Food and Beverage Jun, 11 2012

'Whole' new success mantra!

Lip smacking doughnuts are as scrumptious to eat, as these are to look at. In addition to delicious taste doughnuts are offering a profitable business opportunity for aspirants. Move around to explore the upcoming opportunity

By Neha Gohil
Feature Writer
'Whole' new success mantra!

The ring-shaped scrumptious ‘dougnuts’ is the talk of the town these days in the food and beverages (F&B) industry. Till date doughnuts were hardly seen in the Indian bakery market and mostly overlooked items in a patisserie. However, now this delightful bakery item is heading towards grabbing its own exclusive space in the Indian F&B sector. Acknowledging the potential in the market, two major doughnut brands Dunkin’ Donuts and Kreme Krispy Doughnuts have marked their entry into Indian market with aggressive expansion plans. Nigel Travis, CEO, Dunkin’ Brands and President, Dunkin' Donuts US, says: “It was important to us to enter into the Indian market with a strong and trusted partner like Jubilant FoodWorks. As one of the world’s fastest growing economies, India presents a tremendous growth opportunity for Dunkin’ Donuts.”

Having faith in Indian F&B industry companies are partnering with established brands to march on the success carpet. Jeff Welch, Krispy Kreme President, International says: "We are excited to partner with Bedrock Food Company in taking the great taste and experience of Krispy Kreme to the people of north India. The team is a leader in the QSR segment in India. Their strong industry experience and knowledge of the Indian consumer are great assets that they will be able to leverage as they bring the melt-in-your-mouth Krispy Kreme experience to the market."

Though, India got its first international doughnuts brand four years back in 2008 when Mad Over Donuts (MOD) entered India. Until now the brand did not get the limelight as there were bakeries and patisseries but no organised exclusive doughnut brands in the country.

Why Indian’s will love it?

So far many international brands have tested water in Indian market and very few of them were unable to sustain themselves. Success of F&B brand mainly depends upon the taste of people whether they will like it or not. In case of doughnuts there are bright chances for the brands to enjoy success as the Indians are sweet lover. Purwa Sinha, Managing Director of Bedrock Food Company Pvt. Ltd says: "We are excited to introduce the Krispy Kreme brand to north Indians and wish to position ourselves as a premium doughnut and coffee brand. Krispy Kreme is extremely popular in Asia and we expect Krispy Kreme to be well received in India. Our experience with the Indian consumer shows Indians are very fond of sweets and believe in the concept of sharing. Coffee and doughnuts as a category has huge potential in India and we expect the market to grow quickly over the next few years. We are pleased to enter into a franchise relationship with Krispy Kreme."

Moreover, the brands have not restrained their menu with variety of doughnut flavours and have added sandwich, beverages to its card along with comfortable ambience. Dev Amritesh, COO and President Dunkin’ Donuts India – Jubilant FoodWorks Limited shares: “Dunkin’ Donuts is known for its donuts for sure, but is also about coffee, sandwiches, all day snacks and other beverages. The brand name in India has the sign of ‘Dunkin’ Donuts & More’ to signify its wide product range and the unique experiences that our restaurants offer. We believe Dunkin’ Donuts will occupy the sweet spot in between cafés and quick service restaurants, as we offer elements of both. We are confident that Indian consumers will love our format and our product offering.”

Taste of India

Whenever an international brands plan to enter into Indian market they do the complete R&D regarding the flavour of India. The brands menu card for India is different because it is made according to Indian taste and spices. The local factor helps the brand to attract customers. As Travis explains: “We have worked very closely with the team from Jubilant FoodWorks over the last year to develop a winning strategy that addresses the unique needs of the Indian consumers and the market opportunity in India while leveraging our global brand promise and strength. I am pleased that consumers in India have enthusiastically embraced Dunkin’ Donuts and believe we will build a robust business and very strong consumer connections.”

Franchise brands

As discussed earlier that the doughnuts in India never had an exclusive outlet before the entrance of MOD. At present with the entry of exclusive doughnut brands Dunkin’ Donuts and Krispy Kreme Doughnuts India has got three doughnut brands. Krispy Kreme plans to open 35 outlets in the next five years whereas Dunkin’ Donuts plans aggressive expansion to open around 10 stores in the FY13. Further, over next five years, it plans to open 80-100 stores. MOD already operates more than 35 stores across the nation.

Delightful franchise break

Although, there are very few organised doughnut brands in the market but they offer a rewarding opportunity for many aspirants. The sector is in its nascent stage with less competition in the market and high possibility of success.

According to MarketResearch.com survey the bakery industry of India is estimated to grow by USD 7.6 billion by 2015. This figure shows an ample of opportunity in the bakery sector. The new sweet category of doughnut business is a unique opportunity which indeed has a fruitful future.

Related: Leading food franchise concepts

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