No More Sprinkles? Dunkin' Donuts To Shut Down In India By End Of 2026; Here's Why

New Delhi: Jubilant FoodWorks Limited (JFL), the country’s largest food services player, has announced it will not renew its franchise agreement with the American coffee-and-donut giant Dunkin’. 

The decision marks the beginning of the end for the brand’s current 15-year run in India, as the company prepares for a phased exit by December 31, 2026.

The announcement follows a strategic board meeting on Monday, March 30, in which JFL confirmed it would let the Multiple Unit Development Franchise Agreement (MUDFA), originally signed in February 2011, expire at the end of its current term.

A Struggle for Scale

Despite being a global powerhouse, Dunkin’ (formerly Dunkin' Donuts) struggled to find its footing in the Indian palate. 

While JFL successfully turned Domino’s Pizza into a household name in India, the donuts-and-coffee model failed to achieve similar mass-market penetration.

According to regulatory filings, the Dunkin’ business has been a marginal contributor to JFL’s vast portfolio:

• Just 0.61% of JFL’s total revenue in FY25.
• The brand posted a loss of approximately Rs 19.1 crore during the same period.
• From a peak of over 70 outlets in 2016, the count plummeted to just 27 stores by December 2025.

Strategic Pivot to Growth

Analysts suggest that Dunkin’s Western breakfast identity clashed with Indian morning habits, leading JFL to repeatedly pivot the brand toward burgers and wraps, diluting its core appeal.

By stepping away from Dunkin’, Jubilant is sharpening its focus on high-growth segments. 

The company has seen significant success with its newer fried-chicken venture, Popeyes, and continues to dominate with Domino’s, which accounts for over 95% of its annual revenue.

What Happens Next?

Jubilant has clarified that the exit will not have a material operational or financial impact on its overall business. 

For the remaining 27 outlets, the company is evaluating several options in consultation with the U.S.-based parent company, including shutting down underperforming stores over the next 20 months. 

Transferring franchise rights and equipment to a potential new partner, converting select high-footfall locations into other JFL-owned brands like Hong’s Kitchen.

For loyal fans of the "Donut-Coffee" combo, the countdown has officially begun. 

Unless a new master franchisee steps in before 2027, the iconic pink-and-orange signage will soon vanish from the Indian landscape.

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