TORONTO – The table is set for a new round of donut wars in Canada.
Dunkin’ Donuts, the American coffee and donut institution, has its sight set on a return north of the border as it aims to take a bite out of the lucrative Canadian market.
While Tim Hortons is ingrained in the fabric of Canadian coffee culture, Dunkin’ Donuts is pushing its way towards a seat at the table, promising to bring a new bevy of Canadian-specific menu items.
How that will land on the palate of Canadians is now sparking heated donut shop debate. Outside of a Tim Hortons location in downtown Toronto, some customers shared with CTV News that when visiting the United States, they enjoy a cup of joe from Dunkin’, though they’re partial to Tim Hortons. Others shared that they’re open to giving Dunkin’ a try and will let their own personal taste test be the judge.
Canadian restaurant operator Foodtastic, which also runs other popular chains across the country, including Second Cup, Milestones and Pita Pit, confirms it’s signed a master franchising agreement with Dunkin’s American owner, Inspire Brands, to bring hundreds of locations north of the border beginning in earnest at the start of 2027.
“The response we’re getting today, we’re going to be able to open one Dunkin’ every week,” said Foodtastic CEO Peter Mammas.
That’s roughly 52 new Dunkin’ locations in Canada each year. Tim Hortons, by comparison, has more than 4,000 locations across Canada, according to the company’s website.
The last Dunkin’ location in Canada closed shop in 2018 after Quebec franchisees successfully sued the company for not sufficiently promoting the brand.
Retail analyst Bruce Winder believes Dunkin’ is poised to make a splash in the Canadian market.
“They’ve done more research, they’re going to slowly nurture the brand in Canada and try to find a unique flavour and menu for Canadians,” said Winder.
Foodtastic is quick to point out that they’re a Canadian company and that future franchisees will also be Canadian. They plan to target young Canadians with a fresh new coffee shop experience.
“It’s become a younger, cooler brand, it’s more in tune with the millennials and the gen-Zs. You look at the products, they’ve got refreshers, cold brews, they’ve got great breakfast offerings,” Mammas said. “I think we’re going to resonate with the 13-to-33 crowd, we’re going to try and get the new up-and-coming beverage drinkers and carry them along as we go.”
CTV News reached out to Tim Hortons and asked if they plan to poke a hole in Dunkin’ Donuts lofty cross-country plans. In an email, the company’s communications director, Michael Oliveira wrote: “The foundation of Tim Hortons is our connection with our communities. We have nearly 4,000 restaurants in Canada owned and operated by Canadian restaurant owners living in, working in and giving back to their communities.”
“That connection with Canadians and every community we serve will continue to be the basis for our future growth,” they added.
Mammas says that his company has a roadmap drawn up that will see new Dunkin’ Donuts locations opening in Montreal and the Greater Toronto area through 2027 and 2028, before expanding across the rest of the country.
