Indian Economy News

American doughnut chain Dunkin Donuts joins hands with Grofers to deliver donuts at your doorstep

New Delhi: American doughnut chain Dunkin' Donuts has forayed into packaged products for the first time to push consumption in India and has tied up with online grocery delivery platform Grofers to deliver its packaged and fresh products at consumers' doorsteps. 

"This is our first attempt at a packaged product," said Dev Amritesh, president and chief operating officer at Dunkin' Donuts India, promoted by Jubilant Food-Works. "A grocery styled concept like Grofers is a good go to market option for us other than our own stores," he said. 

Amritesh said the move will help Dunkin' in its packaged foods initiative as well as its regular donuts delivery. "This is our attempt to create a new category and be an option on the pantry shelf," he said. 

Dunkin' Donuts has just introduced some packaged products such as donut cakes that come with a shelf life of two months. 

Dunkin' Donuts, Jubilant FoodWorks' second brand in India after pizza maker Domino's, operates 67 stores in the country, and Grofers will deliver from almost all its stores. 

While Grofers will deliver only fresh donuts to begin with, Dunkin' Donuts officials said the chain is open to the idea of scaling it up to its other menu items subsequently. It is a first for a quick service restaurant to tie up with a grocery delivery platform. Dunkin' Donuts has moved beyond its core product, doughnut, to other options such as burgers to boost consumption in an otherwise subdued eating out market. 

"We see the donut category as aplatform and our approach is to bring much-needed innovation to grow the category. This is our attempt to democratise the premium cake segment," Amritesh said. Industry experts said the move underlines the need for brands in the eating out restaurant space to innovate and keep consumption moving in a stressed market. "This is a new go-to-market model in the QSR space and tying up with a commonly used delivery service will keep orders ticking even if ticket sizes are small. It will justify costs and benefit both Dunkin' and Grofers," said Harminder Sahni, founder of retail consultancy Wazir Advisors. According to industry estimates, the country's eating-out market is $94 billion, or Rs 6,13,500 crore. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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