Foodtastic, a Montreal-based restaurant operator, is set to introduce Dunkin’ Donuts to the Canadian market in a bold move to challenge the dominance of Tim Hortons. The company has partnered with Inspire Brands to bring the popular American coffee chain back to Canada.
The initial focus will be on establishing Dunkin’ locations in Toronto and Montreal before expanding to other provinces. According to Peter Mammas, CEO of Foodtastic, the plan is to open the first store within six months and continue to launch one new store per month throughout the year.
Although Dunkin’ had a significant presence in Canada in the past, it exited the market in 2018 following legal issues with franchisees in Quebec. The chain, known for its coffee, doughnuts, and breakfast sandwiches, is now making a comeback under new management.
Despite Tim Hortons’ extensive network of over 4,000 stores, experts believe that Dunkin’s entry into the Canadian market may not pose a significant threat. David Soberman, a marketing professor at the University of Toronto, suggests that established players like Tim Hortons and McDonald’s are better equipped to compete with each other, leaving smaller chains vulnerable.
Robert Carter, president of the Coffee Association of Canada, sees potential for growth in the Canadian coffee market, noting similarities between consumer trends in the U.S. and Canada. With a growing affinity for American brands, there may be room for Dunkin’ to carve out its place alongside other coffee giants.
While some Canadians remain loyal to Tim Hortons, others are eagerly anticipating Dunkin’s return. As Foodtastic emphasizes its Canadian roots and plans to operate Dunkin’ stores with local franchisees, the brand aims to strike a balance between offering a new coffee experience and honoring Canadian preferences.
Toronto-based customers like Jay Antflick are excited about Dunkin’s arrival, reminiscing about childhood road trips in the U.S. where Dunkin’ was a staple. Antflick, a frequent traveler to the U.S., looks forward to queuing up for Dunkin’s opening day in Toronto and indulging in his favorite black iced coffee with hazelnut and seasonal flavors.
Overall, the reintroduction of Dunkin’ into the Canadian market signifies a dynamic shift in the coffee landscape, offering consumers more choices and competition in an evolving industry.
