Recipe Unlimited Corporation operates as a multi-branded restaurant, catering and food manufacturing company that franchises and operates restaurant brands.
As of December 27, 2020, the company had 25 brands (not including Casey’s) and restaurants, in Canada and internationally (the U.S., Bahrain, China, India, Macao, Oman, Panama, Qatar, Saudi Arabia and the UAE). The significant majority of the company’s restaurants are located across Canada.
Of the company’s restaurants, 84% are operated by...
Recipe Unlimited Corporation operates as a multi-branded restaurant, catering and food manufacturing company that franchises and operates restaurant brands.
As of December 27, 2020, the company had 25 brands (not including Casey’s) and restaurants, in Canada and internationally (the U.S., Bahrain, China, India, Macao, Oman, Panama, Qatar, Saudi Arabia and the UAE). The significant majority of the company’s restaurants are located across Canada.
Of the company’s restaurants, 84% are operated by franchisees or as a joint venture, and the remaining 16% are owned and operated corporately. Its restaurant network includes Harvey’s, Swiss Chalet, Kelseys, East Side Mario’s, Montana’s, Milestones, Prime Pubs, Casey’s, Bier Markt, Landing, New York Fries, St-Hubert, Original Joe’s, State & Main, Elephant & Castle, The Burger’s Priest, The Pickle Barrel restaurants, 1909 Taverne Moderne, The Keg, Rose Reisman Catering, Marigolds & Onions, Fresh and Ultimate Kitchens.
The company’s strategic partnership with SCENE allowed it to become SCENE’s exclusive restaurant partner. SCENE is an entertainment rewards program in Canada - points earned on Scotiabank SCENE-branded debit and credit card transactions and purchases at Cineplex Entertainment theatres could be redeemed towards Cineplex Entertainment movie tickets, concessions and others. The SCENE program has approximately 10.25 million members. Pursuant to the Recipe-SCENE Marketing Partnership Agreement, the company’s customers are able to earn and redeem SCENE points at eight of its brands for food and beverage purchases.
The ‘Ultimate Dining Card’, the company’s proprietary multi-brand gift card program, offers consumers various choices as it is redeemable in its various brands, excluding St-Hubert Group Ltd. (St-Hubert), The Burger’s Priest, Anejo, Blanco Cantina, Fresh and The Keg restaurants. The Keg and St-Hubert each have their own branded gift card. The gift cards are primarily available for sale, including in its restaurants for the Ultimate Dining Card, in St-Hubert restaurants for the St-Hubert gift card and at Keg Restaurants Ltd. (The Keg) restaurants for The Keg gift card, through third party retailers who sell gift cards, through corporate sales channels and on-line, making the Ultimate Dining Card one of the major selling gift cards in Canada. The Keg’s gift card is Canada’s major single-branded restaurant gift card.
The company’s strategic partnership with Canadian Automobile Association (CAA) allows it to provide offers to CAA’s approximately 6.5 million members, as its national dining partner.
Fairfax Financial Holdings Limited and its affiliates (Fairfax) and the company are parties to a shared services agreement. Under this agreement, Fairfax is authorized to enter into negotiations on behalf of the company (and Fairfax associated restaurants) to source shared services and purchasing arrangements for various aspects of its operations, including food and beverage, information technology, payment processing, marketing and advertising and other logistics.
Properties
There are company-branded restaurants located in each of the provinces of Canada. The majority of the locations are leased, with a typical term of 10 years with a 10 year renewal option. The company acts as the head lessee for franchised locations. Its lease portfolio is not materially concentrated with any one landlord. St-Hubert owns restaurant properties in Quebec and 2 manufacturing plants, in Boisbriand and Blainville, Québec, and 2 distribution centers, in Anjou and Boisbriand, Québec.
Intellectual Property
The company owns, directly or indirectly, various key brand names, logos, slogans and products in connection with its operations, including the trademarks for the Recipe corporate name and design, the name and principal design for Swiss Chalet, Harvey’s, Montana’s, Kelseys, Milestones, Prime Pubs (including Fionn MacCool’s, D’Arcy McGee’s, Paddy Flaherty’s and Tir nan ´Og), the Bier Markt, East Side Mario’s, The Landing Group (including Williams Landing, Harpers Landing, Hunters Landing, Jacksons Landing, Carters Landing, Taylors Landing, Kellys Landing, Arthurs Landing, Owens Landing and Baxters Landing), St-Hubert, Original Joe’s, Elephant & Castle, State & Main, The Burger’s Priest, The Pickle Barrel, New York Fries, Anejo, Blanco, Rose Reisman Catering, Fresh, and Marigolds & Onions. The company has also trademarked certain of its major promotions and slogans, such as The Festive Special (Swiss Chalet) and It’s a Beautiful Thing (Harvey’s). It has also rights in other names, logos, slogans and intellectual property used in connection with its restaurant operations, such as restaurant and menu design.
Seasonality
The company’s restaurants experience seasonal fluctuations, which are inherent in the restaurant industry in Canada. Seasonal factors, such as better weather, which allows the company’s restaurants to open their patios and which enable customers to get out of their homes, commonly drive an increase in revenue in the spring and summer months compared to the winter period (primarily after the December holiday season). During the winter period, while the take-out and delivery business sustains revenue for the Swiss Chalet and St-Hubert brands, in-restaurant dining at all of the brands experiences reduced patronage. In 2020, the restaurant seasonality trends were amplified due to COVID-related restaurant closures and operating restrictions, the strong demand for patio dining during the summer and early fall, and government-mandated dining room operating restrictions that were re-introduced later in the year. However, the company’s food manufacturing business partially offsets the impact of restaurant seasonal fluctuations as sales through the grocer retailers are consistent over the course of the year and are strongest in the fourth and first quarters (year ended December 2020).
History
Recipe Unlimited Corporation was founded in 1883. The company was incorporated in 1961. It was formerly known as Cara Operations Limited and changed its name to Recipe Unlimited Corporation in May 2018.
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