Canadian vegetarian fast food restaurant Odd Burger is halting its expansion plans south of the border because of its home country's escalating tensions with the United States.
The London, Ontario-based meatless and dairy-free chain said earlier this month it planned a $2 million private placement to support its planned expansion in the United States after having eyed the American market for quite some time. But Odd Burger is shifting its strategy as United States President Donald Trump engages in a trade war with Canada over tariffs.
"Given the global tariff uncertainty, we are putting the brakes on our U.S. expansion until pricing metrics can be formulated with certainty," Odd Burger co-founder and CEO James McInnes said in a statement. "We are also seeing increased demand for our products in Canada, and as a Canadian company, we want to make sure that we focus on our core market at this time."
In December 2022, Odd Burger said it planned to export its concept to Florida and other overseas markets with plans to open up to 50 locations through an agreement with Franchise Investment AG and its parent venture capital division Angelpreneur AG
As part of its now-shelved plans for expansion into the U.S. market, Odd Burger previously said it hoped to replicate its Canadian model by sourcing ingredients from local farmers in the United States and building a manufacturing facility in that country.
Odd Burger said it believes the United States' trade duties set to take effect on April 2 can lead to Canadian companies lowering their own costs by using more domestic plant-based products instead of imported one.