Article
The Promise of Unlimited Breadsticks: Olive Garden’s Canadian Expansion
September 15, 2025 5 Minute Read
It’s 2 p.m. on a Tuesday at an Olive Garden in suburban Detroit. The booths are packed with retirees and hungry families on summer vacation and the smell of freshly baked breadsticks and chicken parmigiana fills the air.
CBRE’s Matthew Jackson and his team take it all in as they enjoy lunch while in town visiting with a client and get excited about the big news that Olive Garden is planning to expand its presence north of the border.
Olive Garden’s Canadian footprint currently consists of eight restaurants in British Columbia, Alberta, Saskatchewan and Manitoba. That’s not many for a country as large as Canada. The chain once had several locations in Ontario but all were shut down in the late 1990s. Now it’s ready to mount a comeback and Canadians are salivating.
Recipe Unlimited, the country’s largest full-service restaurant company, overseeing 1,200 restaurants nationwide including East Side Mario’s, Swiss Chalet and The Keg, just acquired the existing Canadian Olive Garden locations from U.S.-based Darden Restaurants and plans on adding new ones in under-served parts of the country.
“There’s a huge market to tap into in Eastern Canada, where the population is large and has general familiarity with the Olive Garden brand, if not fond memories of the restaurant itself,” says Jackson, a vice president who specializes in national retail tenant representation. “There’s pent-up demand and nostalgia for this type of restaurant so it’s a good time for Olive Garden to make a comeback.”
Hungry for Value
Recipe Unlimited’s acquisition of Olive Garden came as no surprise to Jackson; he notes that the company has been growing steadily in Canada since 2013, acquiring restaurant chains like St-Hubert, The Pickle Barrel and The Keg.
“Italian-American chains have been doing well in Canada,” says Jackson. “It’s a category that doesn’t have much competition and Recipe Unlimited already owns and sees the suburban success with East Side Mario’s.”
The current economic climate is favourable for chains like Olive Garden, which offer great value with large portions at affordable prices. “The value segment is thriving right now because people want to get the most bang for their buck,” says Jackson. “That’s also why we’re seeing chains like Dollarama, Value Village, Maxi and No Frills do so well.”
Getting It Right
A lack of available retail space could slow Olive Garden’s Canadian expansion. According to CBRE’s H1 2025 Retail Rent Survey, Canada’s retail vacancies will remain low for the foreseeable future while rents for quality properties are expected to appreciate.
“The retail market is very strong right now,” says Jackson. “There’s a lack of new product being built, a lot of competition for space and landlords are asking top dollar. But Recipe Unlimited’s strong covenant, ability to increase foot traffic and general reputation should help them to make deals happen.”
Recipe Unlimited can learn from Olive Garden’s first foray into the Ontario market. While the chain once had some of its locations in office towers, Jackson says it would be better to focus on suburban centres and standalone buildings, which are more convenient for families and seniors and what the customer has come to expect from the offering in the U.S.
“Going urban would be unlikely because the lease rates are high and that’s not where the key Olive Garden customers are.”
Breadsticks for All
The bar will be high for all the breadstick fanatics who are familiar with the Olive Garden experience south of the border.
“Recipe Unlimited will have to mirror the menu, deals and delivery that Canadians have come to expect,” says Jackson. “But there’s also potential to cater to this new customer base with unique menu items and by sourcing Canadian ingredients.”
No doubt that Canadians will want second helpings of this second chance rollout.
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