Purdys Chocolatier is planning to open up three pop-up locations in new markets in Alberta & BC for the very first time in November.
Kriston Dean, VP of Sales & Marketing, said Purdys has been working with landlords on vacant commercial retail units they have available in different markets.
Kriston Dean
“We’ve created a modular fixturing package that allows us to go into any vacant CRU and configure however we need to based on that particular square footage or layout of store,” said Dean.
“It will appear to be real fixtures in a real CRU. It will appear as if we are a real store and we are planning to be there from November 1 in these locations through April. So through all of our big chocolate season we will stay open in these locations.
“The only thing we’re not able to do in a temporary or a pop-up store from a Purdys perspective is two things – ice cream because we’re not getting into plumbing and all those things and the loose chocolates which you can pick from the case. Everything’s pre-packaged gifts, seasonal gifts, and then chocolate bars and snacks. But it will appear like a regular store.”
Dean said the company has studied its customer behaviour from all of its channels. And when it looked at the data for where they were shopping online and through its various programs, and looked at all the comments from social media, the company identified about 15 markets in Canada that were significant for it.
“Being a sensory product like chocolate we know the physical store is really important for our experience. We took a look at these 15 markets and then it was conversations with landlords and what’s available. Not everyone has an available space that will work for us and we ended up with these three markets for our first test.”
Image: Purdys Chocolatier
The pop-up stores will be in Fort McMurray, Alberta (Peter Pond Mall), Cranbrook, BC (Tamarack Centre) and Courtenay, BC, on Vancouver Island (Driftwood Mall).
“We’re taking this as our first test. We’re going to learn a lot through Christmas for sure and we’re hoping this becomes a regular (plan). There’s a couple of things that can happen from these pop-ups,” said Dean. “Either the market is really strong and we decide to look for a permanent location if there is one for us to take in those markets and turn it into a permanent or we look at the opportunity to continue to come back the following Christmas.
“And we’re already looking for Christmas 2024 on additional markets that we can get CRUs in.”
The company has 81 stores from Vancouver Island to as far east as Ottawa. Its permanent stores are between 700 to 900 square feet. The pop-ups in some cases are 1,200 square feet.
Purdys Chocolatier at Sherway Gardens (Image: Purdys Chocolatier)Purdys Chocolatier at CF Market Mall (Image: Purdys Chocolatier)
In the past summer, the company has been busy renovating some of its existing stores.
A newly-renovated Purdys at CF Market Mall in Calgary opened on September 23.
“We’ve had five or six renovations this summer,” said Dean. “We do all of our renovations in the summer because Christmas, Valentine’s, Easter (is busy). That’s kind of our build time – June to September.
“The Market Mall renovation is a full layout, new fixture, new design, total rehaul. We put out a newer design package just before COVID in 2019. We started building with this new design and approach.”
Purdys Chocolatier at West Edmonton Mall (Image: Purdys Chocolatier)
Purdys also doubled its size at the West Edmonton Mall during the summer.
“We are still looking for permanent locations to expand,” added Dean. But nothing is planned right now.
The company was founded in 1907 in downtown Vancouver when Richard Carmon Purdy started selling homemade chocolates. The first chocolate shop opened at 915 Robson Street.
Purdys Chocolatier at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Commercial real estate firm Colliers says retailers who have developed synergies between their online platform and physical storefront are 35 per cent more likely to be profitable.
In its recent report, A Full Cart: Maximizing E-commerce and Brick and Mortar Retail, Colliers made the following recommendations to owners and managers of retail assets:
Omnichannel retail. When assessing the financial strength of a retailer, consider their omnichannel strategy, particularly their online presence;
Convenience on site. Consider enhancements – such as redesigning pedestrian walkways or adding real-time parking data – to facilitate convenience across the property, particularly for necessity retail;
Property maintenance. Even during periods of financial restraint, uphold a clean and well-maintained site for all retail asset classes, as it’s deemed important, particularly for high income shoppers; and
ESG. When promoting ESG practices, amplify retailer initiatives as opposed to property initiatives, as consumers place greater importance on the actions of the retailer as opposed to the property.
