The fast food company’s first Canadian location will occupy the northeast corner of Yonge-Dundas Square IN Toronto, a space that formerly housed an Adidas store.
Toronto-based private investment firms Osmington and Harlo Entertainment have announced plans to export the New York brand across Canada, where they plan to open 35 locations by 2035.
Billy Richmond, chief commercial officer of Shake Shack Canada, said the Toronto restaurant will open in early summer. Most of its offerings will be recognizable to those who have sampled Shake Shack in other countries.
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That means Canadian diners will be able to get their hands on Shake Shack’s burgers, crinkle fries and milkshakes. The company said it has not yet set prices.
Shake Shack’s Canadian debut comes as several other fast food chains are considering expansion in the country. Inspire Brands will soon bring sandwich chain Jimmy John’s to Canada, while Redberry Restaurants plans to open more than 300 Jersey Mike’s locations across the country by 2034.
Additionally, the country has a strong contingent of McDonald’s, Wendy’s, A&W and Harvey’s which will serve as rivals to Shake Shack.
Adaptation to the Canadian market
The Canadian restaurant market is very different from what Shake Shack is used to in the United States, said Robert Carter, food industry analyst at StratonHunter Group, in an interview before Shake Shack revealed its first location in Toronto.
“They are coming from a market size of $800 billion to a market size of $90 to $100 billion here in Canada,” he said.
“Too often we have an American brand that comes into the market and thinks that just because it’s a smaller market or it’s close to the United States, it’s going to be the same strategy or marketing plan , when in fact there are nuances that they will have to address.”
For example, he pointed out that the US market is much more value-oriented and menus there are full of dollar deals.
“They won’t have to rely as much on discounts and bargains because Canadians are more willing to pay for quality, innovation, those kinds of things,” he explained.
The new market and competition don’t intimidate Billy Richmond, in part because Shake Shack markets itself as an upscale chain with some of the most popular fast food items.
A 2023 report by Restaurants Canada named French fries, along with sweet potato fries and onion rings, as the most ordered foods in Canadian restaurants. They made up 15.7% of orders at restaurants nationwide, down 0.1% from the previous year.
Burgers, including chicken varieties, are in third place with around 9.8% of orders, down 0.6% from 2022.
Canadian items on the menu
Shake Shack’s Canadian debut won’t rely solely on fast food staples. The menu will also have some changes, including a Toronto exclusive.
Guests will be able to order a Maple Salted Pretzel Milkshake, featuring vanilla ice cream streaked with Canadian maple syrup and pretzels.
The milkshake, which Mr. Richmond says is intended to be rich, sweet and “nostalgic,” is the product of numerous kitchen trials.
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“We looked at a handful of variations and looked at different milkshake flavors that we thought would resonate well with Canadians and ultimately landed on our Maple Salted Pretzel Milkshake,” he explained. .
Other exclusive products sold in some countries include a vanilla custard topped with hibiscus jelly in Malaysia and a pandan sticky rice milkshake in Thailand.
Alcohol on the menu, a rarity
As is typical at its U.S. locations, Shake Shack will also sell beer and wine – a rarity for Canadian fast food establishments.
“It definitely sets us apart from our peers,” said Mr. Richmond.
But Robert Carter is not convinced that this order will be popular.
“The reality is that alcohol consumption in Canada is declining,” he said. We are at an all-time low in terms of alcohol consumption because younger consumers, Gen Z and so on, are just not drinking as much.”
Still, Mr. Carter expects Shake Shack fans to bring the brand to Canada.
When asked where his next location would open after Yonge-Dundas Square, Mr. Richmond demurred, saying, “We’re really excited to eventually expand into the Greater Toronto Area, Ontario and other provinces.”
