Advertisement
Advertisement
Home Blog Page 466

What’s up with all these food halls in Canada?

People eating at Cathcart Food Hall. Photo courtesy of CBRE

It’s lunchtime on a Thursday and Montreal’s Le Cathcart food hall is bustling. As the smell of fresh pizza fills the air, a man chows down on an enormous Italian sandwich in the sun-filled Biergarten while a woman perched on three-inch stilettos chats with a co-worker over poke bowls. Later in the day Le Cathcart will transform into a trendy bar and fill up with young professionals mingling, drinking elaborate cocktails and dancing to local DJs.

Le Cathcart is one of Montreal’s hottest food halls, a cafeteria-style market concept that has gained momentum across Canadian cities over the last few years. Unlike food courts, which typically comprise an assortment of fast-food operators, food halls are curated with local, artisanal restaurateurs and often serve alcohol. They are a popular spot for social events and gatherings due to the large array of food they offer and the community feeling they foster.

“The food hall trend is well beyond taking off, it’s spreading rapidly, but what’s interesting is that the concepts keep getting better,” says CBRE Montreal’s Christopher Rundle. “Landlords are finding creative ways to fill big spaces on the ground floors and basements of their buildings and making their assets more appealing in the process.”

FAST FOOD AND CASUAL SECTION OF LE CATHCART. RENDERING: SID LEE ARCHITECTURE/SUPPLIED

Canada’s Booming Food Hall Scene

Le Cathcart is one of several food halls that have opened in Montreal in recent years. It was preceded in 2019 by Le Central, a gastronomic hub in Montreal’s Quartier des Spectacles and Time Out Market, a trendy Lisbon-based concept that opened in Montreal’s Eaton Centre. Royalmount’s Le Fou Fou is on track to become Montreal’s next food hall sensation when it opens later this summer, with 12 eateries, four bars and 900-plus seats.

“Food halls have great atmosphere and hip offerings that attract big crowds,” says Rundle. “That’s why so many office and mall landlords are opting for them these days.”

Montreal isn’t alone in seeing the growth of the food hall trend. North Vancouver boasts The Quay Market and Food Hall at Lonsdale Quay Market, a waterfront carnival-style marketplace that opened for Expo ‘86. The market has recently been revitalized with new seating and food offerings and a bar featuring local brews on tap. 

Calgary has First Street Market, a fully licensed food hall designed by Calgarians for Calgarians that serves local beers and cocktails, and District at Beltline, part of a mixed-use complex in one of the city’s up-and-coming neighbourhoods.

Le Fou Fou – Rendering: LemayMichaud via lefoufou.com

Toronto saw PATH-adjacent Chefs Hall open in 2018 and TABLE Fare and Social open on the fourth floor of CIBC Square, a downtown office tower, in 2023. These were followed by the launch of three food halls in 2024 alone: CF Toronto Eaton Centre’s Queen’s Cross Food Hall opened in April followed by The Well’s approximately 50-vendor Wellington Market in May and Waterworks Food Hall in July.

Ottawa also has a food hall, Queen St. Fare, featuring one of the city’s top mixologists and six local food vendors, including a Mexican street food stall by Top Chef Canada winner René Rodriguez.

“Food halls are not the food courts you grew up with,” says CBRE Urban Retail Team’s Alex Edmison, whose team brokered the retail deals at The Well. “They pull people in with authentic local food vendors, cool designs and atmospheres that make you want to be there.”

Queen’s Cross Food Hall – Photo: Oliver & Bonacini

Ingredients for Success

Food halls may be on the rise but Edmison says they require certain circumstances to succeed. “They can work to differentiate large-scale developments such as malls, office complexes and mixed-use properties,” says Edmison. “They can help sell the vision for a property and draw people to less centralized locations by providing an experience they can’t get anywhere else.”

For landlords, transacting with independent food retailers can be more labour-intensive than doing business with international fast-food brands that have extensive real estate experience and know how to build spaces efficiently. “Food halls are just not scalable like traditional food courts,” says Edmison. “But under the right circumstances, they can add a lot of value to a development or property. We can help clients determine whether a food hall is feasible for their project.”

