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American doughnut and coffeehouse chain, Dunkin Donuts has closed more than half its stores in India over the last two years and is now focusing on small stores and kiosks to cut losses.

Jubilant FoodWorks Ltd (JFL), the listed franchisee partner of Dunkin Donuts in India, confirmed the downsizing and said the company has already halved losses on the US doughnut chain in the June quarter and is looking “to break even as we exit this year.”

“We have shut our most unprofitable stores, cut back on restaurant operating costs and overheads, focused on core categories, and launched innovations including tea, to drive growth,” a JFL spokesperson said.

As of June end, the company has brought down store count by more than half to 37 from 77 stores two years earlier.

JFL, which also holds the exclusive franchise rights of bigger quick service restaurant (QSR) brand Domino’s Pizza, reported more than three-fold increase year on year in its net profit for the quarter ended June 30, riding on Domino’s. It reported 25.9% year-on-year increase in same store sales growth for Domino’s, riding on every day value pricing and product upgrades.

JFL opened 13 Domino's restaurants in the June quarter, taking its restaurants count to 1,144, while it set up only one new Dunkin Donuts store. Which opened the country’s first Dunkin Donuts store in May 2012.

Two officials in the know of the matter said JFL now plans formats such as kiosks and carts at high footfall places, besides catering.

Asked about this, the company spokesperson said, “We are experimenting with smaller format stores that have a lower cost structure and are adequate for our portfolio.”

JFL chief executive Pratik Pota had on an earnings call late last month said, “We are on track to achieve breakeven as we exit the current financial year for Dunkin Donuts. Reduction in losses have been driven by disciplined cost cutting, store operating costs where we have tightened manpower and labour, shrinkage in store network, and optimisation of overheads.”

Quantum of losses for Dunkin Donuts had halved on a quarter on quarter basis with the impact on JFL’s EBITDA at 55 basis points for the June ‘18 quarter, down from 106 bps in the fourth quarter of the previous financial year, Pota said.

Jaspal Sabharwal, a private equity veteran and cofounder of digital collaborative food industry platform Tag Taste, said, “Dunkin Donuts was a good pick for the breakfast and all-day caffeine market, but our demand mix doesn’t include any breakfast business compared to developed markets, where demand occasions are evenly spread out. JFL very well understands this, hence their decision to pause and recalibrate.”

Sabharwal said latent demand opportunities are the most in the Asian/ Chinese QSR space, followed by desserts, and then the breakfast space which has a five-seven year horizon.

Sanjay Parashar, proprietor one of the first leased-out stores of Dunkin Donuts in the country, said, “While features such as non-fried food and dry kitchens were key differentiators for Dunkin Donuts, these didn’t click with the masses. Besides, a lot of consumers don’t have a preference to just doughnuts when they make eating out choices. Since Dunkin’ was identified as a doughnuts place, they took a beating… It couldn’t carve its niche.”

Responding to an analyst question on whether JFL would wind down the Dunkin Donuts business further, Pota said: “As we exit the year, we will breakeven. This will be our first milestone, but we would also have a line of sight to work for a profitable scaling up model. The fundamental space of cafe plus bakery is growing and we believe there’s space for Dunkin' in that context.”

On speculation that JFL is looking for a third brand, the company spokesperson said, “We believe there is a lot of opportunity for growing the Domino’s network both in existing markets and new towns. We are not in any dialogue with other brands for franchising. However, we remain open to exploring new opportunities for growth.”

Online food delivery platform Swiggy is seeking attention from existing and new investors to raise funds at a valuation of $2.3-2.5 billion, as it burns cash at a quick pace in a fight for market share in the food delivery space, three people familiar with the matter said,

Swiggy’s rival Zomato which is backed by Ant Financial could be considered as a trigger for the third round of fund raise this year. In June Swiggy had raised $210 million from a clutch of investors in a round that valued it at $1.3 billion, making the startup the fastest to enter the haloed Unicorn Club.

Swiggy was in July offered at least one term sheet with an estimated valuation of $2.5 billion. It is unclear how much money the Bengaluru-based company is planning to raise in this round, but one of the people said it could raise anywhere between $250 million and $500 million.

The Bengaluru-based firm is also planning to raise up to $500 million, valuation may hit $2.5 billion. The round may also see the participation of Some of Swiggy’s early investors, the people said.

Swiggy held talks with a host of new investors including SoftBank, growth equity firm General Atlantic and a couple of Chinese hedge funds for the new round. The Chinese funds are probably Tybourne Capital and Hillhouse Capital, a person said. ET could not independently verify the names.

Wok Express, one of India's leading Pan Asian QSR brands, has introduced an all new category to its ever-evolving menu - 'Value Woks'. Priced at Rs. 55 onwards for the vegetarian variant and Rs. 85 onwards for the chicken variant, Value Woks promise to live up to their name - value for money, tasty and wholesome bowls of saucy rice and noodles, cooked to perfection!

