Some might think that the fad for doughnuts has started to lose momentum, with the hour-long queues of customers waiting to grab a bite having already disappeared, but industry veterans yesterday said that this is just a seasonal phenomenon and that their expansion plans remain on track.
"We've noticed that with the arrival of summer, customers are buying fewer doughnuts -- only the portion they can finish on the day the confection is bought," said Tadashi Kitami, the newly appointed president of Mister Donut Taiwan Co (
Although he admitted that his own appetite for the sweet and greasy snacks shrinks during the sizzling-hot summer, Mister Donut will not offer alternate flavors or ingredients because of the change in season, the Japanese chief said.
The chain is slated to open its fourth outlet in the underground shopping center connected with Taipei Railway Station and Taipei Main Station MRT today, cashing in on the location to serve people outside Taipei, Kitami said.
Since its first outlet was launched in Tienmu last October, the company has sold 4 million doughnuts. In other words, each Taipei City citizen has on average eaten two of its products.
Based on this strong performance, Kitami said the Taiwanese-Japanese joint venture will stick to its expansion plan, opening a total of 10 outlets by the year's end, and targeting to operate a 100 stores in five years.
Whether Mister Donut has underestimated the impact of Taiwan's humid climate remains to be seen, but a local doughnut chain has closed down 20 locations when the temperature started to inch up, among other reasons.
"Summer is usually the low season for doughnut sellers. Revenues in this hot period can drop as much as 50 percent from winter sales," said Chang Chia-chien (張家健), founder of the 70-store doughnut store chain Tien Chiu Fang (甜久坊).
Despite the temporary setback for the chain's expansion, Chang said it is also a good time to eliminate poorly-performing franchise stores and help maintain the quality of the brand, which was established in September 2003.
The two key players have invited several copycats, with store designs, brand names and take-out boxes so similar to originators' that consumers have been duped.
"We've seen `Waili Donuts' in Taichung and `Mr. Don Donut' in Banchiao, Taipei County, that people think are part of our company. We'll pursue legal action at the appropriate time to protect our trademark," Kitami said.
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