The capital of Alberta is known for many things – a giant mall, a beautiful river valley and a very successful NHL franchise.
You can add to this list the appeal of Edmonton as a testing ground for US chain stores and restaurants that want 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 U.S. chains to look for the city of Alberta to expand.
In December, the US grocery chain 7-Eleven opened a licensed location in northern Edmonton, which includes an on-site dining room.
California Pizza Kitchen, meanwhile, has said it will open its first Canadian location in South Edmonton sometime this year.
Industry experts say the city’s population, eating habits, affordability and even the presence of a giant mall are factors in attracting companies that want to test Canadians’ taste buds.
“Edmonton is a very good place to start because you limit your risk and get a good market test,” Ziad Kadura, a Edmonton-based franchise consultant, told CBC Edmonton AM.
He said the city is a great place to find out if companies face the challenge of introducing a franchise in Canada with the least damage in case their venture fails.
“And it’s not as saturated as other markets,” he said. “So I think I checked all the correct boxes.”
9:00 The new chains love Edmonton
Why restaurant chains see Edmonton as a good place to start in Canada. 9:00 p.m.
Dickie 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 launched 81 years ago in my country,” said Jim Perkins, vice president of international sales and support.
Market research shows that people in Edmonton tend to consume more white protein, chicken and turkey. “And that’s certainly good for us,” he said.
Smaller market at an affordable price with a mall
Kadura said that the province has the closest cultural composition of the population of American Quebec, for example, would respond to something with a more French flavor, he added.
Toronto and Vancouver are not suitable test markets because they are too large for companies to know what works and what doesn’t.
Compared to other cities, Edmonton has an affordable real estate market, Kadura said.
He said a 3,500-square-foot space in a neighborhood like Windermere could cost $ 12,000 a month in fees, leasing and rent; a space of similar size in a Toronto suburb would cost between $ 20,000 and $ 25,000.
He said Edmonton residents also understand food.
“They are open to trying different things,” he said. Decades ago, this led restaurant chains such as Red Robin and Outback Steakhouse to the city.
West Edmonton Mall, which opened in 1981 and was once the largest mall in North America, 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 center. In Calgary, you can’t get some of the things you’ll get in Edmonton just because there is West Edmonton Mall in Edmonton. So it’s pretty interesting how that works,” he said.
The mall is home to the only places in Canada for Sarah Jessica Parker’s SJP shoe store and Bubba Gump Shrimp Co.
Population size is a problem
Although a restaurant may find success in Edmonton, Kadura said Edmonton’s small population may be a deterrent to some brands.
Companies with a business model that relies on a large volume of products in several places to serve a larger population may not work here.
“There’s not enough to serve,” Kadura said.
But he said other brands will monitor the success of the new openings to decide if they want to follow suit. “We will see what happens in the future,” he said.
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