Stephanie Hannon
Stephanie Hannon, Senior Vice President and National Lead, Retail Services for Colliers Real Estate Management Services, said “the focus of this (report) is to have an owner understand what drives a consumer to their asset, and the top four elements of importance for a consumer in identifying which properties they wish to travel to and why.”
“We want to emphasize to real estate owners the importance of considering a retailer’s brand identity, both online and offline, as well as how informed we believe consumers are about the elements that define the retailer’s brand,” she said.
“And what else makes you go to a centre? What makes you pass a centre to go to the next one? Why would that compel you?”
Here are the key findings from the report:
Non-necessity products are purchased more frequently online than necessity products. There are no products consumers buy exclusively online – far from it. Survey respondents were asked to rank, on a scale from 1-5, how often they would buy certain products online versus a physical store. While none were bought exclusively online, books, electronics, and toys topped the list of products most frequently purchased online when given the choice;
The higher the income and level of education, the higher likelihood of shopping online. Younger consumers who live in urban settings with a high income and a high level of education were the most likely to report shopping online daily or weekly. As a result, retail properties situated in more affluent neighbourhoods or wishing to target this demographic are encouraged to have a strong omnichannel presence;
The lower the price of the product, the greater likelihood of purchasing online. The price of the product impacts whether a consumer is more likely to purchase the product online or in-store. This is particularly true of non-standard products compared to standard products like books and electronics;
Convenience tops the list of reasons to shop online. The prime motivator for shopping online is convenience. Following convenience, the ease of comparing prices, home delivery, and a wider array of products were cited as the top reasons to shop online;
The willingness to shop in-store depends heavily on product pricing. When choosing a retail property to visit, shoppers prioritize product pricing for both necessities and non-necessities, with high rankings for cleanliness and variety of stores. A noteworthy difference between necessities and non-necessities has to do with proximity. When shopping for necessities, consumers put a heavier emphasis on proximity;
Consumers value proximity when shopping for necessities. On average, shoppers are willing to travel up to 10 kilometres for necessities yet will travel 14 kilometres for non-necessities. Shoppers with higher earnings, likely the largest consumer of non-necessities, were willing to travel less for necessities (max nine kilometres) yet travel further for non-necessities (max 18 kilometres). Necessity retail includes goods that are purchased with regular frequency regardless of income, including grocery stores and pharmacies. Non-necessity retail, typically housed in an enclosed mall, are goods purchased when there is greater discretionary income, including apparel, health and beauty and home décor;
Environmental considerations in retail. Consumers place a small level of importance on a retailers’ environmentally responsible practices. 35 per cent of customers – predominantly a younger demographic – seek out retailers with a strong environmental record, including, but not limited to sustainable sourcing and energy efficiency. They are slightly more likely to look to the retailer compared to the retail property for evidence of these practices; and
Social considerations in retail. Consumers place a slightly higher importance on a retailers’ socially responsible business practices – including fair labour, diversity and inclusion, and community engagement – compared to their environmental practices. Consistent with the environment, they are more likely to look to the retailer more so than the retail property for strong corporate social responsibility.
Hannon said pre-pandemic the pipeline in non-necessity retail was shrinking.
“Pre-COVID we started to see a retreat of retailers out of Canada, and during COVID nobody really knew what was going to happen.
Photo: iStock
“Now, there are a number of new players in the marketplace. This has encouraged real estate owners to think creatively about what drives success and further focus on consumer needs,” Hannon said.
“On the necessity side, we remain strong. Non-essential categories are evolving and owners must provide both an ease of shopping, cleanliness, and access, but also variety.”
Hannon said when the shopping centres reopened, they were packed with people. Restaurants were busy. People started traveling again.
“Consumers are particularly interested in having great experiences at great value,” added Hannon. “If you are servicing the consumers, as an owner, you really must put extra effort into making sure that experience is there whether it be your tenant mix, environmental and social awareness, or convenience and accessibility.”
*Retail Insider partnered with Colliers for this article.
