Dunkin’ Donuts enters Bangalore, to open 25 stores in India this year

Bengaluru: US-based chain Dunkin' Donuts, which is present in India through its partnership with fast fast-food operator Jubilant Foodworks Ltd, on Thursday opened its first store in the south Indian market in Bangalore.

This is the 36th Dunkin' Donuts store in India. Simultaneously, Ajay Kaul, chief executive officer of Jubilant Foodworks, also said the company is looking to open 25 new stores in India this fiscal year. Three more stores are under construction in Bangalore which will open in another 15-20 days.

Jubilant Foodworks is also looking to invest Rs.40 crore in Dunkin' Donuts of the total Rs.300 crore capital expenditure it foresees this fiscal year. "Of the Rs.40 crore, Rs.30 crore will go in construction of new stores while the remaining will be used to open factories for Dunkin' Donuts," said Kaul. Quick-service restaurant operator Jubilant FoodWorks also runs pizza chain Domino's in India. Dunkin' Donuts will leverage Domino's existing infrastructure such as IT, finance, HR, factories and warehouses, said Kaul.

"In another 8-12 months, Dunkin' Donuts will open stores in Pune, Chennai, Hyderabad and Ahmedabad," said Dev Amritesh, president and chief operating officer at Dunkin' Donuts India. A typical Dunkin' Donuts store requires an investment of Rs.90 lakh to Rs.1 crore, according to Amritesh. In terms of the product mix at the stores, one-third is made up of donuts, another one-third by food items such as burgers and wraps, and the rest by beverages. "Our brand is specifically targeted towards the youth, unlike other chains that are more focused on families," said Amritesh. Dunkin' Donuts competes with fast food chains as well as doughnut makers such as Krispy Kreme India and Mad Over Donuts.

Dunkin' Donuts is part of the Dunkin' Brands Group Inc., that also operates the Baskin Robbins ice cream chain globally.

The quick service restaurant market in India is expected to grow 21% annually by 2020 to $4.2 billion from a market size of $1.1 billion in 2013, according to a study by Technopak.

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