Doughnuts: The new snack option for urban youth

Doughnuts, the popular breakfast snacks in the West are now finding their way into all-day snacking habits of the Indian consumer.

First introduced to the urban palate by Global Franchise Architects (GFA) with Thai brand The Donut Baker store in Bangalore in 2008, followed by the entry of Singapore brand, Mad Over Donuts, doughnuts are priced between ₹49 and ₹74 to appeal to the price-sensitive Indian consumer.

With the entry of American brands Dunkin’ Donuts and Krispy Kreme into the India market over the last two years consumers are spoilt for choice as doughnuts fight with a variety of Indian and Western snacking options such as, vada pavs, kaati rolls, burgers and pizzas.

“Unlike in the West where maximum sales of doughnuts happens during breakfast hours, it is an all-day snack option in India with sales peaking between 9am – 12 noon and at tea-time,” said Tarak Bhattacharya, COO, Mad Over Donuts.

With 55 stores in New Delhi, Mumbai, Bangalore and Pune which collectively sell 25,000 doughnuts a day and plans to open stores in Hyderabad and Chennai over the next few months, Mad Over Donuts is expanding at the rate of one store a month.

“Our 100 per cent eggless doughnuts have found a strong connect with consumers along with the three savoury doughnut options we offer with cheese and pesto sauce,” added Bhattacharya.

Dunkin’Donuts (DD) which opened its first store in mid-2012 in Delhi entered South India with the launch of its 36th restaurant in Bangalore on Saturday. Jubilant Foodworks which has exclusive rights for developing and operating DD restaurants in India has signed one of the biggest deals in the Indian food service industry, to open 500 DD restaurants pan-India over the next 15 years.

Krispy Kreme which has 12 restaurants in Bangalore, Chennai and Delhi has plans to open 80 restaurants by 2017.

Dev Amritesh, President and COO, Dunkin’Donuts India said the company is looking at expanding into Chennai, Pune, Hyderabad and Ahmedabad next, and will have 60 DD restaurants by March 2015.

GFA, which has lost out on its first mover advantage, has 18 The Donut Baker stores in Bangalore and Kolkata and will open 20-25 stores over the next 12 months. “With more brands entering the country, consumer awareness of doughnuts will grow and doughnuts as a niche category will also witness growth,” said Joseph Cherian, CEO Global, GFA.

Doughnuts, as a category, fall under the ₹10,000-12,000 crore organised QSR and Café market in India, which is growing at 10-15 per cent year-on-year.

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