Jubilant FoodWorks to Exit Dunkin' India Deal by 2026

Introduction

Jubilant FoodWorks Limited (JFL), the master franchisee for major brands like Domino's Pizza in India, has announced its decision to exit its partnership with the American coffee and doughnut chain, Dunkin'. The company's board has decided not to renew its development rights agreement, which is set to expire on December 31, 2026. This strategic move signals a significant portfolio adjustment for JFL, as it aims to concentrate its resources on more profitable ventures.

The Board's Strategic Decision

In a regulatory filing on March 30, 2026, Jubilant FoodWorks confirmed that its board of directors approved the non-renewal of the Multiple Unit Development Franchise Agreement (MUDFA) for the Dunkin' brand. This decision was made following a comprehensive strategic assessment of the company's operations. The original agreement was signed on February 24, 2011, and gave JFL the exclusive rights to develop and operate Dunkin' stores across India. The company has stated that this exit will be conducted in an orderly and phased manner, with minimal disruption to its overall business.

Financial Performance of Dunkin' India

The decision is heavily influenced by the financial underperformance of the Dunkin' brand in India. For the fiscal year 2024-25, Dunkin' India reported revenue of ₹37.24 crore. While this is a substantial figure, it contributed only 0.61% to Jubilant FoodWorks' total consolidated revenue of approximately ₹8,217.7 crore for the same period. More significantly, the brand incurred a net loss of ₹19.12 crore in FY25, making it a financial drain on the parent company. The consistent losses and low revenue contribution made the brand a candidate for strategic review.

A History of Challenges and Restructuring

Dunkin' has faced a challenging journey since its launch in India in 2012. The brand struggled to gain significant traction in a competitive market dominated by local tastes and other established players. Over the years, JFL has attempted several restructuring efforts to make the brand viable. This included a significant downsizing of its store network. From a peak of 77 stores a few years ago, the count was reduced to 37 and stood at just 27 outlets as of December 2025. In the last year alone, the company closed seven stores. JFL also experimented with smaller store formats and a 'coffee-first' identity to attract younger consumers, but these initiatives did not yield the desired financial turnaround.

Sharpening Focus on Core Brands

By exiting the Dunkin' franchise, Jubilant FoodWorks is sharpening its focus on its core, high-growth brands. The company's primary revenue driver remains Domino's Pizza, which has a vast network of nearly 2,000 stores across India. Additionally, JFL is investing in scaling up its newer brand, Popeyes, a popular fried-chicken chain. The capital and management attention previously allocated to turning around the struggling Dunkin' business can now be redirected towards strengthening the market position of Domino's and accelerating the expansion of Popeyes, which shows greater promise for growth and profitability in the Indian market.

Key Data Summary

The Path Forward for Existing Stores

With the agreement concluding at the end of 2026, Jubilant FoodWorks will now evaluate the future of its existing Dunkin' operations. The company has outlined several potential actions that will be considered in consultation with the brand's global owners. These options include the rationalization or complete cessation of certain operations, the sale or transfer of assets, and the assignment of franchise rights to another party. JFL has assured that these steps will be taken in compliance with all contractual obligations and regulatory requirements, ensuring a smooth transition.

Market Impact and Broader Context

Jubilant FoodWorks has maintained that the decision will not have any material operational or financial impact on its business, given Dunkin's small contribution to its overall portfolio. The move is seen by analysts as a prudent business decision to divest from an underperforming asset. Dunkin's struggle in India highlights the broader challenges faced by international food and beverage chains in adapting to the diverse and price-sensitive Indian market. Competition from both local and other international brands in the café and bakery space has been intense, making it difficult for brands to scale profitably without a strong, localized value proposition.

Conclusion

Jubilant FoodWorks' decision to part ways with Dunkin' in India is a clear strategic pivot towards optimizing its brand portfolio for long-term growth and profitability. By shedding a loss-making entity, the company can better focus its resources on its powerhouse brand, Domino's, and its promising new venture, Popeyes. Over the next two years, the company will focus on an orderly exit from its Dunkin' operations, with the final chapter for the brand under JFL's management closing at the end of 2026.