HONGKONG - US doughnut maker Krispy Kreme began dipping into the massive
Chinese-speaking market Tuesday by opening a shop in Hong Kong - China's
richest city.
The initial response wasn't overwhelming. Several dozen people - a mix
of Chinese and foreigners - lingered in the 2,000-square feet (180-square
meter) shop tucked down a side street in the busy Causeway Bay shopping
district.
One common complaint was that the doughnuts were too sweet.
"It's suitable for kids, but for adults, especially women, we're afraid of
getting fat," insurance agent Moon Ip said.
Still, she predicted success for the doughnut chain, saying, "Hong Kong
people like to try new things."
The Hong Kong shop marks Krispy Kreme's debut on Chinese soil and only its
second foray into East Asia.
So far, Winston-Salem, North Carolina-based Krispy Kreme Doughnuts Corp. has
nine shops in South Korea, but it's expanding aggressively in other parts of the
region.
Other than Hong Kong, the company has signed franchise deals with groups in
Japan, the Philippines and Indonesia, which plan to open stores by the end of
the year. There are already more than 20 stores in Sydney, Australia. It's also
signed up a franchisee in the Middle East.
But perhaps one of the most salivating prospects for any multinational
business is China's 1.3 billion potential customers, and East-meets-West Hong
Kong, already a hub for both Chinese and Western gourmet cuisine, may be an
ideal testing ground.
While fast-food chains like McDonald's and KFC are common in China, doughnuts
are generally rare in the Chinese-speaking community, even in Westernized Hong
Kong.
Fellow US doughnut maker Dunkin' Donuts' big foreign markets are the
Philippines, Indonesia, South Korea, and Thailand. The Japanese doughnut chain
Mister Donut, though, has a foothold in Taiwan.
