool. A bad franchisee fit usually ends in ter- Tim Hortons Inc. Some brands are new, having only built mination or court; burns a lot of emotional a few units to date, but many, if not most of and reputational capital; and is a waste of $7.3 billion the brands are long-standing concepts that time and money for both sides. Investing in have failed to grow at a pace reflecting the top finding the right franchisee — and making McDonald’s Restaurants organizations. So what do larger operators sure your potential franchisor is one you can of Canada Ltd. have that the smaller ones do not? They know live with — is determined by the effort and how to choose their franchisees and make a strategy put into vetting franchisees. * billion match that will last. $3.8 Subway THE LONG HAUL $1.4 billion
During the 30 years Sebastian Fuschini has been Boston Pizza overseeing Pizza Pizza’s franchise expansion, he has witnessed the evolution of the business. “Franchising International Inc. as a whole has become more sophisticated,” says the SVP of Franchising, citing disclosure laws imple- $1 billion mented by the provincial governments and the open lines of communication between the franchisor and A&W Food Services the franchisee. “It truly has to be a transparent rela- of Canada Inc. tionship.” That transparency has helped the Toronto-based million QSR flourish across the country, and the year ahead $985.6 will see expansion in Manitoba, Saskatchewan, INDICATES ESTIMATE Quebec and B.C. To make a seamless transition, the * head-office team is on hand to help its franchisees SOURCE: FOODSERVICE AND HOSPITALITY’S TOP 100 REPORT, BASED ON 2014 GROSS SALES find the right location, negotiate leases and handle municipal regulations, while inside the restaurant, the team assists with sourcing equipment, fixtures and furniture, with an emphasis on maximizing space and function- ality. To prep new franchisees, Pizza Pizza offers a training program lasting between 10 and 14 weeks, depending on the franchisee’s ability and experience. A support team is also on-hand dur- ing the first few weeks of operations to assist the KNOW THY FRANCHISEE new owner in running the establishment. And To set up a fully integrated franchise system while Pizza Pizza franchisees don’t necessarily that supports franchisees, brands first need need a foodservice background to succeed in the to set up a ‘franchisee profile’ — an outline business, Fuschini says the willingness to work of the qualities and factors the franchisor outside traditional business hours, strong leader- believes would result in a ‘best fit’ franchisee. ship skills and customer-service skills will help a fledgling franchisee flourish. “We can First, a franchisor needs to draft a set of train those kinds of skills, but it’s hard to train somebody to want to deliver good customer criteria outlining key characteristics of suc- service,” he adds. – Jackie Sloat-Spencer cessful performance within the company.
22 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM THE 2016 FRANCHISE REPORT
While these criteria are not part of the current stable of franchisees required Franchise Disclosure Documents, and establish success- this type of documentation can be used by ful characteristics — both parties to fully understand the work- helping them formu- loads, responsibilities and accountability nec- late a better profile essary for the potential franchisee to succeed. going forward. The franchisor must clearly inform the Additionally, it is franchisee about the work to be undertaken imperative to look at and the franchisee must fully understand whether the potential these criteria before signing on the dotted franchisee is going to line. While small franchisors with fewer be compatible with than five units may have difficulty estab- your system. For lishing hard benchmarks, operators with example, will they 10 or more units can examine their current provide the required hands-on leadership at the store level? If YOUNG BLOOD you can define what that means to your firm, file is likely the best operator. In some cases, A&W is tapping into the millennial market as you can outline the leadership role in detail a good franchisor sees the potential in a fran- part of a brand-new program geared towards and assess the potential franchisee; and they chisee who does not have sufficient funding. setting up young franchisees at A&W restau- can determine if the criteria is suitable to In those cases, it has been shown that helping rants in urban markets. “What we see is that them on a long-term basis. If everyone knows finance the odd franchisee inevitably results this generation is very entrepreneurial and has grown up seeing start-up businesses the demands upfront, there will be fewer dif- in a franchisor’s best franchisee. and university students creating multi-billion- ferences along the way. dollar businesses,” explains Susan Senecal, Finally, once the system is large enough, EMBRACE CHANGE president and COO at A&W Food Services current franchisees can be segmented into As the franchise system evolves, brands can of Canada Inc. “But for a lot of people in top, middle