In a surprising move, Kinton Ramen, a popular Canadian eatery, announced a reduction in the price of its signature ramen bowls. As of April 29, 2024, customers can enjoy these dishes for $14.99, down from $17. This price adjustment, unusual in today’s economic climate where food costs are generally rising, was made possible by the restaurant’s shift to a franchising model.
Initially established in Toronto in 2012, Kinton Ramen expanded significantly during the pandemic. The chain grew from 20 to 38 locations and is aiming to reach 45 by the end of the year. This expansion across Ontario, Quebec, British Columbia, Illinois, and New York has strengthened its negotiation power with suppliers.
Karalyn White, Kinka Family’s Senior Director of Franchise Development, explained that the increased scale has allowed them to leverage better deals on ingredients, enabling them to roll back prices to their 2021 levels despite ongoing inflation in the restaurant sector. According to Statistics Canada, restaurant food prices have seen a 5.1% increase as of March from the previous year.
Experts like Kersi Antia, a marketing professor at Ivey Business School, and Ryan Picklyk, Senior Director at A&W Food Services of Canada, both highlighted the benefits of franchising. It not only increases purchasing power but also offers suppliers efficiencies that can lead to cost reductions. This model promotes a collective approach to business, enhancing success and offering value to customers.