Patrons can now choose from four new set wok combinations - the all new sauce, Desi Chilli with Ramen Noodles & Onion / Capsicum, the crowd favourite, Teriyaki with Steamed Rice & Carrots and the classic, Schezwan with Steamed Rice & French Beans. With the serving size same as the personal wok, patrons can now enjoy their tasty woks at an affordable price!

"We chose to launch an all new category - Value Woks, keeping in mind our customers' discerning palate. By introducing an economical product, we're looking to reach out to a wider audience, without compromising on either taste or portion sizes. The value woks, although priced at Rs. 55/85 onwards, are portioned just as Personal Woks. This category will now allow us to reach our bigger, untapped customer base, allow for new customers to come into the fold while also encourage repeat orders," said Director - Lenexis Foodworks (Wok Express' parent company), Aayush Agrawal.

"Additionally, we're also confident this category will allow our customers to taste new dishes, new combinations - all the while retaining the promise of value for money and tasty food," added Agrawal.

Wok Express recently celebrated its third anniversary amidst much fanfare - considering it hit a massive milestone of having sold 1 Million Woks in three years and counting! Also, with the recently launched all new restaurant in Pune recently, Wok Express is now 26 restaurants strong - 25 restaurants catering to the Mumbai, New Mumbai, Vasai-Virar and Thane areas and one in the Pimple Saudagar area of Pune.

Incidentally, the brand also plans to launch two more restaurants in Pune this quarter, further strengthening its presence in the Maharashtra market. This, the brand believes, is also a training ground for its plans to launch in Delhi, Hyderabad and Bangalore in the near future. Its aim has always been to be present across all metros and successfully open about 100 more restaurants in the next 3 years.

Global coffee giant Starbucks announced Monday it is to eliminate all plastic straws from its 28,000 stores by 2020, becoming the latest corporate giant to take steps to combat pollution from disposable plastic.

After months of tests, many of them carried out in Britain, the firm announced the news on Twitter.

The plastic straws will be replaced by recyclable lids that have a small raised opening allowing consumers to sip their drink, a model that has already been road tested on some of the company's cold beverages in the US and Canada.

Plastic straws have proven difficult to recycle, not because of the material they are made from but because they are too slim for recycling production lines to effectively sort through. The new lids, made of polypropylene, will be big enough for machines to recycle, Starbucks said.

"Starbucks is finally drawing a line in the sand and creating a mold for other large brands to follow," said Chris Milne, director of packaging sourcing. "We are raising the water line for what's acceptable and inspiring our peers to follow suit."

The store will automatically offer cold drinks with the new sipping lid, but for "frappuccinos," a coffee mixed with ice, the store will offer paper straws or ones made of a compostable plastic based on fermented plant starch. Customers who prefer a straw with their drink can ask for one.

By not automatically offering straws with drinks, Starbucks estimates it will save a billion straws a year.

Numerous advocacy groups, including Ocean Conservancy, welcomed the move. Several European countries and cities in the United States are mulling restrictions on the use of plastic straws, although outright bans are still rare. In the US, Seattle -- hometown of Starbucks -- is the only major city to have so far banned the use of plastic straws in its eateries.

Pressure from consumers is driving many companies to tackle waste from packaging. McDonald's is road testing the use of biodegradable straws for its drinks.

While growing up in Chennai, Samrat Reddy frequented the neighbourhood juice and smoothie shops. “I was not too much of a tea, coffee enthusiast, so I gravitated towards smoothies,” says 33-year-old Reddy.

When he shifted to Australia and then to the UK, Reddy observed that the number of cafes serving coffee were far greater in number compared to shops serving smoothies. “I was sure if smoothies were as readily available as tea and coffee, a large number of people would take to them as a lifestyle choice,” says Reddy.

Looking to fill this gap in the market, inspired by his own experience, and backed by an extensive research that he carried out on the potential of the smoothie market, Reddy decided to give wings to his ideas. He founded Drunken Monkey in December 2015 and operations started in February 2016. The Hyderabad-headquartered company works on a franchise model and has established 60 stores across 16 cities in just about two years.

“I wanted to do to smoothies what Starbucks did to coffee. People want a space for meaningful social connections without restricting themselves to the regular coffee and tea outlets. Smoothies are the new social lubricant in the town,” says Reddy, Founder and MD. To provide patrons a relaxed café-like ambience, Drunken Monkey bars offer free Wi-Fi, board games and comic books too.

The startup has created 170 varieties of smoothies, made from locally-sourced, natural ingredients, without preservatives. The idea is to create a new market and offer a new lifestyle option to people. “Major retail food and beverage chains have stuck to the proven formula of a limited and focused menu. But I wanted to try something different and spoil the customer for choice,” says Reddy.

