Shake Shack Latest Of Many American Fast Food Chains To Expand To Canada

Photo Credit: CityNews Toronto

On June 13, American fast-food chain Shake Shack, known for its burgers, crinkle-cut fries, and hand-spun milkshakes, opened its first Canadian location in Toronto. 

Shake Shack is one of many US food chains that have begun expanding in Canada, alongside Crumbl Cookies, which opened a location in Port Coquitlam, BC on May 31. Shake Shack expects to have 35 locations in Canada by 2035.

The downtown Toronto location, Shake Shack’s Canadian flagship restaurant, is located in a 5,500 square-foot former Adidas store in the Yonge-Dundas Square complex.

The expansion brings into question why so many American fast food chains are only recently beginning to tap into the Canadian fast-food market and why so many are still missing. While Canada's population is vastly smaller, that doesn’t necessarily mean chains will face an increased challenge in establishing themselves.

The Toronto Shake Shack features an exclusive menu item celebrating the chain’s expansion to Canada: a maple salted pretzel shake, which involves a frozen vanilla custard shake base topped with maple syrup and salted pretzels.

Marketing with country-exclusive items is not new for Shake Shack. Malaysia and Thailand, among others, have seen menu items inspired by common local treats, such as hibiscus jelly-topped vanilla custard and a pandan sticky rice shake, respectively.

The strategy is commonly used by companies expanding in new markets. For instance, McDonald’s launched a Lychee Oolong dessert series in Singapore ahead of the 2023 New Year. 

Companies entering new markets can try to build a customer base by serving foods and flavours that locals are accustomed to. By testing the waters with a single location in a highly urbanised area, fast food chains can build up hype, leaving locals thirsty for a taste of new competition.