Choosing the Perfect Restaurant Franchise Location in Canada

Finding the right location is a cornerstone of any successful restaurant franchise. It directly impacts your foot traffic, brand awareness, and, ultimately, your revenue potential. At MTY Group Franchising, we understand the importance of strategic real estate selection.  We don’t rely on intuition; we leverage data, historical insights, and strong industry relationships to find prime real estate for our franchisees across Canada. This guide will prepare you to make informed decisions and maximize your restaurant’s potential.

The Foundation of Franchise Success: Why Location Matters

A well-chosen location attracts the right customers, generates buzz, and translates into higher sales. In light of findings from the International Council of Shopping Centers (ICSC), which reveals that 67% of small business shoppers frequent food service establishments, the importance of selecting the right location becomes even more crucial.  

This choice is not about emotional preference; it’s about informed decisions based on concrete data. You can increase your chance of capturing a significant market share by leveraging a data-driven approach.  This data can include factors like demographics, competitor locations, and traffic patterns to specific areas with a high concentration of your target customer base.

For example, the ICSC report also highlights that Gen X (74%) and Baby Boomers (70%) are more likely to patronize food service establishments compared to Millennials (65%) and Gen Z (50%). This suggests that targeting locations near areas with a higher concentration of older demographics might be a good fit for certain restaurant concepts.

Data-Driven Decisions: MTY’s Approach to Real Estate With a Sophisticated Mapping Platform 

MTY Group Franchising utilizes cutting-edge data analytics to identify prime real estate locations. Our dedicated real estate team employs a sophisticated mapping platform that empowers them to:

• Reduce Risk in Market Planning: We analyze demographics, competitor locations, and traffic patterns to pinpoint areas with high potential success.
• Gather Market Intelligence: Our system provides insights into customer demographics, allowing us to tailor location selection to specific restaurant concepts.
• Predict Future Performance: We utilize data optimization tools to forecast the success of potential locations and assess the impact on existing stores (for certain brands) when new locations open.
• Benchmarking against existing stores’ performance: In addition to leveraging historical data, we recognize the importance of benchmarking our real estate decisions against the performance of nearby MTY Group franchised locations. With approximately 3,000 locations across Canada, there’s a high probability of having an MTY Group franchise nearby a future store. By tapping into the sales and performance data of these neighboring locations, we can gain valuable insights and benchmarks to enhance our decision-making process. This comparative analysis allows us to not only learn from our own past experiences but also to benchmark against successful peers within our network, ultimately leading to more informed and strategic real estate decisions. 

This data-driven approach ensures that we don’t just find good locations; we find locations perfect for your franchise concept.

Learning from the Past: Leveraging Historical Data

MTY Group’s vast portfolio provides a wealth of historical data that informs our real estate decisions. We analyze successes and failures across our brands, learning from past experiences to make better choices for the future. This includes assessing factors like:

• Positioning: Was a coffee shop near morning traffic more successful than one near evening traffic, as opposed to merely considering average traffic?
• Physical Attributes: How did the layout and accessibility of a location impact customer flow?
• Demographics: Did a particular customer base respond best to a specific brand?

By analyzing past performance, you can identify patterns and replicate winning formulas for your franchise. Looking for a breakfast concept that thrives in such aspects? Explore opportunities with Ben & Florentine, a top-performing breakfast franchise.

Strength in Relationships: Navigating the Real Estate Market

MTY Group Franchising has fostered strong relationships with C-suite landlords and reputable brokerage firms across Canada. With over 3,000 locations, including 12% in enclosed malls, we have experience working with everyone from individual plaza owners to multinational corporations. These relationships offer several advantages:

• Access to Premium Locations: We have the inside track on prime real estate opportunities, giving you access to locations you might not find on your own.
• Favorable Lease Terms: Our industry clout allows us to negotiate favorable lease terms with landlords, securing striving to obtain the most favorable deal available (standard franchise agreements typically match the restaurant lease agreement, with most leases lasting 10 years).
• Future Development Insights: We understand the development strategies of key landlords, offering a glimpse into potential future assets in high-growth areas.

Our strong partnerships ensure you secure not just a great location but a great lease that that aims to position your franchise favorably for long-term success.

Expert Guidance: MTY’s In-House Real Estate Team

Your success is our priority. That’s why MTY Group Franchising boasts a dedicated in-house real estate team, supported by a network of over 30 broker firms. This team brings extensive experience to the table, ensuring you have the best negotiators on your side when it comes to securing a lease. They take care of:

• Negotiating Beneficial Terms: Our team negotiate for your best interests, securing long-term leases (typically 10 years to match the franchise agreement) with favourable terms, including a rent-free construction period, landlord contributions to build-outs, and optimized general lease conditions.
• Leveraging Precedent Leases: We have a proven track record of successful negotiations. Our team uses precedent leases to guide future agreements, striving to obtain the most favorable deal available.

With the MTY Group real estate team on your side, you can focus on running your business, confident that your location sets you up for long-term success.

Expanding Opportunities: Converting Your Existing Restaurant

Are you a current restaurant owner looking to take your business to the next level? MTY Group Franchising offers exciting franchise conversion opportunities. We can help you convert your existing restaurant into a successful MTY franchise concept, leveraging our brand recognition, operational expertise, and proven track record. This allows you to benefit from:

• Reduced Risk: By converting an existing restaurant, you can leverage your existing customer base and potentially lower initial investment costs. Data analysis can also help identify if your current location aligns with the target demographic for the franchise you’re converting to, increasing your chances of success.
• Streamlined Operations: MTY Group Franchising provides comprehensive training and support to help you transition your business smoothly. This includes operational guidance, marketing assistance, and access to our network of suppliers.
• Enhanced Brand Recognition: By becoming part of a successful MTY franchise brand, you’ll gain instant brand recognition and customer trust, propelling your business forward.

Unlock the full potential of your business with our industry-leading support in marketing, operations, and proven real estate selection. We’ll help you find the perfect location and guide you through the conversion process while allowing you to maintain your entrepreneurial spirit.

If converting isn’t your ideal fit, we can help you find a qualified buyer interested in continuing your legacy.

Contact us today for a free to discuss your specific goals and explore how MTY can help you achieve them.

Conclusion:

Choosing the right location is a critical decision for your restaurant franchise success. At MTY Group Franchising, we take the guesswork out of real estate selection. With our data-driven approach, historical insights, and strong industry relationships, we ensure you find the perfect location to build your restaurant empire in Canada. We offer comprehensive support throughout the process, from identifying prime locations to negotiating favorable lease terms (typically lasting 10 years).

MTY can help you thrive! Explore franchise opportunities or find a qualified buyer.  Contact Us Today: realestate@mtygroup.com

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Sources:

International Council of Shopping Centers (ICSC): https://www.icsc.com/news-and-views/icsc-exchange/icsc-2022-small-business-consumer-survey-results

https://www.icsc.com/news-and-views/icsc-exchange/so-you-want-to-grow-through-franchising

NEW DATA SHOWS FRANCHISING CONTINUES TO EXCEED GROWTH EXPECTATIONS: https://www.franchise.org/media-center/press-releases/new-data-shows-franchising-continues-to-exceed-growth-expectations

MTY Group Franchising Website: https://mtyfranchising.com/