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Foodtastic opens combined Pita Pit, Second Cup Café and Chocolato in Saint-Eustache, Quebec

By
Mario Toneguzzi
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Source: Foodtastic
Source: Foodtastic

Foodtastic, one of Canada’s largest and fastest-growing restaurant franchise companies, is celebrating the grand opening of its multi-brand location, featuring Pita Pit, Second Cup Café and Chocolato in Saint-Eustache, Quebec. This milestone marks Pita Pit’s return to the Montreal market and reflects the company’s continued expansion.

“We are happy to introduce this innovative multi-brand concept to our customers in Saint-Eustache,” said Peter Mammas, President and CEO of Foodtastic. “By combining three of our restaurant concepts, we are creating an exciting new destination for the local community. We’re excited to bring these delicious and proven brands to the area.

Image: Peter Mammas

“The space was too big for one concept and we’re lucky enough to have a lot of different brands. We basically figured out we could put three different brands in there, take up the space and make it work.”

The location’s format is designed to provide customers with a diverse offering – from fresh and highly customizable pitas to a premium coffee experience and delicious chocolate desserts. The new multi-brand unit is located at 477 25e Avenue, right next to the cinema and just east of the city’s popular flea market.

The success of our company is based on our shared love for food and hospitality and doing things right,” said Mammas. “Ultimately, this has fueled our growth and allowed us to build a strong portfolio of brands and franchise partners. We’re confident the people of Saint-Eustache and those who visit our locations will see that first-hand.”

He said this is the first time this has been done with these three brands. But the company has done several co-branding projects.

“We’re kind of figuring out how we can do different spaces because sometimes in real estate you don’t get that perfect 1,300-square-foot QSR space. You’ll get one that’s 2,600 and you can’t take it. So we try to figure out ways to do it. Co-branding is efficient for us in the sense that we keep the franchisee who can use the same bathrooms, and use a lot of the back of house together. So there’s a lot of synergies in doing things like this.”

Mammas said brands that placed together are typically non-competing. The Second Cup brand can be the backbone of the concept as it complements the company’s other brands.

He said about 30 different locations have some form of co-branding. Two is usually the standard but some locations have three brands together.

There’s more to come.

“We want to open a lot of stores. We’re opening over 125 in the next 12 months and to do that you have to be creative with real estate,” said Mammas.

Currently, the company has 27 brands.

About Foodtastic

Foodtastic is one of Canada’s largest restaurant franchisors, operating more than 1,200 locations across the country. Its diverse portfolio includes Freshii, Quesada, Pita Pit, Second Cup, Milestones, and over 22 other banners. Committed to quality, innovation, and growth, Foodtastic continues to expand its presence across North America.

About Pita Pit

Founded in 1995 with the motto “healthy on your terms,” Pita Pit has become a go-to destination for Canadians looking for fresh, flavourful, and nutritious menu options made from quality ingredients. Learn more at pitapit.ca.

About Second Cup Café

A Canadian staple since 1975, Second Cup Café offers premium-quality coffee and specialty beverages. Focusing on sustainability and ethical sourcing, Second Cup provides customers with a refined and inviting café experience that celebrates coffee culture while supporting local communities. For more information visit secondcup.com.

About Chocolato

Chocolato is a premier dessert destination specializing in high-quality, handcrafted chocolate treats. From decadent ice creams and fondues to gourmet chocolates, Chocolato offers a unique and indulgent experience for chocolate lovers of all ages. With a strong commitment to quality and innovation, Chocolato continues to delight customers across Canada. Learn more at chocolato.ca.

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Odd Burger expands with new locations, pizza launch, and retail partnerships

By
Mario Toneguzzi
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Image: Odd Burger

Odd Burger is making major moves in 2025 with new store openings, a successful pizza launch, and a strategic retail partnership, according to James McInnes, the company’s CEO.

Odd Burger currently operates 20 locations, including 18 storefronts and two mobile units. “We have four or five more locations opening this spring,” McInnes said. The company is also preparing to expand into the U.S. later in 2025, with Washington State—likely Seattle—or Florida as potential markets.

“We’ve done really well in BC—almost double the unit sales. The West Coast is a strong market,” McInnes noted.

James McInnes

Pizza Launch a Massive Success

Odd Burger recently introduced a new healthier, personal-sized pizza, which has been a hit with customers. “We sold three or four thousand pizzas the first weekend. It was wild,” McInnes said. Initially launched as a limited-time offer for two months, its popularity may lead to it becoming a permanent menu item.

McInnes compared the move to Tim Hortons unexpected but successful pizza launch and highlighted how technology now enables quick preparation. “McDonald’s couldn’t keep pizza because they the technology did not exist to make it fast enough. Now, we can make a made-to-order pizza in a minute and 20 seconds,” he explained.

Strategic Partnership with Calgary Co-op

The company’s retail presence is also growing through a new partnership with Calgary Co-op, facilitated by a franchisee. “It’s a great example of how franchisees can be valuable partners—not just for their own store’s success, but for the brand overall,” McInnes said.

