Introduction

     This proposal is regarding opening The Cheesecake Factory in Canada, specifically in the city of Mississauga. 

     The Cheesecake Factory was established in the late 1940’s as a small cheesecake shop in Detroit by Evelyn and Oscar Overton. In 1972, they expanded their business to Los Angeles often working 18 hours a day to maintain their business. The hard work payed off and the restaurant became an immediate success. Today, they have close to 170 locations all over the U.S. making Overtons’ Cheesecake Factory a great American success story.

The Cheesecake Factory Logo

Why Canada is the Ideal Country

     It would be an ideal decision to invest in opening The Cheesecake Factory in Canada. This would be a fantastic choice which will further help TCF expand as once a small business into a larger international business. Canada is an excellent choice to invest in as America and Canada have similar cultures, Canada has the world’s most stable banking systems, and the country also has a stable economy.

     First, Canada and America have similar cultures. Both countries are multi-ethnic, multi-racial, speak the same language and function similarly in terms of restaurant establishments and also business ethics. There are several American restaurant franchises that have invested in opening in Canada and have been successful. For example, A&W Restaurant is an American restaurant that opened a chain in  Canada in 1956 and now has over 770 locations throughout Canada. It became so successful that it began to be known as A&W Canada, separate from the American A&W. This demonstrates how an American restaurant has become successful when expanding their establishments in Canada. It also shows how similar Canadian and American culture is and their taste in foods as well. 

     Second, the banking system in Canada is one of the safest, most reliable and efficient world-wide. Canada’s banking system is tightly regulated by the federal government and conservative about leading practices. The banks are larger and have greater reserves than European and American competitors and are designed to handle ups and downs of the business cycle. This demonstrates how investing in opening The Cheesecake Factory into Canada will be safe, simple and efficient for the company and that TCF has nothing to worry about in regards to the large investment.

     

One of Canada's "Big 6" Banks

     Last, the economy in Canada is the eleventh largest economy in the world. The GDP is 1.839 trillion with a GDP growth of 2%. Figure 1.1 demonstrates Canada’s growth in GDP compared to the US. Both are increasing at an even pace showing how the economy is growing positively. The GDP per capita is also $52,300 and is consistently growing. This statistic shows that Canada is a developed country and that Canadians have enough discretionary income to excrete into the economy such as to restaurants.

FIGURE 1.1

About Mississauga

     The city of Mississauga is located beside the heart of Ontario, Toronto. There are countless tourist attractions in Mississauga such as playdium, a popular arcade and theme park, the new Marilyn Monroe condos, several other parks and golf courses, galleries, and other historic sites from WWI. There is also two post-secondary establishments located in this city: University of Toronto Mississauga, Sheridan Institute of Technology and Advanced Learning Hazel McCallion Campus and the Canadian Business College. Mississauga was established as a city in 1974 and is also one of Canada’s 6th largest municipal city at a population of 772 thousand and is recognized as Canada’s safest city for the 13th year in a row. Figure 1.2 demonstrates the estimated population growth from 1991 to 2031. Mississauga is also ranked first overall among Mid-Sized American Cities of the Future 2014 by fDi Magazine. 

FIGURE 1.2

     Employing more than 413,325, people have chosen this city as the place to be. Mississauga has approximately 56,100 businesses and is a great location for business to grow (refer to figure 1.3 below). Over 500 companies have their Canadian head office or a major divisional head office in Mississauga. It is centrally located with easy access to global markets - a 90 minute drive from the U.S. border and within a day’s drive is North America’s richest markets with access to 164 million consumers. Canada’s largest international airport is located right in Mississauga, with non-stop services to 180 destinations in 60 countries across the globe. 

FIGURE 1.3

Why Mississauga is the Ideal City

     Mississauga is the ideal city for The Cheesecake Factory to invest in for three major reasons being it’s attractions and population, the economic benefits, and it’s easy access to transportation.

