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