Calgary Co-op, which operates 22 locations, was eager to fill a gap in its plant-based product offerings. “A lot of brands disappeared, so they needed something established. They took all five of our SKUs,” McInnes said. The move is expected to boost brand awareness and drive restaurant traffic.

Image: Odd Burger

Consumer Packaged Goods: A Key Growth Strategy

McInnes sees Odd Burger’s consumer packaged goods (CPG) line as a major growth avenue. “Restaurants take time, effort, and the right franchise partners. But with packaged goods, we can control expansion and margins better. It also builds brand awareness, which benefits franchisees. It’s a win-win,” he said.

The Future of Food Tech and Sustainability

Odd Burger is also looking ahead at food technology advancements, including cultivated meat and fermented dairy proteins. “There are new technologies like cultivated meat and fermented dairy proteins. There’s technology now that can produce dairy proteins identical to the dairy from a cow,” McInnes said. “There’s going to be applications coming out in the near term that are going allow consumers to have real cheese and real dairy without these animals.

“It’s called clean protein because there’s no slaughter, lower contamination risk, and no growth hormones. These technologies will change the playing field. Odd Burger plans to be on the cutting edge of all these new technologies and new foods coming out.”

With continued expansion, innovative menu offerings, and a strategic approach to retail, Odd Burger is poised for significant growth in 2025 and beyond.

Why Canadians Still Reject Online Grocery Shopping

By
Sylvain Charlebois
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Online grocery shopping. Image: iStock/licensed

Despite the digital transformation reshaping industries worldwide, grocery shopping in Canada remains deeply rooted in traditional in-store experiences. A recent survey by Dalhousie University and Caddle, which polled 2,501 Canadians, found that 57.8% of respondents still do all their grocery shopping in-store without using grocery apps, while only 2.5% rely exclusively on digital platforms. Additionally, 3.0% primarily shop online but still visit physical stores occasionally. This data underscores a clear divide between technological adoption and consumer preferences, reflecting deeper economic and behavioural trends in food retail.

Nearly 60% of Canadians still prefer to see and touch fresh food before purchasing, reinforcing their hesitation to fully embrace digital grocery shopping. Trust in product selection, particularly for fresh produce, meat, and dairy, remains a key reason why many consumers continue to favour a hands-on approach. Price sensitivity amid rising food costs also plays a role, as shoppers want to ensure they are getting the best value. Many remain skeptical about entrusting the selection of perishable goods to third parties, fearing lower-quality items, improper substitutions, or poor handling.

Survey data suggests that consumers are more comfortable purchasing non-perishable items online. Pantry staples such as rice, pasta, and canned goods are the most frequently ordered online, making up 32.6% of digital grocery purchases. Snacks and beverages follow at 13.0%, while ready-to-eat meals account for 12.2%. Fresh produce, despite consumer hesitancy, still represents 11.9% of online grocery orders. However, dairy and meat—two categories where freshness is critical—make up just 4.4% and 3.3% of online purchases, respectively. The fact that fresh and perishable goods remain among the least frequently ordered categories highlights ongoing consumer reluctance to trust digital grocery platforms for items requiring quality assurance.

Economic factors are another significant barrier to online grocery adoption. While the convenience of digital shopping is appealing, the additional costs—such as delivery fees, price markups, and service charges—deter many budget-conscious consumers. With food inflation remaining a major concern in Canada, shoppers are focused on maximizing savings through in-store discounts, flyer promotions, and price comparisons across brands. Many are unwilling to pay extra for a service they do not fully trust, especially when alternative shopping methods allow them greater control over spending.

Common Challenges With Online Grocery Shopping

Challenges with online grocery shopping extend beyond cost concerns. According to survey data, the most common complaint among consumers is high delivery fees, cited by 35.9% of respondents. Other key frustrations include substituted or unavailable items (27.5%), missing items (26.0%), and poor packaging or damaged goods (18.2%). Additionally, 14.1% of respondents reported late or missed deliveries, reinforcing skepticism about the reliability of grocery apps. While 24.6% of consumers stated they had no significant issues, the majority still encountered at least one problem, highlighting persistent logistical inefficiencies and consumer dissatisfaction with digital grocery services.

When choosing a grocery delivery service, price is the most important factor for 25.3% of consumers, followed closely by delivery fees. Convenience, delivery speed, reliability, and customer service also influence decision-making, though to a lesser extent. The availability of preferred brands and participating retailers remains another key factor, suggesting that online grocery shopping in Canada is still limited by the presence and reach of digital platforms.

Currently, online grocery sales in Canada account for an estimated 4.5% of total grocery revenue, representing nearly $9 billion in sales. However, compared to other countries, Canada lags behind in digital grocery adoption. In the United States, online grocery sales represent between 10% and 15% of total grocery spending, a significantly higher proportion than in Canada. China has emerged as a global leader in this space, with a highly digitized retail infrastructure enabling widespread online grocery shopping. In Europe, urban centres like London and Paris have seen higher adoption rates, while more rural areas exhibit shopping behaviours similar to those observed in Canada.

