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T O P 10 0 REPORT By Alistair Kyte, J.D. Ney and Brianne Binelli FULLY CHARGED Despite a horrendous 2009, foodservice professionals are tapping into a new energy that’s reinvigorating the industry /////////////////////////////////// FOODSERVICEWORLD.COM FOODSERVICE AND HOSPITALITY JULY 2010 ➜ 21 Rockin’ the Box ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Q U I C K S E RV I C E Last year wasn’t a bust for everyone. At the Surrey, B.C.based Wok Box, the fresh Asian QSR steamrolled through 2009 and almost halfway up F&H’s Top 100 list, to 67th place, with 27 new openings. “There’s nothing like the concept pretty much throughout North America,” explains Wok Box CEO, Scott Bender. “There is your traditional lemon chicken that you’ll get in a Chinese restaurant, but you can get Thai food, you can get East Indian — one of our most popular dishes is butter chicken. So it crosses a lot of boundaries.” It’s already crossing borders, too, with future stores earmarked for the rest of Canada and even Lebanon. Founders Christian Bullock and Roger Newton opened the first location in Edmonton in 2004. A year later, Bender entered the picture armed with experience to convert the single-unit concept into a chain. Today, the 52-store (and counting) favourite attracts diners with its chic tiled walls, unique kitchen design, plasma TVs, and, of course, fresh ingredients cooked at lightening speed, ideal for takeout. “We really laid the groundwork of a culture in our organization of truly — and it sounds really hokey — just caring about what the franchisees do and say,” explains the CEO, whose bad experience with franchisors in the past translated into things like a free annual business trip to Vegas for his franchisees. Clearly aware of the trends and pending government regulations, the young execs are already flexing their environmental muscle, planning to introduce a nutrition calculator to the website and unleashing a new menu, complete with a handful of vegan options and 20 to 30 per cent less sodium in its sauces, among other things. With sales of approximately $52 million in its last fiscal year, and about 35 openings planned for 2010, Wok Box is sizzling. 22 FOODSERVICE AND HOSPITALITY JULY 2010 Just how bad did it get last year in the foodservice industry? Speaking at the Canadian Restaurant Investment Conference this past May, Moxie’s Classic Grill’s president Laurids Skaarup voiced his thoughts on the matter rather succinctly: “2009 sucked,” he told attendees gathered at the Hilton Toronto. Indeed, 2009 was about survival for most foodservice companies in Canada. As the global economy floundered, banks and the lending community clutched their capital firmly, stifling opportunities for growth. Meanwhile, consumers — many who were legitimately worried about the safety of their jobs — cut their discretionary spending, impacting the health of the restaurant business even further. Leisure and business travel dwindled, and if that wasn’t enough, the threat of a pandemic put a serious fright into operators and consumers alike. For most CEOs on F&H’s Top 100, it was a year of making cuts, too. Many executives, feeling that downward pressure, initiated recession-driven countermeasures, tightened operating procedures and looked for alternate ways to generate revenue without damaging the value proposition of their brands. Some resorted to discounting to keep traffic up at their stores; others closed units for good, leaving the entire industry lingering in the doldrums. According to the Canadian Foodservice and Restaurant Association’s (CRFA) economist Chris Elliot, Canada’s commercial foodservice industry shrank by 25,500 total jobs in 2009, with the biggest losses in Quebec (-14,600), FA S T FA C T B.C. (-11,000) and Ontario (-7,900). According to a CRFA Only Alberta saw an increase in the projection from late last year, number of jobs created last year, with Canada’s rebounding economy 9,100 new foodservice positions availshould spur the commercial able in the province. Considering the foodservice industry to grow grim news, it’s not surprising the CRFA by 2.9 per cent in 2010 and tabbed total foodservice sales for 2009 3.3 per cent in 2011. at $58.3 billion, a -1.2 per cent drop from the $59.7 billion it generated in //////////////////////////// 2008. (Remember, most of ’08 was solid, until the economy swooned in September.) More