US-based doughnut chain Krispy Kreme announced its entry into the Indian market on Wednesday, unveiling its first store in Bangalore.
The ‘Doughnut Theatre’, as the company calls the concept store, is the first of about 80 outlets to be opened across South and West India markets in the next five years.
The stores would be based on franchise model, according to an agreement between Krispy Kreme and Citymax Hotels India, the hospitality division of Dubai-based Landmark Group. An investment of around Rs 80 crore has been earmarked for the purpose, the company said.
According to Krispy Kreme International President Jeff Welch: “India presents great growth opportunities for brands like ours, as it is one of the fastest growing economies. We believe in being at the forefront of presenting new and relevant concepts to India.”
Welch mentioned that currently the company is planning franchise-modelled “factory stores” in the region, followed by “fresh shops”. The factory store is a hub which would not only make doughnuts to be served, but also distribute them to fresh shops, which would only be serving them. The doughnut theatre in Bangalore is a factory store where visitors can watch doughnuts being made fresh.
“We would be looking at more opportunities in Bangalore. Subsequently, we are looking at moving to other regional markets such as Mumbai, Chennai, Pune and Hyderabad,” Citymax Hospitality, India President Vishal Sawhney said.
In the North India markets, Krispy Kreme is planning to open 35 outlets, which would be franchisee-owned as well, Welch said. Meanwhile, the store in Bangalore is slated for an official opening on January 19.