Canadian restaurant lowers prices after franchising [Video]

A Canadian restaurant lowered its prices this week, and though news of price tags dropping rather than climbing sounds unusual, the business strategy in this case is not, according to experts in the field.

Kinton Ramen, founded on Baldwin Street in Toronto in 2012, lowered the cost of its ramen bowl by approximately $2 on Monday, from $17 to $14.99.

The answer to the obvious follow-up question – how did a local business bring prices down while food costs remain high – is simple: franchising.

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Kinton Ramen pivoted to a franchise model during the pandemic, expanding the local chain from 20 locations at the time, to 38, with sights set on 45 by end of year.

The expansion, which now spans Ontario, Quebec, British Columbia, Illinois and New York, has enabled the restaurant to negotiate with suppliers, according to Kinka Family …