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Dunkin' Is Coming Back to Canada After 8 Years Away
Foodtastic, a major Canadian foodservice operator, will spearhead Dunkin's return to Canada — putting the doughnut and coffee chain on a collision course with Tim Hortons on its home turf.
Dunkin' Is Coming Back to Canada After 8 Years Away
After nearly a decade on the sidelines, Dunkin' is set to re-enter the Canadian market later this year. The Inspire Brands-owned chain has signed a development agreement with Foodtastic, one of Canada's largest foodservice operators, to bring hundreds of new Dunkin' locations to the country. Under the deal, Foodtastic will hold exclusive rights to develop Dunkin' units across Canada, recruit franchisees, and oversee day-to-day operations nationwide.
A Familiar Partner for Inspire Brands
The partnership isn't Inspire Brands' first with Foodtastic. The Canadian operator already runs Jimmy John's locations throughout the country, giving the two companies an established working relationship heading into this expansion. Peter Mammas, Foodtastic's founder and CEO, called the arrangement "a significant growth opportunity for Foodtastic and our franchise partners across the country."
Why Dunkin' Left and What It's Walking Back Into
Dunkin' exited Canada in 2018 following operator disputes in Quebec, and its absence stretched to eight years. Now it's returning to a market firmly dominated by Tim Hortons, the Restaurant Brands International-owned chain with thousands of Canadian locations built on the same coffee-and-baked-goods positioning that Dunkin' occupies. The rivalry between the two chains has long played out in geographic terms. Tim Hortons and Dunkin' have largely stayed out of each other's core markets and Tim Hortons' competitive pressure is widely credited with contributing to Dunkin's original Canadian exit. Even in the U.S., the dynamic holds - of Tim Hortons' 650-plus American locations in 2025, all seven in Dunkin's New England home region were concentrated in Maine.
Dunkin's U.S. Growth Fuels the Push
Dunkin' enters Canada with momentum behind it. The chain grew from roughly 9,370 U.S. units in 2023 including co-branded Baskin-Robbins locations to more than 10,000 by late 2025. Parent company Inspire Brands has also signaled plans to pursue an initial public offering, a move that could provide additional capital to accelerate growth across its portfolio brands. Whether that momentum translates to Canada will depend largely on how consumers respond to a Dunkin' presence in markets where Tim Hortons has been a cultural institution for decades.