Chinese citizens who might be depressed by disappointing financial news can now drown their sorrows in glazed, doughnuty goodness, as several "Hot and Now" Krispy Kreme signs are set to light up throughout China/st1 :country-region>. Krispy Kreme Doughnuts, Inc. has just signed an agreement with the Korean-based Lotte Group to open 35 Krispy Kreme locations in major cities throughout mainland China/st1 :country-region> over the next five years./span>
Krispy Kreme isn't the only American fast food franchise looking at China/st1 :country-region>, however, Yum! Brands, Inc, which owns KFC, and Pizza Hut, two of the most successful American restaurants in China remains optimistic with regards to China/st1 :country-region>. In 2007, Yum! opened 471 additional Chinese restaurants, bringing the total to 2,500 in mainland China/st1 :place>. Eventually, they plan to have 20,000 restaurants throughout China/st1 :country-region>, /span>
Even with the increased optimism, Western fast food brands in China/st1 :country-region> still don't do quite as much business as their Chinese counterparts. According to a report from ResearchinChina, Chinese-style fast food restaurants in Chinagrossed about $30 billion dollars, versus the roughly $6 billion from Western-style fast food outlets in China/st1 :place>. /span>
Considering the higher price of Western-style fast food, as well as the quantity of Chinese fast food restaurants, which greatly outnumbers the Western competition, this number isn't especially surprising. Comparing the two markets, and the number of consumers, the prospect of expanding in Asian markets like China/st1 :country-region> becomes even more appealing./span>
Though the average Chinese diet is arguably significantly healthier than the average American's, campaigns against trans-fat just don't have the same momentum in China/st1 :place>, making them much friendlier for fast-food lovers. Furthermore, even the quality of many fast food outlets in Chinacould simply be better quality than their U.S./st1 :country-region> counterparts. /span>
While KFC has a strong sense of the Chinese market, which it's built over twenty years, Krispy Kreme will face a very different marketplace as it enters China/st1 :place>. Twenty years ago, KFC was the first overseas fast food franchise in China/st1 :country-region>, but today there are thousands of restaurants nationwide. /span>
Krispy Kreme has had success with other overseas expansions, as well as an enthusiastic ex-pat following, which should benefit Krispy Kreme's entrance into the marketplace./span>
Whether or not these investments will fatten the investors' wallets, they'll help to plump up consumers. At least these products are melamine-free!/span>
