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Why Dunkin' Donuts Is Failing in India

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Dunkin' Brands has become synonymous with breakfast pretty much everywhere, with more than 12,600 restaurants in 46 countries. In the United States, Dunkin' has seen a steady revenue growth over the last few years. But in India? The chain is struggling there. Dunkin' granted exclusive franchising right to Jubilant FoodWorks in 2012. In a statement to CNBC, Dunkin' Brands said it finds it important to include core Dunkin' products alongside more regional menu items to cater to local tastes. As Dunkin' tried to get the formula right in India, it focused on products like burgers that strayed away from the doughnuts and coffee it's long been known for. Even in the U.S., the chain has played with its menu and is now rebranding itself as just Dunkin'. Despite efforts to cater the menu to Indian tastebuds, the franchisee has now closed more than half of Dunkin' stores in less than two years. Jubilant FoodWorks cited a lack of profitability and operational inefficiencies. Dunkin' did not comment on its store closures in India. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #DunkinDonuts Why Dunkin' Donuts Is Failing in India | CNBC
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Text Comments (9715)
bansi lal (10 hours ago)
KFC n McDonald's already indianised their menus, I mean nan with gravy n biryani kinda dishes ? But Dunkin guys were probably drunk, I mean they think its bf of world, in India ppl eat different bfs everywhere, I mean pranthe chole bhature,nali nihari,naan, poha, masala pav, eggs omelettes, idli dosa vada uttpam n what not. First its costly, secondly in India you have to localized. They could have sold jalebies to rich ppl, could have been doing better
Arjun Thakur (14 hours ago)
I have not even heard of this brand.
Rohit Gandhi (1 day ago)
Donuts- Sweet and Sugary Version of Medu Wada
Sanjay Kumar (1 day ago)
I am knowing right now that Dunkin Donut are in India lol.
prashant patil (2 days ago)
We r not fond of American foods......once we ate pizza paying approximately 270 rs.... We literally thrown it in dustbin....
Click Bait (2 days ago)
199 for a cup of tea. Pffft. Good luck with that.
joni francisco (3 days ago)
I'm a Filipino and I would never eat donut for breakfast. I'd also rather spend money on Starbucks coffee than on Dunkin Donuts coffee. Sorry🙄
Matilda Maher (3 days ago)
Seriously! Is that for breakfast.
Matilda Maher (3 days ago)
Yes, Indians like local breakfast because they are more satisfying and filling. Donuts is high in calories,
bhupendra chauhan (3 days ago)
Literally every major food company: "WE ARE ON THE TOP OF THE WORLD". Le India: Huh.😒😒
Eltipoquevisteayer (4 days ago)
Dunkin' momos, make it happen
13 Monther (4 days ago)
Who eats donuts for breakfast? That’s crazy??
Fahad Khan (4 days ago)
Donut... The worst Brkfast ever.. 😂😂 We love Poha, Patra and Dhokla...😍😍😍 50 Rs is enough for a Brkfast in India..
Kapil Verma (5 days ago)
480 mL Tea 190/- Why the hell, one wants 480mL Tea.
ahpahchei revolucian (5 days ago)
I neeeeeed to see local Indian businesses take back their market from these FORIGN investors.indians are very creative ppl they can do it.they can beat these foreigners on price first.i think their greatest weakness is visual cleanliness and appearance.but Indians in India should be able to send these FORIGN food business es back to where they came from.
The Persistent CA Student (5 days ago)
We like our food...nd india has not "become" health concious...it always was.m..stop being in dinial.....
Bell Sognodi (5 days ago)
If Any Indian wants to eat a high calories delicious breakfast......one would rather eat Aloo poori.....jalebi.....alu paneer bread pakora......yummmmmm......why the hell would anyone want to eat overpriced donut.
