America runs on Dunkin’, or so the slogan goes. The beloved coffee and donut chain has enjoyed huge success in many countries around the world. However, despite its global popularity, Dunkin’ Donuts’ expansion into China and India was a total failure. What went wrong?

In 2006, Dunkin’ Donuts entered the Chinese market with high hopes, planning to open hundreds of locations across the country. However, the company soon realized that its American-style donuts and coffee didn’t quite translate to the Chinese palate. Consumers in China preferred sweeter, more elaborate pastries and tea-based drinks, which Dunkin’ Donuts was not equipped to provide.

Similarly, in India, Dunkin’ Donuts struggled to compete with local chains that offered more vegetarian and vegan options, as well as a wider variety of spices and flavors. The company’s attempts to adapt its menu to Indian tastes were met with skepticism, and the brand ultimately failed to gain traction.

So, what can we learn from Dunkin’ Donuts’ failed foray into China and India? For one, cultural sensitivity is key when expanding into new markets. Companies must be willing to adapt their products and services to local tastes and preferences, rather than trying to impose their own cultural norms.