76 years on, Vemon Rudolph’s Krispy Kreme American doughnuts continue to spread across 23 countries. Today, Krispy Kreme is present in 12 Asia-Pacific countries (including India) with a store count of 750 outlets, and approximately 10,000 grocery, convenience and mass merchant stores in the U.S. The brand is master franchised in South and West India through Citymax Hotel (India) Pvt Ltd – the hospitality division of Dubai-based retail giant Landmark Group.
The company has opened its 2nd store in Bangalore at the Forum Mall in Koramangla. Says Peter King, VP- Asia Pacific, “The international expansion has been around only since 6-7 years. In India, we have a separate franchisee for the north, and for the east, we are still considering the franchisee.” He informs that every city will have a main hub with a specially designed production unit, which will assure the customer that the doughnuts are made fresh every day.
“The format that we are following is called hub and support,” adds Pankaj Neeraj, Business Head, Krispy Kreme. “We will have huge hubs that cover 3,000- 4,000 sqft areas, around which we plan to have 6-7 smaller units.” He informs that the smaller units will be set up at an investment of Rs 90 lakhs to one crore, while for the bigger units the company will invest around Rs 8 crore as these will serve as production units as well. “As per our estimates, we would take at least 5 years to break even.”
Krispy Kreme opened its first store in the city’s upscale Church Street early this year. At the store, customers can watch hundreds of hot doughnuts rolling out on a conveyer belt through a glass-viewing area. The imported doughnut-making machine has a capacity to roll out 210 dozens (2,520) doughnuts per hour. According to King, most of the ingredients and recipes will be imported from the U.S., and later they will source them locally to suit the Indian palate.
The brand has plans to open standalone stores, and is looking at major malls in Bangalore and Mumbai in the first phase of its India expansion plans for opening close to 12 outlets in the next one year. It is also looking at market complexes, metro rail stations, inter-state bus terminals, and railway stations. In the next phase of their expansion plans, Citymax plans to open stores in southern and western cities, including Mumbai, Pune, Chennai, Hyderabad, Ahmedabad and Kochi.