The Future of Grocery Shopping in Canada

Looking ahead, grocery shopping in Canada is likely to evolve gradually rather than shift dramatically toward digital platforms. For online grocery services to gain greater traction, they must enhance their value proposition by reducing delivery fees, offering competitive pricing, and improving customer experience through personalized AI-driven recommendations. Stronger loyalty programs and strategic partnerships with grocery retailers could also help drive adoption.

Major Canadian grocers such as Loblaw, Sobeys, and Metro have already invested in automated fulfillment centers and frictionless checkout technology, signaling that a hybrid model may be the future of food retail. As food affordability remains a top concern for Canadian households, any technological innovation in grocery shopping will need to strike a balance between convenience and cost efficiency.

Rather than a binary shift between in-store and online shopping, the future of grocery retail in Canada will likely be a convergence of both. Consumers will continue leveraging the advantages of each, depending on their needs, preferences, and financial realities.

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U.S.-Canada Trade Tensions Escalate Over Reciprocal Tariffs

By
Craig Patterson
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US President Donald Trump

In early February 2025, President Donald Trump unveiled a “reciprocal tariff” policy, aiming to align U.S. import duties with the tariffs that other nations impose on American products. The significant shift in trade strategy has profound implications for U.S.-Canada relations, especially considering the deep economic ties between the two countries. To delve deeper into the ramifications of this policy, we spoke with David Nagy, a retail expert and founder of eCommerce Canada.

President Trump’s announcement on February 13, 2025, introduced a plan to impose reciprocal tariffs on U.S. trading partners. The objective was to match the tariff rates that other countries charge on U.S. imports, thereby eliminating trade imbalances. While this move seeks to ensure fairness and prompt new trade negotiations, it could lead to economic confrontations and potential retaliatory measures from affected nations.

David Nagy, founder of eCommerce Canada

Impact of the Digital Service Tax

One of the critical issues influencing the U.S.’s stance is Canada’s Digital Services Tax (DST). Enacted in June 2024, the DST imposes a 3% tax on certain revenue earned by large digital services providers engaging with online users in Canada. This tax applies retroactively to revenues earned since January 1, 2022.

David Nagy expressed concerns about the DST, stating, “The digital services tax was always just going to be passed on to the business owner. Do you really think Google’s gonna pick up that 3%? No, they’ll just increase their pricing by 3%. So, who pays for this in the end? The consumer.”

Nagy emphasized that while the DST aims to target tech giants like Google and Meta, its repercussions are felt more acutely by small businesses. “There’s a disproportionate impact on small businesses when it comes to that,” he noted. “A larger business can buy their media in another country or has the financial wherewithal to absorb a 3% increase in customer acquisition costs. But for small business owners, that 3% is a meaningful sacrifice of our profit margin.”

Reciprocal Tariffs: A Justified Response?

The introduction of the DST has not gone unnoticed by the U.S. administration. President Trump’s reciprocal tariff policy can be seen as a direct response to such measures. Nagy commented, “I think there’s a very fair reciprocal tax or tariff argument to be had about that. If we’re imposing a 3% tax on American tech firms, they probably should charge Canadian tech firms a similar tax.”

The imposition of reciprocal tariffs extends beyond digital services. On February 1, 2025, President Trump announced a 25% tariff on all imports from Canada and Mexico, alongside a 10% tariff on Canadian energy products, including crude oil. The administration justified these tariffs on the grounds of curbing illegal immigration and fentanyl trafficking into the U.S., arguing that trade penalties would pressure Canada and Mexico to take stronger action.

In response, Canada announced a 25% retaliatory tariff on CA$155 billion worth of U.S. goods. Prime Minister Justin Trudeau emphasized that these measures were necessary to protect Canadian interests and industries.

The Path Forward

As both nations navigate this complex trade landscape, there is a pressing need for diplomatic engagement and negotiation. The temporary suspension of tariffs for 30 days, agreed upon on February 3, 2025, offers a window for both countries to address underlying issues and seek mutually beneficial solutions.

David Nagy highlighted the importance of understanding the origins and motivations behind such trade measures. “We have to start asking questions around where does this come from and why? Who makes the decision on tariffs, and what’s the approval process? Understanding that can help in addressing the root causes of these disputes.”

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Canadian Retail News From Around The Web For February 18, 2025

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past several days.

