Dunkin’ Donuts returns to Canada with hundreds of new locations

Dunkin’ Donuts is set to return to Canada with plans to open hundreds of locations nationwide.

Return to Canadian Market

The American coffee and doughnut chain, which exited the Canadian market in 2018, will re-enter through a master franchise agreement. Montreal-based Foodtastic, a restaurant franchisor, secured exclusive rights to develop Dunkin’ locations across Canada, according to company announcements.

The first new Dunkin’ Donuts store is expected to open in late 2026 or early 2027. Foodtastic intends to expand rapidly, aiming to open approximately one new location per week within the first year, combining corporate and franchise-operated outlets.

Foodtastic operates 27 brands across more than 1,200 locations in Canada, including Second Cup and Freshii. The company also holds the Canadian franchise rights for Jimmy John’s under Inspire Brands, which owns Dunkin’.

Strategic Partnership and Market Position

Inspire Brands, the US-based parent company of Dunkin’, praised Foodtastic’s track record of growing restaurant brands in Canada. Michael Haley, president of Inspire Brands’ International division, said the partnership reflects confidence built from existing collaborations.

Dunkin’ currently operates more than 14,200 restaurants worldwide, primarily in the United States. It is the largest coffee and doughnut brand in the US and is part of a portfolio including Arby’s, Baskin-Robbins and Sonic Drive-In.

Peter Mammas, Foodtastic’s founder and chief executive, described the move as a significant growth opportunity. He characterised Dunkin’ as a “cooler, younger, trendier brand” with offerings that he considers superior to those of Canadian competitors such as Tim Hortons and McDonald’s.

Mammas emphasised that the Canadian operations will be owned and franchised by Canadian entities, aiming to build a strong domestic network.

Market Context and Competition

Dunkin’s return comes amid a competitive Canadian coffee market dominated by Tim Hortons and McDonald’s. Tim Hortons, considered a national icon, has a widespread presence across the country, creating a significant challenge for new entrants.

Foodtastic’s CEO noted that his daughter, who attends school in Boston, frequently praises Dunkin’s products, influencing his decision to pursue its Canadian expansion.

The announcement sparked reactions from various quarters, reflecting a mix of anticipation and scepticism about the new entrant. Some consumers welcomed the prospect of increased competition, while others expressed concerns about health and loyalty to existing brands.

The mixed public response was evident on social media platforms. The following tweet from journalist Matthew Sellers highlights key points from Foodtastic’s announcement and the expected market impact.

Dunkin' Donuts returning to Canada and opening hundreds of locations across the country pic.twitter.com/mbPW0qDQvz

— 6ixBuzzTV (@6ixbuzztv) May 12, 2026

Public Reaction and Industry Perspectives

Some consumers voiced concerns about the nutritional profile of Dunkin’s menu, citing worries over sugar content and processed foods. Others encouraged support for local coffee shops and Canadian-owned businesses.

Conversely, industry observers noted that competition could invigorate the market, potentially leading to innovation and improved offerings for customers.

Foodtastic’s experience managing diverse restaurant brands suggests it is well-positioned to navigate the challenges of the Canadian market. The company currently opens about two restaurants weekly across its portfolio, indicating strong operational capacity.

Background and Future Outlook

Dunkin’ Donuts first entered Canada decades ago but exited in 2018 after closing its last outlets in Quebec. The brand’s return is part of a broader strategy by Inspire Brands to expand its international footprint.

The Canadian coffee and quick-service restaurant market remains robust, with evolving consumer preferences. The success of Dunkin’s re-entry will depend on its ability to differentiate itself and build a loyal customer base amid established competition.

Foodtastic’s commitment to Canadian ownership and franchise development may help foster acceptance, although it will need to address concerns related to food quality and health standards.