Odd Burger: Canadian Vegan Chain Nixes Plans to Open 60 US Outlets Amid Geopolitical Tensions

Canada’s Odd Burger has halted its US expansion plan amid “increased political tensions”, just days after it announced a plan to course through the tariff war between the two neighbours.

Heightened political tension between Canada and the US has forced a prominent Ontario-based plant-based burger chain to pause its expansion plans stateside.

Listed on the Toronto Stock Exchange, Odd Burger has announced it is halting its plans to invest in the US and open 20 locations in Washington state and another 40 in Florida.

The ongoing trade war between the neighbouring countries has pushed the company to refocus its capital on its Canadian manufacturing and franchise operations, despite publicising a tariff-proof strategy for its US expansion earlier this month.

Why Odd Burger is pressing pause on its US plans

After announcing a 6% quarterly growth in Q4 2024, Odd Burger secured a $2M non-brokered private placement to fuel its American expansion.

To deal with the impact of tariffs in the US, the company planned to replicate the vertically integrated supply chain it uses in Canada. It said it would source ingredients from American farmers and build its own manufacturing plant in the country, ensuring that the food it offers is locally produced and helping maintain control over its value chain.

“Our experience in Canada has shown that a vertically integrated, localised supply chain is key to controlling costs and maintaining high-quality food production,” Odd Burger co-founder and CEO James McInnes said after announcing the strategy. “We are confident that by implementing this strategy in the US, we can expand quickly while keeping prices stable and offering the same level of excellence that our customers expect.”

Those plans are now on the back burner. “Given the global tariff uncertainty, we are putting the brakes on our US expansion until pricing metrics can be formulated with certainty,” McInnes noted.

“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,” he added. Odd Burger operates a factory in London, Ontario, where it makes over 20 plant proteins and dairy-free sauces under its Preposterous Foods brand. In addition, it has 20 franchised locations across the country.

McInnes ascribed the decision to “increased political tensions, uncertainty on Canadians travelling to the US, and [the] ever-changing tariff situation”.

Separately, Odd Burger has deals in place to expand into India (with 145 sites), Singapore (five locations), and Germany, Austria and Switzerland (25).

Odd Burger eyes ‘growth opportunity’ for Canadian companies

One of Donald Trump’s major presidential campaign promises, tariffs are wreaking havoc in the global economy. Most Canadian goods coming into the US face a 25% levy, and Canada has retaliated with reciprocal tariffs on over $30B worth of goods.

The US is Canada’s largest export market, taking up over 77% of the share, so any tariffs would hit both countries’ economies hard. They may not directly impact the price tag of a packaged food product – but they will raise the cost of imported raw materials and equipment for domestic manufacturers, which in turn would lead to higher on-shelf markups.

Odd Burger’s Canadian facility produces foods like oats, chickpeas, and wheat. These are ingredients that the US relies on Canada for its imported supply – for example, 92% of oats in the US come from other countries, and mostly from Canada.a

So it was a smart move for the company to focus on local production for its US operations, before the plan was halted. As for the tariffs, there’s an exemption in place for products under the free trade agreement, which will be lifted on April 2.

In anticipation of the resulting price increases, Odd Burger says it can help other Canadian companies transition to domestic plant-based products, noting that it could be a “significant growth opportunity in supporting the Canadian market”.