In a land where Tim Hortons reigns supreme, will Dunkin’ have a shot at success? Foodtastic, a Montreal-based restaurant operator, believes so and is gearing up to introduce numerous Dunkin’ outlets across Canada starting this year.
Announcing on Tuesday, the company revealed a master franchising deal with Inspire Brands to bring back one of the largest coffee chains in America to the Canadian market. Peter Mammas, CEO of Foodtastic, mentioned to CBC News that the initial locations will be in Toronto and Montreal, with plans to gradually expand to other provinces after establishing a presence in Ontario and Quebec.
Mammas expressed, “We aim to unveil the first location within six months, with subsequent openings scheduled monthly throughout the year. It’s a fresh, trendy brand that fills a void in the current market landscape.”
Formerly recognized as Dunkin’ Donuts, Dunkin’ had a substantial presence in Canada until 2018 when Quebec franchisees successfully sued the company for inadequate brand promotion, leading to its exit. Founded in 1950, the chain is renowned for its coffee, donuts, and breakfast sandwiches.
Despite the prospect of hundreds of Dunkin’ stores, David Soberman, a marketing professor at the University of Toronto, noted that the existing dominance of Tim Hortons with over 4,000 stores makes it less vulnerable to new competition. Smaller chains may find it challenging in a market already controlled by major players.
Robert Carter, president of the Coffee Association of Canada, highlighted the room for growth in the Canadian coffee market, citing similarities with U.S. coffee trends. Carter emphasized that the Canadian coffee market offers a favorable scenario for American brands compared to other food service segments.
While Foodtastic is optimistic about Canadians embracing Dunkin’, some loyal Tim Hortons customers in Toronto expressed their commitment to the iconic Canadian brand. Mammas addressed concerns by emphasizing the Canadian roots of his company and the local franchisees operating Dunkin’ stores.
On the other hand, anticipation is building among individuals like Jay Antflick, a Toronto-based flight attendant, who reminisces about Dunkin’ from his childhood road trips. Antflick, who frequents Dunkin’ during his travels, eagerly awaits the Toronto opening, reminiscing about his favorite black iced coffee order with hazelnut and seasonal flavors.
As the Canadian coffee market continues to evolve, the arrival of Dunkin’ is poised to add a new dimension to the country’s coffee culture, catering to diverse preferences and nostalgia for established brands.