Dunkin’ Donuts Opening in Delhi NCR in June – Jubiliant Foods

Jubilant Foodworks has acquired franchisee rights of Dunkin’ Donuts for India last year.

They will offer “all day part food” (positioned as food cafes) apart from regular offerings of Donuts and Coffee at Dunkin Stores to tap this largely unpenetrated category. They have already set up the manufacturing unit (likely to start production very soon), finalized the menu, signed contracts with the suppliers and
are in process of setting up the initial stores.

They plan to add 80-100 stores for this chain over next 5 years. They will be focusing on perfecting the model (like Dominos Pizza) before going for aggressive expansion its first store in Q1FY13 around NCR region.

Size of Dunkin Donuts Store – Jubilant will be experimenting with multiple models – small, medium, and big to see returns and payback. Dunkin’ model will also be commissary led, though here each city will require a commissary (called Central Manufacturing Location) as shelf life of the product is shorter. They plan to add 80-100 stores over 5 years.

Company maintains its criteria of 3 years’ payback for Dunkin stores at the store level as is the case for Dominos stores. What is your say ?