Dive Brief:
- Dunkin’ is returning to Canada later this year, through a development agreement with Foodtastic, which will take responsibility for opening “hundreds” of Dunkin’ units in Tim Hortons’ home turf.
- Foodtastic will have exclusive rights to develop Dunkin’ locations, recruit additional franchisees and manage its operations in the country.
- Dunkin’ departed Canada in 2018 following disputes with its operators in Quebec, according to the CBC. It will face significant competition for doughnut fans and coffee consumers from Tim Hortons, which is owned by Restaurant Brands International.
Dive Insight:
Inspire Brands, Dunkin’s owner, already has a relationship with Foodtastic, which operates Jimmy John’s locations in Canada.
Dunkin’s return to the country is “a significant growth opportunity for Foodtastic and our franchise partners across the country,” said Peter Mammas, the founder and CEO of Foodtastic.
But competing with Tim Hortons’ thousands of Canadian stores could prove a tall order. Tim Hortons and Dunkin’ have largely managed to exclude each other from their home markets — Tims’ competitive pressure on Dunkin’ likely helped push the chain out of Canada in the 2010s and then helped keep it out for eight years. Out of Tim’s more than 650 U.S. locations in 2025, only seven were located in Dunkin’s home region of New England, and all seven were situated in Maine, according to Tim Hortons’ franchise disclosure document.
Dunkin’ has grown significantly in the U.S. in recent years, from 9,370 units in 2023 when counting co-branded Baskin Robbins locations, according to its franchise disclosure document, to upwards of 10,000 as of late 2025. Dunkin’s parent company, Inspire Brands, recently said it was seeking an initial public offering, which could help its subsidiary chains speed up growth by raising capital on the open markets.