and poor performers and mar- easily modify franchisee profile guidelines the millennial generation, they’re also look- keting and recruitment efforts can be focused to meet the need for different types of fran- ing for a structure and a formula, a method on clearly defined groups of potential fran- chisees. Initially, more entrepreneurial risk- towards success.” In early January, the North chisees meeting the ‘top performer’ criteria. takers may be needed, while later in the life Vancouver-based chain premiered its Urban Identifying what makes the top performers of the franchise system those who are able to Franchise program, which requires an initial successful provides an opportunity for fran- perform within a more complex set of guide- franchise fee of $55,000 — a lower point-of- chisors to retrain poor performers using the lines will be key. As the number of franchisees entry than traditional A&W franchises. Young franchisees will spend a year learn- successful criteria of top operators. grows, even if they are all ‘top tier,’ some will ing the ropes at an A&W restaurant in addi- In a recent article in the Fall 2015 edition always outperform others, allowing the fran- tion to receiving support and training in areas of The Franchise Voice, Peter Druxerman, VP chisor to continually modify and strengthen such as hiring, recruitment, performance of Druxy’s Famous Deli was quoted as saying, the franchisee selection process. evaluation and performance management, “We spend too much time focusing on the Franchise success is based on a number of as well as the financial aspects of running a financial side of the transaction, rather than factors, but one of the most crucial is poten- business. They will be placed at 1,500-sq.-ft. the people side. Franchisees and franchisors tial franchisees must share the franchisor’s urban locations in Toronto and Montreal mar- need to think carefully about matching per- philosophies, goals and mind-set — allowing kets, featuring 40 seats, express-order kiosks sonal mind-sets, philosophies and goals with both parties to drive toward the same goals of and community tables. corporate philosophies and goals.” success and growth. l Millennial franchisees have a unique abil- ity to tap into their surroundings, which will be good for business, says Senecal. “What a lot ONLY THE BEST WILL DO Doug Fisher is the presi- of these candidates will bring is their drive, The financial side is easy; either the fran- dent of FHG International their energy, their excitement as well as their chisee has the money or they don’t. That is Inc., a boutique manage- ability to connect well with the guests in our much less relevant today as the focus shifts to ment consulting firm spe- restaurants, especially in urban environments identifying prospects who ‘fit’ the corporate cializing in the foodservice where a lot of them have grown up more profile. They have a similar personality, pay and franchise sectors. He in touch with urban reality, and they simply attention to detail and have strong leader- specializes in franchise know what to do. We want to take advantage ship skills to drive sales by engaging both development, master planning and litigation of that, and, at the same time, provide struc- customers and staff — all while being able to support. The firm’s clients range from indepen- ture and a financial model that allows them to manage costs. dent restaurant operators to the country’s larg- succeed.” – Jackie Sloat-Spencer The closest match to your franchisee pro- est and most successful franchise companies.
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 23 ON FIRE (clockwise, from left to right) Alex Gerzon, Richard Jodoin and George Heos, franchise owners of Firehouse Subs’ first Canadian outpost located in Oshawa, Ont. FANNING THE FLAMES 24 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM THE 2016 FRANCHISE REPORT
New on the scene, Firehouse Subs’ product, business model and ambitious expansion plans are attracting potential franchisees
STORY BY AMY BOSTOCK | PHOTOGRAPHY BY MARGARET MULLIGAN
ounded in Jacksonville, Fla. in Canadian outpost located in Oshawa, Ont. 1994 by firefighter brothers Chris The partnership of life-long restaurateurs and Robin Sorensen, Firehouse Alex Gerzon, George Heos and Richard Subs arrived in Canada last year Jodoin will lead Firehouse Subs’ Canadian via Puerto Rico. “It was a gen- brand expansion and support new fran- esis of sorts,” says Greg Delks, chisees in the opening and basic manage- VP of Franchise Development at ment of restaurants. “When we came to Firehouse Subs. “About five years ago we Canada, the single most important decision Fpartnered with a Puerto Rico-based group we made as a brand was to find the right (Latin America Subs, LLC) that owns 185 partners,” says Delks. “We use area represen- Burger King locations. They were looking for tatives — currently I have 45 strategically an additional brand and they came to us.” placed in cities all over the U.S. — and Alex Although international expansion wasn’t is our guy in Canada, the CEO of Ontario on the brand’s radar at the time, Delks said with