In a nation where Tim Hortons reigns supreme, will Dunkin’ be able to carve out its own niche? Foodtastic, a Montreal-based restaurant operator, believes so and has announced plans to introduce hundreds of Dunkin’ locations across Canada, starting as early as this year.
Foodtastic disclosed on Tuesday that it has secured a master franchising agreement with Inspire Brands to reintroduce one of the largest American coffee chains to Canada. The initial rollout will focus on opening outlets in Toronto and Montreal before spreading to other regions, according to Peter Mammas, Foodtastic’s CEO.
Mammas stated that the strategy entails first establishing a presence in Ontario and Quebec, with plans to subsequently expand into additional provinces. He anticipates unveiling the first location within six months and aims to open one shop per month within the first year.
Describing Dunkin’ as a more youthful and trendy brand, Mammas believes it fills a gap in the market. Previously known as Dunkin’ Donuts, the chain had a significant presence in Canada until 2018 when Quebec franchisees sued the company for insufficiently promoting the brand, leading to its departure. Founded in 1950, Dunkin’ specializes in coffee, donuts, and breakfast sandwiches.
Despite the ambitious plan to introduce hundreds of Dunkin’ outlets, Marketing Professor David Soberman from the University of Toronto suggests that the impact on Tim Hortons, with over 4,000 stores, may not be substantial. He highlighted that in competitive markets, it is often smaller players that face the greatest challenges when a major brand enters the scene.
Robert Carter, President of the Coffee Association of Canada, emphasized that there is still room for growth in the Canadian coffee market, noting similarities between consumer trends in the U.S. and Canada. This suggests that the entry of an American brand into the Canadian market aligns well with existing coffee preferences.
While some Canadians express loyalty to Tim Hortons, others are eager for the arrival of Dunkin’. Mammas reassures potential customers by emphasizing that the Dunkin’ operations in Canada will be managed by Canadian franchisees, underscoring the brand’s localized approach.
One such enthusiastic customer, Jay Antflick, a Toronto-based flight attendant, reminisces about his experiences with Dunkin’ during childhood travels in the U.S. He eagerly anticipates the brand’s return to Canada, citing fond memories and a strong affinity for Dunkin’ products. Antflick’s excitement mirrors the anticipation felt by other fans eagerly awaiting the opening of Dunkin’ locations in Toronto.
The impending return of Dunkin’ to the Canadian market has generated mixed reactions, with some consumers pledging allegiance to established brands like Tim Hortons while others eagerly await the arrival of the iconic American chain. As the coffee landscape in Canada evolves, the introduction of Dunkin’ is poised to offer consumers a fresh and diverse coffee experience.