Krispy Kreme has signed a new deal to build 40 new franchise stores in Tokyo, part of the chain’s ongoing effort to expand overseas.
The doughnut maker has awarded the development rights for the greater Tokyo area to Krispy Kreme Doughnut Japan Co. Ltd., a joint venture of Revamp Corp., Lotte Co. Ltd. and Takeo Shigemitsu who is Lotte Co. Ltd.’s president and representative director. Under the agreement, Krispy Kreme Doughnut Japan Co. will develop the stores in the greater Tokyo area over the next five years. The first location is scheduled to open this fall.
“Japan represents an important market for Krispy Kreme as we expand our international reach,” Daryl Brewster, President and CEO of Krispy Kreme said in a statement. “As we continue with the company’s turnaround, we plan to build on our international growth and look for additional opportunities to bring the Krispy Kreme experience to consumers around the world.”
Krispy Kreme will not have an ownership arrangement in Krispy Kreme Doughnut Japan Co., Ltd. Financial terms were not disclosed. Krispy Kreme operates about 300 stores in the U.S and overseas, including nine stores in South Korea.
Japan marks the third international franchisee agreement Krispy Kreme has announced since May. The Winston-Salem, NC-based company has also granted franchises to companies to build stores in China and in the Middle East over the next five years. In all, Krispy Kreme expects to open up to 160 new stores overseas.
The move, part of a restructuring effort, comes after the company lost six executives as a result of an internal investigation into allegations that they padded sales by doubling shipments to wholesale customers (PROMO Xtra June 28, 2005).
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