Food halls can require larger up-front investments on behalf of the landlord, who may have to contribute more resources towards the original build-out. Alternatively, they can head lease the space to groups such as Time Out, which manage the process of sourcing the tenants and getting them open for business. Under either scenario, food halls can be attractive for smaller restaurant operators who have less experience building out spaces and may not want to compete with large franchises that can offer quicker and cheaper food options.

Le Central – Photo: André Rainville (@villedepluie) via lecentral.ca

“It’s pretty much plug-and-play and involves minimal start-up costs,” Rundle says. “Food halls enable restaurant operators to focus on what they do best and provide the public and nearby tenants with a cool food venue.  

“Whether or not food halls will bring about a dining revolution is yet to be seen.”

Preliminary success is encouraging retail and office landlords to double down on this concept to help revitalize properties and increase utilization post-pandemic. Whether the trend has legs is unclear, but in the meantime, eat and drink up, Canada!

(This content comes from CBRE’s Advantage Insights blog, your one-stop source for news and views from across the Canadian commercial real estate landscape.)

Crestpoint acquires 50% interest in three building Loblaw portfolio

60 Carlton Street (CNW Group/Crestpoint Real Estate Investments Ltd.)

Crestpoint Real Estate Investments Ltd. have announced the acquisition of a 50 per cent interest in a three-building portfolio from Loblaw Properties Limited and Shoppers Realty Inc.

The acquisition transaction was completed as part of a 50/50 joint venture with an affiliate of Choice Properties Real Estate Investment Trust (Choice Properties), said the company in a news release.

“The Portfolio consists of one distribution center and two retail properties. The distribution center is a 711,000 sq. ft. dual load distribution facility located in Mississauga, Ontario. The two retail assets include a 150,000 sq. ft. Real Canadian Superstore in Winnipeg, Manitoba and a strata title interest in the lower floors of 60 Carlton Street in Toronto, Ontario, formerly Maple Leaf Gardens.  Originally constructed in 1931, this iconic building was the home arena of the Toronto Maple Leafs until 1999, but now houses 95,000 sq. ft. of retail space including a flagship Loblaws grocery store, an LCBO outlet, a Joe Fresh location and 150 underground parking spaces. Toronto Metropolitan University will retain its ownership of the top level of the property which houses the Mattamy Athletic Centre,” it said.

“The Portfolio is 100% leased for 15+ years and is backed by Loblaw’s and Shoppers’ investment grade credit parent company, Loblaw Companies Limited. Crestpoint, on behalf of the Crestpoint Core Plus Real Estate Strategy (its open-end fund), entered into this joint venture transaction with Choice Properties, Canada’s largest REIT with over 700 properties valued at $16.7 billion and a market cap of ~$10.6 billion.”

The company said closing of this acquisition brings Crestpoint’s total assets under management to $10.4 billion and 38.3 million square feet. 

Retail sales drop in June: Statistics Canada

Michel's Bakery and Café at Toronto's Yorkdale Shopping Centre on September 1, 2024. Photo: Craig Patterson

Retail sales reached $68.7 billion in June, a decrease of 3.0% compared with the same month one year earlier. Lower sales were reported in 13 of the 18 commodity classes, reported Statistics Canada on Monday.

The advance estimate provided by the Monthly Retail Trade Survey suggests that unadjusted total retail sales in July increased by 1.5%. Because of its preliminary nature, this figure will be revised, added the federal agency.

“In June, the largest decline in dollar terms came from lower sales of motor vehicles (-8.4%). The decrease in this commodity class was driven by lower sales of new motor vehicles (-7.6%) and used motor vehicles (-9.4%),” it said.

“For the second consecutive month, retail sales of hardware, tools, and renovation and lawn and garden products (-5.5%) decreased year over year in June. Sales of renovation materials and supplies (-6.9%) posted the largest decrease within the class, driven by lower sales of lumber and other renovation materials and supplies (-8.6%).

“In dollar terms, the largest increase in June came from sales of food and beverages (+1.4%). Leading the growth within this product class were higher sales of eggs and dairy products (+6.6%) and cookies, confectionery, and snack foods (+5.7%). Lower sales of alcoholic beverages (-5.2%) partially offset the increase.”

