Dunkin' Donuts enters Mumbai

Food service company, Jubilant Foodworks, which operates the Dunkin' Donuts chain of restaurants, marked the entry of the brand into the west zone of the country opening two stores in Mumbai on Saturday (May 10).

It is two years since Dunkin' started its first store in Delhi in May 2012. Jubilant said Pune figures in the list of future store openings, and Bangalore would be it's entry into the south of India in the second half of the year. Stores will be opened at locations such as Hyderabad and Chennai thereafter.

With its fare equally divided between donuts, coffee and savoury products, Dunkin' is attempting to grab a sweet spot between QSR chains and cafes, says the Dunkin' Donuts India's President and COO, Dev Amritesh. "We are competitive in terms of pricing," he says, adding that the company has also kept a relatively high focus on savoury products in India.

Dunkin' will also have home delivery in a few weeks from the launch. It currently operates home delivery in Delhi in a small way.

For the current year Jubilant plans to open about 25 Dunkin' Donut stores in India, of which eight would be in Mumbai. In the longer term the company has a target to reach 500 stores in 10 to 15 years.

The company, which opened around 150 Domino's Pizza stores last year, also said it would open at least that many this year as well. Jubilant's CEO Ajay Kaul also said the company expects India, which reported 700 Domino's stores as of March 19, to become Domino's second largest market in the world after the United States. The position is currently held by UK.

Kaul says depression has impacted business at Domino's, but adds: "The worst is behind us." Inflationary pressure has also not been as much as last year, he says.

The company is currently putting up four new factories in Nagpur, Guwahati, Hyderabad and Noida and Kaul said Jubilant expects this kind of back end to benefit both Dunkin' Donuts as well as Domino's.

Kaul, who sounded optimistic over the situation post elections saying that the agenda for economic growth will be at the forefront whatever be the result, also said that the company is in talks for other, new partnerships. Kaul does not rule out a partnership with an Indian player as well.