You can add to this list Edmonton’s reputation as a testing ground for US chain stores and restaurants looking to expand into the Canadian market.
Dickey’s Barbecue Pit, a popular Texas-based restaurant chain that opened its first Canadian location in Edmonton on Thursday, is one of the few major American chains that has turned the city of Alberta into an extension.
In December, the American convenience store chain 7-Eleven opened a licensed location in northern Edmonton that includes a on-site dining table.
California Pizza Kitchen, meanwhile, has said it will open its first location in Canada in southern Edmonton sometime this year.
Industry experts say the city’s demographics, eating habits, affordability, and even the presence of a giant mall are factors that attract businesses that want to taste Canadian flavors.
“Edmonton is a great place to start because you reduce risk and do a good buying test,” said Ziad Kantura, an Edmonton-based franchise consultant, at CBC’s Edmonton AM.
He said the city is a great place to find out if companies are meeting the challenge of entering a franchise in Canada with the least amount of damage in case their venture fails.
“And it is not as saturated as other markets,” he said. “So I think he notes all the right boxes.”
9:00 New chains love Edmonton
Why restaurant chains in Edmonton seem like a good place to start in Canada. 9:00
Dickey’s decided to come to Edmonton because of the similarities between Alberta and Texas, especially when it comes to oil and beef.
“These two things are exactly how this brand started 81 years ago in my country,” said Jim Perkins, the company’s vice president of international sales and support.
Market research has shown that people in Edmonton tend to consume more white protein, chicken and turkey. “And that’s definitely fine for us,” he said.
Smaller, more affordable market with a mall
Kaddoura said the province has the closest cultural population composition to Quebec, USA, for example, would respond to something with a more French feel, he added. Toronto and Vancouver are not suitable test markets, as they are too large for companies to understand what works and what does not. Compared to other cities, Edmonton has an affordable real estate market, Kaddoura said. He said a 3,500-square-foot space in a neighborhood like Windermere could cost $ 12,000 a month in fees, rent and rent. A similar-sized space in a Toronto suburb would cost from $ 20,000 to $ 25,000. He said the people of Edmonton are also knowledgeable about food. “They are open to trying different things,” he said. A few decades ago, this brought restaurant chains such as Red Robin and Outback Steakhouse to the city. West Edmonton Mall, which opened in 1981 and was once North America’s largest shopping mall, also plays a role in attracting businesses to Edmonton, said Craig Patterson, a retail analyst at the University of Alberta. “It’s a very unique mall. You can’t get some things in Calgary to get to Edmonton just because Edmonton has the West Edmonton Mall. So it’s very interesting how it works,” he said. The mall is home to Canada’s unique locations, Sarah Jessica Parker’s SJP shoe store and Bubba Gump Shrimp Co ..
Population size is a problem
Although a single restaurant could be successful in Edmonton, Kaddoura said Edmonton’s small population could be a deterrent to some brands. Companies with a business model that relies on a large volume of products in many places to serve a larger population may not operate here. “There are not enough to serve,” Kaddoura said. But he said other brands will monitor the success of the new launches to decide if they want to follow suit. “We will see what happens in the future,” he said.
