In a nation where Tim Hortons reigns supreme, will Dunkin’ be able to carve out a niche? Foodtastic, a Montreal-based restaurant operator, believes so and is gearing up to introduce hundreds of Dunkin’ locations across Canada starting this year.
Foodtastic announced on Tuesday that it has inked a master franchising deal with Inspire Brands to reintroduce one of America’s leading coffee chains to the Canadian market. The initial focus will be on launching Dunkin’ outlets in Toronto and Montreal before expanding to other regions, as stated by Peter Mammas, the CEO of Foodtastic.
According to Mammas, the strategy is to first establish a presence in Ontario and Quebec, then gradually extend to additional provinces. He anticipates the first store to open within six months, with subsequent openings following at a pace of one per month.
Describing Dunkin’ as a youthful and trendy brand that fills a gap in the current market, Mammas is optimistic about its reception in Canada. Previously known as Dunkin’ Donuts, the chain had a significant presence in Canada until 2018 when Quebec franchisees sued the company over inadequate brand promotion, leading to its exit.
While the plan to roll out hundreds of Dunkin’ stores might seem ambitious, David Soberman, a marketing professor at the University of Toronto, believes it poses no major threat to Tim Hortons, which boasts over 4,000 outlets. Soberman indicates that in competitive sectors dominated by established players, smaller brands are typically more vulnerable.
Emphasizing the affinity of Canadian consumers for American brands, Robert Carter, president of the Coffee Association of Canada, sees potential for growth in the Canadian coffee market. He notes similarities between the U.S. and Canadian coffee trends, suggesting a conducive environment for American coffee chains entering Canada.
While some customers at a Tim Hortons outlet in downtown Toronto expressed loyalty to the iconic Canadian brand, others eagerly anticipate Dunkin’s arrival. Mammas assures that Dunkin’ operations in Canada will be overseen by Canadian franchisees, reflecting a local touch.
One such enthusiast is Jay Antflick, a Toronto-based flight attendant, who fondly recalls Dunkin’ from childhood trips in the U.S. Antflick, looking forward to reliving those memories, plans to be among the first in line when Dunkin’ opens in Toronto.
The impending entry of Dunkin’ into the Canadian coffee market is poised to offer consumers a fresh choice in the realm of coffee and baked goods, enhancing the competitive landscape and catering to diverse preferences.
[Source](https://www.cbc.ca/news/business/dunkin-donuts-canada-9.7196636)