Ransomware, disease and ‘ultra low-cost retailers’: Why 3 iconic Canadian clothing stores went broke (CBC)

Trump’s threat to suspend ‘de minimis’ exemption leaves Canadian retailers on pause (Globe & Mail)

GST break brought a lot of work but little — if any — gains for businesses (Financial Post)

Why it’s not easy to be a ‘Product of Canada’ at the grocery store (Global)

Canada Goose’s SWOT analysis: stock faces headwinds amid strategic shift (Investing.com)

Demonstrators accuse Amazon of union-busting at rally in Montreal, call for boycott (The Canadian Press)

Canadian sugar and candy industry vulnerable to U.S. tariffs: experts (The Canadian Press)

Danforth shop owners share how they will be affected by looming U.S. tariffs (Toronto Observer)

Consumers demand new ‘product of Canada’ labels in grocery stores (BlogTO)

‘Pretty wholesome’: Canadian shop owner on support from U.S. customers amid trade tensions (CBC)

From Ghana to B.C.: How climate change is making chocolate more expensive (BIV)

Vancouver shop for local artisans says buying Canadian has lasting impact (VIA)

Loblaw staff at 2 B.C. stores to wear body cameras due to ‘rising retail crime’ (Global)

Quebec cannabis retailer SQDC reports income of CA$40.5 million (MJ Biz)

Nova Scotia shop keeps busy with Canadian flag orders amid Trump threats (Global)

Peace Arch Duty Free Risks Closure as Border Traffic Plummets

By
Craig Patterson
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Peace Arch Duty Free store near Vancouver. Photo: Peace Arch Duty Free

Peter Raju, President and owner of Peace Arch Duty Free, is facing one of the biggest challenges in the store’s history. The well-known duty-free retailer, located at the Peace Arch border crossing in Surrey, British Columbia, has seen an 80% drop in sales following Premier David Eby’s recent remarks to shop local while discouraging British Columbians from crossing into the U.S.

“We noticed an immediate impact after the Premier made his statement,” said Raju. “Today is the first day since then that I’ve even seen a lineup at the border, but people are still not coming into the store.”

The situation is dire. For most of last week, border lineups have been non-existent, an unusual sight for a crossing that typically sees a steady flow of travelers. “There were zero lineups. You could cross in less than five minutes,” Raju noted.

With fewer travelers following Donald Trumps remarks about Canada, sales have plummeted, and Raju has had to make tough operational decisions. “Our business is down substantially. We’ve had to reduce staffing, and if things don’t improve, we’ll have to close on weekdays,” he said. Currently, the store operates seven days a week with two shifts, but with no relief in sight, further reductions are likely.

Image: Peace Arch Duty Free

Liquor Sales and Regulatory Hurdles

A major issue exacerbating the crisis is British Columbia’s liquor regulations. Duty-free stores in Canada must purchase alcohol through their respective provincial liquor boards, unlike their international counterparts. “This has been our biggest issue for over ten years,” Raju explained. “When Premier Gordon Campbell was in office, he reduced our markup from 50% to 20%, but now we need another reassessment given the challenges we’re facing.”

According to Raju, duty-free stores should be exempt from these restrictions. “We operate in a federally regulated, sterile zone. Once a customer enters, they cannot return to Canada with their purchase. There’s no reason for the Liquor Board to interfere in our business.”

Despite repeated efforts to engage government officials, Raju says his concerns have largely fallen on deaf ears. “We’ve tried reaching out to the Minister of Public Safety, but they won’t even return our calls. The Liquor Board won’t sit down with us to discuss these issues.”

Adding to the frustration is the competition from Alberta’s liquor market, where consumers can access lower prices without the same level of restrictions. “With interprovincial trade barriers, I could load up a truck in Alberta, drive back, and legally sell liquor for less. It makes no sense,” Raju said.

Peace Arch at the Canada-US border — a symbol of friendlier times between the two countries. Photo: Discover Surrey

Tourism and Retail Implications

The decline in business at Peace Arch Duty Free reflects broader concerns for cross-border traffic amid Trump’s tariff threats. “We rely heavily on cross-border traffic,” said Raju. “If American visitors stop coming, it’s not just our business that suffers—it’s hotels, restaurants, and other retailers.”

Despite being Canada’s largest land border duty-free store, and the second-best land border duty-free shop in the world, Raju feels that government policies are stifling potential growth. “Why can’t we be left alone to double or triple our business? Why are these restrictions holding us back?” he asked.

The store, spanning 18,000 square feet with ample parking for 300 vehicles, has seen as few as 2,000–3,000 visitors in a week—a low figure given the facility’s size. “We’ve invested over $12 million into this business. We employ people. We should be given the opportunity to thrive.”

Looking Ahead: Will the Government Step Up?

Raju is calling for immediate policy changes to help stabilize the business. “We need an exemption from the Liquor Board. If they remove these restrictions, we can turn things around overnight,” he asserted.

He also points to the disparity in how duty-free stores are treated compared to domestic liquor retailers. “Duty-free stores shouldn’t have to pay fees that don’t exist anywhere else in the world. It’s a tariff on our industry.”

There’s a glimmer of hope, as media attention has begun to shine a light on the issue. “We’ve had national news coverage and even U.S. media attention,” Raju said. “Hopefully, this will put pressure on officials to reconsider.”

Until then, Raju remains focused on keeping his business afloat. “We’ll do everything possible to survive, but the government needs to recognize the damage being done. We retain Canadian dollars in Canada. We sell to Americans. This benefits the economy. So why aren’t we getting the support we need?”

