Dunkin’ Donuts, the US cafe chain, is donning a completely new look in India in order to attract a more younger clientele.
After revamping its menu a month back, the cafe chain is now going for a complete facelift of its stores.
Dev Amritesh, president and COO of Dunkin’ Donuts division at Jubilant FoodWorks that manages the franchisee for the chain, said, “The new store launches will have the new look which is made more for the urban, discerning adult. It will also have more place to hang out like a college canteen of sorts but will still remain aspirational. The store decor will be something that will appeal more to the consumers between the age of 25 and 35 single, group of friends, etc.”
The flagship stores will also be fully revamped to maintain uniformity.
Dunkin’ Donuts currently has 21 stores and will be adding nine more by March. It has stores in Delhi, NCR, Jalandhar, Chandigarh and Dehradun.
The company will enter Mumbai shortly and then expand into west and south.
Amritesh said the plan is to launch 80-100 stores by 2017.
As per reports, the company has been looking at breaking even in the next 2-3 years. However, Amritesh denied to comment on future growth targets.
At present, Dunkin’ Donuts continues to be a drag on Jubilant’s balance sheet that also runs Domino’s pizza chain.
The quick service restaurant (QSR) space has been struggling with slowing demand, which has impacted sales growth for the players.
However, analysts see this diversification into QSR by Jubilant’s a good move as the overall pizza market growth has been slowing down.
The QSR business in India, estimated to be Rs 3,400 crore in 2012-13, has been struggling with slowing growth for the past one year.
Amritesh said that Dunkin’ has an edge over competitors as it has knowledge and technical know-how of Jubilant, which runs 500 Domino’s stores.
“We have a better idea about the real estate market, about food laws, quality control standard, etc since we have been running the Domino’s stores. Plus we had a large set of vendor base and that has helped us in getting this start. Otherwise, we would have to import things and then scaling up would have been a challenge.”
Avi Mehta and Percy Panthaki of brokerage India Infoline after a meeting with Jubilant management said the company’s performance has been on track so far.
“While Dunkin’ Donuts performance has been marginally impacted by the slowdown in demand, internal targets for revenue and profitability are being met.”