Beavertails, the Canadian pastry chain known for its signature treats at tourist locations, is expanding its retail presence and continuing to open new storefronts while navigating economic pressures and evolving consumer patterns.
Pino Di Ioia, president of Beavertails, said the company’s brick-and-mortar operations are experiencing double-digit growth, driven by a combination of new products and price adjustments amid inflation. “It’s a holistic mix,” he said, noting that last year’s growth continued into 2026, exceeding expectations.
The performance contrasts with the company’s amusement park and mobile truck operations, which have recorded low single-digit growth.
Di Ioia attributed this to the dependency of those segments on discretionary spending.
“If you don’t go to the amusement park, you don’t buy a Beavertail, obviously,” he said. He added that high ticket prices, such as $100 for entry to some attractions, influence consumer behaviour. Mobile units, often used for catering, have also softened due to reduced demand.
Beavertails maintains approximately 164 permanent locations across Canada. The company previously experimented with ghost kitchens and pop-up outlets, which temporarily increased its footprint toward 200 locations. Many of these were phased out post-pandemic due to low volume.
“We got rid of all these other ghost kitchen pop-up stores that were getting us closer to 200. Volume-wise we’re up because those last 30 stores were low volume for us,” Di Ioia explained.
Looking ahead, the company has several planned openings in the future, including a beach resort in Alberta. Cypress Mountain near Vancouver opened in the past year. The company is looking at a zoo location in Canada. Di Ioia emphasized that Beavertails maintains a selective approach to site selection, focusing on tourist-driven environments that align with the brand’s experiential model.
The company also continues to explore U.S. expansion, though regulatory and tariff considerations make the market uncertain.
“Depending on the day with tariffs, it’s like, ‘Do we want to do it?’ But the U.S. is where we need to be,” Di Ioia said. In Canada, Beavertails has largely completed its presence in major tourist resorts.
Franchising policies at certain sites, including Toronto’s Distillery District and a Montreal-area resort, have limited growth. At Granville Island in Vancouver, municipal restrictions prevent new franchise entries despite the presence of other chains like The Keg and Lee’s Donuts.
Di Ioia said the company anticipates policy changes in the future. “One day the policy will change. We wait,” he said.
Beyond physical stores, Beavertails has developed a grocery retail strategy that emerged during the COVID-19 pandemic. The line includes pancake mixes, ice cream sandwiches, and fresh baked cookies, distributed through major Canadian grocers including Farm Boy, Loblaw, Sobeys, Metro, and Calgary Co-op. The product line now represents a notable portion of overall sales.
Di Ioia described the retail strategy as complementary to the brand’s experiential focus at tourist locations.
“The client loves our brand, but they don’t want to buy us outside of leisure locations. We make the memory, and if we’re not in a tourist environment, the next stop we’ve understood is home,” he said. He added that Beavertails products are increasingly becoming part of celebrations at home, from birthdays to family milestones.
Di Ioia highlighted Beavertails as an indicator of broader consumer trends. He described the company as resilient to economic fluctuations, observing that consumers still purchase its products even when cutting back on other discretionary spending.
“When things are rough economically, you maybe don’t go for a steak, but you’ll still go for a Beavertail. And when things are good economically, you could do both,” he said.
This dynamic also reflects K-shaped economic patterns, in which wealthier individuals continue to spend while others limit discretionary purchases. Di Ioia cited anecdotal experiences in tourist hubs like Banff, noting surprisingly high prices for local dining options, which consumers continue to accept.
Beavertails is balancing expansion with operational prudence, seeking to maintain profitability while pursuing new markets and retail channels.
Di Ioia said the company is confident in navigating both Canadian and international growth opportunities.
“We’re amazed at the volume we’re doing with the grocery line, so we’ll keep pushing that,” he said.
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