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Primaris REIT reports strong Q4 and annual results, expands portfolio

By
Mario Toneguzzi
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Dollarama and Best Buy at Sherwood Park Mall (Image: Sherwood Park Mall / Primaris REIT)

Primaris Real Estate Investment Trust has announced robust financial and operational results for the fourth quarter and full year ended December 31, 2024, reinforcing its position as a dominant player in Canada’s retail real estate sector.

Patrick Sullivan
Patrick Sullivan

“Our shopping centre portfolio performed very well in 2024, with NOI growth coming from strong rental revenue growth, rising occupancy, and falling non-recoverable expenses,” said Patrick Sullivan, President and Chief Operating Officer. “Over the last four months, Primaris has acquired approximately $910 million of dominant enclosed shopping centres, and our team is doing an excellent job integrating these assets into our national, full-service platform. Primaris is very quickly moving towards our ambition of becoming the first call for retailers looking to grow and expand their footprint in Canada.”

Q4 2024 Financial and Operating Highlights

  • $143.2 million total rental revenue.
  • 9.1% Same Properties Cash Net Operating Income (Cash NOI) growth.
  • 9.5% Same Properties shopping centres Cash NOI growth.
  • 95.6% committed occupancy, 94.5% in-place occupancy, and 90.4% long-term occupancy.
  • 5.3% weighted average spread on renewing rents across 446,000 square feet.
  • 14.5% Funds from Operations (FFO) per average diluted unit growth to $0.460.
  • 48.9% FFO Payout Ratio.
  • $4.3 billion total assets.
  • $589.8 million in liquidity and $3.6 billion in unencumbered assets.
  • $21.55 Net Asset Value (NAV) per unit.

Annual 2024 Financial and Operating Highlights

  • 4.5% Same Properties Cash NOI growth.
  • 4.8% weighted average spread on renewing rents across 1,246,000 square feet.
  • $705 same-store sales productivity.
  • 6.5% FFO per average diluted unit growth to $1.690.
  • 52.4% FFO Payout Ratio.

Leasing and Occupancy Performance

In the quarter, Primaris completed 137 leasing deals totaling 0.6 million square feet. The weighted average spread on renewing rents (for the 87 leases renewed in the quarter) was 5.3% (5.8% for commercial retail unit renewals and 2.6% for large format renewals). Included in the leasing activity for the quarter were 19 leases that were for a lease term of less than one year, or for percentage rent in lieu of base rent. While these lease structures have always been a tool to manage tenant relocations and the timing of development plans, during the pandemic, leases structured as percentage rent in lieu of base rent were more prevalent to assist tenants and to maintain occupancy rates. As these leases mature, management anticipates moving tenants back to traditional lease structures. At December 31, 2024, percentage rent in lieu of base rent leases were in place for 0.6 million square feet of GLA, or 3.1% of in-place leases and had a weighted average lease term of approximately 2.7 years.

Rags Davloor
Rags Davloor

“Primaris’ low leverage balance sheet, a key pillar to our strategy, is a critical enabler to our acquisition strategy,” said Chief Financial Officer Rags Davloor. “We are well on our way to achieving our three-year target of acquiring over $1 billion in assets, while maintaining industry-leading leverage metrics. With unencumbered assets of $3.6 billion and no unfunded debt maturing until 2027, we have reduced refinancing risk, with significant access to liquidity. Our commitment to maintaining an extremely well-capitalized balance sheet positions Primaris as a highly credible transaction counterparty, at a time when many other groups are finding access to capital, and particularly financing, challenging.”

Strategic Acquisitions and Portfolio Growth

Primaris continued its expansion strategy in 2024 with major acquisitions and divestitures:

  • October 1, 2024 – Acquired Les Galeries de la Capitale in Quebec City, Quebec.
  • January 31, 2025 – Acquired a 50% co-ownership interest in Southgate Centre in Edmonton, Alberta, and a 100% interest in Oshawa Centre in Oshawa, Ontario for $585.0 million.
  • Waived conditions on the disposal of Sherwood Park Mall, Sherwood Park Professional Centre, and a parcel of excess land for $107.0 million, expected to close on February 28, 2025.
  • Redevelopment contributions added $2.5 million in incremental rent to the portfolio in 2024.
Alex Avery
Alex Avery

“We are very pleased with our 2024 results, driven by outperformance in same property NOI growth, and FFO per unit growth,” said Alex Avery, Chief Executive Officer. “With the acquisition of Oshawa Centre and a 50% interest in Southgate Centre, we are increasing our relevance with retailers and building on Primaris’ profile as an attractive buyer of large, high-quality assets. Consistent with prior acquisitions, these additions to our portfolio are designed to deliver higher internal growth, driving NAV per unit growth, FFO per unit growth and ultimately distribution per unit growth. As we look forward to 2025 and beyond, we see a long runway of opportunity embedded within our existing portfolio, and a variety of acquisition opportunities that can enhance our value proposition with retailers, and our total return to unitholders. We are well positioned to capitalize on these opportunities with the right team and platform, and the right financial model for the road ahead.”

Primaris is Canada’s only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.0 million square feet valued at approximately $4.6 billion at Primaris’ share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape.