Craig and Kyle Tomlin, Director of Events in Canada for ICSC, discuss the highly anticipated ICSC@CANADA 2023 Conference, set to take place from October 2nd to 4th at the Metro Toronto Convention Centre North Hall in downtown Toronto. This event serves as a pivotal moment for the Canadian retail and commercial leasing industry, attracting attendees from both Canada and the United States.
Kyle Tomlin
One of the standout features of the conference is its vibrant show floor, which has evolved over the years. In addition to traditional elements like the food hall, the event now boasts a show floor theater where essential industry sessions will be held. Attendees can also enjoy the ICSC refreshment lounge, generously sponsored by Starbucks, for networking and grabbing a coffee.
The conference agenda places a strong emphasis on technology’s role in retail, with sessions covering augmented reality, artificial intelligence, and more. While deal-making is a significant aspect of ICSC Canada, the event also offers invaluable educational content, making it a must-attend for industry professionals looking to stay informed and network with key players.
If you prefer to listen to the audio version, it is available below:
The Interview Series audio podcasts by Retail Insider Canada are available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly audio podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.
Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!
Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/
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 three days.
“Drawing inspiration from Carrefour’s proactive approach, as we navigate the ‘shrinkflation’ phenomenon, ensuring transparency in food pricing becomes the cornerstone of empowering and informing consumers in Canada.”
Two issues have been particularly vexing for Canadian shoppers at the grocery store: volume discounts, especially for seniors and those who live alone, and the phenomenon known as “shrinkflation.” Over the past 12 months, shrinkflation has garnered significant attention due to substantial price hikes in grocery stores. Fortunately, some grocers are now taking action.
For the past two weeks, the French supermarket chain Carrefour, the seventh largest in the world, has introduced labels on its store shelves to alert shoppers to the issue of “shrinkflation.” As many now know, shrinkflation involves manufacturers reducing the size of product packaging rather than increasing prices. Carrefour has applied these price warnings to various products, including Lindt chocolates and Lipton iced tea, with the aim of pressuring leading consumer goods suppliers such as Nestlé, PepsiCo, and Unilever to address this issue in anticipation of upcoming contract negotiations. This pressure has a cascading effect on the food chain.
Carrefour has labelled 26 products with notices stating that the product is smaller than before, with most of these reductions occurring within the last 12 months. This situation could potentially unfold in Canada.
In the past year, Canada has witnessed about 20 cases of “shrinkflation” by major food manufacturers, with most of them garnering significant media attention. Minister François-Phillippe Champagne, who is meeting with food manufacturers this week and has pledged to combat food inflation and increase accountability in the food industry, undoubtedly has “shrinkflation” on his radar. The Carrefour approach in Canada is likely being considered to enhance transparency in food pricing. He has expressed his approval of the Carrefour approach, unsurprisingly, given its simplicity, ease of implementation, and potential popularity among Canadians who feel deceived and shortchanged. They are an easy target for such measures.
Historically, “shrinkflation” is a strategy often employed when input costs rise. The last time we witnessed numerous cases of this was during the financial crisis of 2008. We are currently nearing the end of another cycle and do not expect to see new cases for some time.
However, Carrefour’s motivation appears to be driven by the desire to shame manufacturers into gaining an advantage at the negotiating table, rather than genuinely benefiting consumers. It is worth noting that food manufacturers also produce privately labelled products owned by grocers. Carrefour’s actions have focused solely on major multinationals without disclosing whether some of its own privately labelled products have also decreased in size, which could be seen as deceitful.
Image: Carrefour
The impact of such a measure is likely to be short-lived. Beyond a few weeks, consumers may revert to their old habits. If Canada were to encourage grocers to adopt a similar approach, it should be implemented uniformly across the board. To go even further, Ottawa needs to abolish the “snack tax.” Many products have shrunk in size in recent years, making them subject to taxation by Canada’s revenue agency. Minister Champagne should clarify that any food sold in Canada if not served, should not be taxed, especially food products that are now too small to be considered as snacks. Many Canadians are unaware of this, and it is costing them daily at the grocery store. Ottawa has the means to rectify this situation.
