Krispy Kreme Doughnuts Inc.’s extended its global reach with Tuesday’s news that it has signed a franchisee agreement for 10 shops in Myanmar.
Doughnut Group Pte. Ltd. will open the shops over five years.
Myanmar would become the 12th Asian country in Krispy Kreme’s global territory of 27 nations. The other Asian countries where Krispy Kreme has franchisee shops or commitments for shops are Bangladesh, Cambodia, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
Krispy Kreme is one of only a small number of western restaurant brands that have announced intentions to open in Myanmar, formerly known as Burma.
“With a growing economy and a population eager to welcome global brands, the time is right for Krispy Kreme to bring its sweet treats to Myanmar,” said Dan Beem, Krispy Kreme’s international division president.
Pote Narittakurn, owner of Singapore-based Doughnut Group Pte., said that with the recent opening of Myanmar to foreign investment and development, “this is an opportune time for Krispy Kreme to be one of the first western brands in the country.”
Non-Asian countries where Krispy Kreme has franchisee shops or commitments for shops are Australia, Bahrain, Canada, Colombia, Guatemala, Kuwait, Mexico, Qatar, Russia, Saudi Arabia, Turkey, United Arab Emirates and the United Kingdom. The company also has shops in Puerto Rico, a U.S. commonwealth.
Krispy Kreme said in February it reached the 1,000-shop milestone, including more than 700 international shops. Management has stated a goal of having more than 900 international and 400 domestic shops by the end of fiscal 2017.
The company plans to add between 95 and 110 international franchisee shops during fiscal 2016, which began Feb. 1, including debuting in six countries. Although Tony Thompson, its chief executive, did not identify the countries, he said they were in Asia and Latin American.
The company projects a net gain of 20 to 35 domestic shops during fiscal 2016, and a comparable growth rate for several years.
In June, Krispy Kreme said its delicacies will be made available in U.S. military bases in Europe through a partnership with the Army & Air Force Exchange Service.
The military group’s production plant in Gruenstadt, Germany, will produce and distribute fresh products daily to troops and their families at U.S. military bases in Belgium, Bulgaria, Germany, Greece, Italy, the Netherlands, Portugal, Turkey and the United Kingdom.
The main concern expressed by analysts about Krispy Kreme since 2010 is whether it can avoid expanding beyond its ability to handle growth, as it did in the mid-2000s.
Krispy Kreme reported June 10 that first-quarter revenue increased year over year in all four revenue channels: company store, supply chain, domestic franchisee and international franchisee. Overall revenue was up 8.9 percent to $132.5 million, while net income rose 10.4 percent to $10.7 million.