In a nation where Tim Hortons reigns supreme, will Dunkin’ make a splash? Foodtastic, a Montreal-based restaurant operator, believes so and intends to introduce numerous Dunkin’ locations across Canada as soon as this year.
The company announced on Tuesday that it has entered into a master franchising agreement with Inspire Brands to reintroduce one of America’s major coffee chains to Canada. According to Peter Mammas, CEO of Foodtastic, the brand will initially launch in Toronto and Montreal before expanding to other regions. Mammas revealed plans to establish a presence in Ontario and Quebec first, with subsequent expansion to additional provinces.
“We anticipate opening the first store within six months, followed by a new store each month within the year,” Mammas stated. He described Dunkin’ as a youthful and trendy brand that fills a void in the current market landscape.
Formerly known as Dunkin’ Donuts, Dunkin’ previously operated numerous Canadian locations but exited the market in 2018 after facing legal action from Quebec franchisees over inadequate brand promotion. Established in 1950, the chain offers coffee, doughnuts, and breakfast sandwiches.
Can the American behemoth attract Canadian customers? According to David Soberman, a marketing professor at the University of Toronto, while hundreds of Dunkin’ locations may seem substantial, they pose no significant threat to Tim Hortons and its 4,000+ stores. Soberman noted that in industries dominated by major players, smaller chains often face the most challenges when a new competitor emerges.
Robert Carter, president of the Coffee Association of Canada, highlighted that there is room for growth in the Canadian coffee market, with trends mirroring those seen in the United States. As coffee exhibits more similarities between the two countries than other food service segments, Carter believes an American brand’s entry into Canada could be successful.
While Mammas is confident in Canadians’ readiness for a new coffee brand, some customers leaving a Tim Hortons in downtown Toronto expressed loyalty to the established Canadian brand. Mammas emphasized that Dunkin’ shops in Canada will be operated by Canadian franchisees, aligning with a Canadian approach.
On the other hand, some individuals, like Toronto-based flight attendant Jay Antflick, eagerly anticipate Dunkin’s return, citing nostalgia from childhood trips in the U.S. Antflick, who frequents Dunkin’ during work travels, plans to be among the first in line when the Toronto location opens.
Excitement and anticipation surround Dunkin’s comeback to the Canadian market, with varying opinions on its potential success among consumers and industry experts alike.