Suvrat Tembe (5 days ago)
Indians know what beverages price. If you cell simple elaichi chai for 200 Rs no fool is going to buy it
KenjiAnimations (5 days ago)
why everything is struggling in india
Jamal Baker (6 days ago)
because curry donuts taste like ass
Tony Starku (6 days ago)
It’s kinda overpriced HAHAHAHAHAHA.
Kunal S (6 days ago)
Good report
Catalina Gonzales (7 days ago)
Is see Donuts As a Treat not as Breakfast
Santiago Martin (7 days ago)
The irony is not lost, CNBC.
Kirushanth Sharva (7 days ago)
SAVAGE! When you have donut in your name but you're advertising burgers. HAHA!!!
Mlindoc (8 days ago)
Failed in South Africa too
Khamidillo Makhmudov (9 days ago)
The first and big reason for falling most of the brands is cost. in India hourly wage is so low even if a donut cake costs 1 dollar a normal Indian can't afford to buy it
Melodic Nostalgic (9 days ago)
Only 2 Kinds of Food are Popular in India - Chinese and Italian. Mexican would the most Popular Food because its spicy and we Indians love Spicy, But there is no Mexican Restaurant Food chain in India.
SevenDeMagnus (10 days ago)
r s (10 days ago)
Instead of Burgers, there’s Vada Pav Instead of Pizza, there’s Naan Instead of Donuts, there’s Rasgulla Instead of Gum, there’s Paan Instead of Coke, there’s Thums Up
Dreem Feed (10 days ago)
Huh, i think we have a hell lot of variety of foods we dont need your dunkin with highly priced bun and sugar
sanch Sanchayan (11 days ago)
Sambar Vada is the best donut in India.These things don't come close.
sanch Sanchayan (11 days ago)
No Indian will eat donuts in the breakfast if they have even 1 Indian option. There are like a hundred breakfast options in India . Dunkin Donuts must be crazy to be optimistic of their sales in India.
sleepy nomu (12 days ago)
wait some people have donuts for breakfast??? I thought it was only a treat????
moral police (12 days ago)
donuts taste horrible. I am a rasgulla jalebi lover but I have to say with sweetness u gotta have taste too. Donuts are just tasteless hard too much sweet Gulab jamuns.
jazmin camberos (13 days ago)
Okay hold up. The donuts are not hand made. There frozen and then let to defrost then bake. We never fry donuts. I used to work for Dunkns.
Yash Gaikwad (13 days ago)
*I will try to help you.... * First of all, no one for sure is going to buy tea for 200rs. You have to do something about it. Than I afraid the problem is in the very core... THE DONUTS. Indian are really not into donuts or anything sweet in the morning. Rather than focusing on morning breakfast focus on evening and night time. If you do some research you would know almost all McD and Dominos store were empty in the morning. All this franchise make the most profit at evening in India by the teens. Maybe try to sell Ice-Cream on donuts or something. India loves Ice-Cream because of heat.
ASMR Jerro (13 days ago)
Everything that doesn’t fail in the world, fails in India. Apple, dunkin’ donuts, starbucks etc.
Raj Papineni (14 days ago)
Indian food is less healthy than donuts. They're fooling themselves
Vidyut Devam (14 days ago)
Americans eat donuts for breakfast? Man, i dont know how America became so developed when they all have to share just one brain cell.
MIVEL (16 days ago)
India doesn’t run on Dunkin’s
ravikant reddy (16 days ago)
Is it just me or does Aaron D Allen at 04:45 sound like US Prez Donald Trump?
arvind baval (17 days ago)
Their r like 1000 DIFFERENT incredibly tasty food cousine avelable in India ....this country is having so much to offer from vada Pau to extraordinary thali.. What will make India have donuts... I mean every 150 km religion,food,language,coustumseven clothing changes .
sumesh ps (18 days ago)
Indians never eat 🍩
Akriti Pandey (20 days ago)
In North India we have Baloo Shahi which is same as Donuts. That tastes waaaaaay better than these.
