Krispy Kreme looks to Asia for expansion

It has been a year of expansion for Krispy Kreme, the brand announced in February it had reached the 1,000 store milestone, including more than 700 international stores.

But it is in Asia that its expansion is its most notable. Krispy Kreme has joined the ranks of brands making the most of an expanding middle class across Asia and an increasing appetite for Western fast food.

In August, the brand announced its expansion into Myanmar – with 10 stores set to open over the next five years. It follows an agreement with The Express Food Group (EFG), which will open 10 Krispy Kreme Cambodia shops before 2020. It announced its foray into Bangladesh – which will see a further 20 stores across the country – in March.

Competition is tough, as international franchises – particularly in the burgeoning Asian market – has become a major feature of fast food brand portfolios. But, it does not go without its challenges. The appetite for fast food in Asia may be growing, but brands and their franchises must be adaptable to accommodate the culture and traditions of their new nations.

Dunkin’ Donuts expansion into India could serve as a lesson for Krispy Kreme. After initial success when it entered the region in 2012, the brand soon discovered that it would need to make some drastic changes to maintain enthusiasm. Speaking to the BBC, Dev Amritesh the company’s president in India, stressed the importance of understanding cultural differences. “What works in the united states and works in the western market, a simple reproduction of that in the Indian context might have some excitement in the initial few months but the reality hits after one or two years in the Indian market.”

Watch out for our feature on the expansion of fast food brands in China in the next issue of Foodservice Consultant magazine

Ellie Clayton

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