worrisome was that real growth last year was -4.7 per cent. Overall, F&H’s Top 100 foodservice companies grew by just 0.7 per cent. In terms of sales volume, the majority of them lost money or barely treaded water. The story was no different in terms of percentage growth, with most Top 100 companies seeing their business shrink in 2009. Thankfully, not all the news was bad. Although the industry as a whole suffered through a terrible year, some companies performed extremely well. Leading the way once again was the TDL Group Corp. (Tim Hortons), with an increase of more than $765 million in sales generated by its 3,578 units. McDonald’s Canada, Foodservice and Hospitality’s reigning Pinnacle Award winner for Company of the Year, saw a $190-million jump in sales, while Montreal-based food-court king, MTY Tiki Ming Enterprises Inc., enjoyed an increase of $139 million. The fourth largest gain in sales volume came from Wendy’s Restaurants of Canada, with a $61-million increase, and Aramark Canada Ltd. rounded out Continued on pg. 24 FOODSERVICEWORLD.COM PROFILE No Ordinary Joe Jeff Fuller’s vision for his popular, Vancouver-based Joey Restaurant Group includes the rest of Cananda In late summer 2009, Jeff Fuller, president and CEO of Joey Restaurant Group, was touring his new restaurant development located in the posh Shops at Don Mills north of downtown Toronto, just days before it was slated to open. At the time, there were already 18 Joey restaurants located in Western Canada, but this was Fuller’s first venture into the lucrative Ontario market. And he was a bit concerned by what he saw. “Like everyone else, the Shops at Don Mills’ retail component was affected by the recession,” he says. “A lot of retailers pulled out, and that’s never great when you’re opening in a retail centre. I thought it might take us some time to build sales, but we opened fairly busy. Then our sales went through the roof. It’s been a great intro into the market for us.” Joey Don Mills’ performance exceeded Fuller’s expectations, despite the recession, giving him a firm foothold in Canada’s toughest restaurant market. But don’t assume he’s looking to open another 10 units in Ontario in the next few years. “With our brand, we design each location differently. We’re a chain, but we do a lot of un-chain-like things,” he says. “We’re not cookie cutter. We put a lot of grey matter into the designs, so we’re not going to be stamping them out quickly. We’re looking for unique locations.” Fuller is interested in blue-chip buildings he can turn into destination restaurants, yet he vows he never rushes in to sign a lessthan-perfect deal. “You have to be patient with locations and ensure you keep occupancy costs in check,” he cautions. “It got very competitive with a lot of rents out there. I almost stuck my neck out for a few locations, and I’m glad I was patient. There’s always another good one to be had, despite what everyone says.” 24 FOODSERVICE AND HOSPITALITY JULY 2010 Continued from pg. 22 the top five, building on last year’s sales by $46.7 million. The biggest risers on the Top 100 in terms of percentage growth were Tortoise Restaurant Group Inc. (65.8 per cent), Dixie Lee Food System Inc. (57.1 per cent), MTY Tiki Ming (54.7 per cent), Booster Juice (51.7 per cent) and Mr. Mike’s Steakhouse & Bar (33.8 per cent). The top five companies based on total sales — The TDL Group, McDonald’s Canada, Cara Operations Limited, Franchise World Headquarters LLC (Subway) and Compass Group Canada — did not shift positions from last year. Nevertheless, a few companies made their first forays into the Top 100, including Wild Wing Restaurants Inc. (65th, with $54 million in sales), Wok Box Fresh Asian Kitchen (68th, $52 million) and Le Biftheque (95th, $26.5 million), while a glut of innovative new companies are poised to push their way into this elite group in the coming years. But the numbers only tell half the story — maybe the most important thing to come out of the downturn is the feeling that’s currently permeating throughout the entire foodservice industry. While it’s hard to pinpoint, there is clearly a movement afoot that’s set to define the post-recession era. There’s been a dramatic shift in the marketplace during the past few years, spurred by the collapsing and rebounding economy, new technologies, forward-thinking leaders with fresh approaches to doing business and a stronger desire to promote