Amazon opening specialized fulfillment centre in Cambridge, Ontario on September 29

Amazon is hiring thousands of people for the holiday season. Photo courtesy of Amazon
Amazon is hiring thousands of people for the holiday season. Photo courtesy of Amazon

Amazon has confirmed that its newest fulfilment centre, YHM2, will open in Cambridge, Ontario on September 29. Measuring nearly one million square feet, with capacity for more than 1,000 employees, the new facility will offer in-demand skills training and career growth opportunities while helping optimize Amazon’s regional operations network, it said.

At YHM2, Amazon product inventory will be stored, managed, and distributed to regional Amazon Robotics fulfilment centres, allowing them to fulfil a wider selection of customer orders at the fastest-possible delivery speeds.

Greg Clutton

“YHM2 will bring the best of Amazon’s logistics expertise to Cambridge while making the city an important part of how we support our local fulfilment network and offer a leading product selection to customers,” said Greg Clutton, YHM2 Site Lead. “We are proud to be creating good jobs while making important contributions to the local community.”

Because of Cambridge’s strategic location, YHM2 will play a key role in supporting Amazon fulfilment centres in southwestern Ontario as the company prepares for the holiday season. The site will launch with more than 250 jobs, and has the capacity to scale to more than 1,000 jobs as operations ramp up. Employees will have the opportunity to build new skills and grow their careers by participating in training and certification programs related to the technology operated by the site, including forklifts. With the launch of YHM2, Amazon now operates 12 fulfilment centres, two sortation centres, 16 delivery stations, and two AMXL delivery stations in Ontario, explained Amazon.

The company said it is donating $66,000 to the YWCA Cambridge’s Small Steps to Success program. Small Steps to Success helps empower local women and gender-diverse individuals in the Region of Waterloo to achieve their personal and professional goals, aligning with Amazon’s commitment to fostering skills training, inclusive opportunities and long-lasting community impact.

Kim Decker

“YWCA Cambridge is pleased to welcome Amazon to the community.  Their commitment to investing in women’s employment through this donation will provide much needed support to the women and gender-diverse individuals who access our employment programs.  We look forward to a continued partnership where all women and gender-diverse individuals have the opportunity to reach their full potential,” said Kim Decker, CEO, YWCA Cambridge.

Amazon is also supporting the construction of 24 stacked townhomes in Cambridge through a donation to Habitat for Humanity. The project will provide working families in need with access to home ownership.

Philip Mills

“Everything that we do to make a difference in the lives of families in our community is done through partnerships. Because of the generosity of folks like Amazon, children have a safe place to grow up, parents have the peace of mind knowing they can’t be evicted, and the community is one step closer to a solution to our affordable housing crisis,” said Philip Mills, CEO, Habitat for Humanity Waterloo Region.

Amazon said it has invested over $1 billion globally in safety initiatives since 2019. In 2024 alone, the company allocated over $750 million to invest globally in technologies, resources, training, and programs to further enhance safety efforts.

Candidates interested in working at YHM2 are encouraged to visit www.amazon.ca/canadahourlyjobs.



Overcoming the hidden financial burden of back-to-school expenditures on Canadian families (Opinion)

Back to School at Winners (Image: Dustin Fuhs)

(Bruce Winder is a retail analyst, advisor and speaker with 30+ years experience in big retail,
consulting and teaching)

As the new school year is here, many families are finding the excitement of a fresh start is
overshadowed by the costly burden of back-to-school shopping. Parents in Canada are faced
with a question: how can they navigate this financial challenge without sacrificing their children’s
needs and educational experience?

Bruce Winder


Back-to-school spending is the second-largest annual retail expenditure for households, trailing only holiday shopping. According to a 2024 report from Deloitte, consumers spend a yearly average of almost $600 per student on back-to-school supplies alone.

However, the back-to-school shopping landscape – and the retail landscape as a whole – has been shifting. While Canadians may feel like their social media feeds are bombarded with “back-to-school hauls,” the reality is more and more families are shrinking their back-to-school budgets and opting for more conscious spending. Deloitte reported a decrease in school spending from past years – from $661 in 2022, to $597 in 2023 and down to an average of $586 per student this year.

