In Greek culture, the word Opa is used to express a feeling of joy, high spirits and happiness. In Calgary, Alta., the word is synonymous with fresh, high-quality Greek food. Launched in 1998 by founder Niko Tiginagas, Opa! of Greece has grown from a single unit in Calgary’s Market Mall to 97 locations at the end of 2016.
Although the bulk of Opa’s restaurants are in Calgary (30 units), the Western Canadian brand has opened five units in Ontario to date, with its sights set on further expansion in that market. But, says Mike MacDonald, director of Marketing for Opa! Of Greece, mall locations help build the brand and Opa’s Ontario expansion has been dwarfed due to its inability to get into those prime mall locations.
“Jimmy the Greek owns Ontario and were the first to market there,” says MacDonald. “We’ll never own the same triple-A real estate they do because only one Greek -food operator is allowed in each food court. We only have five locations in Ontario right now, so people don’t know who we are. In fact, a lot of people think we are Jimmy the Greek.” Conversely, he says, Jimmy the Greek will never really expand in the west because “we own this market.” So Opa is focusing the majority of its expansion efforts closer to home — B.C., Edmonton, the Prairies and Winnipeg.
There are no plans for international expansion right now. “We want to get the Canadian business operating properly before looking outside the country,” says MacDonald. “The biggest mistake brands make is trying to expand before figuring out what they’re doing in their own backyard.”
With yearly sales of $54 million, Opa! Of Greece has seen an incredible amount of growth, despite a volatile economic climate in its home province. “We were ahead of the curve and we’ve been able to weather the storm in Alberta,” says MacDonald. “Most brands were complaining a year ago about sales being down 20 to 30 per cent, whereas we only started seeing a decline in sales nine months ago — now [sales are] mostly flat.”
The brand was built on the franchise model and has never operated a corporate store. Franchisees can join the Opa team for an initial franchise fee of $25,000. Site costs range from $300,000 for a mall food court unit to $450,000 for a new build, stand-alone location. Existing stores can also be purchased based on market value.
The company employs regional managers who cover markets in Ontario, the Prairies, Manitoba, Alberta and B.C. and are in the stores on a weekly basis. “From an operations standpoint, our regional managers are making sure stores are doing what they need to be doing to be successful while our franchise development team manages the initial communications with potential franchisees,” says MacDonald. In terms of marketing, Opa has its own department, which helps stores from a LSM (local store marketing) perspective and with all day-to-day promotional and campaign creative.
The number-1 priority, he says, is operations “because if customers don’t have a good experience in the store they’re not going to be back and they’re also going to tell people not to go. I tell all new franchisees that are being on-boarded that they have to nail down the operations and then, if they’re doing everything right from that standpoint — marketing can help them. If operations are not up to snuff, then no amount of marketing can’t help.”
KEEPING IT SIMPLE
According to MacDonald, who has been with Opa! of Greece for six years, the menu hasn’t really changed — but it has been simplified. “The big mistake in QSR is trying to be too many things to too many people,” he says. “We analyzed our sales and anything that accounted for less than one per cent was taken off the menu.”
He says it was easier said than done “but when we updated the menu boards we actually experienced about a 30-per-cent lift in sales because now we’re focused on core menu items people love.”
Items such as the Opa Platter, which includes a souvlaki skewer served with rice pilaf, oven-roasted potato, pita wedges, signature Opa tzatziki and a choice of Greek or Caesar salad ($9.29); calamari and salad ($8.99); and low-carb souvlaki and salad ($8.69). But the number-1 best seller, according to MacDonald, is still the pita wrap and fries ($8.99). “Opa is known for its Greek fries that are sprinkled with seasoning salt, lemon juice and oregano — they are to die for,” he says.
“Niko came to Canada with $5 in his pocket,” says MacDonald. “His first job was in a Greek restaurant and it was always his dream to have his own Greek restaurant. To this day, we are building our stores based on what [Niko] built the brand on — freshly prepared, higher quality menu options.”
Opa’s product offerings make the brand appealing across all demographics. “People are more conscious about what they consume,” says MacDonald. “This has helped better position us, as the brand was built on being a unique, better quality option.”
SPREADING THE JOY
Opa! Of Greece plans to open six new stores in 2017. The company has also started rolling out a new store concept featuring a fresh, modern Greek theme. “The biggest complaint we got about our existing units is that they look like they’re selling time shares in Greece,” he quips.
The challenge to growth, he says, is finding the right location and the right franchisees to drive it. “Malls are good locations because you are accessing people who are already at the mall, whereas store fronts, you have to mentally go to that store. We have some great street fronts with great sales and we have some great mall [units] with great sales.” There’s no perfect location, he adds; the secret is getting the right location together with the right operator.
“This is a difficult industry to be in. You couldn’t pay me to open up and manage a restaurant. It’s 24/7 and with increased food, real estate and labour costs, it’s getting more challenging to do business in this industry.”
Despite the challenges, Opa! Of Greece continues to expand and to recognize the important role community pays in its success. “With every new store opening we have free pita wraps on the first day,” says MacDonald. “We ask customers to make a donation and we align ourselves with food banks in each market.”
All funds raised on opening days go directly to local food banks. Opa is also a long-time supporter of Operation Christmas Child, a sponsor for Greek community churches and festivals and the main food sponsor for a number of national sporting events.