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Roots CEO Discusses Canadian Pride, Manufacturing, and Growth

By
Craig Patterson
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Roots CEO Meghan Roach, centre, with Roots founders Don Green (left) and Michael Budman (right). The three are standing at the original cabin where Roots started, in celebration of the 50th anniversary of Roots in the summer of 2024 (Image Provided)

Roots, a brand synonymous with Canadian heritage and outdoor lifestyle, continues to reinforce its strong national identity as it grows. Meghan Roach, President and CEO of Roots, highlighted the importance of supporting the Canadian economy amid tariff threats in an interview.

“There’s been a renewed sense of patriotism, not just around Roots, but Canada as a whole,” said Roach. “It’s been amazing to see people thinking about how they can support the Canadian economy.”

Roach emphasized that Roots remains deeply entrenched in the country’s retail landscape, with its leather factory, distribution centre, and the majority of its employees based in Canada. “We are a Canadian public company, and it’s encouraging to see people recognizing the value of investing in homegrown businesses.”

Meghan Roach

The Roots Story: Built on a Love for Canada

Roots was founded in 1973 by Michael Budman and Don Green, two Detroit natives who fell in love with the Canadian outdoors. “It’s kind of a great Canadian dream,” Roach remarked. “These two young guys came to Canada, embraced the culture and landscape, and decided to build a brand around it.”

Their dedication to Canadian identity extended beyond their products. “They were the first to really lean into the Canadian Olympic teams,” Roach said. “It wasn’t just about outfitting athletes—it was about putting Canada on a global stage.”

Today, Roots operates 115 stores worldwide and employs over 2,000 people. The brand’s co-founders have been recognized with the Order of Canada and inducted into Canada’s Walk of Fame. Roots’ founders also became proud Canadian citizens.

From Private to Public: The Evolution of Roots

Roots transitioned from a privately owned company to a publicly traded one under Searchlight Capital Partners, a firm with headquarters in Toronto, New York, and London. “When Searchlight acquired Roots, it was driven by a passion for this great Canadian company,” Roach explained. “Now, as a public company, it’s owned by Canadians again. Our board is fully Canadian, reinforcing our deep national ties.”

Beyond ownership, Roots has built a legacy of giving back. “We launched Roots Cares, a program that has donated over $4 million in cash and in-kind goods over the last five years,” said Roach. “From supporting the Nature Conservancy of Canada to donating 20,000 pieces of clothing to schools annually, we’re committed to strengthening Canadian communities.”

On August 15, 1973, Roots Founders Michael Budman and Don Green opened the first store in Toronto at 1052 Yonge Street (Image: Roots)

Balancing Canadian Manufacturing and Global Supply Chains

Manufacturing is a key part of Roots’ strategy, with an emphasis on Canadian craftsmanship. “Our leather goods—jackets, bags, and accessories—are all made in Canada at our leather factory,” Roach said. “We also have our Canada Collection and Studio Fleece, which are made domestically.”

However, like many Canadian apparel brands, Roots also relies on international production. “If every apparel company tried to manufacture solely in Canada, we wouldn’t have the infrastructure to support it,” Roach noted. “We continue to invest in Canadian manufacturing where possible while recognizing the realities of a global supply chain.”

A key challenge is skilled labour. “Even in our leather factory, we have programs in place to train new talent,” she said. “There’s a real need to develop the next generation of skilled workers in Canada.”

Made-in-Canada signage at Roots, Yorkdale Shopping Centre in Toronto, February 2025. Photo: Craig Patterson
Roots Valentine’s leather bag, handcrafted in the company’s Leather Factory. Photo: Roots

Addressing Tariffs and Economic Shifts

With shifting global trade policies, Roots is keeping a close watch on tariffs and the de minimis threshold, which affects duties on low-value imports. “It’s a constantly evolving situation,” Roach said. “While our U.S. exposure is lower than some brands, we are monitoring how tariffs impact the Canadian consumer.”

She remains optimistic about Canada’s global standing. “We’ve always had strong relationships with international markets. We believe Canadian brands can succeed both at home and globally.”

Roots Store at Metropolis at Metrotown in Burnaby, BC – Photo by Geetanjali Sharma

Collaborating with Canadian Designers and Artists

Roots has a strong track record of collaborations with Canadian brands and artists. “We don’t just focus on big-name partnerships like Barbie or Wicked—we also work with homegrown brands,” Roach said.

The company has collaborated with local brands like Alder Apparel and partnered with Canadian sports teams, including the Toronto Raptors and the newly formed Toronto Tempo of the WNBA. “When the Raptors won their championship, we made their official jackets,” Roach added. “We’ve done similar projects with the Toronto Maple Leafs and across the hockey world.”

Roots has also supported Canadian talent beyond sports. “We’ve worked with celebrities such as Canadian Lorne Michaels, and other influential figures. It’s about bringing Canadian culture to a global stage.”

Rendering of the Roots on Robson Street — image is of the current 919 Robson Street space. Image supplied

Expansion and Store Renovations

Roots is investing in major store renovations and expansions. “Our Robson Street flagship in Vancouver is undergoing a major renovation and will reopen by summer,” Roach revealed. “Having a flagship on Robson Street is crucial, given its status as a premier Canadian retail destination.”

