TORONTO — Interested parties looking to invest in the foodservice market, may need to look south of the border where there’s huge growth potential, according to a special report in The Globe and Mail.
David Milstead’s report suggests investors consider smaller chains that are inching towards growth and have the “best prospects” for posting sales and profit gains. Many of those restaurants are reportedly in the States.
“The Canadian restaurant market is quite saturated, if not fully saturated,” Douglas Fisher, a Toronto-based industry consultant for FHG International Inc., is quoted as telling Milstead. “There are many, many U.S. companies that are larger than even Boston Pizza by number of units, but they may be in only a couple of states. You can do 300 restaurants in New England without anyone knowing about them in the rest of the U.S. Those companies really have lots of growth opportunities.”
Such companies include the Texas Mexican chain Chuy’s and the North Carolina-based Krispy Kreme Doughnuts. [theglobeandmail.com]
