Jubilant FoodWorks inks master franchise pact with Dunkin’ Donuts

PTI New Delhi | Updated on February 25, 2011

Mr Nigel Travis, CEO, Dunkin' Brands, and President, Dunkin' Donuts, with Mr Shyam S. Bhartia, Chairman, Jubilant FoodWorks Ltd, after the signing of a master franchisee agreement to bring Dunkin' Donuts restaurants to India, in the Capital on Thursday. -- Ramesh Sharma   -  Business Line

Jubilant FoodWorks, which runs restaurant chain Dominos Pizza in India, has signed a master franchise agreement with the US’ leading baked food and coffee chain Dunkin’ Donuts to bring the brand here.

The two firms, which have been in talks for two years, said they have agreed to a partnership that will help the US food chain’s expansion in India.

As part of the agreement, Jubilant FoodWorks will set up the first Dunkin’ Donuts store by early next year, although it did not specify the location, and expand gradually in the first couple of years.

“We believe that Dunkin’ Donuts brand is extremely relevant for India not only due to its strength in donuts and coffee, but also due to differentiated food and beverages menu,” the Jubilant FoodWorks co-Chairman, Mr Hari S. Bhartia, told reporters today.

While the company did not comment on the number of Dunkin’ Donuts stores to be opened and investment, it said that it is a venture that will require very less capital expenditure.

“This business requires very low capex, lesser than a Dominos store, and has high return on investment. The investments will be made from internal accruals and we have cash reserves,” the company CEO, Mr Ajay Kaul, said.

Commenting on the partnership, the Dunkin’ Donuts CEO, Mr Nigel Trivis, said: “Expansion in India is a part of Dunkin’ Donuts’ international growth plan and we are focused very clearly on JFW as they are a very successful group and they have done a credible job with Dominos.”

In 2010, Dunkin’ Donuts global sales stood at $6 billion. It has more than 9,700 outlets in 31 countries worldwide.

Jubilant FoodWorks on the other hand operates 364 food outlets in the country. In the quarter ended December 31, 2010, the company’s net sales stood at Rs 185.63 crore.

Published on February 24, 2011

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