Krispy Kreme rakes record sales in Cebu
American doughnut brand Krispy Kreme is bullish on its expansion plan in the country following its encouraging revenue turn- out in all its 44 branches.
The brand, which is operated by Philippines master franchisee The Real American Doughnut Company, Inc., announced the opening of at least five more branches this year, including the opening of another branch in Cebu to be located on Mactan Island.
In an interview with the company's assistant marketing manager and in-charge of the local relationship for marketing in Visayas and Mindanao Nadia Lee Cien D. Shami, she said that despite the stiff competition in the " comfort food" category, Filipinos now prefer to patronize products for quality over price, and the whole experience.
Cebu, known as the benchmark market in the country, has proven to the Krispy Kreme's almost three- year presence here, that it leads the entire Krispy Kreme business in terms of overall sales.
The three outlets in Cebu, located at Ayala Center, Cebu IT Park, and SM Cebu shopping mall, excelled in performance in all its 44 outlets in the Philippines,
According to Shami, the Cebuanos' taste for quality and good service has benefitted Krispy Kreme’s presence here.
Following the opening of its three outlets in Cebu in 2011 almost simultaneously, the company proceeded with its active expansion plan in the southern Philippines market. Now, the brand is present in key cities in the region like Davao, General Santos, and Iloilo.
Soon, the company will open its Cagayan de Oro branch. It will be a stand-alone outlet and will be the first store in Asia that offers a drive- thru service.
The company spends at least P500 thousand in every branch opening, depending on the location and the size of the store. A mall- based outlet, on the other hand, is more costly with investment estimated at P10 million to P15 million.
A factory- concept store like that of the Cebu IT Park outlet costs higher with an average investment of P20 million.
Meanwhile, although the company is putting its confidence in the Southern Philippine area, bulk of its expansion is still directed to the huge Luzon market, Shami added.
Krispy Kreme Doughnut Corporation is headquartered in Winston- Salem, North Carolina. The brands is present in 21 countries- the United States, Australia, Bahrain, Canada, China, Dominican Republic, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, Thailand, Turkey, the United Arab of Emirates, and the United Kingdom.
The company has over 600 outlets globally. Its signature product is the original glazed doughnut.