Mister Donut China to close down Stores
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Mister Donut China will soon be no more, Japan’s largest donut chain calling time there after losses mount.
All 10 remaining Mister Donut stores in Shanghai will close their doors on April 1, victims, the company says, of rising labour costs and other overheads.
Mister Donut China launched in 2000, its parent the Japanese cleaning services company Duskin foreseeing huge potential for sweet treats in the fast-growing economy. While it expanded quickly at first, rising competition and costs saw the company begin to trim its store network in recent years.
After Mister Donut China announced it was closing via its Chinese website, a Duskin spokesperson told the Nikkei that while the company was leaving for now, it may pursue other opportunities in Chinese food retailing in the future.
“China’s desserts market holds the promise of further growth. This is without a doubt an attractive region.”
In Asia, Mister Donut will continue to operate in Thailand, Taiwan, the Philippines and Indonesia.
Questions & Answers
Q.Which company owns Mister Donut China?
Which company owns Mister Donut China?
Mister Donut China is owned by the Japanese cleaning services company, Duskin. Duskin launched Mister Donut China in 2000, initially foreseeing significant growth potential in the region.
Q.What reasons were given for Mister Donut China closing its stores?
What reasons were given for Mister Donut China closing its stores?
The company cited rising labour costs and other overheads as the primary reasons for the closures. Increasing competition also contributed to the decision to trim its store network in recent years.
Q.Will Mister Donut exit all of Asia?
Will Mister Donut exit all of Asia?
No, Mister Donut will continue to operate in several other Asian markets. These include Thailand, Taiwan, the Philippines, and Indonesia, where its operations remain unaffected by the China closures.
Q.Could Mister Donut's parent company return to the Chinese market in the future?
Could Mister Donut's parent company return to the Chinese market in the future?
Yes, Duskin stated it may pursue other opportunities in Chinese food retailing eventually. The company still believes China's desserts market holds promise for further growth, viewing it as an attractive region.
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