Jubilant FoodWorks Ltd has entered into an agreement with coffee and baked goods company Dunkin' Donuts, a unit of Dunkin' Brands Inc., to open its outlet in India. The first store is likely to come up early next year.

Dunkin' Donuts, a leading baked goods and coffee chain with global sales of $6 billion, has over 9,700 restaurants globally in 31 countries.

Jubilant's Chief Executive, Mr Ajay Kaul said, “We are in the process of identifying the location for our store. The store could be in various formats. However, to begin with, the average store size is likely to be around 750-800 sq feet,” he added. Jubilant said it plans to open 25 to 30 Dunkin' Donuts stores in three years.

Mr Kaul did not specify the planned investment in opening the Dunkin' Donuts stores, but said Jubilant has enough internal cash for the purpose.

Dunkin' Donuts is expected to be low on capital expenditure and a high-return business for Jubilant FoodWorks, Mr Kaul said, adding that each outlet is expected to start generating positive cash within the first year of operations.

Dunkin' Donuts, known primarily as a breakfast chain, has seen the popularity of its coffee soar in the US in recent years, competing with Starbucks and McDonalds for consumers seeking a small breakfast before heading to work.

Mr Nigel Travis, CEO, Dunkin' Donuts, said, “Expansions to India is an integral part of Dunkin's international growth plan,” adding the company may also look at localising its fare. Last month, Starbucks Corp signed a pact with Tata Coffee Ltd to set up retail stores in the country.

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