How is Krispy Kreme doing everyone?

[midinite]

So far expanding na sila at may mga reports sa isang thread na Megamall branch has no oven. Lines are starting to dwindle. Masarap nga pero may kamahalan. Anu kaya ang fate nitong franchise? over crowded na ba ang donut market in the first place that there is no room for it anymore? or is it still a growing (no pun intended) market that there is still room for another player. One for the premium segment and with aggressive expansion plans. Even the ad space they bought with billboards and streamers are more than what gonuts did initially. is this money well spent or wasted? remember si Gonuts had the strength of word of mouth...

is max's in over their head? or are they sitting on a goldmine.

after the holidays and observation we can now make assessments.

if KK is not going to succeed how long will you give it?

[ghosthunter]

The crowds that initially gathered was expected. From what I see, they will still have a good market for some time to come.

[Si 06]

1B five yrs to pay so P200,000,000/yr franchise for donuts.

[oldblue]

like any business, lalo na kung ganyan kalaki willing naman siguro mag-continue kahit break even lang.

[m_ron]

it's only a fad.filipinos wants to taste the western donuts.It's goin to be like cinnabon.I prefer dunkin donuts.

[mang ponso]

Yes, I agree with some of the comments from some who posted here regarding Krispy Kreme. I think it is just a fad that us Filipinos are going through. Alam mo naman ang Pinoy--- basta galing Tate, number 1. I don't know but sometime ago, I noticed that KK in the States are being sold in gasoline forecourts. They don't even seem to have their own stores. So really, why the big fuss about them. Whereas we Filipinos are so into them (the KK doughnuts) at the moment, other countries regard them as just "off the tray of ordinary doughnuts"!! I think the fad will go away. I still prefer the good old Pinoy almusal -- fried rice, longanisa, a little bit of pindang bangus with suka and garlic as sawsaway, and fried egg ---- wow sarap!!!!

[gearspeed]

Masarap pa rin ang Krispy Kreme.Kung meron lang dito sa Alabang bumili na ako.

[badkuk]

dunno kung kiclick ba ung KK in the long run, but imho, $200 million is waaay too much for the franchise. kelan pa kaya nila mababawi ung investment?

[pepper]

3 billion pesos po annual gross ng donut industry sa pilipinas...there's still a room for new players...malaki po market nyan...

[midinite]

3 billion pesos po annual gross ng donut industry sa pilipinas...there's still a room for new players...malaki po market nyan...

Yup gross. pero what is the net kaya? also if there already are established players will KK be able to take away market share or create a new market? question lang din. what about the fast foods. it is a big market but there are some that fall to the wayside pa rin like BK for example?

[batang_raon14]

Yup gross. pero what is the net kaya? also if there already are established players will KK be able to take away market share or create a new market? question lang din. what about the fast foods. it is a big market but there are some that fall to the wayside pa rin like BK for example?

+1. Businesses do have a high gross income but when it's just a new player in the game, it tends to have a low actual net income due to several factors. Franchise fees, taxes, bills, wages, etc.

[mikmik316]

I think BK was mismanaged by the Ayalas.... and it started to tank when they removed the all you can drink softdrinks dispenser... I mean its a BK tradition... why remove it????

[pepper]

Yup gross. pero what is the net kaya? also if there already are established players will KK be able to take away market share or create a new market? question lang din. what about the fast foods. it is a big market but there are some that fall to the wayside pa rin like BK for example?

basically in bakery business ideal net profit is 15-20% of total gross. mas mataas cguro NP nung malalaking bakery companies kc mas efficient operation nila and they can command price. established players are dunkin, mister and go nuts... but there are so many "little" players out there. kk success will depend on their target market. (dunno kc market nila kc i haven't taste it yet... wla ako s manila..hehe!).. sa fastfood nman, imho the ayalas are the master franchise of bk here, syempre ndi nman un main business nila cguro kya di masyado nag prosper... and parang mhina marketing strategy ng bk unlike jollibee group of companies(jollibee, greenwich, chowking, delifrance, red ribbon, yonghe food of china) yearly nag eexpand..(local & overseas) very aggressive..imho lang po...

