Canadian Franchise


Gina Gill

Food is the first type of  business considered when the word franchise is mentioned. It’s inevitably the first type of industry that comes to mind because food and franchise exist dually in almost all people’s minds, whether or not it’s a conscious effort.

Food and Franchise are codependent, making food a consistent service in the franchise industry. It has never wavered or been much
affected by economic turbulence, but rather continues to persevere and simply because everyone has to eat. It’s such a regular concept that has turned into a form of business, strictly developed from a human necessity. The food industry is resilient and has managed to develop in a wide variety of fields and adjusts to the varied tastes of consumers.

Through technology, a better understanding of cultures and food practices have been accessible, but consumers have been enjoying the global food market for many years.

According to Statistics Canada, in 2007 $92 billion was spent on food and beverages in stores for household use and another $50 billion in restaurants and bars. Clearly, it’s a business that offers a lot of fields and a means to generate a substantial income. However, comparable to other markets, Canadian food and beverage industries have had some of the lowest levels of profitability.

Food Service Industry

In 2013, Canadian Food Industry sales represented 3.7 per cent of national gross domestic product. In fact there were more than 81,000 restaurants, bars and caterers across Canada in 2013.  Commercial food service includes quick service restaurants, full-
service restaurants and drinking restaurants.

Quick Service Restaurants

One of the fastest growing and most recognizable businesses is the fast-food industry. From a made to order burger ready in minutes to a personalized selected sub, the fast food industry is imbedded in our culture. Up North, we like our food and we like it quick.  For decades fast-food industries have been ever growing and well-established throughout the country. From the first McDonald’s burger to all of the different restaurants lining the many streets of Canada- this type of restaurant has become a staple in North America and is an established part of Canada’s economy.

One of the benefits of this food industry is the brand. A lot of fast-food restaurants are well known and have a lot of loyalty established with a variety of customers.

Accounting for $24 billion in sales in 2013, the fast-food industry made the most revenue that year and had 3.8 percent increase from the pervious year.

While restaurants may focus in on families or parties, fast-food restaurants appease to a lot of different people: the young, the old, the family or the single student, for example.

Starting a business with a solid brand allows new owners to be backed by a strong marketing strategy, as well as global awareness. Without any effort, your franchise is being advertised across the country and giving everyone a sense of familiarity.

The only downfall with quick service restaurants is the possible high startup fees because they are high revenue industries. However, the investment usually involves a lower risk.

A franchisee would have to invest a lot of work and time into a more expensive business, but the outcome is usually guaranteed.
This type of restaurant adheres to the fast paced environment of Canadians and allows quick access through drive through or pick up.
A lot of fast-food restaurants easily adapt to the needs and changes of the consumer- the drive through, the healthier portions, the kid’s meal, the breakfast menu. Without having to comprehend what the public needs, you have experts establishing and converting your menu to help support sales.

Most fast-food restaurants are well recognized and have a giant loyal fan base, with a huge support system and great potential for profit. Purchasing a fast-food restaurant, means a franchisee is playing in the big leagues of franchises and they have a team of experts to help them establish and reach their goals.

Full-service restaurants

There is nothing like a night on thetown which can be with a group of  friends for a plate of fries and a pint of beer or with a loved one over two expensive glasses of champagne.  Both scenarios are available in the full-service restaurant industry.

This field of business has a huge range of atmospheres, menus, costumers and locations that can be varied dependent on owner and chef.

In the first half of 2012, the restaurant industry was the second largest job creator in Canada.

There are a lot of branded restaurants that have an established marketing technique and a loyal customer base that should be considered when investing in a restaurant. Whether it be fine dining or wings and a pint, the history and the brand of the restaurants are extremely important to consider in this field.

A personal perk to owning arestaurant is choosing your business based on your individual preferences. It is an opportunity to work and be a part of something you truly enjoy and love.

Health Food Franchises and Food Supplements

Between gluten free and vegan, then allergies and supplements, there is an ever evolving market in the food industry.

Consumers are learning more about themselves and their preferences with the easy access to information. They are taking control as consumers and being particular to their wants and needs.

The most prevalent concern amongst all ages is healthy food choices. While the fast-food industry is booming, the health food and
supplement stores are an up and coming significant foothold in the economy.

People are too busy to prepare huge meals filled with greens and seven servings of vegetables, but they practice ‘you are what you eat’ and they want to eat clean.

Health food stores provide this opportunity to consumers, an easily accessible quick fix to their needs that allows them to remain healthy, have the power of choice and it requires very little effort on their end.

This type of franchise is constantly growing and finding new venues that people are wanting to consume. In fact the customer’s research is providing business owners with information, rather than franchisees having to do their work alone.

This health craze has lasted longer than usual in North America and there are a few franchises in the food supplement industry that are well branded and recognizable.

Food retail

Whenever one thinks of retail, they tend to imagine clothing stores and customer service but food is actually accountable
for a large portion of the retail industry.

By food retail, for the most part, it refers to grocery stores, convenience stores, specialty food stores and liquor stores. Big names like Loblaws have an enormous monopoly in the food retail industry and again, grocery stores have well established branding that a
franchisee can directly benefit.

Food retail is branching outside of the classic milk and cheese aisles and including organic foods, wholesome foods, bulk products, toiletries and even clothing.

Grocery markets are now more comparable to Wal-Mart and other big name superstores allowing customers to indulge in other needs and having a one stop shopping experience. There are many varieties of each food establishment to consider in the franchising industry, but one thing is for certain, most sectors have a well established reputation and have guaranteed customers and processes.
Everyone already knows the jingle, eats the food, buys the brand so it’s a win win. Though the investment fees may be on the higher end, if you’re ready to play fast and hard, you’re ready for the food market.

Gina Gill is a Freelance writer for Canadian Franchising. After receiving an English Degree, followed by a Journalism Diploma, Gina became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.