Mad Over Donuts (MOD), an organised retail doughnut chain, has introduced its first cafe format setup in India at Churchgate, Mumbai. With this new cafe launch, MOD has 55 stores and one cafe present in Mumbai, Pune, Delhi, NCR and Bengaluru. MOD is owned by Himesh Foods with 33 per cent investment from Mirah Hospitality. The cafe at Churchgate not only serves doughnuts and coffees, but also has a whole new range of products.
Speaking with Financial Express Online, Tarak Bhattacharya, chief operating officer, Mad Over Donuts said, “We are excited to launch our first cafe in India. Starting from October till this financial year end we are planning to add another 12 to 15 more stores in the cities where we are already present. We are also looking to add more cities. With this launch we have 23 stores in Mumbai alone.”
Speaking about the new cafe format, Bhattacharya added, “Our major focus still remains the store format, but we will be introducing more cafes in the future. Around 10 to 15 per cent of our store will be cafes in future. In this new format, we will be introducing more products like the pocket sandwich, waffles, ice cream sundaes, etc. Depending on the success of these products, we will include these in our regular menu throughout all our stores.”
In India, doughnuts is still a niche segment and with time many international brands are looking to tap this segment. “The doughnut market in India is still at a nascent stage. One of the main challenges we faced during the initial years was awareness. But now we are getting customers from the age group of five to 55. Another challenge which we face is real estate price, retaining employees as the attrition rate is too high.”
Mad Over Donuts is also planning to go international in 2016. When asked about further details Bhattacharya refused to divulge any information.