Doughnut firm invests P50M in 3 Cebu outlets
Cebu Daily NewsWITH the opening of two Cebu branches selling Krispy Kreme doughnuts, The Real American Doughnut Company Inc. invested at least P50 million and expects fast growth, an official said.
A third branch in SM City will open next month.
“Our strategy is to open all three stores within three months. We are optimistic that we will be performing well here,” said managing director Carolyn Salud who was in Cebu last Friday for the opening of the Fresh Shop in Ayala Center Cebu and the Factory Story in Asiatown IT Park, their 25th and 26th stores in the country.
“For every Fresh Shop that we open we invest P10 million to P15 million. For a Factory Store like the one in Asiatown IT Park we invest at least P20 million,” she said.
Cebu is their first area outside of Luzon. The company is the master franchisor of Philippine’s Krispy Kreme.
“While we know that our products have become a pasalubong item from Manila and we might lose some of that sales because of this opening, we think that our expansion here is very reasonable considering Cebu has access to other areas in the Visayas and Mindanao,” Salud said.
Despite the presence of other players in the market, Krispy Kreme Doughnut Corp. vice president for Asia Pacific Peter King said they are optimistic they can compete with other brands.
“We are confident because we know that we have the best products and Cebuanos understand and appreciate that value. It is with that confidence that we are also very optimistic about growing the Visayas and Mindanao market through Cebu,” said King.
Salud said they are looking at key cities in Mindanao like Davao and Cagayan de Oro for expansion and would add more outlets in Southern Luzon in 2012.
Krispy Kreme has been in the country for five years and has already been recognized as the best franchisor for two consecutive years, said King.
“The Philippines has always been a very important market for us in the whole Asia-Pacific region and has also shown very exceptional performance over the past years,” King said.
King said the company will be strengthening their brand in the region.
“In the Asia Pacific region, Japan is the fastest growing country for our brand. We just signed 72 stores with more opening in Japan in five years. Soon we’ll be entering India and expanding in Thailand,” King said. /Reporter Aileen Garcia Yap
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Tags: Cebu , Entrepreneurship , Investments , Krispy Kreme doughnuts