sustainability. The emerging players on the scene are ready to make their mark, but the old guard is working harder than ever to reinvent itself in a reinvigorated business landscape that’s vibrant, dynamic and bursting with opportunity. Consumer confidence is up dramatically, too, and our economy is surging. Canada is leading the G7 nations out of the malaise, with StatsCan reporting that our GDP increased at an annualized pace of 6.1 per cent between January and March of this year, the largest quarterly climb since the last quarter of 1999. The jobs market has rebounded and, with a busy summer season in full swing, operators are expecting a solid 2010. Will it be enough to make everyone forget the anguish of 2009? Not likely, but thanks to a current of new energy that’s recharging the industry, we’re powering our way to a better, brighter tomorrow. ● Top 5 Pizza Chains (Ratings are based on 2009 sales revenues in millions) Pizza Pizza Limited $418.0 Pizza Hut $320.0 Domino’s Pizza of Canada $198.7 Panago Pizza Inc. $134.8 Pizza Nova $84.0 FOODSERVICEWORLD.COM //////////////////////////////////////////////////////////////////////////////////////////////////////////////////// LOCAL FOOD GRASSROOTS MOVEMENT Do You Want More? Mandarin Restaurant Franchise Corporation celebrates 30 years in business ➜ James Chiu opened his first 2009, “like almost everyone else,” says Chiu, restaurant with family members in adding that increased labour costs only added Brampton, Ont., in 1979, but it to the pressure. But by keeping costs down wasn’t until 1986 that he would begin to really without sacrificing quality, Chiu believes his leave his mark on the foodservice industry in company will enjoy a much better year in 2010. Canada. How? By offering his loyal customers The company also didn’t try to save its way through the maelstrom, increasing its advertisall the high-quality Asian fare they could eat. Today, Mandarin has 21 locations in ing spend even though the economy was poor. Ontario generating more than $100 million in In celebration of its 30th anniversary, Mandarin launched a year-long sales. In 2009, the successful company FA S T FA C T “Passport to Japan” promotion, givand former Pinnacle Award winner The fortune cookie ing its customers the opportunity to also celebrated its 30th anniversary, was invented in California in the win one of 30 trips for two to Japan. thanks in large part to the growing early 20th century, What else makes Mandarin a great number of culture-craving Canadians. by various success story? “We’re lucky that “People are more diversified, so there’s immigrant groups. They are largely Canada is such a great country; it has more opportunity for exposure to difunknown in welcomed immigrants to come and ferent cultures,” says James Chiu, mainland China. build a better life for their families,” Mandarin’s president. “And they are more adventurous; they’re willing to try new Chiu says. “Our company was started by immigrants and many of our employees are immikinds of food.” Mandarin suffered through a challenging grants to this country.” (Ratings are based on 2009 sales revenues in millions) The TDL Group Corp. (Tim Hortons) Starbucks Coffee Canada The Second Cup Ltd. * estimate FOODSERVICEWORLD.COM $5,311.4 *$594.7 $190.4 FOODSERVICE AND HOSPITALITY JULY 2010 25 ILLUSTRATION BY SANDY NICHOLS Top 3 Coffee/Doughnut Chains When the Canadian Restaurant and Foodservices Association (CRFA) asked its member chefs to recently rate a list of menu items as either a “hot trend, yesterday’s news or perennial favourite,” the three top choices were locally sourced food, sustainability and organic produce. That’s not too surprising, but coming in fourth was artisanal cheese, while simplicity/back-to-basics cooking ranked fifth. In sixth, was nutritional and healthy foods and freerange poultry/pork finished seventh. Detect a pattern? According to 400 Canadian chefs, the top seven menu trends in the nation were directly connected with seasonal, regional cuisine. Meanwhile, past stalwarts like fusion and molecular gastronomy didn’t make the cut. “These topline trends underscore a growing restaurant focus on health, nutrition and the environment,” said Garth Whyte, CRFA president and CEO, of the survey results. “Restaurant chefs are not only listening to their customers, they’re helping drive the trend toward health, nutrition and sustainability.” Maybe one of the newest spin-offs from these menu trends — which have been key differentiators in fine-dining restaurants for much of the past decade — is that many chains, contractcaterers and even some QSRs on the Top 100 list are getting in on the local, seasonal goodness. Panago Pizza and Compass Group Canada serve only Ocean Wise certified seafood, while local dishes are available at many of B.C. Ferries foodservice outlets. ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////// HOT TREND THE NEW GOURMET Paul Goddard has big shoes to fill. The new Pizza Pizza Limited CEO took over the reigns this past March after the passing of Michael Overs, his father-in-law, and the brand’s iconic founder who coined the popular 967-11-11 jingle. “It was a big loss,” Goddard says. “He built such a great company, and I think everyone feels a great sense of responsibility…to really honour his legacy.” And that begins with Goddard, who worked in the energy and technology sector before joining the management team at Pizza Pizza as the vice-president of Enterprise & Development last year. But he doesn’t see a need to change too much. “I’m certainly taking a refreshed view of things and asking a lot of questions,” he tells F&H, “seeing what else we can do differently, but also not messing with the great recipe that’s made the company so successful.” And the overall goals remain as the new leader continues to focus on the company’s growth and expansion into the rest of Canada, while realizing the wishes of the consumer in areas like sodium reduction. Of course, it’s not an easy time to take the helm after an admittedly tough year in 2009, one that Goddard continues to learn from. “There’s some real economic troubles worldwide at a macro-economic level that are still going to be with us for some time to come, so we need to position the company for any situation,” he points out. But the CEO’s enthusiasm is palpable as he discusses the future of the company and its place in the communities and charities it supports. “There’s a passion here that’s hard to convey,” he says. “It’s a time of renewal. As difficult as it has been to see Michael leave so suddenly, I think we all feel very enthusiastic about the future.” 26 FOODSERVICE AND HOSPITALITY JULY 2010 Top 5 Burger Chains (Ratings are based on 2009 sales revenues in millions) McDonald’s Restaurants of Canada Limited A&W Food Services of Canada Inc. Wendy’s Restaurants of Canada Inc. Burger King Restaurants of Canada Inc. Harvey’s $3,100.0 $757.0 $658.0 *$363.8 $221.9 * estimate FOODSERVICEWORLD.COM ILLUSTRATION BY SANDY NICHOLS Passing the Torch ➜ Just as a litany of high-end restaurants were converting into more casual eateries last year, operators across all sectors honed in on the customer’s call for more gourmet fare. Look no further than the coffee wars of ’09, as McDonald’s re-introduced its premium roast blend, in a new cup, in a limited-time free promotion. “Canadians are serious about their coffee, and so are we,” said John Betts, president of McDonald’s Restaurants last April. In addition to the relaunched java, McDonald’s also began testing its McCafé espresso offerings in Atlantic Canada. Later in the year, Starbucks shocked many by introducing its Via Ready Brew, a top-line instant-coffee product, while Tim Hortons continued to introduce new iced-cappuccino flavours. Consumers were going gaga for gourmet hamburgers, too, with chains like McDonald’s, A&W, Wendy’s, Burger King and Harvey’s all introducing upscale nosh featuring premium beef patties. The trend to upscale the traditional hamburger was so prevalent, Wooster, Ohio-based Certified Angus Beef Brand even recorded a spike in sales, announcing a 4.6 per cent increase in fiscal 2009 versus fiscal 2008. The list goes on as fresh melt-in-your-mouth bread took centre stage at Canada’s first Panara Bread location in Vaughan, Ont.; premium Mexican packed them in at Chipotle Mexican Grill and Mucho Burrito; and thin-crust, gourmet pies at Panago Pizza featured upscale ingredients like Italian-style charcuterie and caramelized onions. TV star, chef and restaurant owner Mark McEwan is even capitalizing on the gourmet trend at his new gourmet grocery store, McEwan, where the fancy “fresh food every day” at his homemeal-replacement counter is restaurant quality with prices to match. FA M I LY C A S U A L HOTEL DINING Not Just Beds and Breakfast The culinary offerings at Fairmont Hotels and Resorts rivals that of any top restaurant in town Leading lodging chains like Fairmont Hotels and Resorts have always fared well on F&H’s Top 100, but their historical stature in the rankings shouldn’t be confused with an entrenched or stagnant attitude towards foodservice. Sure, the rules are a little different when it comes to serving hotel guests, but today and tomorrow’s top hotel restaurants are as much for the locals as they are for the busy business traveller. “Food and beverage is vital for a host of reasons,” says Mariano Stellner, Fairmont’s corporate Fairmont Royal York’s F&B director for The executive chef David Garcelon Americas region. “But mostly, food and beverage creates excitement. It inspires creativity at the property and, if done right, it creates a destination for locals. It’s the vibrancy of a great restaurant or bar filled with locals that give a hotel authenticity and, in turn, attracts the kind of guest who’s looking for a genuine experience.” Stellner also notes that the days are long gone where hotel dining rooms pump out uni- ■ Quick Service ■ Full Service ■ Institutional ■ Hotel ■ Other FOODSERVICEWORLD.COM 12% 1% 9% 19% 59% Not too long ago, Canada’s family casual chain restaurants were largely banished to the strip malls and power centres of the nation’s bedroom communities, but those days are over. Restaurants like Moxie’s, Milestone’s, Earl’s, Jack Astor’s and Joey’s can still be found in those plum suburban locations, but they’re increasingly establishing themselves in high-profile, downtown areas and, more significantly, they’re unafraid to attempt to take on the fine-dining sector at some of what it does best. Today’s chains feature haute decor, improved wine lists and highly rated corporate chefs creating diverse, flavour-packed dishes — not to mention rising average checks and packed houses on most nights. And, while they might not be able to meet the quality and sophistication of the fare at a top fine-dining restaurant, they’ve definitely got the segment’s attention. “A lot of [chains] have been inspired by the fine-dining restaurants that do it properly,” says Jeff Fuller, president and CEO of Joey Restaurant Group, which is currently developing a store in the Yonge-Dundas neighbourhood of Toronto, close to where a Spring Rolls, Milestone’s and Jack Astor’s are already doing huge business. “Independent restaurants are a really important piece of the whole fabric of this industry, but we think there’s a lot of room between casual and fine dining for us to play in. They’re also taking note of some of the things we’re doing, and where we can make it tough for them is on price.” FOODSERVICE AND HOSPITALITY JULY 2010 27 ILLUSTRATION BY SANDY NICHOLS Breakdown of Top 100 by Total Sales form eggs at breakfast, and rarely pay attention to what’s going on during dinner service at the trendy standalone restaurant down the street. In fact, he says Fairmont chefs are happy to be on the cutting edge. “Our guests tell us that the food trends today tie in very well with what Fairmont is engaged in — which is local, handmade-fromscratch, authentic cuisine. That’s long been our focus, because it ties in so well with the type of experiential travel our guests are looking for.” Unique to the hotel restaurant model is the banquet side of the business, which Stellner says has also been rejuvenated. “Guests all remember the standard banquet meal of years ago, with the boiled rubber chicken, steamed vegetables and mini potatoes?” he asks. “Today, it’s not good enough. Often, we’ll provide several choices, and the food has to be plated as if it were in a restaurant. Everything you do in a banquet setting, even if it’s for hundreds of people, has to be restaurant quality.” CHAIN LEADER OVERSEAS KEY TRENDS RESTAURATEURS SANS FRONTIÈRES 30 MISSION POSSIBLE Social media stood the restaurant world on its head in 2009 as restaurants, chains and even individual chefs took to popular sites like Facebook and Twitter in an effort to build their own online brands. Top chefs like Toronto’s Jamie Kennedy, Mark Cutrara, Martin Kouprie, Jason Bangerter and Roger Mooking are all regular tweeters, as is Halifax chef Craig Flinn. Out West, Vancouver hotspots like Salt Tasting Room, Glowbal Michael Smith is determined to bring sustainable food to the masses ➜ Few chefs are busier than Michael Smith. Toggling between production schedules on his Chef Abroad TV show, his career and