From fresh fruit shakes to detox smoothies to protein smoothies, the range is wide. The bar even offers a variant it claims helps people recover from ‘a night of partying’. But with variety have come challenges: Managing the logistics of the business has become quite demanding, customers get confused on what to order and take longer time deciding on the order.

Reddy insists that despite the problems, variety helps the business: “We are here for the long haul and our repeat customers continue to be fascinated by how much more they have to explore. Why not give them the freedom to choose?”

Founded with an investment of Rs 4 crore— spread over a year—put in by Reddy and his family, Drunken Monkey generated Rs 29 crore in revenue in 2017-18. The startup aims to increase its stores to 100 in 2018-19 and more than treble its revenue to Rs 100 crore in the current financial year.

“Besides smoothies, our R&D team is working on some food options as well and we will bring them out in August. The pace at which we are growing gives us the confidence to meet our revenue target,” says Reddy.

Winner of the ‘Best Juice Parlour of the Year 2017’ by Restaurant India, the startup’s current challenge is to educate customers on the health benefits of smoothies: “Smoothies are fruits in liquid form and fruits are among the healthiest forms of food. It is exceedingly important to communicate what the product is and why it is good. Drunken Monkey sees itself as a crusader for the smoothie revolution,” says Reddy.

Alpenliebe, the flagship candy brand of Perfetti Van Melle India, has launched a new campaign: ‘Alpenliebe Ghuley toh Dil Milein’. The TVC is centered around the sweet, rich taste of Alpenliebe and is the result of a comprehensive consumer demand space mapping.

Over the years, Alpenliebe has found its space in the Indian family set up. In India joint families are still popular and research showed that the inevitable tiffs between generations are still commonplace. The story was thus based on the insight that making the first move to apologize is still the biggest barrier to get family members talking again.

The commercial revolves around a little girl who, irked by the tension between her father and grandfather, uses her grandfather’s love for Alpenliebe to bring the duo closer. Using the candy as a bait, she lures the old man into walking up to the chess table where the father-son would often play each other before the fight. As the grandfather relishes the candy by the chess table, she leads her father into believing something that’s completely the opposite of reality. The campaign also stars Boman Irani to improve campaigns memorability, sweet charm and reinforce the message that Alpenliebe candy is for a treat for kids and adults alike.

Alpenliebe plays role of a catalyst for family bonding and positioned as a candy that “Brings Hearts Closer”.

Commenting on the campaign, Rohit Kapoor, Director Marketing, Perfetti Van Melle India, said “the new ad campaign is in a warm and comforting space. The emotional story very beautifully involves the 3 generations of the family members and conveys the core message powerfully that rich indulgent taste of Alpenliebe triggers resolution of small tension points in the family. The communication tone is very consistent with brand values built over the years and hopefully should connect well with the audience.”     

Kapil Batra, Creative head, McCann Delhi added, “The task was to dramatize the indulging experience that comes with an Alpenliebe and make it equally relevant to adults as well. With this campaign, we have managed to do that in a fun, light-hearted way.”

Boman Irani commented “I love getting lost while eating an Alpenliebe candy. The story is light hearted yet has family values at the core of it”

The new campaign will be aired across all mainstream TV channels and further amplified on digital medium.

Tata Global Beverages Ltd today said it would exit loss-making subsidiaries and focus on profitable ones that can be scaled up.

The company, however, would have to maintain subsidiaries in certain locations, owing to legal issues, Chairman N Chandrasekaran told shareholders at the annual general meeting here.

"The whole idea is to have subsidiaries which can be scaled up and are profitable," he said.

"It is important to pick up growth rate and grow profitably. Growth in the domestic market is required. Mix of product portfolio is critical and is going to be a big focus for us," Chandrasekaran said.

The growth, he said, could be either organic or inorganic.

Tata Global Beverages' market share in the domestic tea market was 20 per cent, while it was three to four per cent for coffee.

The company would make an investment of Rs 150 crore in addition to the ongoing capex of Rs 300 crore, he said.

Regarding the Tata Starbucks outlets, he said that each store takes two to three years to achieve break even, but the coffee chain as a corporation had already achieved the same.

In his speech to the shareholders, Chandrasekaran said the company posted a flat revenue growth of one per cent in the last fiscal.

Referring to international markets, he said growth continued to suffer because of marginal presence in many overseas countries.

Even though in volume terms, the company continued to be "number one" in the Indian market, the same was not true in value terms, he said.

On prospects in West Bengal, the top company official said the Tata Group is committed to the state and looking for the "right opportunity" in terms of investment.

"We have good presence of TCS and companies like TGBL and Starbucks are present (in West Bengal). When the opportunity comes, we will definitely invest in the state," Chandrasekaran added.