It’s fair to say that the cost-of-living crisis has extended well beyond housing, gas and groceries to also include clothing and everyday essentials. In this difficult economic climate, consumer priorities are shifting as families become more mindful of where they’re spending their hard-earned cash – and more importantly – how they can save. Retail trends have been quick to adapt to these changes.

Previously, younger generations gravitated towards brand names and celebrity-endorsed products that flooded their social media feeds. Now, brand loyalty is waning as families prioritize cost savings and embrace discount and secondhand shopping.

In 2024, there is a growing preference for cheaper, unbranded or lesser-known alternatives to
popular brand-name products. Approximately, 67 per cent of surveyed parents will shift brands if
their preferred brand is too expensive, and 50 per cent will shop for private labels over name
brands.

Online shopping, social media and apps have become viable solutions for families looking to
stretch their dollars further. One in three parents plan on using social media sites to assist in
their back-to-school shopping.

Even more so, online thrifting sites such as Facebook Marketplace and discount shopping apps
have become increasingly popular because of the wide range of choices offered – many of
which are identical in origin and quality to the products found in physical stores without the hefty
supply chain mark-ups that inflate the costs of products.

Convenience is another major factor. Parents want to save time and money through one-stop
shopping and easy returns offered by online marketplaces. For back-to-school supplies, they’re
increasingly turning to direct-from-factory marketplaces like Temu, where they can find a wide
selection of cost-effective products at prices significantly lower than other retailers.

Not participating in these retail traditions is easier said than done. Equally, we can’t ignore the
positive benefits associated with them. Studies have consistently demonstrated that having
school supplies of their own can improve students’ grades, creativity, attitudes toward learning,
behaviour, peer relationships and self-image.

In today’s evolving retail landscape, parents should feel empowered to balance fiscal
responsibility with purchasing the products their children need and want to start the new school
year off strong. With smart shopping choices and an openness to trying new platforms in an
ever-changing retail environment, Canadian families have the power to successfully navigate
the economic challenges facing them today while provide the best for their family without
breaking the bank.

7-Eleven Owner Rejects Couche-Tard’s Takeover Bid

Photo: 7-Eleven

Seven & i Holdings, the Japanese parent company of convenience store chain 7-Eleven, has rejected a US$38.6 billion takeover offer from Canadian retail giant Alimentation Couche-Tard. The proposal was deemed to undervalue the company and carry significant regulatory risks.

In a letter made public on Friday, Stephen Dacus, head of Seven & i’s special committee, outlined the reasons for rejecting the bid. Couche-Tard’s all-cash offer of US$14.86 per share, equivalent to about 5.5 trillion yen, was considered “opportunistically timed” and insufficient.

Despite the rejection, Seven & i left the door open for future negotiations. Dacus stated they would consider proposals that fully recognize the company’s stand-alone intrinsic value and address regulatory concerns in the current environment.

Image: 7-Eleven Canada

Laval, Quebec-based Couche-Tard, which operates about 17,000 stores in 31 countries including the Circle K brand, has long sought to acquire its Japanese rival. The proposed deal would create the world’s fourth-largest retailer, behind only Walmart, Amazon, and Costco.

Seven & i operates 86,000 stores across Japan, the United States, and other Asian nations. In Canada, the company has a growing presence, with stores in several provinces. The 7-Eleven brand remains popular in Japan, serving as a vital part of daily life for many consumers.

The takeover bid faces significant hurdles in the United States, where both companies have substantial operations. Seven & i expressed concerns about Couche-Tard’s lack of detailed plans for addressing potential antitrust issues. Analysts estimate that over 1,000 stores might need to be divested to satisfy regulators.

Photo: Couche-Tard

Seven & i’s shares on the Tokyo Stock Exchange reacted to the news, trading at 2,133.5 yen (US$14.92) on Friday, down 1.4 percent. However, the stock has generally maintained gains since the takeover approach was first disclosed on August 19.

Industry experts anticipate that Couche-Tard may return with an improved offer. CEO Alex Miller expressed confidence in financing and completing the takeover, stating, “We look forward to engaging with Seven & i constructively.”