event commitments — not to mention the vanquishing of his Twitter imposter — the travelling toque has seen it all. However, it was during the Vancouver Winter Olympics that Smith’s relationship with contract-caterer Sodexo took him on a particularly exciting journey. “It was the adventure of a lifetime. I can’t put it more simply than that,” says Smith, of his experience leading a team of cooks at the athletes’ village in Whistler, B.C. “It was incredible to lead a team that cooked all the food for the athletes. By the end, we had prepared 360,000 meals, which the IOC said was the best food served in Olympic history.” While some might think it strange for the gourmet chef to be working with a foodservice giant, Smith says their paths first crossed when Sodexo was looking for ways to create more local and sustainable menu offerings. “My relationship with Sodexo began informally about four years ago, when I started advising them on sustainability initiatives,” says Smith. “It’s grown to the point now where I’m their national sustainability advocate. I spend time representing the company at different functions and events, but I also spend a lot of time interacting with colleagues internally, to get them fired up about the idea of sustainable food practices.” Sodexo has since taken an innovative approach to this goal, developing a new university campus concept called The Canadian Grilling Company, by Chef Michael Smith. “It will be kind of like a freestanding foodservice alternative, and it’s being launched first at Queens University in Kingston, Ont.,” says Smith. “It is set apart, not only because of the healthier grilled menu, but also by the products we’ll be working with, which will be 100-per-cent sustainable and, in many cases, local.” FOODSERVICE AND HOSPITALITY JULY 2010 Restaurants, Brix Restaurant and La Buca are all prodigious posters, to name just few. The trend also showed its problematic side last year, when TV celebrity chef Michael Smith fell victim to social media identity fraud. One disgruntled at-home cook assumed the Twitter identity of the popular and personable P.E.I. chef and used the platform to slam the Montreal food scene, forcing Smith to publicly distance himself from the comments and the site. “Frankly, I’m overwhelmed,” Smith said at the time. “I’m very angry. I can’t believe anyone would say such horrible things about Montreal.” Fortunately, Smith has more recently made peace with the twitterzzi, and is now a regular participant and poster under the name @chefMICHAELsmith. We’re sure that’s really him this time. FOODSERVICEWORLD.COM ILLUSTRATIONS BY SANDY NICHOLS While Canada has produced many distinguished chefs, much of the country’s restaurant history has been spurred by imported talent and concepts. However, the past few years have seen a marked increase in homegrown restaurant chains crossing borders and opening units around the world. Quickly rising to the fore of Canadian concepts abroad is Teriyaki Experience. The Asianstyle QSR launched in Toronto’s Promenade Mall in 1986. Today, the healthy stir-fry giant boasts some 135 locations (with 475 more reportedly in the works) in Guatemala, Honduras, Italy, Kuwait, Bahamas and Romania to name just a few. “Our concept has proven successful in various regions throughout the world, and we look forward to pushing forward with our international expansion,” says Nick Veloce, president and COO. Following hot on their heels is Toronto-based New York Fries, which has been busy pursuing an international strategy of its own. The company signed a master-license deal with Hong Kong-based Next Step Limited in 2008 and plans to open 10 more units over the next five years there, with a move into mainland China as the longterm goal. In all, New York Fries has 17 international stores located in South Korea, the UAE, Hong Kong and Bahrain. Vancouver-based White Spot has also been taking its Triple O’s burger concept on the road, opening eight locations in China, Thailand and Korea. Twittering Toques ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////// THEME FA S T C O M PA N Y Jack Flash There’s nothing slow moving about Turtle Jack’s ILLUSTRATION BY SANDY NICHOLS GOVERNMENT AND OPERATOR HARMONIZATION The recession may have been the big challenge of 2009, but it wasn’t the only thing eating into profit margins. HST legislation, which took effect this month in B.C. and Ontario, and discussion of wage