Foodtastic, a Montreal-based restaurant operator, is set to introduce Dunkin’ Donuts back into the Canadian market, challenging the dominance of Tim Hortons. The company has signed a master franchising agreement with Inspire Brands to bring the American coffee chain to Canada, starting with locations in Toronto and Montreal before expanding to other provinces. CEO Peter Mammas plans to establish a presence in Ontario and Quebec initially, with the goal of opening one store per month within the first year.
Dunkin’, known for its coffee, donuts, and breakfast sandwiches, left the Canadian market in 2018 following legal issues with Quebec franchisees. Despite Tim Hortons’ extensive network of over 4,000 stores, experts believe there is room for Dunkin’ to attract customers in Canada. David Soberman, a marketing professor at the University of Toronto, suggests that smaller chains might face challenges with the entry of a major player like Dunkin’, but Canadian consumers already embrace American brands like McDonald’s.
According to Robert Carter, president of the Coffee Association of Canada, the Canadian coffee market shows similarities to the trends in the U.S., indicating potential for growth. While some loyal Tim Hortons customers express their allegiance to the iconic brand, others like Jay Antflick eagerly anticipate the return of Dunkin’, reminiscing about their experiences with the brand during travels in the U.S. Mammas emphasizes that Dunkin’s operations in Canada will be managed by Canadian franchisees, highlighting a local approach to the expansion.
As Dunkin’ prepares to re-enter the Canadian market, the competition in the coffee industry is expected to intensify, offering consumers more choices and variety in their coffee preferences.