[oldblue]

Yup gross. pero what is the net kaya? also if there already are established players will KK be able to take away market share or create a new market? question lang din. what about the fast foods. it is a big market but there are some that fall to the wayside pa rin like BK for example?

basta high gross ok na yan. paikot pera lang. seasonal naman lahat ng business eh. those who are too specific ng net income ng biz, yun madalas madali pang-hinaan ng loob at magsara.

after all hindi lang sa pera ang basihan ng survival ng business ngaun, opportunities din. with the Max group being associated with the KK brand, that'll bring a lot of opportunities.

[CVT]

So far expanding na sila at may mga reports sa isang thread na Megamall branch has no oven. Lines are starting to dwindle. Masarap nga pero may kamahalan. Anu kaya ang fate nitong franchise? over crowded na ba ang donut market in the first place that there is no room for it anymore? or is it still a growing (no pun intended) market that there is still room for another player. One for the premium segment and with aggressive expansion plans. Even the ad space they bought with billboards and streamers are more than what gonuts did initially. is this money well spent or wasted? remember si Gonuts had the strength of word of mouth...

is max's in over their head? or are they sitting on a goldmine.

after the holidays and observation we can now make assessments.

if KK is not going to succeed how long will you give it?

I'd say that the expansion will reach a certain level of saturation until a such a time when it will just cater to a niche market.

Donuts will always be donuts. There will be no special feature for 'tangible' product differentiation, especially since it's priced up there. Else, it will have to compete head-on with Dunkin' Donuts and Mister Donut where the name of the game is cost leadership.....

:starwars:

[ghosthunter]

I think KK's market would be similar to Starbucks and those other coffee places. So as such, it will develop a regular type of customers.

[CVT]

I think KK's market would be similar to Starbucks and those other coffee places. So as such, it will develop a regular type of customers.

Agree here to a certain extent. That is, if KK can consistently market it's outlets as "places to be seen". And, if they can influence the external factors so that the people will perceive themselves as "lovers of donuts"....(akin to "lovers of coffee")....

Moreover, the various blends and varieties of coffees sell the product,- not sure though with the various flavors and styles of donuts....

:starwars:

[midinite]

Agree here to a certain extent. That is, if KK can consistently market it's outlets as "places to be seen". And, if they can influence the external factors so that the people will perceive themselves as "lovers of donuts"....(akin to "lovers of coffee")....

Moreover, the various blends and varieties of coffees sell the product,- not sure though with the various flavors and styles of donuts....

:starwars:

Interesting point. IMHO i cant quite see donut shops seen as a lifestyle as a coffee shop could. You never saw the cast of friends hang out at a donut shop? so it may be quite a stretch creating the "donut culture" unless the american cop look comes into vogue (but then again it would only be a fad).

This could be why KK tries to push their coffee with donuts as well since they realize it will be not easy to pull off. Yet, will it be seen as an alternative "coffee" joint? when there are so many already?

The places to be seen thing is something we get from imagery introduced by external and internal influences. KK annual planner anyone?

[CVT]

This could be why KK tries to push their coffee with donuts as well since they realize it will be not easy to pull off. Yet, will it be seen as an alternative "coffee" joint? when there are so many already?

The places to be seen thing is something we get from imagery introduced by external and internal influences. KK annual planner anyone?

That is a strategy. However, IMO, it is hard to push donuts with coffee as their driver. The latter is not their competency. Partnership with Figaro? hehehe....

In my limited travels in the US, I have been to a few Starbucks coffee shops. However, have not (unfortunately) chanced upon a KK outlet. Have encountered the KK goodies, already in a box, in the checkout counters of Target, though.....

:starwars:

[midinite]

okay now we are about to hit june 2007. when did KK start? also how many locations do they have now? the billboard on EDSA says Fort and Megamall. Are there any more? Last I recall kasi they were supposed to open one every two months. Have they stayed true to this?

also i went to the one sa fort a couple of weekends back. early evening and it was empty. in fact they were giving away donuts.

any field reports or speculation on this?

specially with mister donut having a 9 peso (is this right) billboard on EDSA right after KK.