Quick-Service Restaurants Expanding Across Newfoundland and Labrador

Newfoundland and Labrador is seeing an increased presence of quick-service restaurants (QSRs) such as Pizza Pizza, Dairy Queen and Little Caesar’s, particularly in the province’s smaller towns.  

“It can be a bit challenging for food and beverage businesses to operate in Atlantic Canada, especially in Newfoundland and Labrador, mostly due to shipping costs,” explains CBRE’s Nikki Poole, who runs the company’s St. John’s office. “But there are lots of opportunities and excited diners for new restaurants”

Toronto-based Pizza Pizza opened its third location in Paradise earlier this year, while Dairy Queen just opened its tenth location in Conception Bay.

Though St. John’s has historically seen the most growth among QSRs, Poole notes that smaller communities are getting in on the action, too.

“While smaller towns have traditionally not been able to support new restaurants, QSRs have the capital and resources to move in, find local staff and get right down to business,” she says. “It’s giving these businesses an edge in under-served markets.”

A Growing Rest Stops Network

Newfoundland and Labrador stands to benefit from a forecast uptick in domestic travel this year as the soaring cost of air travel means more Canadians likely will be hitting the road for their summer vacations.

“Tourism has been growing year after year here post-pandemic, and we’ve been seeing lots of people driving across the island to get to St. John’s,” says Poole.

Unlike the ONroute rest stops that are ubiquitous along highways in Ontario, roadside service centres are few and far between in Newfoundland and Labrador.
But Poole notes that things have been changing thanks to partnerships between QSRs and energy companies.

Last year, for example, Little Caesar’s signed its largest franchise agreement in Canada through a collaboration with North Sun Energy, bringing the popular pizza franchise to 18 gas stations and convenience stores in Atlantic Canada, including one in Clarenville, a small town about two hours away from St. John’s.

Brands like Osmow’s Shawarma and Stacked have started to multiply in St. John’s. And last year, the opening of a new Taco Bell in the city of Mount Pearl caused traffic delays, prompting the local authorities to intervene to manage unprecedented vehicle lineups.

“I anticipate a lot of restaurant openings as our population grows and diversifies,” says Poole. “There are more workers in downtown St. John’s today than there have been in years, and demand is growing for trendy QSR brands.”

Newfoundland and Labrador Poised for Growth

Poole is keeping her eye on several proposed energy projects that could spur significant growth across the province, and in turn create opportunities for food and beverage brands to expand further.

The Newfoundland and Labrador government recently reached an agreement with Equinor and BP to move forward on Bay du Nord, a major offshore oil development in the province’s Flemish Pass Basin. The project could generate $6.4 billion in revenue for the province in its first phase alone, and help generate growth in coastal communities.

And Clean Grid Atlantic recently proposed a multi-billion dollar wind turbine project.

“These projects could create major growth opportunities in the province, particularly on the West Coast,” says Poole. “Towns like Stephenville – an under-serviced market at the moment – will reap the benefits if these projects proceed, especially when it comes to the food and beverage sector.

Corner Brook, a city on the West Coast of Newfoundland just north of Stephenville, welcomed its first Wendy’s earlier this year, prompting the city to issue a traffic advisory.

“There will be plenty of hungry mouths to feed and Quick Service Restaurant operators are no doubt salivating at the prospects.”