Do not be surprised if the “shrinkflation” labels become a directive for our grocers by Thanksgiving. It is highly unlikely that we will see a windfall tax or government-mandated price controls, as these measures would have adverse economic consequences. Minister Champagne is astute enough to understand the implications of such actions on our food economy.
Instead, the focus is on the Competition Bureau, supported by Bill C-56. This bill may have received limited attention due to the India affair and President Zelenskyy’s visit, but it is precisely what Canadians need. Minister Champagne has accurately read the political landscape surrounding food. Enhancing the authority of the Competition Bureau is crucial for Canadians, although it will be a protracted process that could span several years. This is why labelling “shrinkflated” products will be an easily achievable victory for him and for Canadians.
Canadian jewelry brand Mejuri has launched its app as well as the Mejuri+ membership program which it says is a first in the fine jewelry industry.
Mejuri’s aggressive retail expansion strategy will continue in tandem with the launch of the app and membership program, as five more stores are expected to open in the second half of this year – Miami, a second store in San Francisco, Nashville, a third store in Los Angeles, and a third store in London, England.
Majed Masad
“It’s simple to turn a website into an app, but we didn’t want to do that,” said Majed Masad, Co-Founder and President of Mejuri. “Instead, we created a personalized app that provides product curations and recommendations and ultimately feels native to you and your phone.”
Mejuri Ossington (Image: Mejuri)
Mejuri was founded in 2015 by Masad and Noura Sakkijha. It has expanded to become a global brand with over 560 employees and 24 stores, two million customers, and celebrity fans, including Selena Gomez, Ariana Grande, Oprah Winfrey, and Billie Eilish.
“We’ve always really believed in the importance of an enhanced experience mobile app. With mobile, you can do a lot more. We wanted it to be really focused on the customer, personalization and things like that. Some elements of that you can bring into the web but I think mobile enables you to do a bit more than what you would want to do in web,” said Masad.
“It’s been on the roadmap for I would say we’ve talked about it for three years now. It never got prioritized because there were a lot of initiatives that we wanted to move forward from a web perspective first and then we felt when we’re ready we’re going to launch the app. Fifty per cent of our revenue comes from repeat customers which is a substantial percentage of revenue.
“So when you think of mobile and making it really focused on the customer and personalization and emphasis on lifetime value and how can we really guide the customer through the buying journey . . . and how can we help the customer grow within the brand, the mobile app was the perfect place for that.”
Mejuri Ossington (Image: Mejuri)
Masad said the retailer has always talked about traditional loyalty programs but it’s never been sold on it from a discount perspective.
“We wanted to make something that really resonates with our customer. We did a lot of customer research. We spoke to our customers. Really wanted to do a program that enables perks and get closer to our customer, know their birthday, we can send them a gift. We launched with free shipping on Tuesdays. Things like that,” he said. “We’ve really pushed the envelope on what membership can look like. It’s free. We want to make fine jewelry accessible and part of everyday wear. The membership program is really meant to complement that and keep us closer to our customers and even our prospects and bring them along the journey.
“So as you join as you become a member we also ask for your styling profile, what metal you’re most interested in, why, etc. so we can really accommodate the experience to your liking.”
Masad said the retailer is currently strategizing its next expansion moves.
“It’s premature to say exactly how many stores or where at this moment but we are still bullish on retail expansion. Our doors perform. As jewelry, ultimately our customers and community want to engage in it, see it, try it on. A lot of what we’re doing is also experiential jewelry like our piercing studios, styling appointments and things like that. And we do events in our stores,” he said.
“So we want to get closer to our customers, our community. It’s definitely a part of our strategy. We’re going to our third store in the UK. We’re talking about what potential could there be for international expansion beyond the UK. Canada and the U.S. are our primary markets. We’ll continue to expand in those markets first but potentially expanding beyond that.”
Mejuri+Mejuri+
Since 2015, the brand said it has garnered a loyal community of two million customers and 1.2 million Instagram followers. Research has found that 25 per cent of those repeat customers return to buy in that same year.
