Starting a restaurant is a risky and expensive endeavour. In Toronto especially where there is a plethora of great places to eat and a handful of new places opening (and closing) every week, it’s exceedingly difficult for new restaurants to set themselves apart from the crowd and even if a new restaurant manages some modicum of success, it’s likely that for the first little while their profit margins will be razor thin.
Accordingly, restaurateurs often look for places to cut costs and rely on innovative marketing techniques and partnerships to get themselves known. Many restaurants in Toronto start their businesses as pop- up shops or food trucks hoping to build a reputation for their food so that they might either save up the capital or seek backers for the larger financial investment required to start their own restaurants.
To anyone with any involvement in the craft beer industry, this story might sound fairly familiar. Continue reading “The problematic relationship between small brewers and new restaurants”