Specialty retailer and wholesaler of premium quality sweet treats, Krispy Kreme has signed two development agreements in India. In a tete-e-tete, Jeffrey B. Welch, President-International, Krispy Kreme Doughnuts, Inc. shares brand’s growth plans in India.
Namita Bhagat (NB): Tell us about the origin and development of Krispy Kreme.
Jeffrey B. Welch (JBW): Krispy Kreme has been putting smiles on our customers’ faces since 1937. Based in Winston-Salem, NC, Krispy Kreme is a leading branded specialty retailer and wholesaler of premium quality sweet treats and complementary products, including its signature original glazed doughnut. The brand has offered the highest quality doughnuts and great tasting coffee since it founding. We began to expand outside of the USA in 2003. What we have learned is that people all over the world love the great taste of Krispy Kreme doughnuts and coffee.
Today, the Krispy Kreme original glazed doughnuts can be found in over 650 stores in 21 countries, including Australia, Bahrain, Canada, China, Dominican Republic, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, Thailand, Turkey, the United Arab Emirates, the United Kingdom and the United States.
NB: How unique is the brand? What all products does it offer?
JBW: Krispy Kreme’s breadth of appeal extends across all major demographic groups, including age and income. In addition to their taste, quality and simplicity, Krispy Kreme doughnuts are an affordable, indulgent sweet treat. The Krispy Kreme brand has a number of unique elements that have helped us create an exceptional bond with our customers. We have wide assortment of products in offering that includes donuts, coffee and beverages, iced drinks and kool kreme.
Our doughnuts are prepared from a secret recipe that has been in our company since its inception.
NB: The brand has forayed into India after a successful worldwide stint? Why did it opt for franchising to enter into India?
JBW: All Krispy Kreme stores outside the USA are franchised. When we enter into a new market it is important for an international brand to be aware of the local culture, language and also have an understanding of local business practices. This is best accomplished by partnering with local franchisees that already have businesses in their franchise territory.
NB: You have opted for regional franchise partnerships in India? What is the idea behind it?
JBW: Yes, Krispy Kreme has signed two development agreements in India. Our business model does not include sub franchising. We opted for regional franchise partnerships because India is a huge country, both in terms of population and geography, with regional differences in customs and business practices.
NB: Could you give us the details of the signed deals?
JBW: Krispy Kreme has signed two development agreements in India. We have signed our first development agreement in India, a regional agreement with new franchisee Bedrock Food Company Pvt. Ltd. Under the new agreement, Bedrock Food Company is expected to open 35 stores over the next five years. The stores will be located in six states in the North region of India, which includes the cities of Delhi, Jaipur and Lucknow. Krispy Kreme Doughnut Corporation announced today that it has entered into an agreement with Citymax Hotels Pvt. Ltd for the development of 80 franchises of Krispy Kreme retail shops in the next five years across the South and West regions of India. Citymax Hotels Pvt. Ltd is a part of the Dubai-based Landmark Group, one of the largest and most respected retailers in India and the Middle East.
NB: What is brand’s market potential in India?
JBW: It is difficult to quantify the size of the opportunity in a market that is so large and growing so fast. Needless to say we think the opportunity for Krispy Kreme is significant.
NB: How do you propose to tackle your competitors? Share brand’s further expansion plans in India?
JBW: Krispy Kreme products are one-of- a- kind that speaks for them. We think that the brand’s product offerings, along with its great in-store customer experience, will be attractive for the Indian consumers. We have commitments to open 115 stores over the next five years in three regions of the country. We also expect to engage franchisees in other parts of the country as well.