Toronto-based D Spot Dessert Café is taking its dessert-focused restaurant concept into the U.S., with plans to open in five cities as the more than 55-location Canadian chain looks to establish a foothold in the massive American market.

“We’ve reached a scale and maturity in Canada. We believe the brand; the operating model, the support infrastructure are ready for another major market,” Kaan Sayiner, chief executive officer and president of D Spot Dessert Café, said in an interview with FoodNX.

“Also, not insignificantly, the U.S. is just such a massive market. We really see that as the long-term growth opportunity for the brand. That said, the objective is not to grow quickly for the sake of store count but to establish the brand (and) measure profitable growth.”

The company was founded in 2014 and today includes more than 55 locations across Canada. It opened its first location in Dallas in June. The firm also plans to open in Houston, Chicago, Nashville and Atlanta.

Not just a dessert place

While it has plenty of options for dessert lovers, such as waffles and crepes, cakes, cookies, ice cream, and cold drinks such as milkshakes, the company also offers savoury options such as nachos and appetizers, chicken wings, burgers and sandwiches, among other items.

“In this case, with a very simple idea, it was to create a destination around premium desserts. That idea has since evolved, and the business has expanded to offer guests a much broader dining experience than our traditional dessert shop,” Sayiner said.

“We’re dessert-led but we’re not a dessert shop.”

Sayiner was brought on board June 15 and has more than more than 30 years of experience in the restaurant business.

The decision to begin in Dallas was a no-brainer, he said.

“Texas is the fastest growing state in the union. Dallas is one of the fastest growing markets actually in the whole of North America. That, together with the demographics, they’ve got a really well developed restaurant culture.”

Focus on outskirts of cities

Unlike many other franchises, the company will not only look to city centres for its locations.

“The real estate strategy there also plays well for us because of the suburban growth. It’s not all concentrated in one downtown urban area,” Sayiner said.

Because of its concept, those types of locations fit nicely into its target demographic, he said.

“The suburban market in the greater Dallas area, it’s family-oriented. There’s a very strong dining culture already present, so we work well in that space. D Spot works really well in groups, families, date-night celebrations. It’s a destination for various occasions.”

The restaurant business these days is grappling with rising costs and a more discerning clientele that is becoming “ increasingly experience-driven” and consumers are careful about where to spend on dining, he said.

“They’re looking for value, quality but again, very critically, an experience, a destination, and our environment and desserts naturally lend themselves to celebration and sharing and social occasions. That drives strength for us in the category.”

When looking for partners to run each location, the company is focused on bringing on “operators, not just investors,” Sayiner said.

“Capital is obviously important but we put as much emphasis on leadership ability and operating discipline; commitment to our brand, the willingness to follow a proven system, so ideally we want people who can build a great first restaurant, but ultimately they’ve got the capability to become multi-restaurant operators or regional leaders.”

Past experience is good for potential franchises but specific knowledge is always better, according to Sayiner.

“If it happened to have been in F&B (food and beverage) or within the restaurant industry specifically, I think that gives someone an edge. There are some unique aspects to running a restaurant as opposed to just general retail and beyond the business acumen, it’s liquidity.”

Continued growth plans

After Dallas, D Spot is lined up to open locations in other similar U.S. cities.

“They all represent similar attributes to Dallas but more importantly, the approach is to be disciplined. We want strong operators and to develop concentration in those markets so that we can build meaningful brand awareness and not just open stores that stand in isolation,” Sayiner said.

Besides looking south, there are still plenty of growth opportunities in Canada, he said, such as B.C., Atlantic Canada, and its home base.

“Although we’ve got 40 plus units in Ontario, there are nodes where I think the brand would do very well that we don’t yet have a presence in, so our real estate teams are looking in those areas.”