Graviss Group, known for operating Baskin Robbins in India, is reportedly negotiating to acquire Dunkin' franchise rights from global parent Inspire Brands. This move follows Jubilant FoodWorks' decision to exit the partnership after years of financial losses. Investors should monitor how the company plans to turn around the struggling doughnut and coffee chain brand.
Graviss Group is currently in discussions with Inspire Brands, the international owner of Dunkin', to take over the franchise rights for the brand in India. This development follows the announcement by Jubilant FoodWorks that it would end its 15-year association with the brand on December 31. The potential transition represents a significant attempt to reshape the presence of the American coffee and doughnut chain, which has faced long-standing challenges in achieving sustainable profitability in the local market.
Challenges in the Indian Market
Since its entry into India in 2012, Dunkin' has struggled to maintain a consistent growth trajectory. While the brand initially scaled up to over 70 locations, it faced hurdles in aligning its menu and store model with local consumer preferences. This led to a strategy shift toward smaller kiosk and takeaway formats in recent years. By the end of the 2025 fiscal year, the store count had reduced to 27 outlets. Jubilant FoodWorks, in its disclosures, noted that the brand contributed a very small fraction of its total revenue and remained a loss-making segment, leading to the decision to return the rights to the global parent.
Strategic Fit for Graviss
Graviss Group has maintained a presence in the Indian food and hospitality sector since 1993, most notably as the operator of the Baskin Robbins brand. Industry analysts observe that the company’s existing supply chain, cold storage infrastructure, and operational knowledge of the quick-service restaurant (QSR) sector could provide the necessary framework to stabilize the Dunkin' brand. If the agreement proceeds, the focus will likely be on a strategic overhaul, which may include menu diversification to include more localized products and potentially targeting a wider demographic to improve unit-level economics.
Investor Monitorables
The primary concern for stakeholders is the ability of the new operator to improve profit margins in a highly competitive coffee and snack segment. Unlike some larger peers who operate at a significant scale with established distribution networks, the doughnut-and-coffee category has historically seen limited penetration compared to standard café chains. Investors should track the official announcement regarding the deal structure, the proposed expansion plan, and the financial investment required to refresh the existing store footprint. Furthermore, observing how the company manages the transition from a loss-making history to a potentially profitable model will be a key indicator of its operational success in this new segment.