Looking to cash in on Indian consumers’ appetite for sweet products, US-based doughnut maker Krispy Kreme Doughnuts has announced plans to set up 80 stores in the country at an investment of Rs. 75 crore over the next five years in association with hospitality group Citymax India.
In the first phase, the company will open sores in the southern and wetern market. The first set of stores will open in Bangalore and Mumbai.
“We are looking to set up a cluster format where there will be a large format store around which small format stores will mushroom,” said Vishal Sawhney, president, Citymax India.
Citymax will help Krispy Kreme spot retail locations to set up large format stores of 3,000-5,000 sq ft space and smaller stores of 500-1,400 sq ft.
The company will set up shops in high street and premium retail locations. It is looking at a turnaround period of 2-3 years at the store level.
“Citymax has a sound understanding of the Indian consumer,” said Peter King, vicepresident, international development, Krispy Kreme. “Years of successful business experience across a variety of premium concepts will be a strong asset for them as they establish the Krispy Kreme brand in South and West India.”
In May it signed up with New Delhi-based company Bedrock Food to open 35 stores over five years elsewhere in the country, adopting a regional franchising model successfully used by McDonald's in India.
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