The membership program will be free to join and members will receive exclusive perks such as priority sale access, exclusive product access, free shipping on certain days, a birthday treat and more. The first perk for members is a gift with purchase – a limited edition pair of Green Agate Hoop Earrings on their first order – while supplies last.
The Mejuri App will empower customers with a world of style at their fingertips. The app will provide access to latest collections, trends, and exclusive releases, providing a tailor-made shopping journey that is both convenient and delightful. In development, the Mejuri team conducted extensive research to evaluate the best in-class and luxury apps.
The retailer said 80 per cent of the brand’s site traffic comes from mobile, resulting in a 40 per cent increase in click-through rate YoY. In addition, since launching SMS in 2019, the brand has garnered 350,000 SMS subscribers.
Mejuri+
To sign up for Mejuri+, customers can visit https://mejuri.com/member. The Mejuri App is available to download at The App Store, and will be launching on Android in the near future.
Masad said there are macro economic challenges currently impacting retailers with inflation having an impact on consumer confidence.
“Having said that, we still believe in what we’re doing in bringing value to the customer and bringing fine jewelry and making it part of everyday wear and ensuring that there’s a value to the customer ultimately,” he said. “We feel that segment of the market is pretty resilient and so we continue to focus on creating value for our customer in every product that we launch.”
MightyBird Union Station in Toronto (Image: MightyBird)
MightyBird, a new, fast-casual crispy chicken restaurant, launched September 25 in Canada with the opening of a location in the Foodie Aisle at Toronto’s Union Station with the ambition of rolling out the concept across the country.
“We know there’s a fried chicken revolution happening, and people are loving this southern classic,” said Dan Kennedy, Partner at Open Concept Hospitality. “Our mission at MightyBird is to provide a chicken experience like no other, where flavour and quality take centre stage.”
“We couldn’t think of a better place to reach Torontonians, visitors, sports fans and concert goers than Union Station,” said George Heos, Co-Founder of Eat Up Canada. “Located in the Foodie Aisle on the lower retail level by the underground entrance to Scotiabank Arena, MightyBird offers elevated grab-and-go counter-service in Toronto’s busiest transportation hub.”
Mighty Poutine (Image: MightyBird)
MightyBird’s chef-curated menu features signature chicken marinated in rich buttermilk and cooked to crispy, golden perfection. The menu is much more closely compared to what people would find in a sit-down restaurant environment. It’s more of a full-service restaurant versus a quick service one in terms of the offering but MightyBird is about convenience, speed and being reasonably priced.
“The launch of MightyBird at Union Station is just the beginning,” said Alex Gerzon, Co-Founder of Eat Up Canada. “Plans are underway to expand the MightyBird brand across Ontario, including a traditional fast-casual restaurant with an expanded menu opening in Burlington later this fall.”
It all started with the perfect crispy chicken sandwich
The Mighty O.G. Sandwich (Image: MightyBird)
Open Concept Hospitality has been active since 2017 in the full-service, casual dining space with a number of restaurants in the Greater Toronto Area. The biggest and most successful concept has been Union Chicken. Other brands include Amano Italian Kitchen and Mikey’s Smash Burgers.
Kennedy said the company’s Union Chicken concept was the brainchild of several business partners who thought there was an opportunity for a premium rotisserie chicken concept to open in Union Station. A fried chicken sandwich was added to that menu. It was almost an afterthought at first and it quickly became its most popular item to the point where they started to build more and more menu items around it. The recipe was fine-tuned over the years.
“It’s really become the item that everybody knows us for,” said Kennedy. “We decided as a company that there was a real opportunity in fast casual dining for a great crispy chicken concept to be developed. Unfortunately, our background was in full-service casual dining and we didn’t really have any experience in franchising but I did know a couple of former colleagues who I had a lot of great admiration and respect for.”
A recipe for a perfect partnership
MightyBird Owners (Left to Right) Chef Ian Calvert, George Heos, Alex Gerzon and Dan Kennedy
“George, Alex and I worked together at Boston Pizza. We stayed in touch over the years as our paths had gone in different directions. I reached out to them and asked for some advice on how we could build a scalable fast, casual brand based around our hero item that we felt we wanted to bring to the masses.”
