Jubilant FoodWorks plans kiosk-based model for Dunkin' Donuts

Jubilant FoodWorks that operates Dunkin' Donuts in India is planning a kiosk model for coffee and doughnut chain.

The group is also planning to scale up through the new format.

"Dunkin' Donuts India is using a calibrated pilot to test the new format of restaurants. The company is now evaluating opportunities of growth to build this model. There is continued focus on optimising cost and bringing efficiencies," shared an annual report by the group.

Also Read: Jubilant FoodWorks shuts half of Dunkin Donuts stores, to focus on smaller formats stores

The group also mentioned that they opened 4 restaurants with a smaller format to pilot and test the effectiveness of the format.

Jubilant said  it piloted a "low-capex, small kiosk-based model, serving a combination of beverages, donuts and simple food with faster payback due to low rent and smaller format" for Dunkin' Donuts.

These smaller format stores are 100-200 square feet kiosks, it added.

In 2011, Dunkin' Donuts signed a franchise agreement with Jubilant FoodWorks to develop 500 restaurants across the country over the next 15 years. However, it has closed many outlets in the past few years to cut its losses.

The company operated 1,335 Domino's Pizza Restaurants, 34 Dunkin' Donuts Restaurants and 4 Hong's Kitchen, its home-grown Chinese cuisine restaurant brand, as on March 31, 2020.

May Interest: Jubilant Launches Chinese Restaurant 'Hong’s Kitchen’

The report also mentioned that in the wake of the COVID-19 pandemic, going forward the entire business model of the restaurant industry needs to change and technology, hygiene and safety would become the key elements.

"Restaurants will have to focus on their delivery capacities and add value with initiatives such as special takeout-only menus. Further, contactless delivery will be the way to go. Seating capacity at restaurants is expected to fall to adhere to social distancing norms, which will reduce meal volumes...In the short term, the organised sector will grow faster and the unorganised sector will progressively lose its scale and scope," the company said.