American donut chain Mister Donut announced yesterday it plans to have 66 stores in Shanghai by 2013 amid expectation the catering industry will grow faster especially with the Shanghai 2010 World Expo coming up.
New stores will be run by a 50-50 joint venture between Taiwan's President Chain Store Corp and Japan's Duskin Co, which run the American brand in the Asia-Pacific. Hideyuki Ito, chairman and co-chief executive officer of Duskin, said the companies plan to invest US$16.5 million in the venture.
So far, Mister Donut, which sells baked goods and beverages, runs six stores in Shanghai including a new outlet that opened yesterday in the Shanghai South Railway Station.
"China is one of the world's fastest growing economies with great achievements made by Shanghai," said C.J. Hsu, general manager of President Chain.
"The upcoming Shanghai Expo will be the focus of the world and bring tremendous business opportunities to Shanghai's catering industry."
Teaming up with President Chain will help speed up Mister Donut's expansion in Shanghai where the increasing demand for Western food and lifestyle is attracting more catering giants to tap the market.
Taiwan's bakery and beverage chain 85°C Cafe plans to increase its number of stores from the existing 40 on mainland China to 100. Australian donut chain Donut King also aims to have at least 20 outlets in the Yangtze River Delta region within five years.
Mister Donut entered the Shanghai market nine years ago but it only has six stores, blaming less market experience and high rent in Shanghai.
(Shanghai Daily September 2, 2009)