hikes — from Nova Scotia to Ontario and Manitoba — were other hot issues set amidst the country’s recessionary woes. Many governments, especially stateside, continued to consider and/or regulate sodium, trans fat and menu labelling. Federal health minister, Leona Aglukkaq, recently indicated change was necessary after restaurateurs and food operators failed to “voluntary” curtail trans fats before the government’s June 2009 deadline. But it’s not just the government and health advocates volleying for change. According to The NPD Group’s recent report, Eating Patterns in Canada, 12th Edition, sodium, saturated fats, cholesterol and trans fat are the top items Canadians indicate they are cautious of serving their families. Instead, they’re aiming to consume more fibre, omega-3 and antioxidants. Kraft Foods, Campbell’s, McDonald’s, Pizza Hut and the new Asian concept Wok Box are making strides to introduce less sodium and healthier choices for their customers. “We want to let people know that they have an option,” said Scott Bender, CEO of Wok Box, in discussing the importance of introducing a nutrition calculator, information wall and menu for those searching for healthier fare. It’s a lot to consider, but there’s really only one solution. “Some of these things may add cost to us, but we need to be creative as to how we deal with [it],” sums up Pizza Pizza Ltd.’s new CEO, Paul Goddard. 32 FOODSERVICE AND HOSPITALITY JULY 2010 A popular eatery that got its start in Brampton, Ont., in 1993, Turtle Jack’s recent growth has been off the charts, registering a 68 per cent sales increase on this year’s Top 100 report, earning it the distinction of fastest-rising company. With a total of 18 units sprinkled throughout Ontario, the popular chain has added five new stores in the past year and it’s poised to add 10 more through 2011. “I don’t have enough sites to keep clients happy,” boasts Peter Fisher, franchise consultant for the company. With a 70:30 food-to-liquor ratio, it’s the quality and consistency of offerings that brings customers back. “Other brands are too skewed to one or two items they’re known for,” explains Fisher. “We have 40 different types of seasonings and we have everything from steaks and salads to pasta and ribs.” If things aren’t busy enough, the company recently converted two Turtle Jacks into TJ Sports Kitchens and launched a new concept called Fraticellis Authentic Tuscan Grill in Richmond Hill, Ont. The mid-scale casual eatery marries nicely with the Turtle Jack’s concept. But for Fisher, success is all about selling a viable concept. “It’s got a great price point. We’re not the Keg but we’re not low-end either. We’re right in the middle, and we’ve hit on the crest of a wave.” TOP 100 LISTINGS — METHODOLOGY ➜ In compiling our annual Top 100 listings, every effort was taken to ensure a comprehensive and accurate report. In January, surveys were mailed out to foodservice and hotel companies across Canada, requesting detailed information on gross sales for the last fiscal year, number of units and expansion plans for the coming year. While most companies reported a fiscal year ending December 2009, a handful of companies posted fiscal year ending between March and May of 2010. Canadian-owned companies report sales for all their units in Canada and internationally (denoted on the chart with a ‡) while American subsidiaries report only sales achieved in their Canadian units. Hotels on the Top 100 list only their F&B sales, while total hotel sales are included on our Hotelier Top 50 issue, published in July/August. Where hotel companies do not provide a food and beverage breakout, we use the industry ratio of 60 per cent lodging, 40 per cent F&B, unless otherwise noted. In instances when companies refuse to divulge sales figures for the past year, F&H provides an estimate based on industry growth averages and the company’s number of units. This is done to ensure consistency in our report and a fair representation of the leading companies in the industry. The Top 100 is the most authoritative listing of the leading companies in the $58.3 billion foodservice and hospitality industry. However, it is only as good as the information we receive from the companies surveyed. In sending out our annual surveys, we consistently face great challenges in receiving them back in a timely fashion, necessitating a great deal of time expended chasing companies to ensure they