Toronto as the focus.” the success of the 26 Puerto Rico locations As part of its development agreement, opened the company’s eyes to possibilities OnFire Restaurant Group will open 90 outside of the U.S. — including Canada. Firehouse locations over the next 10 years “As we did our recon into the landscape of in Ontario. “Durham [Region], and specifi- foodservice in Toronto, the thing that really cally Oshawa, was an area we wanted to be excited us was that there were very few fast- in. I’ve done a lot of work in Oshawa in my casual sandwich opportunities here, so we career — it’s a great restaurant market and SUB-LIME SANDWICH At Firehouse Subs’ Oshawa, felt we were ahead of the curve in that genre a community that supports local business,” Ont. restaurant the number-1 seller is the Smokehouse and could do very well in Canada.” says Gerzon. Beef and Cheddar Brisket sub — pit-smoked for 16 Enter the OnFire Restaurant Group, The 2,150-sq. ft., 59-seat Oshawa location, hours, topped with signature mayo and sweet BBQ franchise owners of Firehouse Subs’ first which opened last October, was a $450,000 sauce on a toasted roll ($8.99) THE 2016 FRANCHISE REPORT
oriented atmosphere with a firefighter theme. Firefighting equipment FRANCHISE is positioned through- ON FIRE out the store and the Named one of the top 100 menu features themed limited-service sandwich chains in sandwiches, such as the U.S. by Technomic, Firehouse the Hook & Ladder Subs has grown to 936 restaurants made with smoked in 43 states, one in Canada and 26 in turkey breast, Virginia Puerto Rico. Its combined U.S. sales honey ham and melted for 2014 were US$552.4 million. Monterey Jack ($8 for a large). Gerzon says its first that many potential franchisees are now in Canadian location is various stages of due diligence on the brand generating great fran- and meeting with the OnFire team. “We have chise interest. “Now great momentum going from a franchising turnkey investment for Gerzon and his that we’re open and people can see, touch perspective,” agrees Gerzon. “We’ve already team and it’s already paying off. The total and taste the brand, we’re getting a lot of signed our first franchise agreement for two investment from a franchisee standpoint is inquiries.” restaurants in Ottawa and have a number in $400,000 to $500,000; in terms of equity, With competitors such as Panera Bread, the pipeline that are getting to the documen- franchisees would require $150,000 in cash. Chipotle and Five Guys Burgers and Fries, tation stage.” “The brand resonates with Canadians. Gerzon says gaining brand recognition is All Canadian locations of Firehouse People love the food and we’re getting lots of Firehouse Subs’ greatest challenge. “Although Subs will be franchised, as corporate policy repeat customers and local regulars,” he says. there are those who know the brand because dictates keeping all company-owned units The new fast-casual eatery offers a family- they vacation down south, most people don’t in Jacksonville. When searching for real know who we are. We’re spending a lot of estate, the company prefers in-line, leased SERVING SUBS time making sure our staff are educating space in strip centres with visibility, acces- AND SAVING LIVES guests on how we’re different.” sibility, ingress/egress, parking and signage. The Firehouse Subs Public Safety Foundation That difference, he says, is in the menu. “We do have a few stand-alone [units] but was founded in 2005 in the aftermath of “At the end of the day it’s a premium prod- they were really opportunistic — such as a Hurricane Katrina. Company co-founders, fire- uct, premium experience — we freshly slice closed Taco Bell,” says Delks, adding desti- fighters Chris and Robin Sorensen travelled to our meat and cheese every day, we pile it nation dining spaces around big box retail Mississippi where they fed more than 10,000 super high and we serve it steaming hot. It’s space is also desirable. first responders and survivors. “Chris and Robin got a unique taste profile.” Rollout plans include opening three to came back to Jacksonville changed, and they According to Delks, the company is com- five units in 2016 and then eight to 10 a year knew going forward they wanted to give back, mitted to sourcing as many of its ingredients until all 90 Ontario locations are open. “If so the Firehouse Subs Public Safety Foundation locally as possible. “For the first restaurant everything goes well, in the next couple of was born,” says Greg Delks, VP of Franchise we’ve worked with our [U.S.] supply chain years we’re probably going to take the brand Development at Firehouse Subs. l Last year, the company donated more than and some of the product is coming from the to other provinces,” says Gerzon. $5 million worth of life-saving equipment to first U.S. because we have certain taste profiles responders (police, firefighters, EMTs and the that are characteristic to us. As we open military) in the U.S. “We’re giving back to the more restaurants and have more buying community in a very tangible way,” says Delks, strength, we’ll source as much as possible adding that “franchisees attracted to our brand in Canada. But with only one restaurant are looking for a business model that not only currently, we’re not able to get some of the makes money but gives back to the community.” items in a cost-effective way.” Meanwhile in Canada, the Oshawa, Ont.