Doughnut Stores Industry Market research now Available from IBISWorld
The Doughnut Stores Industry experienced a major slowdown during the recession due to a struggling economy and changing consumer tastes, according to IBISWorld, the nation’s largest publisher of industry research. The trend toward healthy eating has hurt Doughnut Stores across the United States. However, to combat slumping sales, major operators like Dunkin' Donuts, Krispy Kreme and Winchell's have expanded their menus to offer non-traditional, high-margin menu items like iced-coffee drinks, new breakfast items and healthy wraps, aiding them in their turnaround. Many major chains are also investing in international growth as part of a long-term strategy. For this reason, industry research firm IBISWorld has added a report on the Doughnut Stores Industry to its growing Food Services & Drinking Places report collection.
According to IBISWorld research, revenue in the Doughnut Stores industry has decreased over the last ten years, largely due to the health concerns associated with eating unhealthy foods like doughnuts. However, the fall has been dampened by the success and growth major doughnut chains such as Dunkin' Donuts and Krispy Kreme have experienced over the last decade.
According to IBISWorld analyst, Nima Samadi, U.S. consumers are also becoming more aware of issues related to weight and obesity, fatty-food intake and food safety issues. This factor particularly affects the often-unhealthy Doughnut Stores industry. As consumers are becoming more health-conscious, Doughnut Stores have responded by expanding the number of healthy and low-calorie options on their menus. For many chains, this factor has allowed them to target a new segment of the market and renew interest in their products. In 2008, Dunkin' Donuts introduced two new flatbread sandwiches made with egg whites. Both have fewer than 300 calories with no more than nine grams of fat. As such many operators have expanded their menu options to ensure that they can retain a large portion of their customers' snack-food dollars. Dunkin' Donuts introduced limited-time specials on coffee in the New York Tri-State area, offering 99-cent lattes all day to win over some of Starbucks' customers. Dunkin' Donuts now offers a wide range of espresso drinks and other flavored coffees. Conversely, Starbucks now sells breakfast sandwiches and hot paninis.
According to IBISWorld, international growth is still a large part of many major chains' long-term strategies. In particular, China as a market has huge potential for growth and long-term profitability. Dunkin' Donuts whose brands boasts 14,848 locations in 44 countries; including 9,087 locations in the United States already has a sizeable presence in foreign markets, though there is still much room for growth. Dunkin’ Donuts also recently had an initial public offering in order to provide them with the funds to increase their presence in certain US markets such as the West and Southeast.
For more information, download the full report from IBISWorld on the Doughnut Stores industry
Tags:
