The whole town has been talking about the latest franchise, Krispy Kreme which has recently hit KL and I’ve been waiting to try their famous Sugar Glazed Doughnuts. A colleague of mine bought a dozen of doughnuts back for me earlier from Berjaya Times Square. I tasted one and find that it’s just too sweet for me. So I shared the remaining of the doughnuts with my other colleagues, and they all love it! I’m amazed! So I am really fussy when it comes to food huh?
I remember when JCO first hits the shopping malls here, the queue was incredulous. It’s like Malaysians have never tasted any doughnuts before. Can you imagine all these while we have Dunkin Donuts but for some weird reasons their doughnuts just isn’t as good as the newer franchise. And now that the hype has died down, I no longer see such long queue in shopping malls. Come to think of it, I hardly see anyone buying doughnuts anymore in those franchise anymore.
And then not long after that Big Apple doughnuts started its own chain of franchise for gourmet doughnuts like JCO. In fact there are not many differences between both franchise I wonder whether they are subsidiaries. And now we have the famous Krispy Kreme aka The World’s Best Doughnut! I’m not sure how long does the doughnut craze ends but I don’t think anyone is craving doughnut anymore. Apparently the hype has died off like the Roti Boy Mexican Coffee bread.
I recalled the authentic coffee smell whenever I passed by Rotiboy Bakery a few years back. Apparently Roti Boy was in so much demand because of its unique taste, fluffy texture and soft creamy centre which indirectly prompted the opening of so many other stores and imitators around town. After a year or two the business seems to have died off because consumers no longer find the buns irresistable. Hhhhmmm…moral of the story? Business not properly researched and based on hype will only last for a certain period of time. A viable business model takes account the sustainability of the demand and the market. Keep that in mind when opening a new business. Oh yeah, and in order to kick start a Krispy Kreme franchise in Asia, you need to have a minimum net worth requirement of USD 30million or USD 1,000,000 per store to be developed (at least 10 stores or more), whichever is greater. Now you see why it reaches our country so late and now you understand why only a business tycoon like Tan Sri Vincent Tan can afford to bring the business in to our country.