Dunkin’ to Exit India by 2026:Dunkin’ plans to leave the Indian market after running its business there for almost 15 years. Its India franchise partner, Jubilant FoodWorks, has decided not to renew the franchise agreement, which is set to expire by the end of 2026.
The latest development creates major changes to India’s quick-service restaurant industry because international companies have failed to achieve sustained business success in the country.
Dunkin’ to Exit India by 2026
Dunkin’ plans to leave the Indian market because the company has experienced continuous financial losses which have persisted since its establishment in the country. The brand generated only minor revenue streams which remained insufficient to impact Jubilant FoodWorks’ total business operations after multiple years of market presence.
Reports indicate that Dunkin’ India posted losses of around ₹19 crore in FY25, accounting for less than 1% of the company’s total revenue. Other brands which operate under the same portfolio, especially Domino’s, have achieved strong financial results while Dunkin’ operates as a less profitable business.
Challenges in Adapting to Indian Consumer Preferences
Dunkin’s main business model which centers on selling coffee and donuts did not match the eating habits of Indian customers. Indian consumers who mainly drink tea will choose hearty and affordable food items which provide better value to their needs.
The idea of offering donuts and coffee as a quick breakfast option did not achieve success outside of urban areas which include major cities.
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Brand Positioning and Identity Issues
Dunkin’ developed new menu items which included burgers and wraps and Indian-style food to better suit local tastes. The strategy of the company aimed to reach more customers yet it took away from the unique identity of the brand.
Explaining the decision, the company said in its press release, “JFL will, in a ‘phased manner’, evaluate and undertake such actions as may be considered appropriate in respect of its existing Dunkin’ brand operations, including rationalisation and/or cessation of certain operations and/or sale, transfer or disposal of assets and/or assignment or transfer of franchise rights, in consultation with owners of the Dunkin’ brand.”
Shrinking Store Network
Dunkin’s presence in India has experienced substantial reductions throughout its operational history. The company operated over 70 locations during 2016 but now has between 25 and 30 active stores that serve customers. The business experiences continuing downturns because of two main factors which include operational problems and reduced customer interest.
With only 0.61 per cent of sales (Rs 37.3 crore on Rs 6104.6 crore) for dip in FY25 compared to outside draw at Dunkins, has had little overall impact upon Jubilants FoodWorks. Dunkins has reported a loss of Rs 19.1 crore.
The company concentrates its efforts on developing high-growth brands which produce better financial returns while operating its existing business units like Domino’s Pizza and Popeyes.
It also added that the board has decided on “non-renewal of the development rights granted in MUDFA, entered for development and operation of Dunkin’ brand in India, upon expiry of its current development term.”
Dunkin’ to Exit India by 2026: What Lies Ahead?
The Dunkin brand will completely withdraw from the Indian market between now and December 2026 through a process which will occur in multiple stages.
Existing outlets may either shut down gradually or be transferred if a new franchise partner emerges. The brand currently lacks a successor who will manage its operations in India which creates a situation that might lead to total market exit.
