In a nation where Tim Hortons reigns supreme, will Dunkin’ attract customers? Foodtastic, a Montreal-based restaurant operator, is confident and set to introduce hundreds of Dunkin’ locations across Canada starting this year.
Recently, Foodtastic announced a master franchising deal with Inspire Brands to reintroduce one of the largest American coffee chains to Canada. The initial focus will be on opening Dunkin’ outlets in Toronto and Montreal, with plans to expand to other provinces after establishing a presence in Ontario and Quebec.
Foodtastic’s CEO, Peter Mammas, expressed optimism about the venture, highlighting Dunkin’ as a fresh and trendy brand that fills a gap in the Canadian market. The company aims to launch its first location within six months and subsequently open one store per month.
Although Dunkin’ had numerous Canadian locations in the past, it exited the market in 2018 following a legal dispute with Quebec franchisees over inadequate brand promotion. The chain, established in 1950, offers a variety of coffee, doughnuts, and breakfast sandwiches.
Can Dunkin’ compete with the established giant, Tim Hortons, which boasts over 4,000 stores? According to David Soberman, a marketing professor at the University of Toronto, significant players like Tim Hortons and Dunkin’ have the capacity to coexist, while smaller chains may face challenges in a competitive market.
Robert Carter, president of the Coffee Association of Canada, believes there is room for growth in the Canadian coffee sector, citing similarities between the American and Canadian markets.
While some Canadians remain loyal to Tim Hortons, others are eager for Dunkin’s return. Jay Antflick, a Toronto-based flight attendant, reminisces about Dunkin’ from his travels in the U.S. and eagerly anticipates its arrival in Toronto, where he plans to indulge in his favorite black iced coffee with hazelnut and seasonal flavors on opening day.