March cover.layout

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
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FOODSERVICEWORLD.COM
FOODSERVICE AND HOSPITALITY JULY 2010
➜
21
Rockin’ the Box
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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
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