Image Credit, Pavol Chren
Expanding a restaurant brand to a new city or country is often heralded as a sign of success and growth. Yet, despite significant budgets and carefully crafted strategies, many franchises fail to thrive in unfamiliar territories. This phenomenon is not limited to small or inexperienced businesses; even the best of them struggle. So, why is this the case?
We spoke with Kevin Toney, CEO of Prime Time Promotion, one of Canada’s most prominent marketing firms specializing in the restaurant industry. After working with thousands of restaurant brands, Toney identifies a recurring issue: centralized marketing strategies that fail to adapt to local markets.
“Restaurants often approach new markets as if they’re replicating their success in a vacuum,” Toney explains. “What works in one city or country doesn’t always translate elsewhere, especially when the local population has never heard of you before. To succeed, you need to build trust and familiarity—and that requires understanding the unique cultural and social dynamics of the area.”
Toney emphasizes that the reliance on centralized marketing efforts can alienate franchise owners and lead to ineffective outreach. He notes that while significant budgets are allocated for marketing, these funds are often channeled into national or global campaigns that fail to resonate locally.
“Too many restaurant brands overlook the power of local media, influencers, and grassroots initiatives,” Toney says. “People don’t just change their eating habits because of flashy ads. They need to see the brand engaging with their community, collaborating with local influencers, and tapping into local tastes and preferences.”
Email marketing, targeted social media campaigns, and direct community engagement are essential tools often underutilized by expanding brands. Toney argues that allowing franchise owners more leeway to customize their marketing strategies can make a substantial difference in building a loyal customer base.
For franchisees venturing into the restaurant business, the stakes are even higher. The investment of time, effort, and significant financial resources can make the endeavor feel like a gamble. “The old notion of ‘if you build it, they will come’ is as extinct as the dodo bird,” Toney warns. He points to countless stories of franchisees who poured their life savings into ventures their local communities were unfamiliar with, only to see their businesses fail and, in some cases, face bankruptcy.
Franchising may offer opportunity, but it also comes with risk. Without effective marketing, good food, excellent service, and competitive hours, franchisees find themselves at a disadvantage from the start. The margin for error is slim, and getting it right the first time is crucial.
“Surviving past the grand opening isn’t just about serving good food,” Toney continues. “It’s about convincing people why they should change their buying habits and choose you over the familiar options they’ve trusted for years.”
For restaurants entering new markets, the takeaway is clear: a one-size-fits-all approach won’t cut it. Success requires a commitment to understanding and integrating into the local community. Without this nuanced approach, even the most popular franchises may find themselves struggling to gain a foothold, let alone thrive.
The restaurant industry remains one of the most challenging to navigate, and expansion adds another layer of complexity. For those willing to adapt and learn, however, the rewards can be as satisfying as a perfectly prepared meal shared among loyal patrons.
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