Dave Minnett, CEO of Edo Japan, is leading the rapidly growing quick-service restaurant (QSR) chain through a challenging economic landscape, as the brand celebrates its milestone of over 200 locations.
Amid rising inflation, interest rates, and squeezed consumer budgets, Minnett credits the chain’s sustained growth to its commitment to offering high-quality, made-to-order meals at an affordable price.
“For me, value is bang for the buck — total experience for the dollar,” he explains, highlighting the importance of delivering not just great food, but an overall positive customer experience. This value-driven approach has helped Edo Japan attract both loyal customers and new diners in an increasingly competitive market.
Minnett emphasizes that the brand’s success in navigating the economic squeeze lies in its ability to deliver a comprehensive guest experience. From maintaining competitive pricing with family meal deals to introducing a loyalty points program that offers more value without increasing costs, Edo Japan has adapted to meet changing consumer needs. Despite ongoing pressures from rising labour costs and food inflation, the company has managed to keep prices stable for over a year, even implementing a 14-month price hold to help customers cope with financial strain.
However, rising costs continue to present challenges, particularly in sourcing certain ingredients from the U.S., which could be impacted by tariffs or exchange rate fluctuations.
While the company’s locally sourced products provide some insulation, Minnett remains cautious about the potential for higher prices on produce and other essentials. “If some of these things happen, we’ll navigate through it,” he adds, maintaining a cautious but optimistic outlook on Edo Japan’s ability to thrive amidst the uncertainty.
Minnett says a number of headwinds have hit Canadian pocketbooks in the past eight to 16 months, putting a squeeze on discretionary spending.
“We’ve tried to give people the opportunity to spend a bit more for themselves or their families, but in return, they get a lot more value. This strategy has worked quite well for us. However, while our regular customer base felt the economic pressure, we were fortunate that people, when squeezed, often trade down from more expensive options to us. So, even though our own customers felt the pinch, we benefited when others sought more affordable dining options,” said Minnett.
“Our food is consistent, of good quality, and travels well. It also provides nutritional value, which helps us in both challenging and favourable times.
“It really comes down to the value equation, which sounds generic, but it’s true. Success isn’t just about food quality and consistency. It’s about the entire experience—speed of service, convenience, and how well the cuisine fits into the price point.”
COVID-19 made Canadians more sensitive to value, and we’ve seen this shift in consumer behaviour. Some businesses equate value to discounting, but Edo Japan doesn’t think that’s the right approach.
“For us, it’s about giving customers more without lowering our prices. In 2023 and 2024, we focused on offering daily value deals, especially for family meals. We held off on price increases for 14 months, understanding how our customers were feeling,” he said.
“We also introduced a points-based loyalty program through our app, where customers could preorder meals, avoid the wait, and earn points for future discounts. This program has been well-received and contributed to customer loyalty.”
He said minimum wage increases in provinces like Ontario and British Columbia have definitely put pressure on restaurant economics.
“We’ve seen some businesses raise their prices to cover these increased costs, and there has been backlash, particularly on social media. It’s been a delicate balance for us. We’ve worked hard to find solutions that help us manage costs without passing all of them onto the consumer. We’ve been fortunate to have some strong partnerships that have allowed us to keep our cost base reasonable. However, it’s been a challenge for many brands in the industry,” he said.
“Ultimately, the margin and profitability of a business will determine how well it can weather these economic pressures. For those already struggling, the situation has only worsened. But when we look at our price points relative to the value we offer, we feel confident about where we stand in the market.
“People are looking for more value, but it’s not just about price. Consumers are making decisions based on how long they have to wait, the convenience of getting their food, the quality, and the overall experience. We want to make sure we are meeting those needs. Whether it’s through advertising, our food quality, or the experience we provide when customers walk through the door, it’s all part of the equation.”
