Dunkin’ is preparing to re-enter the Canadian market for the first time since 2018, marking a renewed international expansion push by the Inspire Brands-owned coffee and doughnut chain.
The company has signed a development agreement with Canadian restaurant operator Foodtastic to open “hundreds” of Dunkin’ locations across the country in the coming years.
The move signals a significant comeback attempt in a market long dominated by Canada-based coffee giant Tim Hortons, which historically proved difficult for Dunkin’ to scale profitably.
Dunkin’ officially exited Canada in 2018 after decades of declining market presence, franchise disputes, and mounting competition from Tim Hortons. At one point, Dunkin’ operated hundreds of locations across the country before its footprint gradually collapsed.
The new partnership with Foodtastic represents a strategic reset rather than a direct continuation of its earlier expansion model.
Foodtastic currently operates more than 1,200 restaurant locations across Canada under multiple brands, including Inspire-owned sandwich chain Jimmy John’s.
Dunkin’s Canadian return comes at a time when international expansion is becoming a larger priority for global restaurant chains seeking growth beyond mature domestic markets.
According to NRN, Dunkin’s international unit count declined by 2% in 2025, increasing pressure on the company to reignite overseas momentum.
The expansion also aligns with broader strategic developments at parent company Inspire Brands, which recently confidentially filed for an IPO in the United States.
Strengthening Dunkin’s global footprint could become increasingly important as investors evaluate long-term growth opportunities across the portfolio.
Canada remains one of the most competitive coffee markets globally, with Tim Hortons maintaining a deeply entrenched national presence and strong consumer loyalty.
For Dunkin’, the challenge will extend beyond store openings. The brand will need to differentiate itself in a market where convenience, breakfast culture, loyalty programs, and beverage innovation already play a central role in consumer behavior.
The company operates more than 14,000 locations globally, including over 10,000 in the United States, making Canada one of the few major North American markets where its presence remains limited.
