In an email, Kenny Chan with the Canadian Franchise Association said "generally, franchisors do not set the pricing at franchisees' locations."
A McDonald's fast food restaurant is pictured at 4410 Still Creek Drive in Burnaby, B.C., on January 19, 2023.When deciding how to price their menu items, Chan said franchise owners look at many factors that could influence their profitability such as the rent, supplies and labour. "If you're on a highway and you're at the service station … then supply and demand is completely in your favour," said Hopkins, president of The Fifteen Group in Toronto.When it comes to menu pricing, Hopkins says it's all about knowing your customers and what they're willing to pay.
"Not a franchise per se but the first time I had a Starbucks coffee in Niagara Falls, I was absolutely shocked at the price. It was something like 40 per cent more for the same coffee that I was used to paying in Toronto. But that's just the market, tourist market, and they know they can charge more. So they do."
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