If you people probably grew up around the late ’70s and towards the ’80s & early to mid ’90s, you may remember that Dunkin’ Donuts used to have some outlets in Canada (mostly in Quebec and some in Ontario). At one point, it used to “compete” against one of the dominant chains of coffee/donuts – (wait for it, you guessed it) Tim Hortons’.
In the Canadian province of Quebec (mostly Montreal), Dunkin’ Donuts used to be in each and every neighbourhood. However by the late ’90s and early 2000s, Dunkin’ Donuts in Canada suddenly start to erode and eventually start to “cave in”. In layman’s terms, the chain didn’t survive long enough, due to a strategy that ultimately failed to fulfill its potential.
By the mid to late 2000s, the number of Dunkin Donuts chains suddenly got from 210 but finally tumbled towards 41 outlets. Although there was a brief partnership with Alimentation Couche-Tard (the owners of the Couche-Tard (a well=known depanneur – or “corner store” chain in Quebec) chain and Mac’s for the rest of Canada), the plans of expanding beyond suddenly grind to a halt.
Many of the former franchisees went to court and filed a lawsuit against the parent company of Dunkin’ Donuts, claiming that the chain “failed to obey warnings and what steps that the parent company should do – to protect their [franchisees] businesses. By June of 2012, a Quebec judge awarded the franchisees $16 million CDN ($14 million US) in damages. The parent company of Dunkin’ Donuts suddenly disagrees to the ruling, but still many of the franchisees believe that they really don’t like on how a very successful company suddenly treat the people on managing the franchises.
As for how many Dunkin’ Donuts still exist in Canada (all in Quebec) you ask? A mere 6 of them still remain.
While Tim Hortons’ (or “Timmies” as much of us Canadians nicknamed the iconic coffee shop chain) continues to dominate the Canadian marketplace (along with expanding the coffee chain beyond its borders in a global scale and to compete against the well-established chains – such as Starbucks, Dunkin Donuts’ (you guessed it), etc.), many people believe that Dunkin’ Donuts failed to guarantee any promises made by the company, but the company disagree to the claim. Many of the franchisees are blaming themselves on how and why Dunkin’ Donuts in Canada suddenly became extinct.
While a sad chapter has finally came to a close in Canada, south of the border – a new chapter has begun in the United States. The company has decided to expand its operations after a decade-long exile in SoCal (Southern California). By the end of 2015, over 150 Dunkin’ Donuts will be in each and every city located in southern California. While the company has decided to put its Canadian Calamity to a end, the company is looking forward for a “bright new future” in the United States.
“Underestimating Tim Hortons: Dunkin’ Donuts’ $16-million mistake.” Yahoo Finance Canada. 27 June 2012. 19 January 2013. <http://ca.finance.yahoo.com/blogs/insight/underestimating-tim-hortons-dunkin-donuts-16-million-mistake-162331463.html>
“Judge takes a bite out of Dunkin’ Donuts.” CanadianLawyerMag.com. 26 June 2012. 19 January 2013. <http://www.canadianlawyermag.com/legalfeeds/927/Judge-takes-a-bite-out-of-Dunkin-Donuts.html>
“Court rules in favour of Dunkin’ Donuts franchisees.” The Globe and Mail. 25 June 2012. 19 January 2013. <http://www.theglobeandmail.com/report-on-business/court-rules-in-favour-of-dunkin-donuts-franchisees/article4369753/>
“Dunkin’ Donuts ordered to pay $16.4M to Quebec franchisees.” FinancialPost.com. 25 June 2012. 19 January 2013. <http://business.financialpost.com/2012/06/25/dunkin-donuts-ordered-to-pay-16-4m-to-quebec-franchisees/>
“Dunkin’ Donuts move back to California after nearly a decade.” The Inquisitr. 18 January 2013. 19 January 2013. <http://www.inquisitr.com/486383/dunkin-donuts-move-back-to-california-after-nearly-a-decade/>
“Dunkin’ Donuts Moves into Southern California.” WebProNews.com. 18 January 2013. 19 January 2013. <http://www.webpronews.com/dunkin-donuts-moves-into-southern-california-2013-01>