are included. We hope when it comes time to fill out next year’s questionnaire, your company will keep in mind the importance and value of this report — not only to your company but to readers across the country, and the industry at large. FOODSERVICEWORLD.COM THE TOP 100 • 2010 Company ///////////////////////////////////////////////////////////////////////////////////////////// Rank Units 2009 Revenue 2009 (millions) Revenue 2008 (millions) The TDL Group Corp. Oakville, Ont. 3,578 ‡$5,311.4 ‡$4,546.0 2 McDonald’s Restaurants of Canada Ltd. Toronto, Ont. 1,427 $3,100.0 $2,910.0 3 3 Cara Operations Limited Vaughan, Ont. 688 $1,475.3 $1,535.0 4 4 Franchise World Headquarters LLC/Subway Milford, Conn. 2,465 $1,260.1 $1,224.6 5 5 Compass Group Canada Mississauga, Ont. 2,000 $1,250.0 $1,212.0 6 7 Fairmont Raffles Hotels International Toronto, Ont. 94 ‡*$1,150.0 ‡*$1,102.0 7 6 Four Seasons Hotels and Resorts Toronto, Ont. 83 ‡*$1,140.0 ‡*$1,140.0 8 8 Yum! Restaurants International (Canada) Vaughan, Ont. 1,277 $1,100.0 $1,100.0 9 9 Boston Pizza International Inc. Richmond, B.C. 394 ‡*$985.0 ‡$960.0 10 10 ARAMARK Canada Ltd. Toronto, Ont. *1,500+ $808.5 $761.7 11 11 A&W Food Services of Canada Inc. North Vancouver, B.C. 710 $757.0 $724.0 12 12 Wendy’s Restaurants of Canada Inc. Oakville, Ont. 371 $658.0 *$596.8 13 13 Starbucks Coffee Canada Toronto, Ont. 1,037 *$594.7 *$551.7 10 09 1 1 2 Business Operations A publicly traded company that franchises and operates Tim Hortons, the largest national coffee and fresh-baked-goods chain. Between 2010 to 2013, Tim Hortons plans to open 600 new locations in Canada and 300 in the U.S., co-branding with Cold Stone Creamery. (Numbers now reflect U.S. stores) A wholly owned subsidiary of McDonald’s Corporation, which is a public company and the franchisor and operator of McDonald’s Restaurants of Canada. In 2009, McDonald’s introduced a comprehensive coffee program. A private company and the franchisor/operator of Swiss Chalet, Harvey’s, Kelsey’s, Montana’s Cookhouse, Milestones Grill & Bar, and Cara Airline Solutions division. A privately owned company and franchisor of 32,076 Subway locations worldwide with 2,465 units in Canada. The company plans to open 150 locations across Canada in 2010/2011. A privately owned, non-commercial, foodservice-management company providing contract catering to educational institutions, hospitals, airports and businesses across Canada. Compass plans to secure an additional 50 contracts in Canada in 2010/2011. A private company that is the owner/operator of 94 luxury hotels and resorts under the Raffles, Fairmont & Swissôtel brands. Fairmont plans to open 20 hotels in 2010/2011 including one in Canada. In Canada, the Fairmont Pacific Rim Vancouver opened in early 2010. (Revenue reflects foodservice sales under management and is an F&H estimate) A private corporation that is the world’s leading operator of luxury hotels, managing 83 hotel and resort properties around the globe, including three in Canada under the Four Seasons brand. In 2010/2011, Four Seasons plans to open nine new hotels outside of Canada. (Revenue reflects foodservice sales only and is an F&H estimate) A publicly held company comprised of restaurant brands KFC, Pizza Hut and Taco Bell, with 1,277 points of distribution in Canada. A private company with 340 restaurants in Canada. During 2009, Boston Pizza opened 18 restaurants in Canada and added burgers to its menu. For 2010, the company plans to open approximately 15 new stores across the country. (Revenue is an estimate) A private management company that provides dietary, foodservice, vending, office coffee systems, laundry, office services, housekeeping and maintenance and material management to health-care, educational, public and remote-market businesses across Canada. A privately owned company with 710 restaurants across Canada, including locations in airports, gas and convenience stores. A publicly traded corporation and subsidiary of Wendy’s/Arby’s Group, Inc. that is the franchisor of Wendy’s Restaurants in Canada with 371 units. A publicly traded company, Starbucks Coffee Canada Inc. has 1,037 units in Canada. Starbucks launched VIA instant coffee and new Tazo brand loose-leaf tea. (Revenue is an F&H estimate) * Denotes Estimate ‡ Canadian-owned company whose operations outside Canada are reflected in revenues and units FOODSERVICEWORLD.COM FOODSERVICE AND HOSPITALITY JULY 2010 33