Financing

Chick-fil-A is taking on Toronto

The fast-growing chicken chain is opening its first franchises outside of the U.S. in Canada in 2019.
Chick-fil-A

Chick-fil-A, having already conquered much of the U.S., is taking aim at Canada.

The Atlanta-based chicken chain said on Wednesday that is planning to open its first international franchise in Toronto next year and plans 15 locations in the Toronto area over the next five years.

The company says it is working to recruit owner-operators in the city, who will pay CA$15,000 for the right to operate a Chick-fil-A franchise. By comparison, the company said, other Canadian franchises require investments of CA$100,000 to CA$300,000.

The move to Toronto will be the first test of whether Chick-fil-A’s wholesome, Southern-bred concept will work outside of the U.S., where it has been one of the most successful restaurant chains in recent vintage.

Chick-fil-A system sales in the U.S. increased 14.2%, or just more than $9 billion, in 2017, according to Technomic data, making it the country’s seventh-largest restaurant chain. Unit volumes exceed $4 million despite being open just six days a week.

“Toronto is a great city, with diverse and caring people and a vibrant restaurant culture with a deep talent pool,” Tim Tassopoulos, Chick-fil-A’s president and chief operating officer, said in a statement.

The international expansion comes just days after Chick-fil-A announced that it would test meal kits in its home market of Atlanta starting next month.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners