Dunkin' Donuts takes the plunge in India
Thursday 24 February 2011
US-based Dunkin' Donuts, one of the world's largest coffee and baked goods chains, is set to enter India after striking a franchise deal, the company's Indian partner said Thursday.
The announcement came barely a month after US rival Starbucks unveiled a similar partnership with the giant Indian conglomerate Tata to open outlets in the South Asian nation.
Jubilant Foodworks, which already runs Domino's Pizza in India, said in a statement that it had signed a master franchisee agreement with the international subsidiary of Dunkin' Donuts.
The deal envisages the opening of up to 30 retail outlets over the next three years, serving a coffee and donut menu "suited to the Indian taste buds", said Jubilant chairman Shyam Bhartia.
Despite its reputation for tea, India has a long-standing coffee-drinking tradition, particularly in the southern state of Tamil Nadu where it is often brewed overnight, then mixed with milk and sugar before being served.
But old-school cafes like the 53-year-old Indian Coffee House chain, which popularised south Indian filter coffee, are now struggling to make a profit while hipper, Western-style chains are opening outlets every month.
The change in tastes has less to do with a fondness for Italian espresso, say analysts, and more to do with the social cachet conferred by the beverage in class-conscious India.
Foreign companies' entry into India's retail sector remains a sensitive issue as small shopkeepers fear being driven out of business by multinationals.
Announcing its tie-up with Tata Coffee last month, Seattle-based Starbucks said it would source beans from south India and roast them locally. The first store is expected in six months.
Cafe Coffee Day, a unit of Amalgamated Bean Coffee Trading, and Barista Coffee, owned by Italian coffee company Luigi Lavazza, are the larger among the 10-15 coffee chains currently operating in India.
Life & Style blogs
- 1 I was a Woman Against Feminism too
- 2 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 3 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
iJobs Food & Drink
£40000 - £60000 per annum + Pension, Healthcare : Deerfoot IT Resources Limite...
£30000 - £45000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET a...
Unpaid voluntary role: Old Royal Naval College: To assist the Visitor Experien...
£45-£55k OTE £75k : Charter Selection: Major London International Fashion and ...