Australian cafe chain Gloria Jeans is facing difficulty in the largely tea-drinking Indian market.

Local operator, Citymax Hospitality, part of Dubai-based Landmark Group, plans to put Gloria Jeans’ expansion on hold as competition gets tougher.

Citymax plans to switch focus on more profitable brands like Krispy Kreme and Fun City. The franchisee plans to open 80 Krispy Kreme outlets over the next five years and up to five Fun City stores a year.

“Our Krispy Kreme stores in Bangalore receive an average 400 customers per day and most of them broke-even in six months. Seeing the market response to Krispy Kreme we are aggressively expanding the brand,” said Sunil Chandran, president, Citymax Hospitality.

Michael McGill, VP, international, Krispy Kreme Doughnut Corporation, said there is a tremendous opportunity for the brand in India. He said they will also launch the brand in China this year.