Dunkin Donuts is failing in India
When Dunkin Donuts came to India, it came to conquer. Instead, it is struggling to survive.
When Dunkin Donuts came to India, it came to conquer. Instead, it is struggling to survive.
Brief:
Dunkin Donuts India closed more than half of the outlets in two years. They are down to 20 from the peak of 77.
Jubilant from Noida, is India’s franchise. They are also franchise of Dominos.
In order to boost sales they tried selling burgers and tea. It also did not work.
Now they plan to sell tea and doughnuts through small kiosks. However, Dunkin’s ice cream brand Baskin Robins, with a separate franchise is doing great ( 775 outlets).
Why did it fail?
India’s breakfast market is evolving. Indians prefer eating at home. Only places like Bengaluru have a morning breakfast culture (thanks to Darshinis). Early adopters left after the novelty died out.
Too fast, too big. That’s how it grew since it launched in 2012. Perhaps Jubilant was over confident with their Domino’s success. They didn’t wait and watch.
Dunkin Donuts had faced problems in China, where it rejigged its strategy. They bounced back. They may also bounce back in India.
Dunkin Donuts could not position itself clearly. Its outlets are more of a cafe and less of a quick service restaurant. Similar brands such as Mad Over Donuts and Krispy Kreme are also struggling.
Interesting facts about Dunkin Donuts:
It has more than 12,000 restaurants worldwide.
It sells more coffee than Starbucks and McDonald.
It has recently dropped Donuts from its name. Now it’s just Dunkin. Dunkin’ will still be selling doughnuts, but the company now makes most of its money serving coffee and other drinks ( more than 60%).
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