Hotels still part of The Pantry chain expansion plans

VANCOUVER-Some restaurant industry heavy weights have combined to take over the 18-unit The Pantry chain, based in western Canada.

The Pantry restaurant in North Vancouver, BC

Mike Cordoba, former head of Boston Pizza, led the takeover of the family dining operation, founded by Michael Hoffman in 1975, in Abbotsford, BC.

Cordoba formed new company, RAMMP Hospitality Brands, referring to the first initials of the main partners, to take over the Pantry in late March. The founder's son, also named Michael, is part of the ownership team, which also includes industry alumni Peter Dhillon, Al Cave and Robin Chakrabarti.

"We liked the longevity and sustainability of the brand that has been around for 35 years," Cordoba said.

"The brand had very little penetration so the largest attraction was that there is a huge opportunity for growth."

RAMMP has franchised-based expansion plans for The Pantry, growing it to 100 or more franchised locations across Canada during the next seven years.

Cordoba said the company expects to open 10 more locations in British Columbia in 2011, adding to the 19 existing units. In Alberta, 15 stores will open by 2012, while Saskatchewan and Manitoba will see 10 each in the next few years.

Eastern Canada, including Ontario and the Atlantic Provinces can expect 50-75 restaurants in the next five to seven years.

"(The) development cycle would indicate that a good portion of our stores will open in 2011. We believe that the company is going to turn around, people want to become their own bosses and we have an excellent product," Cordoba said.

As part of the deal, RAMPP also purchased the five-unit steak and seafood chain, Rockwell's, which has franchises in southwestern British Columbia.

The Pantry is open for breakfast, lunch and dinner, and serves everything from omelettes, waffles and pancakes, to wraps, sandwiches, steak and burgers, both made from certified Canadian Angus beef.

Changes to both the menu and look of the restaurants are in the works to update their appearance.

"With the rebranding, Pantry restaurants and the menus have a much more modern and contemporary feel with fresh, home-style cooking and value combined," Cordoba said.

Future expansion will see the 90 per cent of new locations opened as free-standing units, with the rest attached to either new or existing hotels.

The 11 current hotel locations are attached to Holiday Inn, Ramada Inn and Suites, Best Western and Travelodge Hotels in British Columbia and Alberta.

"The hotel strategy is going to be very much a secondary approach for us. We think that probably 10 per cent of our future growth will include hotels," Cordoba explained.

"There aren't a lot of new hotels being built right now, but there is an opportunity to move into hotels that have the room and facilities to support a restaurant."