Olive Garden Canada Expansion Plans After Major Acquisition

Sarah Patel
5 Min Read
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The familiar scent of garlic breadsticks may soon be wafting through more Canadian neighborhoods as Olive Garden sets its sights on significant expansion north of the border. Restaurant Brands International’s recent $9.7 billion acquisition of Darden Restaurants has opened the floodgates for what industry insiders call “an aggressive growth strategy” that could see dozens of new Olive Garden locations across Canada in coming years.

The acquisition, which closed last month, brings the Italian-American chain under the same corporate umbrella as Tim Hortons, Burger King, and Popeyes—creating a formidable restaurant empire with global ambitions. RBI CEO Josh Kobza didn’t mince words during yesterday’s investor call: “The Canadian market represents a substantial untapped opportunity for Olive Garden’s growth potential.”

“We’ve identified at least 40 prime locations across major Canadian metropolitan areas where Olive Garden could thrive,” Kobza told analysts. “The brand recognition is already there—now it’s about executing a thoughtful expansion that maintains operational excellence.”

Currently, Canada hosts just five Olive Garden locations—in Edmonton, Calgary, Winnipeg, and two in the Greater Toronto Area—a stark contrast to the chain’s 900+ restaurants throughout the United States. This limited footprint has created what restaurant consultant Janet Morrison calls “culinary FOMO” among Canadian consumers.

“Canadians who travel to the US often return talking about Olive Garden’s unlimited breadsticks and pasta promotions,” Morrison explained. “There’s a built-in demand that RBI is smart to capitalize on, especially in mid-sized markets currently underserved by casual Italian dining options.”

The expansion plans align with shifting consumer preferences in the casual dining sector. According to Restaurants Canada’s 2023 industry report, family-style Italian restaurants have shown remarkable resilience despite inflationary pressures, with same-store sales growing 4.2% year-over-year, outpacing the broader casual dining segment.

Vancouver resident Michelle Lapointe expressed enthusiasm about the potential arrival of Olive Garden in her city. “I’ve only eaten at Olive Garden when visiting Seattle. Having one nearby would be great for those nights when you want something familiar and comfortable without breaking the bank.”

While RBI remains tight-lipped about specific locations, sources familiar with the strategy indicate that British Columbia will feature prominently in early expansion efforts, with Vancouver and surrounding communities like Surrey and Burnaby high on the priority list.

The expansion won’t be without challenges. Canada’s restaurant labor market remains tight, with vacancy rates hovering around 8% nationally according to CO24 Business. Additionally, supply chain considerations for Olive Garden’s signature items must be addressed to maintain consistency with their American counterparts.

Former Darden executive Thomas Reynolds, who oversaw previous international expansion efforts, believes the Canadian market requires a nuanced approach. “Canadians expect value, but they’re also more health-conscious than American diners. Successful expansion will mean adapting certain menu offerings while maintaining the core experience that makes Olive Garden popular.”

Restaurant Brands International has demonstrated strong performance in expanding American concepts into Canada before. Their rollout of Popeyes locations across the country generated record-breaking openings, with some locations reporting three-hour wait times during initial launches.

As the restaurant landscape continues evolving post-pandemic, this expansion represents more than just new dining options—it signals confidence in Canada’s economic recovery and consumer spending power. The casual dining segment took a significant hit during COVID-19 restrictions, but recent CO24 Breaking News reporting shows the sector rebounding strongly in urban centers.

For Canadian fans of endless pasta bowls and breadsticks, the wait may soon be over. As one investment analyst put it: “Olive Garden’s expansion into Canada isn’t just about growing a restaurant chain—it’s about bringing a distinct dining experience to communities eager for more accessible, family-friendly options in today’s challenging economic environment.”

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