There is nothing odd about a burger chain wanting to expand across the country and even into the United States, but Canada's first vegan chain will face an increasingly crowded fast-food market.

Toronto-based Odd Burger, with a menu that includes no meat or dairy despite its patty and shake options, has locations in Toronto, London, Windsor, Vaughan, Waterloo, Hamilton and Whitby, with franchises under development in cities including Calgary, Ottawa, Victoria and Vancouver.

The chain said it signed an area representative agreement with Starke Investments, a company specializing in real estate and franchise development, to open 40 new locations in Ontario. And in March, Odd Burger signed an area accord with Sai-Ganesh Enterprises for 36 locations in Alberta and British Columbia over the next seven years.

"I think right now we are seeing a real acceleration in interest in restaurants," said James McInnes, co-founder and chief executive of Odd Burger, in an interview. "We are seeing people happy to get back out. We are fast food, and we have also been less affected by inflation."

Lobbying group Restaurant Canada reported that May saw a significant uptick in traffic, especially around lunch, with 20% of Canadians ordering a midday meal at least once a week. That was up from 15% in March and April, but inflation is causing some angst, with almost 1 in 4 Canadians planning to go to a restaurant less often in June.

Some of the wind may also be going out of plant-based sales, with the U.S. Good Food Institute reporting that American retail sales of plant-based meat and seafood were flat in 2021 at 1.4 billion U.S. dollars, the same as 2020. They had jumped 46% from 2019's US$957 million in retail sales.

The group also said inflation had driven the dollar value of meat sales higher than plant-based food, which has not been hit with the same cost pressures.

McInnes said consumers tend to choose cheaper products during inflationary times, and because of that, his stores are picking up in sales, led by burgers that start at 4.99 Canadian dollars.

"The price of chickpeas is just not going up as much as the price of meat. There hasn't been a run on chickpeas," said McInnes.

Gregory Evans, president and broker of record at The Behar Group Realty Inc. brokerage, said that even during the pandemic, one of the strongest categories has been the small quick-service restaurant and fast-casual sector.

"They can do delivery and curbside pickup, and the small spaces in retail and mixed-use have been very desirable," said Evans, a former restaurant owner for six years, in an interview. "The small spaces have been very desirable. In fact, the market rates have gone up."

The broker said the biggest issue for restaurants has been attracting workers. Sections of restaurants are closed now because owners don't have the staff to fill them, he said.

Odd Burger will be up against a tough rental market, and the chain does have some increased inflation pressures such as canola doubling in price over the last year.

"We can also staff with just one person because all cooking equipment is automated. It goes into a specialized machine, presses a button, and it pops out perfectly. Plus, we are 100% digital and self-checkout, so we don't need cashiers," said McInnes.

Seating has been limited to anywhere from six to 20 depending on the store, and while more people are eating in, delivery and takeout still dominate store sales.

"Our restaurants are 1,000 square feet, and that is allowing us to get higher-quality places in better locations," said the 42-year-old, who founded the company in 2014 and opened his first retail location in 2016.

Even these days, with pandemic worries subsiding, almost 33% of sales are delivered. But even among the remaining two-thirds, 80% of sales are takeout.

"The nature of eating out has changed," said McInnes. He added that the representative area agreements signed allow Odd Burger to control franchises with the deals allowing Starke Investments to sell locations and get a certain percentage of franchise fees and royalties.

Prashant Dalal, founder and chief of Toronto-based Starke Investments, called Odd Burger a disruptive force in the industry.

"We see tremendous potential with Odd Burger because they make plant-based food that appeals to the mass market by offering a menu made with simple ingredients, incredible flavour, and at a competitive price point — this is not something that we have seen with any other plant-based restaurant brand," said Dalal in a statement.

U.S. expansion is on the table, but unlike Canada, America has some vegan chains including California-based Plant Power Fast Foods, Plnt Burger in the U.S. Northeast and the Atlanta-based Slutty Vegan.

"We are initially looking at launching in Ohio, New York state, Illinois, Michigan or Washington state," said McInnes, adding stricter rules on franchising make an American launch a little trickier. "We are hoping to have an agreement in the next few months."

Odd Burger will also look to expand its factory location at 645 Commissioner Road in London, Ontario, which is only 5,000 square feet. The plan is to increase that space by 10 times.

Behar's Evans said there is demand for vegan food, and he can see a niche market for the chain; he also notes that people are returning to restaurants.

"I will say anecdotally I do hear people complaining about the price of food and going out," said Evans, adding quick-service chicken categories are doing very well today. "There is little supply and high demand for small space. We are seeing bidding wars (for leases)."