Additional renovations are underway at Vaughan Mills and Champlain Mall. “We’re also launching a pop-up store at at unique location, which will open in the coming months,” she said. “It’s part of our strategy to test new locations and evolve our store experience.”

Roots leather bag – Spring floral edit, manufactured and embroidered in Toronto at Roots’ factory in North York. Photo: Roots

Roots as a Canadian Brand

Roots remains committed to its Canadian foundation while growing its global footprint. “We continue to design everything in Toronto, and we’re focused on investing in Canada,” Roach said. “From employing Canadians to supporting local brands, we want to ensure our business has a positive impact on the economy.”

For Roach, the future of Roots is about more than just retail—it’s about fostering national pride. “At the end of the day, we want people to feel connected to Canada. Whether it’s through a Roots hoodie or a leather bag, we want to give people something that makes them proud to be Canadian.”

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Icy Studios Expanding Custom Apparel Business Rapidly

By
Craig Patterson
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Photo: Icy Studios

Toronto-based Icy Studios is rapidly emerging as one of Canada’s leading custom apparel manufacturers and printing companies. Specializing in custom streetwear, the company offers a range of services including screen printing, direct-to-garment (DTG) printing, direct-to-film (DTF) printing, embroidery, live printing, and even sticker production. The company has built a reputation for its high-quality apparel and rapid turnaround times, catering to a diverse clientele that includes corporate businesses, influencers, musicians, retail brands, and artists.

“We started as a vintage clothing brand in my dorm room back in 2018,” said Manik Kundra, founder and CEO of Icy Studios. “I was working at Subway at the time and eventually decided to drop out of school to pursue this business full-time. We initially focused on selling vintage clothing before transitioning into our own designs. We opened our first showroom in 2020, followed by a warehouse in 2021, and have been scaling ever since.”

The Evolution from Vintage to Custom Apparel Manufacturer

Icy Studios originally launched as a vintage clothing retailer but evolved into a full-scale custom apparel manufacturing company after facing challenges with sourcing products. “We had issues with sourcing apparel from China and India,” Kundra explained. “We were ordering containers full of faulty goods. Eventually, we realized that producing our own garments was the best way forward.”

Today, the company imports raw fabric from Asia and manufactures its own products from scratch in its Scarborough warehouse. This shift has allowed Icy Studios to ensure quality control and develop a strong reputation for craftsmanship. “Now, we’re creating apparel for some major corporations like Amazon and Microsoft, in addition to our own retail brand,” Kundra added.

High-Profile Collaborations and Expanding Reach

Icy Studios has collaborated with several high-profile clients, including La Maison Simons, Warner Music Group, and Microsoft. “One of our most exciting projects was working with Punjabi artist Diljit Dosanjh, who sold out Scotiabank Arena recently,” said Kundra. “We built his website, designed his merchandise, and handled production. Working with artists and major corporations has really helped us grow.”

The company’s streetwear aesthetic, combined with its expertise in apparel manufacturing, has positioned it as a go-to provider for custom merch in Canada. “Since we have a background in fashion design, brands trust us not just for manufacturing but also for creative direction,” Kundra noted.

A Unique Retail Experience: Live Printing and Interactive Showroom

Icy Studios offers a hands-on retail experience at its Markham showroom, allowing customers to create their own custom apparel on-site. “People come in groups like it’s an excursion—designing their own tees and engaging with our team,” said Kundra. The interactive nature of the showroom has made it a destination for those looking to create one-of-a-kind apparel pieces.

Leveraging Social Media for Explosive Growth

A major factor in Icy Studios’ success has been its strong social media presence. Kundra has grown the brand’s following to over 100,000 on both Instagram and TikTok by consistently sharing content. “I made a promise to a friend that if I ever missed a day of posting, I’d give them $50,” he said. “That really motivated me to stay consistent. Our TikTok has some videos with over 7 million views, and it’s all organic reach.”

This approach has played a key role in Icy Studios’ rise to nearly eight-figure revenue. “We didn’t start spending money on ads until our fourth year,” Kundra revealed. “Organic marketing on TikTok and Instagram has been our biggest driver of sales.”

Icy Studios showroom in Markham. Photo: wtrmln via Google Maps

Scaling Smartly, Expansion into the U.S. 

The company is now setting its sights on the U.S. market, with a new warehouse opening in Miami this year. “90% of our sales now come from the U.S., so it made sense to establish a distribution center there,” Kundra explained. “Miami is a growing manufacturing hub, and being a port city makes logistics easier for us.”

Looking ahead, Kundra has ambitious plans for Icy Studios. “We’re planning to open our own factory in India,” he revealed. “Right now, we import fabric, but we want to go a step further—importing raw cotton and making garments from scratch. There’s an opportunity to build a factory that prioritizes ethical labor practices and produces high-quality apparel.”