“The more we spoke about it, the more we realized that rather than us trying to do this on our own (with a little consulting from Alex and George), that this could be a real opportunity for us to partner and bring together our operations and culinary expertise on the Open Concept Hospitality side with Alex and George’s depth of experience in franchising, in real estate, and developing great brands.”
The first location for MightyBird is a scaled down version of the concept because it’s going into an area called the Foodie Aisle at Union Station. It’s counter-service only with limited family-style seating. It will have a smaller menu, but it gives the concept an opportunity to introduce the brand to Toronto and beyond for the people who travel to the city.
Crispy Chicken Bomb Box (Image: MightyBird)
The full-service Union Chicken location will remain at its current Union Station location. MightyBird has taken over the Union Chicken satellite location which was operating in the Foodie Aisle.
“We bring a certain skill set. We’re very good at developing concepts and building restaurants and taking franchising brands that have already been developed to the next level,” said Gerzon.
“Culinary is not our strength and that’s where Dan and his partners really came to the table with that area of expertise. So when you look at both groups together there’s some tremendous synergies there because of all the different skill sets involved. We’ve always loved Union Chicken as guests ourselves and always thought they had probably the best chicken sandwich out there,” added Gerzon.
A brand positioned to spread its wings
Heos said sometimes people forget that it’s about the food when they’re creating a brand.
“And we just loved the food,” he said. “We felt there was an opportunity to create a brand that was in tune with what people are looking for. Obviously the crispy chicken space has always been popular in the restaurant industry. Some people might say it is saturated or there are too many. We believe that there’s always room for a great concept that has great food and great service. That’s why we have created MightyBird.”
The trio believes there’s tremendous potential for the brand. They believe Canada represents an opportunity to build more than 150. The goal would be to open 10 to 15 restaurants a year.
Eat Up Canada: Bringing New Fast Casual Brands to Canada
Bombay Frankies owners from L to R – Alex Gerzon, Chef Vikram Vij, George HeosImage: Bombay Frankies
Eat Up Canada was formed in 2021 by experienced restaurant developers Heos and Gerzon after the two sold their Firehouse Subs business after building it up to 50 restaurants in just six years. The goal at the time of Eat Up Canada was to build or develop new, exciting fast casual brands in Canada.
“Alex and I have been in partnership for a long, long time. In 2021, we started talking about developing our own brand, and shortly after created Bombay Frankies with celebrity Chef Vikram Vij,” said Heos.
The first Bombay Frankies restaurant opened last October in Newmarket, and the brand now has locations in Kanata and Ajax. Alex and George will be opening five to seven restaurants this year all in Ontario. The plan is to expand to other parts of the country, probably starting in Vancouver and the Lower Mainland in the next 12 months.
The second brand Eat Up Canada has is American-based Pokeworks, a leader in the premium poke segment. The company has a master franchise agreement to develop all of Canada. The first one opens in November and it will also serve as the brand’s training restaurant and located in the same building as Bombay Frankies in Etobicoke. Its second location will open in late-November in the massive mixed-use The Well development in downtown Toronto.
“Having three new exciting brands gives us opportunities that other companies wouldn’t have,” said Heos. “We secured three sites this year where we are opening multiple restaurants. Two are over 4,000 square feet and we’re putting in three concepts. Three very distinct concepts. It’s not a food court concept. We’re not sharing kitchens or washrooms or seating. The first location that we’re doing for MightyBird was a 4,500-square-foot gym in Burlington. We’re taking that location and dividing it into three units – MightyBird, Pokeworks and Bombay Frankies.”
“We’re able get great real estate deals done and offer franchisees an opportunity to grow. In the example of Burlington, one franchisee is doing both the Bombay Frankies and Pokeworks and in fact they wanted to do the MightyBird as well except that’s going to be our corporate training restaurant.”
