For the first time in more than eight years, a Dunkin’ Donuts store will open in Canada as early as the end of this year.
But dough-not call it a comeback just yet, one retail analyst says.
Foodtastic, a Canadian restaurant operator based in Montreal, signed a deal to bring the popular American brand back across the border and open hundreds of doughnut and coffee shops nationwide, according to a news release on Tuesday. Foodtastic will hold the exclusive rights to develop Dunkin’ Donuts in Canada through corporate and franchise-operated locations.
“Bringing Dunkin back to Canada is a significant growth opportunity for Foodtastic and our franchise partners across the country,” said Peter Mammas, the founder and CEO of Foodtastic, in the release.
The first few will open around December or January, likely in Quebec or Ontario, but within 12 months, the company hopes to be launching one per week and be on track for expansion in the Maritimes, Mammas told the Canadian Press.
Foodtastic operates more than two dozen other brands in Canada, including Second Cup, Milestones and Freshii.
The last Dunkin’ Donuts location closed in the greater Montreal area in 2018, with three shops switching to independent branding. The well known doughnut and coffee retailer once had hundreds of stores in Canada, most of which were located in Quebec.
The first new location will open late 2026 or early 2027, according to the news release, with Foodtastic helping to manage development, franchise recruitment and operations. The menu will feature many of the staples consumers south of the border are familiar with, including a wide range of hot and iced coffee, doughnuts and sandwiches.
Foodtastic previously brought Jimmy John’s, a popular American fast-food sandwich chain, into Canada in 2024. Dunkin’ and Jimmy John’s are both owned by Inspire Brands in the U.S.
“Foodtastic has a proven track record of successfully growing leading restaurant brands, already established with their early progress growing Jimmy John’s,” said Michael Haley, president of Inspire Brands, in a statement.
Tim Hortons still the ‘800-pound gorilla:’ expert
While the Dunkin’ brand has been “incredibly successful” worldwide, said Bruce Winder, a Toronto-based retail analyst, Tim Hortons is still the “800-pound gorilla in the room with their dominance in Canadian coffee.”
With the “Elbows Up!” sentiment still lingering because of a frayed relationship with America over tariffs and U.S. President Donald Trump’s annexation threats, many Canadians are supporting local through franchised Tim’s locations, Winder said.
Though not a fully Canadian-owned brand — the Brazilian investment firm 3G Capital holds a majority stake in its U.S.-based parent company, Restaurant Brands International — Tim’s may be the biggest competitor to Dunkin’, Winder said.
But, Winder added, there may be a crack in the door for Dunkin’ to slip in.
“Some people love Tim Hortons, some people really don’t like Tim Hortons,” he said. “That just leads me to think, ‘Is there an opening for others to see if they can impress Canadians more?’”
There are nearly 4,000 Tim Hortons locations across Canada, according to a statement to the Star. The chain added that it’s planning to open dozens of new restaurants across the country this year and to renovate around 400 others.
Foodtastic currently has 1,200 restaurants. Inspire Brands has more than 14,000 Dunkin’ properties in a portfolio of over 33,000 restaurant locations across the globe.
With files from the Canadian Press
