"Foodtastic announced this week it had inked a deal with Dunkin' owner Inspire Brands to bring one of America's largest coffee chains back to Canada, starting with locations in Toronto and Montreal before expanding elsewhere. Its menu of coffee, doughnuts and breakfast sandwiches puts it squarely in Tim Hortons' territory."
"University of Guelph food economist Michael von Massow said he thinks it's unlikely Dunkin' will be a direct competitor with Tim Hortons. Whether you love Tim Hortons or not, the brand has established "that you know what you're going to get" in the minds of Canadians, something he said gives them a huge advantage over Dunkin."
""So unless you come in and say this is profoundly better or this is more convenient or this is cheaper, I think it's going to be hard to knock them off that perch," von Massow said. Private equity firms based outside Canada hold significant shares in Tim Hortons' parent company Restaurant Brands International, but the chain originated in Canada and RBI trades on the Toronto Stock Exchange."
"Foodtastic CEO Peter Mammas said he's confident Canadians are ready for a new coffee chain. "It's a younger, cooler brand. And I think it's something that's missing in the landscape." Von Massow said he thinks where Dunkin' could have success is with customers looking for some of the specialty drinks the U.S. chain has become known for."
Foodtastic, a Montreal-based restaurant operator, has partnered with Inspire Brands to bring Dunkin’ back to Canada, beginning in Toronto and Montreal and expanding further. The menu will feature coffee, doughnuts, and breakfast sandwiches, placing it directly in the same product space as Tim Hortons. A food economist from the University of Guelph expects Dunkin’ will not easily become a direct competitor because Tim Hortons has built strong customer expectations for consistent results. Dunkin’ may find opportunities with customers seeking specialty drinks associated with the U.S. brand. Tim Hortons’ ownership structure includes private equity stakes through Restaurant Brands International, which trades on the Toronto Stock Exchange.
#dunkin #tim-hortons #canadian-restaurant-market #coffee-and-doughnuts #restaurant-brands-international
Read at www.cbc.ca
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