“We think we represent a tremendous value to franchisees and a tremendous opportunity for landlords who have either now or will have a lot of vacancy in that kind of four, five, six thousand square foot range spaces to basically go to one company and lease the whole thing.”
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 three days.
Future KIT + ACE at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Retailer KIT + ACE, under new ownership and leadership, has ventured into Taobao, a Chinese online shopping platform owned by Alibaba, as the brand continues to make plans for expanding its physical footprint in Canada.
The brand was purchased this year by Unity Brands Inc., owned by well-known Canadian entrepreneur Joe Mimran, David Lui and Frank Rocchetti.
David Lui
“Our customers online are telling us we are top of mind,” said Lui, KIT + ACE’s CEO. “Our store year-over-year sales are double digit comps. So very, very positive top line. Our customers love our product and love our brand.
“Our online is telling us that customers from the country – even from the UK and Australia and the U.S. – are definitely buying our product and repeating and returning.”
KIT + ACE at CF Market Mall in Calgary (Image: Kit and Ace)
KIT + ACE currently has four locations – Gastown in Vancouver; Mount Royal Village in Calgary; Oakville, Ontario; and Queen St in downtown Toronto. The stores range in size from 2,500 square feet to 4,000 square feet.
“We just introduced about two months ago live streaming to China on the Taobao app,” said Lui. “It’s performing really well. The Chinese guests and consumers are embracing our product. We broadcast five days a week right now. We do live selling.
“We have a Key Opinion Leader (KOL). They’re based here in Vancouver and once a week they broadcast live in our store and then other days they broadcast live in their showroom in their office. She basically talks for a good five hours a day on camera, live streamed directly into China. Just selling and trying on product in front of the camera. Selling through camera. It’s an interesting process because there’s two people helping her on live and behind the scenes in China there’s a customer service team going through customer service, questions, processing of orders and answering questions. So it does take a cast. It takes a team to orchestrate this live selling session. It’s pretty amazing.”
Lui said the use of the shopping platform is intended to expand its brand presence to China where live stream shopping is very popular.
As former CEO of Korite, a brand that focused on ammolite gemstones and jewelry, he had experience bringing that brand to live streaming in the past.
“It’s also a good way to test a new market. Use their mechanism of shopping, use their preference of shopping, and try out a new market without opening physical stores,” said Lui. “So online capability, live streaming capability has allowed us to test a new market which we now know China is receptive to our product,” he said.
Future KIT + ACE at CF Toronto Eaton Centre (Image: Dustin Fuhs)
By November 1, KIT + ACE will be opening a pop-up at CF Toronto Eaton Centre and then around the same time it’s going to open another pop-up for the holiday season in CF Market Mall in Calgary, which will be then closed for renovation to open as a permanent store.
“At Eaton Centre, we’re doing the same thing. We’re opening it initially as a pop-up with a view for a long-term lease there,” explained Lui.
He said the retailer has plans to open on West 4th Avenue in Vancouver in Spring 2024 as a permanent and flagship location.
“We aim to finish 2024 with up to ten stores – an additional six stores to our current portfolio,” added Lui.
For its real estate needs, KIT + ACE is working with Oberfeld Snowcap. It is also working with BURDIFILEK on the design of the new stores.
When Unity Brands announced it had acquired KIT + ACE, Mimran said:
“KIT + ACE has first of all really, really strong top of mind awareness which was built up over the years. Even though the brand has only been in the market eight years. But I think the brand has a much bigger image than it has footprint, certainly.
“I loved that it was direct to consumer which I’m obviously familiar with a direct to consumer model. And I still believe in the direct to consumer model and it had a very strong consumer franchise. A franchise of consumers that are very homogeneous, particularly on the men’s side, and because of that I believe that the positioning is very, very clear for the brand.
“And it’s not too often that you can get a brand, buy a business, where the customer is clear as to who that customer profile is and what the ethos of the brand is all about. To me, and to Frank and to David, we felt that with a little bit of tweaking we could really continue to grow this brand. That’s what we found exciting.”
Casual steakhouse restaurant MR MIKES is in expansion mode.
