Dunkin' Plans to Re-enter Canadian Market with Key Locations

American coffee and doughnut chain Dunkin' is gearing up for a significant comeback in Canada following its previous exit from the market. Officially kicking off its return in Toronto and Montreal, the new restaurants are anticipated to launch by late 2026 or early 2027. This expansion is made possible through a collaboration between Montreal's Foodtastic and Dunkin's parent company, Inspire Brands.

Reports indicate that Foodtastic has entered into an exclusive agreement that grants them the rights to both operate and develop Dunkin' locations across Canada, covering both company-owned and franchised outlets. The aim is to establish hundreds of locations nationwide as part of a broader, long-term growth strategy.

Peter Mammas, founder and CEO of Foodtastic, stated that his admiration for Dunkin's beverages and breakfast offerings during trips to the U.S. inspired the revival in Canada. He pointed out a rising demand among Canadian consumers, especially younger individuals, for beverage-centric coffee chains featuring cold drinks, espresso options, and quick breakfast selections.

Initially, the expansion will prioritize the Greater Toronto Area and Montreal, with plans already in motion to secure high-traffic venues, including drive-thru locations, shopping centers, universities, airports, and busy urban sectors. Following the launch in these key cities, the company aims to extend further into Ottawa, Calgary, Edmonton, Vancouver, and Atlantic Canada.

The menu upon returning is expected to feature a range of Dunkin's favorites, such as iced coffees, hot coffee, espresso drinks, teas, doughnuts, breakfast sandwiches, wraps, and snack items. Dunkin' also plans to introduce its mobile app and rewards program in Canada, allowing patrons to place mobile orders and earn loyalty points right from the start.

Dunkin' previously held a significant share of Canada's coffee market, operating numerous outlets particularly in Quebec. However, due to intense competition from Tim Hortons and other coffee brands, Dunkin' gradually diminished its market presence. Most of its locations shuttered in the early 2000s, and by 2018, the company had completely exited Canada.

Experts suggest that the Canadian coffee landscape has evolved considerably since Dunkin's departure. There is a surging demand for cold beverages, specialty drinks, mobile ordering, and swift breakfast offerings. As Dunkin' seeks to re-establish its foothold, competition is expected to intensify with major players like Tim Hortons, McDonald's McCafé, and Starbucks.

Currently, Foodtastic operates over 1,200 restaurants across Canada under various brands, including Second Cup and Freshii. Additionally, they already have a partnership with Inspire Brands for the Canadian rollout of Jimmy John's. Further announcements regarding the first Dunkin' locations in Canada, franchise opportunities, and opening timelines are anticipated in the upcoming months.