American multinational coffee and donut shop Dunkin’ Donuts is making its return to Canada.
The move comes as coffee prices have soared over recent years by roughly 31 per cent, straining consumer budgets and leaving many Canadians looking for lower-cost options for a range of food and household goods.
Foodtastic, one of Canada’s leading restaurant operators, announced it signed a master franchising agreement with Dunkin’ Donuts’ parent company, Inspire Brands, to expand across Canada on Tuesday.
Foodtastic will have “exclusive rights to develop the Dunkin’ brand nationally through both corporate and franchise-operated locations” under the new agreement.
Dunkin’ was a well-known brand in Quebec in the 1990s, but the restaurant chain declined and officially left the Canadian market in 2018.
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Foodtastic founder and CEO Peter Mammas believes he can open “600 to 700” of the American donut and coffee chain locations in Canada, including nearly 200 in Quebec, the businessman said in an interview on Tuesday.
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The first Dunkin’ location is expected to open either in late 2026 or early 2027.
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“It’s going to take a little while to find sites, to find franchisees,” explains Mr. Mammas.
“In my opinion, within 12 months, we’ll be opening one Dunkin ‘ per week.”
The businessman is not worried about competition from Tim Hortons, which enjoys a certain status as a cultural icon in English Canada.
“I think it’s getting old and young people don’t identify with Tim Hortons,” says Mr. Mammas.
He believes the chain has “lost its way.”
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“They’re even making pizza; they don’t know where they’re going.”
As of publishing, a response had not been received from Tim Hortons.
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Mammas believes the company can differentiate itself with its offering of cold drinks, which appeal to a younger clientele, in his opinion.
The menus are expected to consist of both hot and iced coffees, espresso beverages, teas, donuts, sandwiches and snacks.
Foodtastic has already concluded another agreement with the owner of the brand, Inspire Brands, in order to develop the concept of Jimmy John’s, a sandwich restaurant.
Without going into details, he did not rule out coming to another agreement with Inspire Brands, which owns Baskin-Robbins and Buffalo Wild Wings.
— With files from The Canadian Press
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