Foodtastic, a Montreal-based restaurant operator, is set to introduce Dunkin’ Donuts to Canada in a move to challenge the dominance of Tim Hortons in the country. The company has signed a master franchising agreement with Inspire Brands to bring back the American coffee chain to Canada, starting with locations in Toronto and Montreal before expanding to other provinces. CEO Peter Mammas plans to open the first Dunkin’ Donuts in Canada within six months and aims to establish a new store every month thereafter.
Dunkin’ Donuts, a well-known American brand founded in 1950, previously had numerous locations in Canada but exited the market in 2018 due to legal issues with franchisees in Quebec. Despite facing competition from Tim Hortons and its over 4,000 stores, experts believe there is still room for growth in the Canadian coffee market. David Soberman, a marketing professor at the University of Toronto, noted that larger chains like Tim Hortons and McDonald’s have the strength to compete, while smaller players may face challenges.
Robert Carter, president of the Coffee Association of Canada, highlighted the similarities between the U.S. and Canadian coffee markets, suggesting that an American brand like Dunkin’ Donuts could find success in Canada. While some Canadians remain loyal to Tim Hortons, others are eagerly anticipating the return of Dunkin’ Donuts, citing nostalgia and excitement for the brand’s arrival. Mammas emphasized that Dunkin’ Donuts in Canada will be operated by Canadian franchisees, reflecting a local approach to the expansion.