- Delks says Firehouse Subs has always based area developer for Firehouse Subs, Alex taken a disciplined approach to expansion Gerzon says his community and his team have and he and his team have attended a number rallied behind the foundation. “These donations save lives, so I’ve challenged my team to raise of franchise expos prior to launching the $100 a day.” In the restaurant’s first month of brand in Canada. “People were inquisitive fundraising it raised $3,082 for the Canadian arm and there was some brand awareness, but of the foundation. over the last 120 days we have received more than 125 franchise inquiries,” he says, adding
26 FOODSERVICE AND HOSPITALITY FEBRUARY 2016 FOODSERVICEANDHOSPITALITY.COM C
M
Y
CM
MY
CY
CMY
K
THE 2016 FRANCHISE REPORT
GO WEST, YOUNG MAN! Popeyes begins exploration of new Canadian markets
STORY BY DANIELLE SCHALK
even years after its corporate ning to continue our expansion, entering key and Bachelder says her team “will be con- restructuring, Popeyes Louisiana markets in Western Canada starting in 2016,” tinually evaluating the demand for the brand Kitchen Inc. has set new bench- Cheryl Bachelder, CEO of Popeyes, told in neighbouring provinces such as British marks for its Canadian growth. F&H in November. Columbia and Saskatchewan.” As part of a recent ramp-up in The Canadian openings represent a In 2014, the Popeyes chain boasted a the chain’s Canadian expan- significant portion of the company’s 2015 global same-store sales growth of 6.2 per Ssion, the Atlanta-based fast-food franchisor openings. By the end of third quarter 2015, cent over 2013. Including last year’s results recently reached a new milestone with the Popeyes had opened a total of 68 new res- up to Q3 2015, the company has experienced opening of its 100th Canadian restaurant taurants with more scheduled to launch 22 consecutive quarters of positive same- in November. “We have opened almost 30 before year end. These fourth-quarter store sales growth. “The success of our com- stores in the last 18 months and are plan- launches included not only Canada’s 100th pany is based on two premises: collaboration restaurant, but the opening of the brand’s with our franchisees to help them succeed 2,500th location, in Hatillo, Puerto Rico. and a commitment to innovative design to LOOKING SHARP “Canada has always been a focus for give our customers what they want when Keeping on trend in the competitive Popeyes,” says Bachelder, noting the brand they go out to eat,” explains Bachelder. QSR market, Popeyes Louisiana Kitchen has had a presence in the country since 1984 Popeyes builds a variety of international launched a new international design, when it opened its first international loca- store formats including freestanding, in-line, featuring a more contemporary and tion in Toronto. Since entering the coun- mall and college and university locations. upscale look and feel, in 2014. The try, Popeyes has expanded across Ontario The brand offers territory development deals reimagined look features spice jars and and soon more Canadians will be getting in Canada, for which potential franchisees murals that reflect the brand’s Louisiana a taste of the chain’s in-house-marinated, must agree to flavours and heritage. “The Canadian hand-battered chicken and seafood as the build a certain market adopted our international design company shifts its focus to new markets. The number of units in 2014 and it has been well received by customers and franchisees alike,” first Western Canadian location, set to open for the proposed says Cheryl Bachelder, CEO of Popeyes. in Calgary this year, will mark the first unit area. A given ter- Canada currently boasts 27 units featur- outside of Ontario. “The focus [this year] ritory must be ing this updated design, including seven is to establish the brand in Western Canada able to support a restaurants that underwent renovations and establish a supply chain hub in Alberta,” minimum of five to reflect the new look inspired by New says Bachelder. Edmonton and Winnipeg are Cheryl Bachelder, restaurants to be CEO, Popeyes Orleans’ French Quarter. also potential markets for future expansion considered. l
FOODSERVICEANDHOSPITALITY.COM FOODSERVICE AND HOSPITALITY FEBRUARY 2016 29 RETHINK FAST FOOD
EXPAND YOUR MENU IN SECONDS with the Xcelerate® Hi-Speed Oven from the company that pioneered profitable, high-quality foodservice equipment. Cook up to 10 times faster than a conventional oven and maintain a freshly baked taste, texture and appearance. Xcelerate is ideal for limited and quick-service menus offering the only true touchscreen, picture-based control. Or make it part of your Alto-Shaam cook/chill system — quickly retherm or finish in Xcelerate for high-speed service with great results. Meet the Xcelerate Hi-Speed Oven at www.alto-shaam.com/xcelerate.
COMPLETE COOK | HOLD | DISPLAY | CHILL SYSTEMS