Second Three-Way Donut War Looming in Seoul
By Jane Han
Staff Reporter
From Pineapple Fiesta, Bavarian Creme Filled, Orange Tango to Double Strawberry French Cruller _ donut varieties just keep getting fancier as round two of the local fried cake industry war hits Seoul.
Prior to the latest face-off, the market's top three players _ Dunkin' Donuts, Krispy Kreme Doughnuts and Mister Donut _ butted heads earlier this year when latecomer Mister Donut opened its flagship store in Myeong-dong, which has been the best-selling location for both Dunkin' and Krispy Kreme.
Global donut giant Dunkin' Donuts sees about 8 million won in daily sales at its central three-story shop, while the U.S. Krispy Kreme rings up about 10 million won every day at its four-story outlet just a few blocks away from its competitor.
But when Mister Donut _ known as one of Asia's biggest donut chains _ kicked off in late April, it enjoyed 14 million won in sales just on the first day, says a Mister Donut spokesman.
``Thanks to good business, we're opening our second shop in Hongdae today,'' said Seo Il-ho, adding that the new location will have 56 indoor plus 32 terrace seats, about 31 more than its first shop that sells on average about 6 million won's worth daily.
Hongdae, an area in northwestern Seoul near Hongik University, is a popular hangout spot crowded with young college students, which is one of the reasons the site was chosen for Mister Donut's second roll out, Seo said.
He added that 10 more outlets will open by the end of this year, driving them to quickly catch up with No. 2 donut seller Krispy Kreme.
``We see Krispy Kreme as more of our competitor in terms of quality,'' said Seo. ``Even though Dunkin Donuts is the market leader, they don't have an ``open kitchen'' system like us.'' Krispy Kreme and Mister Donut both expose their donut production method to customers.
The Lotte Shopping-owned Krispy Kreme currently bites out about 15 percent of the local donut market share after debuting in Seoul four years ago. And company officials say it plans to expand to Ulsan, Busan and Gwangju by the end of this year.
As the newer makers are chasing fast , frontrunner Dunkin' says they've enjoyed about a decade-long solo ride, but as competition grows fiercer, they will make expansions to keep them ahead of others.
``We are set to open 49 more locations by the year-end,'' said company spokesman Irene Kim, adding that customers will make their donut decision based on each brand's specialty products.
To meet these demands, all three makers have marketed their own share of tasty ``well-being'' menu options.
However, Seo of Mister Donut said despite the eat-healthy fad, eaters don't seem to mind eating sugary fried cakes.
``Our main target consumer group, who are mostly college students, frequent donuts storers for their friendly prices and good taste,'' he said. ``With the use of trans fat-free oil, we're expecting even better sales.''
Since Dunkin' Donuts' 1994 debut in Seoul, the local donut market continued to grow with about 30 percent sales growth each year.