Plan to double Mister Donut stores in the next five years

business December 05, 2011 00:00


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Central Restaurants Group, the local franchisee for Mister Donut, has decided to adopt an aggressive investment plan to double the number of Mister Donut stores nationwide from 260 to 500 in the next five years.

The expansion is in line with the policy of Duskin, the Japan-based franchiser of Mister Donut, to double its business in Asia in five years.

During his trip to Bangkok last week, Katsuji Yoneda, who manages Duskin’s overseas business development, said the expansion target was disclosed during a discussion with the franchisee.

“Thailand is the largest market outside Japan for Mister Donut in terms of sales volume,” Yoneda said, adding that Duskin wanted to increase Mister Donut’s presence outside Japan from the current 10 per cent to 20 per cent in the next five years.

Yoneda said Duskin had developed the expansion strategy for Asia because it was concerned about the United States’ saturated economy and the ailing one from Japan.

He said Mister Donut stores had already been opened in seven Asian countries, namely Japan, Thailand, the Philippines, China, Taiwan, South Korea and Malaysia. More than 90 per cent of the stores were franchised.

“We plan to expand the Mister Donut franchise to Indonesia and Singapore next year,” he said.

“We believe that Thailand will recover from the floods very soon as the Thai economy is very strong,” Yoneda said.

The Mister Donut fast-food franchise was founded in the US in 1956 and was acquired by Duskin in 1989.

Duskin’s main division – dust control – contributed to 65 per cent of its total sales posted at US$5 billion (Bt153.98 billion) last year. However, Mister Donut provided 30 per cent of the income and the remaining 5 per cent came from its other food businesses.

In addition to Japan, which has more than 1,300 full-scale Mister Donut stores, Duskin has already opened about 1,800 Mister Donut outlets in the Philippines. However, most of these outlets are small kiosks and only about 200 of them are full-scale stores.

Yoneda said there were 80 Mister Donut stores in South Korea, 50 in Taiwan and 20 in Shanghai. The first Mister Donut store in Malaysia was opened this August.

“In Thailand, we are not very concerned about big players like Krispy Kreme,” Yoneda said, adding that Krispy Kreme had entered the Japanese market five years ago and launched a doughnut war. However, he said, such intense competition would only boost the overall doughnut market.