     First, Mississauga is the 6th most populated city in Canada. It also has several popular attractions such as Playdium, recreational areas, and historic sites that will attract tourists and other citizens. Additionally, the location of the city is approximately 28km to Toronto, one of the world’s most popular cities. It is easy for tourists to visit Mississauga and see what the city has to offer because of it’s location. This shows because of the high population rates and being a popular city in Canada, it is an ideal location to open The Cheesecake Factory, a popular American restaurant. Seeing that this city also has several tourist attractions, it draws in citizens and people from all over the globe to further excrete money into the economy of Mississauga and a chance to excrete money into The Cheesecake Factory. 
     Also, the post secondary institutions located in Mississauga will further bring students in to The Cheesecake Factory.
     Below, figure 1.4 demonstrates the demographics of Mississauga in an effective info graph by Statistics Canada.

FIGURE 1.4

     Second, the economic benefits of Mississauga are exceptional and beneficial. The city is known for businesses and the main location of business headquarters throughout Canada. Seeing there are several banks in Mississauga helps investors, such as future investors of The Cheesecake Factory, easy access to near by banks while keeping their investments secure in Canada's reliable banking system. 
     Furthermore, the average household income in Mississauga is around $80,000 as of 2013. This allows Mississaugans to have discretionary income to spend back into the economy of the city such as through restaurants. This statistic, as well as a few more are presented in the info graph in figure 1.5. This info graph demonstrates the median household income, average household size, and the percentage of visible minorities.

FIGURE 1.5

     Last, transportation to the US or around the globe is easily accessible. The American border is only a short 90 minute drive. This is beneficial to transporting goods by motorized vehicles as it will not take too long to transport goods to the city.
     The fact that Canada’s largest international airport, Pearson Airport, is located right in Mississauga further helps the idea of transportation of goods and services. The airport is only a short 10 minute drive from the centre of the city. This is presented in figure 1.6 below, point A being the centre of Mississauga and point B being Pearson International Airport. If managers or the head of The Cheesecake Factory needs to make a trip to the new invested location in Mississauga, this can be easily done and accessible to. 
     Additionally, Mississauga has access to railways being the Canadian National Railway and Canadian Pacific Railway. The Canadian National Railway is Canada's largest railway both in revenue and size expanding across Canada and also into the US. On the other hand, the Canadian Pacific Railway expands mostly by the border of Canada and the US but also transports to some US states as well. Having access to these two major railways are outstanding as exporting and importing goods and services will be uncomplicated.

FIGURE 1.6

Competition

Moxie's in Mississauga

   
     Competition in Mississauga is not too high for The Cheesecake Factory. Most competition are simply one’s average restaurant such as Moxie’s, Jack Astor’s, or Kelsey’s. There are many other pubs and seafood restaurants located like Spring Rolls, which is no competition for The Cheesecake Factory as it is a restaurant serving a variety of well-known cultural foods for an affordable price. The Cheesecake Factory is also affordable, and unique by serving a variety of appetizers, main dishes, and of course, desserts.

Jack Astor's in Mississauga

Conclusion

The Cheesecake Factory opening in Dubai

     The fact that The Cheesecake Factory has locations already open in The Middle East with 22 restaurants in five countries – United Arab Emirates, Kuwait, Bahrain, Qatar and the Kingdom of Saudi Arabia and in Latin America with the development of a minimum of 12 restaurants throughout Mexico and Chile shows how successful the company has been outside of the US. It is now time to bring The Cheesecake Factory to Canada with it’s many more benefits Canada, specifically the city of Mississauga, can have to the company and to further expand it internationally.

     Overall, Mississauga is an outstanding city which will allow The Cheesecake Factory to be successful. The city is built and an ideal area for TCF to invest in as it has the demographical benefits, transportation benefits, and most importantly the economical benefits. Canada as a whole is a fantastic country for TCF to invest in, especially in Mississauga.