When Global Expansion Flops

The globe is the limit with many franchise brands expanding into international markets; but with international expansion comes modifications to menu offerings to meet local tastes.

When Global Expansion Flops

One has to wonder if Dunkin’ Donut’s expansion into India has stretched the menu a little too far from its core offering. What’s the stretch? Dunkin Donut’s Original Tough Guy Chicken Burger.

In fact, some patrons of the New Delhi stores are yet to find out what a doughnut actually tastes like.

It’s a hard truth that America’s famous doughnut chain has had to embrace moving into India — that many Indians just don’t like doughnuts, and those who do are unlikely to buy a dozen in one go.

Radical change to stay afloat

As a consequence, to maintain presence in India the brand has had to radically rework its India menu and embark on a pricy advertising campaign to let consumers know it’s got more than doughnuts and coffee on offer. To add another complicating factor to the works, like McDonald’s in India, all its burgers are beef-free.

Dunkin Donut’s franchise owner in India, JubilantFoodWorks, was one of the pioneers of the Western fast-food business in the country, having brought Domino’s to India 18 years ago.

Now it has 700 outlets and an adapted menu of local flavours like Tandoori Chicken and Peppy Paneer rather than pepperoni pizzas.

Analysts don’t skirt around the reality that Dunkin made a fundamental mistake, stating that Indians don’t start their days with frosted sweets, and they don’t pick up breakfast on the way to the office.

Tracy Lee Nicol
About the Author
Tracy-Lee Nicol is the managing editor of Franchise Zone Magazine and deputy editor of Entrepreneur Magazine. She studied her Masters degree in Art History and Visual Culture at Rhodes University and spent the next two years working and travelling in Asia. Her love of people, business and teaching is reflected in telling the stories of entrepreneurs, franchisees and franchisors, inspiring others to take the leap to being their own boss and bringing about positive change in South Africa.

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