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Dunkin' Donuts, the iconic global food giant, will open its first store in India in Delhi next quarter with local partner Jubilant Foodworks Ltd (JFL).
Mr Ajay Kaul, CEO of JFL, said more stores will be opened in cities such as Bangalore and Mumbai for which plans are being finalised.
The company is designing a menu for Indian customers and a robust back-end is being developed before introducing the brand.
A factory is being set up in Noida and will be commissioned in the April-June quarter, Mr Kaul told a post-earnings conference call of JFL.
Dunkin' Donuts had signed a master franchise agreement with JFL last year to enter India and plans to open 80-100 stores in five years.
Besides Starbucks, Dunkin' Donut is the second such large global food brand to announce its entry plans for India in recent months.
Starbucks recently announced plans with Tata Beverages and expects to open its first store by the year-end.
JFL net up 56%
For the December quarter, JFL reported a 56 per cent rise in net profits at Rs 29.5 crore on higher sales, aided by a small increase in pricing. The company reported a 49 per cent rise in turnover at Rs 277.1 crore as against Rs 185 crore in the corresponding previous quarter.
Sales from the same stores (this excludes new outlets opened during the period) grew 30 per cent during the quarter.
Shares of JFL gained 3 per cent to close at Rs 947.40 on Wednesday.
During the quarter, Jubilant opened 28 new Domino's Pizza stores, expanding to cities such as Shillong and Kodaikanal, thereby, increasing its total network to 439 stores, Mr Kaul said.
It also launched two new products — the ‘3 cheese pizza' and the nutty choco lava cake during the quarter.
Jubilant expects to commission a new factory in Chandigarh during the June quarter.
It is currently expanding and relocating its existing factories in Mumbai and Kolkata.
The company increased its prices by about 5 per cent during November on rising ingredient costs.
“The worst days of ingredient inflation are behind us,” Mr Kaul said, adding that prices were likely to be stable in the next three to five months.
Mr Kaul said Jubilant is upbeat about prospects in Sri Lanka, where it opened one store recently.
The company would also explore the option of a partner for its foray into Bangladesh next year.
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