Dunkin' Donuts is coming back — and Tim Hortons better watch out.The chain left Canada in 2018 after being in the country for over 50 years, making its debut in 1961.But have no fear Dunkin' is here (again), as the chain announced it will be opening locations late this year to early 2027.The deal was made between Dunkin' and Foodtastic, a restaurant operator, which agreed to open not a few, but hundreds of locations across the country..The food professor, or Dr. Sylvain Charlebois, who runs the Agri-Food Analytics Lab at Dalhousie University, writes on his Substack that Dunkin' joining the Canadian market isn't just good news to Canadians — it's also a sign of weakness in the market.The Canadian marketplace is a much different place than when Dunkin' left.Tim Hortons used to dominate the coffee market and was a part of Canada's cultural identity.But now consumer loyalty has weakened — "Inflation has changed buying habits."."Consumers are increasingly critical of value, quality, consistency and service," wrote Charlebois. "At the same time, the coffee market itself has evolved dramatically."More than that — although Tim Hortons still commands a huge chunk of market share, it no longer has the dominance it once did.Coffee chains like Starbucks, dominate the "premium space" with specialty beverages, digital ordering, customization, and brand experience. .McDonald's has also become a major coffee competitor in Canada, and independent coffee shops are doing well in urban centres.Foodtastic, Charlebois says, sees an opening in the market it's willing to bet on — a similar strategy to one they have used on established brands like Pita Pit, Second Cup, Freshii and Quesada, that have lost a bit of momentum for consumer recognition over the years."Canada is arguably one of the most competitive coffee markets in the world on a per-capita basis."With names like Tim Hortons, McDonald's, Starbucks, and even convenience and grocery stores pushing ready-to-go drinks — Foodtastic is betting on this trend of fragmentation.."Ironically, Dunkin’s return may say less about the strength of Dunkin’ itself and more about the reality that Tim Hortons is no longer viewed as invincible," points out Charlebois.Reported by Global News, Foodtastic founder and CEO Peter Mammas, believes he will be able to open "600 to 700" Dunkin' locations in Canada, including nearly 200 in Quebec. Dunkin' was previously very popular in Quebec, especially in the 1990s — with hundreds of locations in the province.
