New Works owners plan agressive Ontario expansion

OAKVILLE–There’s a new owner in town for Ottawa-based gourmet burger company, The Works Gourmet Burger Bistro.

In late September, owner Ion Aimers sold his six-unit company to Oakville-based Fresh Brands Inc., which plans to expand the chain province-wide in the next five years.

A private company, Fresh Brands incorporated as of January 2010. Its three partners, chief executive officer Andy O’Brien, chief marketing officer Bruce Miller and chief financial officer Sean Bell all come from Cara Operations Limited.

O’Brien, the former president of Kelsey’s and Montana’s until November of 2009, has worked with family companies for many years.

“Fresh Brands wants to bring new ideas and creativity to an established business, the restaurant business, and just focus on bringing some fresh thinking, such as using ideas that are successful in other industries and countries,” O’Brien told ORN.

“We want to bring the science in other industries, such as manufacturing and packaging, to the art of the restaurant business.”

Fresh Brands’ goal is to acquire businesses that are unique in concept, relatively small and regional in focus.

According to O’Brien, the company looked at over 100 brands in the last few months, but few met all the criteria of profitability, unique differentiators and expandability that they sought.

“The Works is nine years old, and a well-developed concept,” said O’Brien. “It’s uniquely positioned and has a smaller footprint than most restaurants (2,500 square feet). Their retail strategy is neigbourhoods rather than shopping malls, so they’re right downtown with a combination of retail and foodservice. They also meet our criteria of profitability: they’ve got a well-defined menu and know what they do very well.”

In the next five years, Fresh Brands Inc. is looking to open 50 to 60 Works restaurants in Ontario, although O’Brien stresses that this is a goal, not a commitment. “We’re not committing to any magnitude of build; we want to do it right,” he said.

The expansion will focus in key areas, and immediate plans include opening five to 10 Works restaurants in the next year or two, said O’Brien. Although the locations remain confidential at time of printing, as the deals are close to being finalized with real estate firms, O’Brien confirms that the company will open four to five anchor restaurants covering the Greater Toronto Area and beyond, from Oakville to Leslieville, and from the Beaches to Aurora.

Although the proliferation of gourmet burger restaurants in the GTA over the past few years makes the marketplace more crowded, O’Brien is confident in the uniqueness of The Works brand. The company has received 50 to 60 requests for franchise opportunities in the GTA already, he said, so the demand is there.

In the next six months, Fresh Brands Inc. will be focusing on expanding the Works across Ontario. By 2011, they may be looking at other brands if the right company comes along.

“We’re looking for the gems. We’re not going to just buy for the sake of buying,” says O’Brien. Over the next 10 years, they will be looking to acquire three to four brands across different segments of the foodservice industry, from QSRs to upscale full service restaurants.

“The sale is a culmination of nine years of hard work,” Aimers told ORN. “I’m a realist, passionate about foodservice and my staff, but everything has a beginning and an end,” he says.

“The Works and I had done what we did best together. I designed the company, built one, then two, then six units. But I’m realistic about the fact that large corporate expansions are not my expertise.”

Aimers’ future plans include six months of relaxation and family time, after which he will look to potentially expand his pizza restaurant ZaZaZa and continue his work as a partner in Fraser Café.

“In the future, I hope to expand,” says Aimers. “But my concrete plan right now is to sleep in.”