Doughnuts Case Study

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MERRY GO ROUND

Doughnuts are back- and with a good reason. Indians have a special place in their hearts for sweets. There is an increasing demand for sweet products in the Indian markets. The increase in FDI and foreign entrants has wooed their customer base with the sweet treats. With more and more people ready to experiment with food and wanting to taste new varieties, this has thrown an open invitation for foreign food players to open in India. “Products which were once available only at few local foreign bakeries are now available at almost all places in India. The entry of foreign investment is a good fortune for India’s blooming food and beverage sector,” explains Arul Santosh, Bakery chef, The Park. Doughnuts section was
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But it was only last year that they opened their first base in Chennai. Krispy Kreme has lately opened their outlet in the major part of the Chennai. The Dounut Baker is also one of the global franchises whose core product is doughnuts. Today, it has over 21 outlets, all situated in Banglore and Kolkata. Mad Over Doughnuts have 38 outlets all over the country. Not only have the foreign brands started to establish itself in India. There are Indian companies like douse house which are also ready to give tough competition in the …show more content…
Leaving apart the pre dominating Indian sweets market there are a lot of other obstacles that are hindering the growth of these companies. Logistics of business operations, expansion, profits, life span of the product are also major threats, feels Harshita.

“The cost of setting up and self life of doughnuts caused us a major problem. The products are highly perishable, approximately 24 hrs, hence it is a big challenge we face everyday”, sumeet, Manager, Krispy Kreme, Chennai. Apart from the these, the real estate cost had also pulled back the investors for a long time. According to a survey, The organised doughnut chain market in India falls widely under the café segment within the food service industry, which is expected to grow at 12–13 percent CAGR for the next 5 years. the doughnut market in India is growing at a rate of 20 percent per year, which is expected to double up in a few years. The organised café segment in India is estimated at `1,200 crore while the organised doughnut chain market is projected to be a miniscule part of the café segment as it presently has limited scale of business

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