Despite challenging operating conditions, domestic food and labor costs are more favorable than they are in other markets such as the U.K. and Canada
The National Restaurant Association forecasts 4% industry expansion this year with sales at dining establishments to tip beyond $1.1 trillion.
There are several international brands wanting a piece of that growing pie. Since December alone, United Kingdom-based PizzaExpress, Canadian concepts Cluck Clucks, CRAFT Restaurant & Beer Market, and WingsUp!, Swedish-based concept Eggs Inc., and Japan’s Bread, Espresso & have either debuted or announced their intention to open in the United States. In the past two years, other concepts, such as Canadian-based Shawarma chain Osmow’s and Australia’s Guzman y Gomez have done the same, while Filipino quick-service chain Jollibee has pressed on the domestic gas, surpassing 100 locations in 2024. Why so many and why now?
“I can understand the logic. While U.S. industry growth has certainly slowed, one could argue that operating conditions are currently better here than they are in Canada and the U.K., especially when it comes to food and labor costs. So, if you have a concept that you think might work in the States and also have familiarity with the market via your franchisees, the U.S. might give you a better opportunity at growth than your home market,” said Technomic director of industry research Kevin Schimpf.
That’s not to say it’s easy, however. As Schimpf points out, there are few internationally based chains that have actually become major players in the U.S., including Tim Hortons, Paris Baguette, Jollibee, Pollo Campero, and Tous Les Jours.
But restaurant operators don’t get into this business because it’s easy. In a statement last year announcing its intention to expand in the U.S., Elisabet Eriksson, who co-founded the Eggs Inc. brand in Stockholm, Sweden, in 2019, said she wants the chain to compete with the biggest players in quick service.
“We aimed to develop a concept that matched the speed of McDonald's but focused on healthier options, prepared with locally sourced, fresh eggs, and delivered great taste. Eggs Inc. stands as our solution to fill this gap in the market,” Eriksson said.
Co-founder Peter Forsberg added that the concept’s “protein-rich” menu aligns with the evolving preferences of the American market. The first Eggs Inc. opened in Denver last month.
Meanwhile, Bread, Espresso &, a Japanese café-bakery founded in 2009, opened its first U.S. outpost on Jan. 30 in Redondo Beach, Calif. The concept, which currently has 37 locations across Japan, is known for its fresh baked goods, café-style dishes, and a full coffee bar. Leading the new U.S. location is executive chef Sakurai Tadatsugu, who said in a statement that Bread, Espresso &’s Redondo Beach menu blends its Japanese roots with local flavors from California.
“We’ve enjoyed getting to know our neighbors and exploring the farmers market and are eager to offer the community a taste of our unique Japanese bakery and cafe experience,” Tadatsugu said.
Canadian brands in particular seem to be targeting U.S. expansion in earnest this year. WingsUp!, a Canadian quick-service chicken wings concept founded in 1988, is spreading its wings to Texas and Florida and is currently seeking franchisees for both markets. The company said these states are ideal for expansion because Texas represents the eighth largest economy in the world, while Florida is a top destination for tourists and foodies.
“Texans appreciate quality, innovation, and bold flavors, and we’re thrilled to bring our fresh, made-to-order wings to this vibrant state,” chief executive officer Darren Czarnogorski said in a statement.
Vancouver-based CRAFT Restaurant & Beer Market, a craft beer and elevated casual dining concept, has its sights set on Dallas in early 2026. The flagship U.S. location will feature more than 100 beers on tap, as well as cocktails, wine, and a globally inspired menu of scratch-made dishes. In 2019, PJ L'Heureux, founder of CRAFT, partnered with Tom Gaglardi, owner of the Dallas Stars hockey team and Moxies Restaurants, to plan expansion into the U.S.
“We've always believed that the road to our success is through the connections we build with the communities we are part of. Dallas is a natural fit for CRAFT. Our large restaurant footprint, commitment to local products, and dedication to community are what Texas is all about," L'Heureux said in a statement. "Texas and specifically the Preston area of Dallas, with its booming economy, diverse culture, and love for craft cocktails and beer, is the perfect place for us to begin this exciting new chapter."
The Dallas opening is the first step in the company's broader plans to establish a strong presence in key U.S. cities throughout the next decade.
Cluck Clucks takes flight in Texas
Then there’s Toronto-based Cluck Clucks, founded in 2014 by Raza Hashim and Maryam Rizvi and known for its signature fried chicken and waffles. The company made its debut in the U.S. in mid-January with an opening in Sugar Land, Texas. In a recent interview, Sameer Hussain, vice president of franchise development, said the U.S. is simply a bigger market to play in.
“It’s bigger population-wise. It has a bigger economy. Most of our supply chain and equipment vendors are U.S. companies, so that is something we liked,” he said. “Second, with inflation and the economy, people are looking toward self-employment more and we have gotten a ton of response of people showing interest in franchising.”
Indeed, the International Franchising Association’s annual economic outlook for 2025 forecasts a 2.5% increase in franchise locations, which would exceed the domestic economy’s anticipated growth of 1.9%. Quick-service franchises are expected to grow 5.4%, accounting for $322 billion in economic output this year.
Hussain said the initial Houston location has received a tremendous response in its first few weeks, to the point where the company had to send additional support from its home office to help.
“People who visited the store once have come back a few times, bringing family and friends. We might need to add a few more things to support the volume we’ve seen,” he said.
Cluck Clucks doesn’t have a set number of locations targeted for the U.S. market, though Hussain said the path forward includes markets from Georgia to the Midwest.
“We’ve bootstrapped this company for 10 years and we plan to stay that way. As we get our foot into new markets, we are looking for a healthy atmosphere to work in, both for our own brand and for people getting involved to work with us,” he said. “Eventually we want to be successful (in the U.S.), but first we want people to give us a try. We bet they like it.”
Contact Alicia Kelso at [email protected]
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