Recently, the brand opened its 47th location in Fort Saskatchewan, Alberta.
Tony Zidar, Senior Vice-President of Operations for MR MIKES, said the brand has done well since COVID.
Tony Zidar
“In the world of not much has happened since March 2020, we opened Merritt, Stoney Plain, Sylvan Lake and a couple of months ago Fort Saskatchewan,” he said.
“It was a tough time for everyone but we were able to keep our engine rolling and continue to recruit franchisees and find sites. We’re continuing to move forward which is fantastic.”
MR MIKES Sylvan Lake
Zidar said the company is done opening new locations for this year as it typically does not like to target any openings beyond the middle of October.
More locations are planned to open next year – three in Western Canada and one in Ontario and there are ongoing talks for another one.
“It looks like a pretty good year next year,” he said.
“Our concept is yes we are a steakhouse but we’re steakhouse casual, stressing the word casual. Our marketing objectives and initiatives this year are all about the word casual. We’re embracing the markets that we’re in. We’re in bigger markets but we’re in smaller to quite small markets that act as hubs for bigger geographical areas and those stores do really well.
“They’re local ownership. They’re locally-owned and operated for the most part. That’s really part of our success. Where we open, the operators live in the market, they know most of the people in the market. A lot of companies, not that they won’t touch, they don’t look at the market we look at. A town of 12 to 14,000 people in northern Alberta is perfect for us because they have a trade area that’s probably 30 to 35,000 people and those are people who really know each other. The franchisee is able to network with the existing networks that they have and really turn the restaurant into a hub for the community which is really important for us.”
Image: Mr Mikes Steakhouse
He said the prototype of the restaurant has changed and been shrunk in size. The first one was in Merritt of about 4,200 square feet.
“The focus going forward is not only the standalones which have been our traditional formula. A lot of retrofits, in-line, stuff like that in different communities where there are opportunities. We’re starting to get out to a boots on the ground campaign to look for opportunities and convert either sites that were restaurants or retail fronts and convert them to a MR MIKES,” said Zidar.
“We have our list of brand standards and must haves to turn something into a MR MIKES and make it not only look and feel like a MR MIKES but be able to execute the brand and deliver the guest experience and the food and beverage that we do.
“So it’s really a secondary approach that we see as key to our growth going forward. We can typically do those in a quicker timeline. We’re not building walls. We’re not pouring slab and putting in HVAC. We’re taking existing space so we can cut the timeline almost in half as well as depending on what that space was the economies are really efficient for the franchisee. Less money up front. They can get going a lot more quickly. It’s a big strategy for us right now. We’re certainly not turning our back on our traditional methods but we’re looking at other things and Fort Saskatchewan is a perfect example.”
Image: MR MIKES – Grande Prairie
The new Fort Saskatchewan location was a retrofit of another concept that ticked all of its boxes. The location was a restaurant that had closed more than a year ago. The franchisee took a look at the space and identified a great opportunity to convert it in a short timeline.
“It’s been an absolute home run,” said Zidar. “You walk in, it’s a MR MIKES. It’s not the absolute cookie-cutter MR MIKES but absolutely looks like it, feels like it and the franchisee is delivering a fantastic experience and we’re excited about it.”
The first MR MIKES was opened by two brothers, Bob and Nick Constabaris. Over the past decade, the restaurant concept has embraced the heritage that was established back then but it also was revitalized by Mike Cordoba, Al Cave, and Robin Chakrabarti with the introduction of the Steakhouse/Casual concept.
“It started off in BC and it was more of a steak and salad bar concept. At its height, we don’t have the exact number of how many units it got to, but it was over 80 and then went through a few incarnations of concepts throughout the years as concepts do,” said Zidar.
“In 2010, it was acquired by the current owners and rebranded as MR MIKES SteakhouseCasual which was kind of a new space in the steakhouse world. Obviously The Keg being the Godfather of classic steakhouses in Canada and that niche is filled. Our strategy was to go into different and smaller markets to fill that in with the need for a steakhouse but not wanting to compete with The Keg.”
