Dunkin' Donuts exit to leave hole in pastry market
The China Post news staffTAIPEI, Taiwan -- Dunkin' Donuts will exit the Taiwan market by the end of the first quarter after a “strategy change” by its local franchise, according to a statement by its U.S.-based parent company.
February 21, 2013, 12:04 am TWN
The statement followed reports yesterday that the local partner Mercuries and Associates Ltd. has decided to close all 19 outlets in Taiwan by the end of the first quarter.
The reports said Dunkin' Donuts has been losing money in Taiwan, and Mercuries and Associates has failed to have the U.S-based Dunkin' Brand lower the franchise fees.
Dunkin' Brand, in a statement released through a local public relations agency, described the imminent departure as a result of its partner's “strategy change,” according to the Central News Agency. It was cited as saying it will still look for a new partner in order to return to Taiwan.
Dunkin' Donuts entered the Taiwan market in 2007, and at its peak had 30 outlets. But last year, the number of outlets was reduced to 19. Rumors already spread toward the end of last year that the local franchise would close all of its stores, but at the time Mercuries and Associates denied rumors.
Its major competitor, Japan-based Mister Donut, is expected to dominate the local market after Dunkin' Donuts' exit.