Despite the dominance of Tim Hortons in Canada, Foodtastic, a Montreal-based restaurant operator, believes Dunkin’ has a chance in the market. They have announced plans to introduce hundreds of Dunkin’ locations across Canada starting this year through a master franchising deal with Inspire Brands.
According to Peter Mammas, CEO of Foodtastic, the initial focus will be on establishing Dunkin’ outlets in Toronto and Montreal before expanding to other regions. The strategy involves launching stores in Ontario and Quebec first and gradually moving into other provinces.
Mammas stated, “We aim to open our first store within six months and subsequently have a new store opening every month within a year.” He emphasized that Dunkin’ brings a fresh and appealing vibe to the market, filling a gap in the current landscape.
American doughnut chain Dunkin’ is set to return to the Canadian market after reaching a deal with Montreal-based Foodtastic, which owns chains including Milestones and Second Cup.
Formerly known as Dunkin’ Donuts, Dunkin’ had numerous locations in Canada before leaving in 2018 due to legal issues with Quebec franchisees. The brand, established in 1950, specializes in coffee, donuts, and breakfast sandwiches.
Can Dunkin’ Attract Canadian Consumers?
With plans to open hundreds of outlets, Dunkin’ faces Tim Hortons, which operates over 4,000 stores, in the Canadian market. David Soberman, a marketing professor at the University of Toronto, suggests that established brands like Tim Hortons may not feel threatened by Dunkin’s entry, but smaller chains could face challenges.
Soberman explained, “Major players like Tim Hortons and Dunkin’ have the capacity to compete effectively. However, smaller chains might struggle in this competitive environment.”
He noted that Canadian consumers are already inclined towards American brands, pointing out the success of McDonald’s with 1,400 locations in the country.
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