Armaan d Mann (20 days ago)
Try selling donuts along in baskin stores
Vikas Gahlot (20 days ago)
I eat 4 Aaloo Parathas every day in my breakfast.
Nadhif Dirgohayu (22 days ago)
Just it counts as a dessert doesn’t mean that you have to it it after dinner
J Thomas (22 days ago)
I live in Japan and I never really thought about it, but I don't think I've ever seen a Dunkin Donuts here. I've seen Baskin Robbins a few times and they always seem really popular, but never a Dunkin.
Wilson Kennedy (23 days ago)
Sell in Kolkata. Start from there.
YT- PXRXM1 (23 days ago)
My uncle had a dunkin doughnut store in india when it’s was new in india it didn’t work then he sold the shop
Miller 007 (25 days ago)
I would prefer Mahesh ki chai wo bhi udhari wali 😂😂
Brian Vinson (26 days ago)
What Indians don't want sugar fried dough for Breakfast what's wrong with these people.
tito vindex (27 days ago)
In nepal they would have more sucess because donouts are already a favourite dish among nepali tibetans mongolians and newari population .
PRASHANT SAXENA (28 days ago)
Who will take tea of INR 200 when we can get it in INR 5,it's not entirely about health consciousness or food behaviour, it's all about price tag. Just reduce it significantly for a day and See yourself 😉
Dr Pappa Pillz (29 days ago)
Lol buy one get three free. I bet if they did bogo they would be more successful
You can't change your YouTube user name for 90 days (29 days ago)
Its cuz india only likes curry
Michael S (30 days ago)
Selling diabetes 😂
Johann de Beer (30 days ago)
Should make them Dunkin Vindaloo curry donuts ..
Viryl Lucas (1 month ago)
Is it normal in my country to only have coffee as a beverage in Dunkin Donuts?
Anjan Sarkar (1 month ago)
West does not understand India. They underestimate India. They think we do not any food. We do not know to make food. I think west should first study about aour food andnd culture. We have thousands of foods. We need not western food.
Ethan Williams (1 month ago)
Bun with cream ? 🙄
abdulsalam Sandra (1 month ago)
This campeny which cantry?
Sofia (1 month ago)
they also failed in Sweden🤡
A R Hirani (1 month ago)
Donuts sold here are over-sweetened. Forget the breakfast, the majority of the Indians won't even have them anytime during the day. Also, sweets made from milk are much preferred here.
Jeff Gooz (1 month ago)
Lol...for 1 dollar i can get 5 home made donuts there..
Gregg Hanson (1 month ago)
The better question is why on earth anyone would think Dukin Doughnuts would succeed in India?
쪽팔린다 (1 month ago)
Their pronounciation is awful as i expected
S. Singh (1 month ago)
For 199 i can have tea once or 40 times.. hmm
Visvesh Narayan (1 month ago)
It would do better if it was marketed as a snack rather than a breakfast. They need to make Indian coffee and chai (Indian Tea). They also need to make doughnuts with Indian sweet flavours (ladoo or kajoo cashew for example) just like how Domino's did but with Indian spicy food flavours.
Sir N (1 month ago)
Hmmm maybe understand your consumers before opening doors in India? That makes too much sense 🤷🏻‍♂️.
Karan Gupta (1 month ago)
In US, dunkin is so affordable. $1 for a donut but in India its 70-80 rs which is equivalent to $1 but in that money you can get a good burger elsewhere
Call Me Perseverer1 (1 month ago)
Competitors: I see it as an absolute win. :)
SwapG (1 month ago)
Why would I have something sweet as the first thing in morning? I'll rather have samosa or vada
sachia lol (1 month ago)
Reason is simple Indians love Spice not Sugar 🤣🤣🤣
99Lapaki (1 month ago)
Didn’t anyone think about doing marketing research first?