The outcome of this potential deal would significantly expand Couche-Tard’s global footprint and potentially reshape the convenience store industry worldwide.

PHOTO: CIRCLE K

Seven & i recently announced a restructuring plan to strengthen its U.S. operations and streamline its Japanese business. The company closed some Ito-Yokado supermarkets in Japan and sold its Sogo & Seibu department stores to Fortress Investment Group for US$1.5 billion last year.

In its latest financial report, Seven & i reported an annual profit of 224 billion yen (US$1.6 billion), down 20 percent from the previous year, while annual sales slipped nearly three percent. Despite these challenges, the company remains a dominant force in the global convenience store market.

The potential acquisition would combine Couche-Tard’s strong North American and European presence with Seven & i’s dominance in Asia. This would create a retail powerhouse with annual revenue exceeding US$150 billion and more than 100,000 stores worldwide.

VIDEO: Retail and food presence grows at Spruce Meadows

After close to 50 years, Spruce Meadows, just south of Calgary, has grown into an internationally-renowned equestrian facility.

Spruce Meadows is wholly owned and operated by the Southern Family.

“The dream of the Southern Family from the start was to create a unique environment of “good friendship, good commerce, and good sport”. This dream has been shared from its genesis by a committed group of corporations, volunteers, media, athletes, staff, fans, and officials. Together these stakeholders have shaped the dream and built a most memorable place,” says the organization.

But the massive facility is more than just horses.

Retail Insider caught up with Linda Southern-Heathcott, President of Spruce Meadows, during the annual Masters tournament to discuss how it has evolved over the years into a dining, shopping and entertainment destination.

Southern-Heathcott talks about the growing number of vendors that are now selling their products during tournaments at the marketplace, the growing number of food offerings and the opening next year of a fine dining restaurant on the site.

Pet Valu opens distribution centre in Surrey B.C. (Photos)

Photo courtesy of Pet Valu

Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, announced Friday  the official opening of its 350,000-square-foot, LEED-gold certified distribution centre in Surrey, British Columbia.

The company said the Surrey DC is three times the size of Pet Valu’s existing warehouse in the province and a key component of Pet Valu’s over $100 million supply chain transformation. It said the new facility unlocks the company’s continued growth in Western Canada while providing enhanced service to existing stores in the region.

Photo courtesy of Pet Valu
Richard Maltsbarger

“Our new Surrey DC represents the second pillar of our supply chain transformation, and another key achievement of our cross-functional teams, whose careful balance of rigourous planning and iterative learning have kept this multi-year project on time and on budget,” said Richard Maltsbarger, Chief Executive Officer of Pet Valu

“This new facility embodies Pet Valu’s commitment to Our Four Paws service model, designed to emphasize safety, compassion, expertise and efficiency. Following several years of heightened investments, we are now entering the final stretch of our transformation, after which we will have Canada’s strongest pet specialty distribution network as the backbone to propel Pet Valu’s continued profitable growth over the next decade.”

The company said the Surrey DC is the second largest pet specialty distribution centre in Canada, exceeded only by Pet Valu’s own 670,000-square-foot distribution centre in Brampton, Ontario and brings up to 150 skilled jobs to Surrey. 

“Similar to the GTA DC, the Facility utilizes an advanced warehouse management system, and modernized machine handling equipment, safety systems and security systems. Additional features include ample wellness space to support the diverse needs of its employees, including a meal room, training space, a driver’s lounge, prayer and ablution rooms, and first aid facilities,” said Pet Valu.

“As part of the company’s ongoing pursuit to optimize energy and emissions management, the Surrey DC will pilot the use of two electric trucks as part of its delivery fleet. Each electric delivery truck represents an opportunity to avoid consumption of over 25,000 litres of diesel fuel per year.

Photo courtesy of Pet Valu

Pet Valu said it expects the Surrey DC to be fully operational by the fourth quarter of 2024, as it scales down use and exits its legacy distribution centre and third-party storage space in the Metro Vancouver Region in the coming months. It said the facility is currently receiving and shipping all products through advanced manual processes with implementation of automation of its piece-pick operations intended for 2026 or thereafter.

