First Dunkin’ Donuts outlet in India by June

Thursday, 23 February 2012 00:31 - - {{hitsCtrl.values.hits}}

BANGALORE: Jubilant FoodWorks Ltd. is preparing to open the first store of U.S.-based chain Dunkin’ Donuts in India by June as it bets on the growing preference among a younger and more affluent middle class to drink coffee and eat at fast-food chains.

Dunkin’ Donuts’ entry into India through a franchise agreement between U.S. parent Dunkin’ Brands Group Inc. and New Delhi-based Jubilant FoodWorks sets the stage for a face-off with traditional coffee rival Starbucks Corp., which will arrive in Asia’s third-largest economy through a joint venture a month or two later.

The Dunkin’ Donuts stores are under construction and the menu development is at its final stages, said Jubilant FoodWorks Chief Executive Ajay Kaul.

He said that a factory which will supply the Dunkin’ Donuts stores is almost complete.

The first Dunkin’ Donuts will come up in New Delhi and 80-100 more will be opened across the country in the next five years.

Starbucks, which recently set up a joint venture with Tata Global Beverages Ltd., expects to open its first cafe as early as in August. But it will be more aggressive in its expansion, and is aiming for 50 stores by the end of 2012.

Jubilant FoodWorks, which also exclusively operates the Domino’s Pizza chain in India, will spend 1 billion rupees ($20.36 million) by March on setting up pizza and coffee outlets. (ET)

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