One of America’s most talked-about burger chains is heading north. Shake Shack announced Wednesday that it will open its first Canadian location in Toronto next year, partnering with two local investment firms to plant its flag in a market it has had its eye on for some time. The New York-based chain, which started as a single hot dog cart in Madison Square Park back in 2004, now operates more than 440 locations around the world and has been one of the most requested American restaurant brands among Canadian food fans for years.
The Toronto location is just the beginning. Shake Shack says it plans to grow to as many as 35 locations across Canada by 2035, a timeline that signals serious long-term commitment rather than a casual dip into a new market. The company is partnering with Osmington Inc. and Harlo Entertainment Inc., both based in Toronto, to manage the expansion. Osmington is a privately held real estate investment fund controlled by David Thomson, chairman of Thomson Reuters, and already has a strong footprint in Toronto through its ownership of the retail concourse at Union Station. The firm also owns the Winnipeg Jets.
“Shake Shack has long been a brand that we admire,” said Osmington CEO Lawrence Zucker. “Their emphasis on community building, enlightened hospitality and exceptional food quality aligns with our values and we are thrilled to be bringing them to Canada.”
The arrival of Shake Shack adds yet another chapter to what has been a steady march of American fast food brands into the Canadian market over the past decade. Five Guys, Carl’s Jr., Wahlburgers, Blaze Pizza, Chick-fil-A and Dave’s Hot Chicken all made the move north in recent years, each betting that Canadian consumers were ready for something beyond the familiar options already on the street corner. The newest arrivals leaned hard into chicken, a category that has grown steadily as more consumers shift away from red meat. Chicken sandwiches showed up in 7.3 per cent of all restaurant orders in Canada in 2020, according to research firm NPD Group, amounting to roughly 386 million servings.
Shake Shack, though, is betting on the burger. And the numbers back that up. Burgers accounted for 9.6 per cent of all Canadian restaurant orders in 2020, translating to more than 739 million servings. That makes Canada one of the most burger-hungry markets in the world, and Shake Shack’s menu, built around fresh beef, crinkle-cut fries and hand-spun milkshakes, is designed precisely for that appetite.
Canadian chains have not sat still in the face of growing American competition. Tim Hortons famously partnered with Justin Bieber to launch a line of Timbiebs Timbits, experimented with flatbread pizza, and added chicken sandwiches to keep pace with shifting tastes. Several other homegrown chains expanded their breakfast menus and leaned into value deals to hold onto loyal customers.
But loyalty only goes so far when household budgets are stretched thin. Inflation hit a near 40-year high last year in Canada, making every dollar spent on dining out feel heavier than it used to. Statistics Canada reported that the cost of food from takeout restaurants climbed 8.6 per cent compared to the previous February. Despite that pressure, Canadians kept eating out. Visits to fast food restaurants were up nine per cent in 2022, close to the 11 per cent gain recorded the year before, suggesting that even in tough economic conditions, the appetite for a good meal outside the house remains strong.
For Shake Shack, the timing may be shrewder than it looks on the surface. Entering a competitive but resilient market with strong local partners and a recognizable brand gives the chain a real foundation to grow from, and 35 locations in just over a decade is an ambitious but plausible target if the Toronto launch lands the way the company expects.
Original reporting by CBC News.