Nico Weidel

“Pet Valu continues to set a high bar for pet specialty distribution capabilities in Canada,” said Nico Weidel, Chief Supply Chain Officer at Pet Valu. “The advanced, modern processes and systems at each of our new distribution centres provide improved product availability, faster order processing, and enhanced customer service levels for stores and eCommerce customers alike in a safe, spacious environment that supports the needs of our modern workforce. 

“As we finalize our transitions in the Greater Toronto and Metro Vancouver regions, we will soon shift our focus to our final distribution hub in Calgary and completion of our supply chain transformation in 2025.”

Pet Valu is Canada’s leading retailer of pet food and pet-related supplies with over 800 corporate-owned or franchised locations across the country. 

It has been in business for more than 45 years.

Photo courtesy of Pet Valu
Photo courtesy of Pet Valu
Photo courtesy of Pet Valu
Photo courtesy of Pet Valu

Happy Belly Food Group Acquires 100% of iQ Foods Co.

Photo courtesy of Happy Belly Food Group

Happy Belly Food Group Inc., a leading consolidator of emerging food brands, announced Friday that it has acquired 100 per cent of Toronto-based QSR brand iQ Foods Co. and all four iQ Foods locations following iQ’s filing for creditor protection recently.

iQ Foods offers a variety of wholesome options like healthy bowls, smoothies, sandwiches, soups, and salads, along with other flavourful clean-eating dishes.

“Today, we are pleased to announce the 100 per cent acquisition of iQ Foods. Alongside our wholly owned Lettuce Love Café brand, and our binding acquisition agreement for Salus Fresh Foods announced on July 29th, we are taking our first steps in executing the next phase of our business strategy by consolidating emerging brands within sectors, in addition to developing emerging brands,” said Sean Black, Chief Executive Officer.

Photo courtesy of Happy Belly Food Group

“This is a key moment in our company’s growth as we embark on consolidating sectors, starting with the premium healthy and clean eating vertical. This approach aligns with our strategy, targeting a growth sector that is gaining market share and share of wallet amongst consumers, especially among health-conscious consumers in parts of Canada and the US.

“We see inspiration in category leaders like Sweetgreen in the US, which has grown significantly in business, store count, and achieved an impressive market cap of over $3.5 billion USD, not unlike how CAVA accelerated its expansion in the Mediterranean category by acquiring Zoe’s Kitchen. Our acquisition of iQ Foods establishes our Happy Belly platform as a strong foundation for our sector consolidation strategy.”

Happy Belly said iQ Foods is a cornerstone brand in Canada’s premium healthy eating market and represents the largest single acquisition of corporate-owned stores that Happy Belly has made to date.

Photo courtesy of Happy Belly Food Group

“Strategically situated in urban and central business districts, iQ Foods serves the needs of thousands of customers who are focused on health and wellness from local businesses while also expanding into catering services, which generates additional revenue in major metropolitan centres. This approach has built strong brand awareness and a loyal customer base through word-of-mouth and most importantly, happy and satisfied customers.”

As part of the acquisition Happy Belly takes ownership of four downtown Toronto locations: 100 King Street West (First Canadian Place); 18 York Street (Financial Centre); 199 Bay Street (Equinox Gym and Fitness Center); and 55 Avenue Road (Yorkville Equinox Gym and Fitness Center). A location at Toronto’s Yorkdale Shopping Centre recently closed with a creditor protection filing.

“With our current and prospective new locations, we aim to grow and scale iQ Foods operations into 2025 and beyond. Our Happy Belly footprint continues to grow with each M&A transaction and every new store opening. With the iQ Foods acquisition, we will have 36 restaurants operating within the Happy Belly portfolio, which will increase to 45 following the closing of the Salus Fresh Foods acquisition. Additionally, five of our brands currently have one or more locations under construction, significantly boosting our organic growth. This combination of accelerated organic and inorganic growth positions us well for continued expansion. We look forward to announcing several new openings throughout 2024 as we continue to sign franchise agreements and secure prime real estate locations for our franchisees across Canada,” added Black.