In a nation where Tim Hortons reigns supreme, will Dunkin’ attract a crowd? Foodtastic, a Montreal-based restaurant operator, believes so and aims to introduce numerous Dunkin’ outlets to Canada by the end of this year.
Foodtastic announced on Tuesday that it has inked a master franchising deal with Inspire Brands to revive one of America’s major coffee chains in Canada. The initial launch will focus on Toronto and Montreal, with plans to later expand to other regions, as mentioned by Peter Mammas, Foodtastic’s CEO, in an interview with CBC News. The strategy involves establishing a presence in Ontario and Quebec initially, followed by expansion into additional provinces.
Mammas anticipates opening the first Dunkin’ store within six months, with subsequent launches scheduled at a pace of one per month. He emphasized Dunkin’ as a youthful and trendy brand that fills a gap in the market.
Formerly known as Dunkin’ Donuts, Dunkin’ had numerous Canadian locations until 2018 when it exited the market due to a legal dispute with Quebec franchisees over inadequate brand promotion. Established in 1950, Dunkin’ offers coffee, donuts, and breakfast sandwiches.
Although the plan to introduce hundreds of Dunkin’ stores may seem significant, it poses no major threat to Tim Hortons, boasting over 4,000 outlets, according to David Soberman, a marketing professor at the University of Toronto. Soberman explained that in competitive sectors dominated by established players, smaller brands often face challenges, while the leading companies can effectively compete with each other.
Robert Carter, president of the Coffee Association of Canada, highlighted the potential for growth in the Canadian coffee industry, noting similarities in consumer trends between the U.S. and Canada, particularly in the coffee sector.
While some Canadians express loyalty to Tim Hortons, anticipating the arrival of Dunkin’ with excitement, others remain devoted to the local brand. Mammas emphasized the Canadian roots of Foodtastic and mentioned that the Dunkin’ outlets in Canada will be managed by Canadian franchisees, reflecting a distinctly Canadian approach.
For instance, Jay Antflick, a Toronto-based flight attendant, eagerly anticipates Dunkin’s return, reminiscing about the brand from childhood road trips in the U.S. Antflick, a frequent visitor to Dunkin’ during his travels, plans to be among the first in line when the Toronto store opens, eager to order his favorite black iced coffee with hazelnut and seasonal flavors.