Kundra has visited factories in India, China, and Vietnam and has seen firsthand the unethical labor practices in many locations. “I saw a lot of child labor and extremely low wages. If we build a factory in India, it would operate with fair wages and ethical working conditions,” he said.

Photo: Icy Studios website

The Family Business Element

Despite its rapid growth, Icy Studios remains a family business. “My parents were working traditional nine-to-five jobs until we opened our warehouse in Scarborough in 2021,” Kundra shared. “Once they saw how serious this was, they left their jobs to help me build the company. My mom handles payroll and finance, and my dad helps manage production. It’s been amazing to have their support.”

Competing with Fast Fashion Giants

Kundra also envisions competing with global fast-fashion giants like Zara and H&M. “We want to make apparel that lasts decades, not just a season,” he said. “We see a huge gap between the vintage clothes from the ’70s and ’80s that are still in great condition today versus the disposable fast fashion we see now.”

The company is expanding into new apparel categories, including denim and windbreaker jackets, with plans to eventually offer shoes and accessories. “The goal is to provide a full range of clothing so customers can be dressed head to toe in Icy Studios,” Kundra explained.

Icy Studios showroom and facility in Markham. Photo Icy Studios via Google Maps

Advice for Aspiring Entrepreneurs

Kundra attributes his success to taking action early. “I started at 19, and that gave me time to learn and make mistakes. I always tell people—just start. You’ll learn more from doing than from four years of business school.”

For those looking to scale a business, he emphasizes the importance of social media. “Posting online is free. Every post is like a lottery ticket—one viral video can change your life. I think in the future, platforms might charge for posts, so people should take advantage of it while it’s still free.”

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MTY Food Group reports Q4 2024 results, expands footprint with positive store growth

By
Mario Toneguzzi
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Source- Taco Time
Source- Taco Time

MTY Food Group Inc., one of the largest franchisors and operators of multiple restaurant concepts worldwide, has announced its financial results for the fourth quarter of fiscal 2024, which ended on November 30, 2024. The company highlighted strong network expansion and positive system sales growth despite economic challenges.

Store Growth and System Sales Performance

Eric Lefebvre
Eric Lefebvre

MTY Food Group continued its expansion momentum in Q4, achieving a net store opening of 13 locations. “I’m happy to share that we expanded our footprint in the fourth quarter, ending strong with a net store opening of 13 locations,” said Eric Lefebvre, CEO of MTY Food Group. “This positive store count is the result of diligent team efforts at MTY, and we’re proud to be strengthening our presence and increasing our availability to guests.”

System sales saw a year-over-year increase of 2%, reaching $1.37 billion compared to $1.34 billion in Q4 2023. The growth was largely driven by strong performances in MTY’s U.S. snack brands and the casual dining segment in Canada. “Year over year, the fourth quarter saw organic growth of system sales, with an improvement of 2% compared to Q4 2023,” Lefebvre noted. “These results were mainly attributable to the impressive performance of our snack brands in the U.S. and our casual dining segment in Canada.”

Franchising Strength and Financial Performance

The company’s franchising segment was a standout performer in Q4, reporting an 8% increase in normalized adjusted EBITDA compared to Q4 2023. “With regards to normalized adjusted EBITDA, I would like to highlight the performance from our franchising segment this quarter, with an 8% increase compared to Q4 2023,” Lefebvre stated. “It is a pleasure to see the dedicated work of our franchise owners and MTY team reflected in these results.”

Overall, revenue for the quarter rose by 2% to $284.5 million, largely due to increased revenues from corporate stores. In Canada, corporate store revenues nearly doubled to $13.9 million, while franchise operations declined by 5% and food processing, distribution, and retail sales dropped by 10%. The U.S. and international segments saw revenue growth, benefiting from a 10% rise in promotional fund revenues and a 2% increase from franchise operations.

However, net income was negatively impacted by impairment charges and foreign exchange losses. MTY reported a net loss of $55.3 million, or $(2.34) per share, compared to a net income of $16.4 million ($0.67 per share) in Q4 2023. This decline was primarily due to a $64.6 million impairment charge on goodwill related to the Papa Murphy’s brand and a $26.3 million foreign exchange loss on intercompany loans.

Liquidity, Debt Management, and Dividends

MTY continued to demonstrate disciplined financial management in Q4, generating $43.7 million in cash flows from operating activities. The company reimbursed $17.5 million in long-term debt, paid $6.6 million in dividends to shareholders, and repurchased 314,700 shares for $14.0 million.

As of November 30, 2024, MTY had $50.4 million in cash on hand and $706.6 million in long-term debt. The company’s hedging strategies provided quarterly interest savings of approximately $0.8 million.

On January 22, 2025, MTY declared a quarterly dividend of $0.33 per common share, payable on February 14, 2025, to shareholders of record as of February 4, 2025.

About MTY Food Group

Headquartered in Montreal, MTY Food Group operates and franchises quick-service, fast-casual, and casual dining restaurants under 85 different banners across Canada, the U.S., and internationally. With a network of 7,079 locations, MTY continues to expand its presence through strategic growth initiatives, acquisitions, and franchise development.

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