Canadian vegan fast-food chain Odd Burger has suspended its planned US expansion due to increasing political tensions between Canada and the United States.
Just last week, the company outlined plans to expand into the US, which included raising capital to cover costs associated with tariffs and building new manufacturing facilities. The strategy was intended to help mitigate the impact of tariffs and strengthen the company’s supply chain.
“We are putting the brakes on our US expansion until pricing metrics can be formulated with certainty”
At the time, McInnes had expressed confidence in the company’s ability to quickly scale while maintaining pricing stability and product quality. However, these expansion efforts are now on hold, and the capital will instead be directed toward strengthening Odd Burger’s operations in Canada.
The decision to pause US expansion also comes in response to upcoming US tariffs, scheduled to take effect on April 2, 2025. Odd Burger anticipates that the tariffs could lead to price increases for its products, and the company sees an opportunity to support other Canadian businesses in transitioning to locally produced plant-based products.
Focus on strengthening Canadian operations
Odd Burger, which operates a manufacturing facility in London, Ontario, produces more than 20 plant-based proteins and dairy-free sauces under the brand Preposterous Foods. The company sources most of its ingredients from local Canadian suppliers. Its products are available through Sysco distribution centres across Canada and are sold in grocery stores as part of the company’s consumer packaged goods (CPG) line.
In addition to scaling operations in Canada, Odd Burger has recently doubled its CPG retail footprint through a new agreement with Calgary Co-Op. Odd Burger also reported a positive financial performance for the first quarter of the year, showing revenue growth and a notable reduction in net losses compared to the previous quarter.
CEO and co-founder James McInnes explained, “Given the global tariff uncertainty, we are putting the brakes on our US expansion until pricing metrics can be formulated with certainty. 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.”
