In a move that closes one of Indian quick-service restaurant (QSR) history's instructive chapters, Jubilant FoodWorks has announced it will not renew its agreement with US-based Dunkin' to develop and operate stores in the country after the pact expires on 31 December 2026. The decision, disclosed through a stock exchange filing on 30 March 2026, ends a partnership that once promised to bring the world's largest coffee-and-doughnut chain to every corner of India but ultimately fell well short of that ambition.
On 24 February 2011, Jubilant FoodWorks signed a master franchise agreement with American coffeehouse chain Dunkin' Donuts to operate the brand in India. The original vision was sweeping in scale. The master franchise agreement called for Jubilant FoodWorks to develop, sub-franchise, and operate more than 500 Dunkin' Donuts restaurants throughout India over the next 15 years.
The rationale at the time made strategic sense. Jubilant's leadership, led by the Bhartia brothers, had built Domino's India into a powerhouse and was eager to replicate that success with a second international brand. Drawing from their franchise excellence philosophy, Jubilant FoodWorks saw the Dunkin' agreement as an opportunity to diversify into the coffee and bakery segment, a fast-growing category in urban India.
Jubilant FoodWorks opened India's first Dunkin' Donuts outlet in Connaught Place, New Delhi, in April 2012. The launch was widely covered and sparked optimism about the brand's prospects among India's growing urban, aspirational middle class.
Despite the initial buzz, Dunkin' struggled almost from the outset to resonate with Indian consumers. The reasons were structural, not incidental. The American-style, on-the-go breakfast isn't the norm in India, with most Indians preferring a sit-down breakfast with traditional Indian cuisine. Dunkin's signature item the donut isn't regarded as a breakfast food in India, but rather a sweet pastry consumed as a dessert on special occasions.
As Dunkin' tried to get the formula right in India, it focused on products like burgers that strayed away from the doughnuts and coffee it's long been known for. Despite initial plans for rapid expansion to over 500 stores, Dunkin' experienced slower growth compared to Jubilant FoodWorks' core brands like Domino's Pizza, attributed to competitive pressures in the coffee and bakery segment.
The store count tells the story starkly. From a peak that the company had once hoped would touch 500 outlets, as of 30 September 2024, Jubilant FoodWorks had just 32 Dunkin' restaurants across 12 cities in India. That number fell further. As of December 2025, Jubilant operated 27 Dunkin' outlets in India, having shut seven stores over the past year alone.
Jubilant FoodWorks had been trying to curtail losses over the years by experimenting with different strategies such as smaller store sizes, but the store economics did not turn out right and JFL resorted to frequent store closures. In 2025, the company implemented a temporary pause on new Dunkin' openings to prioritize operational efficiency and profitability, redirecting resources toward higher-performing franchises such as Popeyes.
The financial case for exiting was unambiguous by the time Jubilant's board met. In FY24–25, the Dunkin' segment generated revenue of ₹372.37 million compared to Jubilant FoodWorks' total revenue of ₹61,046.66 million, contributing just 0.61%. The segment reported a loss of ₹191.24 million, contrasting with the company's total profit after tax of ₹1,940.81 million.
Put simply, Dunkin' was contributing less than one rupee for every ₹163 of revenue that Jubilant generated while simultaneously bleeding cash.
In its stock exchange filing dated 30 March 2026, Jubilant FoodWorks said its board approved the non-renewal of the development rights granted under the Multiple Unit Development Franchise Agreement dated 24 February 2011, for the development and operation of the Dunkin' brand in India. The company said the decision followed an overall strategic assessment.
The exit will not be abrupt. Jubilant FoodWorks said it will, in an orderly and phased manner, evaluate and undertake such actions as may be considered appropriate with respect to its existing Dunkin' operations. These may include rationalisation and/or cessation of certain operations, sale, transfer or disposal of assets, and/or assignment or transfer of franchise rights, in consultation with the brand owner and in accordance with the terms of the agreement, applicable laws, regulatory requirements and contractual obligations.
The closure or estimated time of closure is on or before 31 December 2026. However, the company has left room for alternatives such as transfer of franchise rights and sale or disposal of assets, indicating that the exit may not necessarily take the form of a straight shutdown. Jubilant has firmly stated the move will not have any material impact on its operations or finances.
For Jubilant, the Dunkin' exit is less an admission of failure and more a sharpening of strategic focus. The company's core businesses are thriving. In India, Jubilant has a network of approximately 1,995 Domino's restaurants across 421 cities, and operates 42 Popeyes restaurants in 15 cities.
The company reported a 65% rise in quarterly profit to ₹709 million ($7.49 million) in the October-to-December period, suggesting Jubilant is tightening its portfolio around brands with better momentum ahead of the 2026 contract expiry.
Jubilant FoodWorks is focusing on expanding its Popeyes and Domino's brands, with plans to open 30–50 Popeyes stores annually and a target of ₹1,000 crore revenue for Popeyes.
The Dunkin' India story offers a cautionary tale for international QSR brands entering complex, taste-diverse markets. Where Dunkin' had failed in India, a comparable concept COFFY succeeded in Turkey by being local-first, with Turkish coffee preparations, local pastries, and neighbourhood café ambiance. It wasn't trying to be American; it was authentically Turkish while using modern QSR operations. The lessons for Jubilant's struggles with Dunkin' were obvious.
As December 2026 approaches, the final doughnuts will be glazed, the last cups of Dunkin' coffee brewed, and a 15-year chapter in Indian food retail will quietly close a reminder that in India's intensely local, competitive dining market, global brand equity alone is rarely enough.
