San José, Costa Rica, since 1956
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Krispy Kreme Doughnuts to open in Costa Rica

U.S doughnut chain Krispy Kreme announced Tuesday that it plans to open 10 shops in Costa Rica over the next five years. The company will partner in the venture with local firm Inversiones DBA-KKD.

Krispy Kreme’s senior vice president Dan Beem said Costa Rica’s rapid market growth and consumer demand for sweet treats “makes this the perfect time for Krispy Kreme to expand in the country.”

One of the lead Costa Rican investors, Miguel Hernández, said Ticos will find Krispy Kreme shops to be their new favorite spot for something sweet and a premium cup of coffee. “We are happy to bring the joy of Krispy Kreme to Costa Rica,” he said.

The company’s announcement did not give any details about launch dates or locations for the first doughnut shops.

The North Carolina-based company opened its first location in 1937 and currently has more than 1,000 retail shops in 27 countries.

Food franchise sector

According to data from the National Franchise Center, part of the Costa Rican Chamber of Commerce, there were 217 international franchises here at the end of 2015. That figure represents 78 percent of all franchises in the country.

A quarter of those foreign franchises are in the food sector, making it second in importance after clothing stores, which currently represent 32 percent of franchises here.

Restaurants dominate the food franchise subsector with a share of 42 percent, followed by fast food chains with a share of 32 percent, coffee shops with 15 percent and ice cream parlors with 11 percent.

Contact L. Arias at larias@ticotimes.net

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Melissa Barrantes

Costa Rica is gradually growing commercially and financially, and some international productive sectors have been developed. Our country has been working in order to get more international investment affecting positively the whole economy of the country, but our productivity has made no contribution in the Costa Rica’s growth, with shortcomings in competitiveness relative to local business (95% SMEs). Local suppliers and exporters needs to increase productivity and growth with investment in innovation, more access to financing and technology, in order to contribute in the internationalization of the country’s SMEs.

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Karen Estrada

Thanks to this article we can confirm that Costa Rica is gradually growing commercially and financially. The decision of establishing franchises into a foreign land is not something that managers and representatives take carelessly. It´s actually quite the opposite, because they have to take into account lots of aspects, such as the foreign market´s condition, the influence level of local competitors, and even cultural characteristics that could either help build or destroy any international franchise.
The approval of the establishment of 10 Krispy Kreme Doughnuts shops in Costa Rican ground means that after thorough investigation and evaluations, it is decided that it’s safe to invest in Costa Rica’s market because it is actually very solid and constantly growing, just as Dan Beem pointed out in this article. It means that Costa Rica is ready to be empowered with the expansion of this food chain, broadening its many opportunities to keep growing in this area. These opportunities are translated into more job options, which will affect positively the whole economy of the country.
Since the success of any business is based on its number of sales, buybacks, and its business planning, Krispy Kreme Doughnuts’s managers and investors must know that they should come with a great communication and marketing plan, that invites Ticos to give them a chance. The latter because many Costa Ricans do not know anything about this brand, so they don’t have any special bond with it (the company must create such bond through its marketing plan). Besides, culturally, most Ticos do not accustom to think about donuts when craving something sweet, so it is Krispy Kreme Doughnuts’s job to make us think of them once they´re settled here.

Best regards,
Karen Estrada Q.

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