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Banff considering regulating restaurant franchises

Ricky’s All Day Grill is the latest chain restaurant to set up shop in Banff, reigniting passionate debate over whether the municipality should play a greater role in controlling franchises to protect the town’s character.

Ricky’s All Day Grill is the latest chain restaurant to set up shop in Banff, reigniting passionate debate over whether the municipality should play a greater role in controlling franchises to protect the town’s character.

The planning team spearheading Banff’s land use bylaw review is already looking to encourage local eateries and unique dining experiences through a proposed cap on future fast food joints in the downtown core.

But, based on public feedback, they are now taking that concept further with other options that would allow the Town to treat chains differently than independent businesses.

Planning and development officials say they will soon present a “myriad of proposed regulations” which could include establishing quotas for all future chain or franchise restaurants, too.

“We think there’s pretty clear direction to move to some type of regulatory framework around this issue of multinationals and franchises to create a memorable national park experience,” said Randall McKay, manager of planning and development.

“This is a complex issue in terms of managing sense of place and community. You’re moving away from letting the market decide, to having a level of government intervene, to say there’s a need to have more scrutiny on this.”

Municipal regulation of formula-based businesses like franchise restaurants is not a new concept in communities throughout Canada and the United States.

Carmel, California; areas in San Francisco, California; Nantucket, Massachusetts and Martha’s Vineyard, New England have all delved into this issue. So too have Qualicum Beach and Tofino on Vancouver Island.

Reasons for placing limits or restrictions on these large corporate giants include concerns over loss of community character and aesthetics, as well as threats to local mom-and-pop businesses.

Legal strategies have been explored throughout North America, including zonings, special use permits, size caps, historic district regulations, design guidelines and formula business restrictions.

Different styles of regulation include outright prohibition, establishing quotas, or discretionary regulations where franchise restaurants are considered on case-by-case basis.

In Banff, there have been ongoing calls for the Town to control the invasion of large corporate giants to preserve community character, improve visitor experience and protect local businesses.

But, the current land use bylaw regulates eating and drinking establishments in the same manner, whether the use is a coffee shop or nightclub, or a franchise or an independent.

And in the case of Ricky’s, the existing bylaw does not automatically trigger a development permit application for a change of use from restaurant to restaurant.

Ricky’s, a growing Canadian chain with about 60 locations, is opening in the Banff International Hotel, replacing the current Mountain Grill that primarily caters to hotel guests.

Bill Squarebriggs, manager of the hotel and chairman of the Small Business Association of Banff, said they are beginning renovations immediately with hopes of opening sometime in May.

“I’m definitely looking at this from a general manager’s perspective of running a hotel that’s on the outskirts of the downtown and what’s best for the future of this hotel,” said Squarebriggs.

“It’s not a fast food option; it’s a family restaurant that can attract the local clientele of Banff as well as room guests. It suits this hotel and the community as well,” he added.

“Ricky’s All Day Grill has a proven track record and proven management record that insists on a well-run operation that’s clean and has good quality food.”

Sandy Short, marketing director for Ricky’s, said she believes the family restaurant chain will offer value for residents and visitors to Banff.

“We cater to people from two to 80 years and so we’re trusted. Some people like to go to a trusted brand so they know what they are getting,” she said.

“We’re a recognized brand and it adds value for a lot of our customers; it doesn’t subtract.”

There are many chain restaurants in Banff, including Earls, Chili’s, The Keg, the Old Spaghetti Factory, McDonald’s, Tony Roma’s, Subway and Boston Pizza, among others.

Banff’s community plan gives the Town policy direction to keep an eye on the mix of chain and independent retailers and restaurants to ensure there’s an appropriate balance.

Darren Enns, Banff’s senior planner, said as the town has evolved with commercial growth, one of the collateral impacts has been more demand for less space as Banff has a legislated development cap.

“There’s a finite amount of space, but more demand and that’s had the inevitable impact of pushing rents up.

And as rents go up, you tend to squeeze out the uses that can fit in there, because only certain people can afford certain rents,” he said.

“Arguably, if you’re listed on the TSX, you’ve got better opportunities for growth than someone running a small shop on Banff Avenue.”

Enns, who is also the project leader on the bylaw review, said looking at proposals to regulate fast food restaurants, including relegating future ones to the Cascade Plaza, was a first step.

“But I think what the public has told us is that we could go further, that we should be presenting more options, some of which extend to multinational restaurants,” said Enns.

Council is the ultimate decision-making authority on any changes to Banff’s land use bylaw.


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