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Dunkin' Donuts to enter Mumbai, Bangalore in six months

Jubilant FoodWorks, which has the master franchise for Dunkin' Donuts outlets in the country, has said it will enter the Mumbai and Bangalore markets within next six months.

business Updated: Oct 14, 2012 11:29 IST
Jubilant FoodWorks,Dunkin' Donuts,Jubilant Bhartia Group Jubilant FoodWorks chief executive

Jubilant FoodWorks, which has the master franchise for Dunkin' Donuts outlets in the country, has said it will enter the Mumbai and Bangalore markets within next six months.

The Jubilant Bhartia Group company also has the exclusive franchise for Domino's Pizza for the country and also in Nepal, Bangladesh and Sri Lanka.

"We are looking at Mumbai and Bangalore next. It will happen in the next six months or so. But we are in no tearing hurry as we want to get it right and then scale it up," Jubilant FoodWorks chief executive Ajay Kaul said.

The Bhartias-promoted company had bagged the franchising rights from the leading US baked-food and coffee chain for Dunkin' Donuts earlier this year. It had launched the first store in Delhi in April.

Currently, it has three stores in the national capital and has plans to launch 100 outlets over the next five years.

When asked is the company confident about meeting this target, Kaul said, "We had said we would open 80-100 Dunkin' Donuts stores in next five years and 10 stores this year. We are on track to open those 10 stores. So far the reception has been very positive even though we are restricted to Delhi".

He underlined that the company was not in a hurry to open stores "just to show its presence".

Jubilant says the largest food services company with a network of 489 Domino's Pizza stores (as of June quarter) and is the market leader in the organised pizza market with a 54% market share and 70% of pizza home delivery segment.

On Domino's, Kaul said they will open at least 100 stores this year and going forward Dunkin' Donuts will also follow a similar trajectory.

The doughnut segment in the country is at a nascent stage and more competition will only augur better for the category, he said.

On investment front, Kaul said, as far Domino's is concerned, the company's endeavour is to spend over Rs 150 crore annually, which means 100 new stores every year.

"The company will be relocating to a new facility in Kolkata. We are also in the midst of relocating to a new facility in Mumbai as well which should happen in the next couple of months," he said, adding third facility is coming near Chandigarh.

Dunkin' Donuts will also consume Rs. 14-15 crore from these 10 stores and part of the factories that we have just built, he added.

On Domino's, Kaul also said there will be a price hike soon.

"The last time when we hiked the price was in June. Before that last year in August and in November also we raised our prices. Our next price hike will be in November and it will be a 2-3% increase," he said.

"Earlier we used to effect two price hikes of nominal 2.5-3% each annually to cover the basic inflation," he added.

On weak market sentiment, Kaul said the firm was not alarmed by it.

"Our 22% same store sale in comparison to 30% in the previous quarter kind of faded out.

"I think sentiment is continuing but not in an alarming manner. The kind of growth which we saw last year is not there. Yet, I will not say it is alarming," Kaul said, adding the company plans to launch a new pizza variety to cash in on the festive season.

"We will launch a new pizza in November-December but I cannot share the details with you now," he added.

First Published: Oct 14, 2012 10:54 IST