JoJo Gaming (1 month ago)
i had doughnut once with my friends it sucks bread with sweet sucks I will never eat again
Arvind Talukdar (1 month ago)
The problem is you are introducing a “convenience” to an extremely established culture. The natives of every land know their “convenience” better than any outsider.
jedijooj (1 month ago)
This is why America is so fat
KarasunoCrows (1 month ago)
Lmao I can just have a rasmalai for 20 rs if I feel like spending much on sweets. I can't even imagine the assortment of sweets we Indians have. Each as good as the other. (Though kaju katri rules!!)
horrnett (1 month ago)
well coz whichever type of donuts u order in your assorted donut box , one bite n they all taste the same. it's nothing but sugar .. we Indians are used to the rich creamy taste of barfis, laddoos, pedas, . donuts are nothing compared to those sweets. not to mention the prices of these sugar syrups
Archit Sharma (1 month ago)
The donuts looks like mendu vada and it is very costly also and 100 rs for a donut noooooo
Shubham Dev (1 month ago)
Donuts in breakfast = fat Americans
Manvi Roy (1 month ago)
I didn't even know there was dunkin' in India
Taetae BangtAn (1 month ago)
In India 🇮🇳 I hate the taste of Dunkin donuts .
I Gede Ary Putra Kusuma (1 month ago)
Sweets donuts for b'fast ..... Wow, hi there diabetes
SY Won (1 month ago)
If you understand Korean you will know what I mean by ㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋ
Welcome back to the Chan Chan (1 month ago)
We ain't homer we apu
Welcome back to the Chan Chan (1 month ago)
I tried them once they were dry and terrible.
Jaya Bhaskar Dadi (1 month ago)
I'm really surprised to know that Dunkin Donuts is a breakfast item. I always saw it as an alternative bakery. Did they even do any market study before entering India?
Abu Bu (1 month ago)
Hahaha a nation not crazy about coffee? Lol you kidding me tea, chai and coffee is everything. Sure lattes and espresso aren’t
cyrilv1703 (1 month ago)
The thing is, if the product is trendy, it catches on in the market. While Starbucks is a normal coffee store in US, it is a style statement. India has a wide variety of foods that go from spicy, salty, sweet. I bet there is an alternative to a Doughnut, somewhere in India. I have had food in different countries and what I can say is, the environment heavily affects the taste of the product. What might be a seller in one country, might not work in another, unless you make it a style - statement. And then there is that compulsion to make products that are necessarily vegetarian. So if you have been adding eggs in your Doughnut, it won't stick. India, as a market, has challenges that might not affect many western countries. You have to be very careful what you are serving because one wrong step and you could be being insensitive to 100s of millions, in one country alone.
abhishek butola (1 month ago)
What not to sell in countries Americans & European : Spices Arabs : Alcohol African : Drugs Pakistan : Bombs India : Donuts
Juggernaut 333 (1 month ago)
Let's start a Dunkin donuts over and India. But the good news is we're not gonna sell donuts were going to sell hamburgers and switch our whole business up.
abhishek butola (1 month ago)
some of the funniest things i heard for first time in my life : did they jjust said 3:05 when donut is in your name, you cannot say no we are not donut we are something else. 4:40 The donut is struggling. 4:50 If donuts were working they would be dunkin donuts donuts. 5:56 Icecream Industry is heating up in India
Rudra Rana (1 month ago)
Maybe if they drop there price 199 for a cup of tea In 199 we can have full course meal twice And open there outlets in local markets
Mansi Pokhriyal (1 month ago)
I can have jalebi with curd rather than having donut...
Unreal Production (1 month ago)
In the land of diverse sweets selling donuts is a stupid idea. And who would eat sweet suger bun as a breakfast everyday 😒
Suzane Carmen (1 month ago)
Donuts as breakfast? Then it's unhealthy breakfast. I prefer meals. Well, here in the Philippines, doughnuts is still popular because in 3pm we have called merienda, the time when we usually eat sweets.
Conner Jo (1 month ago)
95% people in India is suffering for hunger to death. Who would buy a DOUGHNUT FOR LIVIN IN INDIA?