Wednesday, June 3, 2009

Something about Krispy Kreme

You have just heard of Krispy Kreme being opened in Times Squre sometime ago, right? If you have wandered around shopping malls and see some donut shops like JCO, Big Apple and Dunkin Donuts, this one is literally new kid in the block in Malaysia, but on the worldwide scale, is the biggest chain of donut shops throughout the world.

Of the donuts quality in Malaysia, they are tied with JCO but JCO is a Japanese brand and both of them have a soft shell in the inside with the similar variety of donuts to pick from. But the one thing that separates from JCO and this one is that apart from its long hitory, this is the only donut company public listed in the NYSE.

In Los Angeles alone, expect approximately 20 outlets there, and Los Angeles is just a part of California, don't forget to count San Diego, San Francisco, Sacramento, etc..

Now here's one fact. Many years ago while on a trip to Los Angeles, my dad bumped to a Krispy Kreme executive. He did ask them Now, Krispy Kreme is nowadays loosening up to extend their franchise throughout the world. In the past few years, economic slowdown and poor sales due to health awareness have prompted them to do so. Previously, they are very skeptical of opening one outside the states.

The interesting part is that, the franchise fee cost to setup one shop alone here is at $500K USD per shop. That excludes the equipment and the manpower costs as well as the shop renting / size. After a shop has been setup here, they expect at least six per country. Currently, the second one is under renovation in Mid Valley.

Of course this says why they are much successful and better than the rival donut companies. $2.50 per piece, original glazed or with toppings can make it a worthwhile snack to eat if we're bored of pretzels or KFC or whatsover :)

Malaysia could have its first shop ready back in 2000 but the SME financial facilities were not there at that time, so it's a waste of 10 years before one gets up. If people are starting to get aware of this donut franchise here, then people in other countries already know about it before us...

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