THE

DOUGHNUT
CONNECTION
Wardiere Inc.
Bu
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Market Position Market Position

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 Business Description

Business Name Business Type

THE DOUGHNUT CONNECTION
LIMITED LIABILTY COMPANY

Industry: "The Doughnut Connection" operates in the food and

beverage industry, specifically in the doughnut retail and quick-
service restaurant segment.

Location:
• Physical Address: Vanson Realty and Development Lot 1B, Pawa,
Tabaco City, Albay, Philippines
• Online Presence:
Facebook: TheDoughnutConnection
Legal Structure
Business Name: The Doughnut Connection,
LLC

OWNERSHIP

THE DOUGHNUT CONNECTION

NIKKA C. BRIONES JESSEBEL B. JOELLA MAE M. JUSTINE YURI

40% Ownership BEDIS BARTOLATA BALAYO
30% Ownership 20% Ownership 10% Ownership

FRANCHISE STORE MARKETING

OWNER/OPERATOR FINANCIAL MANAGEMENT COORDINATOR
MANAGER/ACCOUN
TANT
 Franchise Background:
Background: Krispy Kreme is an iconic American doughnut company that was
founded in 1937 by Vernon Rudolph in Winston-Salem, North
Carolina. The company gained popularity for its signature
Original Glazed doughnut, which quickly became a favorite
among customers.

The Doughnut Connection as a Throughout its history, Krispy Kreme has experienced significant
growth and expanded its operations both nationally and
internationally. The company's commitment to creating delicious,
Limited Liability Company freshly made doughnuts has solidified its position as a beloved
brand.

Today, Krispy Kreme operates a global network of doughnut

shops, offering a wide variety of flavors and products to satisfy
1. Limited Liability Protection customers' cravings. With a rich heritage and a reputation for
2. Flexible Management Structure quality and indulgence, Krispy Kreme continues to be a leader in
the doughnut industry, delighting doughnut enthusiasts of all ages.
3. Pass-through Taxation
4. Ease of Formation and Administration
Mission Statement:
“To make the most awesome
Krispy Kreme Values:
doughnuts on the planet every single • Consequently
day.” : • Quality
• Customers
Vision Statement: • Collaborating
• Best Company
“To be the worldwide leader in sharing delicious
tastes and creating joy.”
 What Sets Krispy Kreme
Why Krispy Kreme Doughnuts Inc. Apart
From Others in the
Doughnuts Inc.? Industry?
"The Doughnut Connection" is interested in franchising
Krispy Kreme Doughnuts Inc. because it allows them to leverage 1. Iconic Brand
the strong brand recognition and established reputation of Krispy
Kreme. By becoming a franchisee, "The Doughnut Connection" 2. Exceptional Taste and Quality
can tap into the proven business model, operational support, and 3. Hot Doughnut Experience
marketing resources Krispy Kreme provides. This can help them 4. Innovation and Variety
accelerate their entry into the competitive doughnut industry and
increase their chances of success. 5. Global Presence and Customer Base
6. Support and Training
 Market Analysis
Target Market
1. Age: Targeting young adults, families, and professionals.
2. Location: Focusing on high-traffic areas near schools, colleges, and workplaces.
3. Lifestyle: Targeting individuals who appreciate occasional indulgences, and
convenience.
4. Income: Targeting middle-income households who can afford moderate-priced
treats.
5. Cultural Diversity: Attracting customers from diverse communities with a broad
appeal.
6. Social Media-Savvy: Focusing on tech-savvy customers to promote the brand
and generate online buzz.
Market Trends
1. Health and Wellness: Opportunity to offer low-sugar and low-fat doughnuts to cater
to the growing demand for healthier food options in the Philippines.
2. Online Ordering and Delivery: Opportunity to expand online presence and delivery
services, as there is an increasing shift towards online ordering and delivery services,
even after the pandemic.
3. Local Flavors: Opportunity to incorporate localized flavors into the menu to cater to
the local market and the growing trend towards incorporating local flavors into
traditional desserts.
 Market Analysis J.CO Donuts:
Dunkin' Donuts: Strengths:
Strengths: - Offers a wide variety of unique and creative
- Wide international presence, with over doughnut flavors, catering to customers
12,000 stores in 36 countries. seeking novelty and variety.
- Offers a variety of menu items in - Strong brand image and reputation for
addition to doughnuts, such as coffee, quality.
sandwiches, and bagels. - Offers a loyalty program and special
- Affordable pricing, appealing to price- promotions to incentivize repeat purchases.
conscious customers.
Weaknesses:
Weaknesses: - Limited store locations outside of major
-The image as a mass-market brand cities, which may impact convenience for
may not appeal to customers seeking Competitor Analysis customers.
premium or artisanal products. - Higher pricing compared to some
- Limited selection of doughnut flavors The main competitors of “The Doughnut Connection” in competitors.
compared to competitors. - Limited menu options beyond
- Perception of lower quality the Philippines are Dunkin’ Donuts, J.CO Donuts, and doughnuts and beverages.
ingredients compared to other doughnut
chains. Mister Donuts.
Mister Donut:
Strengths:
- Wide national presence in the Philippines, with over 500 stores.
- Affordable pricing, appealing to price-conscious customers.
- Offers a variety of menu items in addition to doughnuts, such as sandwiches and snacks.

Weaknesses:
- Perception of lower quality ingredients and taste compared to competitors.
- Limited selection of doughnut flavors compared to competitors.
- Limited focus on marketing and brand building compared to other doughnut chains.
 Market Analysis
SWOT Analysis
Strengths:
* Globally recognized brand with a strong reputation.
* Wide variety of doughnut flavors.
* Strong online presence and delivery services.
Weaknesses:
* Higher price point compared to competitors.
* Limited number of stores in the Philippines.
Opportunities:
* Introduce new flavors, localized flavors, and healthy
options.
* Expand the number of stores across the Philippines.
* Invest in digital marketing strategies.
Threats:
* Intense competition from similar brands.
* Health and wellness trends impacting
 Operations and Management

Business Operations
“ The Doughnut Connection” will operate as a Krispy Kreme franchise, following their established business model and
operational guidelines. Key aspects of the business include doughnut production, efficient inventory management, excellent
customer service, sales and marketing efforts, and maintaining a clean and visually appealing store environment.

Team and Roles

Key members for “The Doughnut Connection” include the franchise owner/manager, store manager, doughnut production team,
customer sales representatives, sales and marketing team, and support staff. They responsible for managing operations, ensuring
quality, providing excellent customer service, implementing marketing strategies, and maintaining store cleanliness.

Suppliers and Partners

Key suppliers for “The Doughnut Connection” include Krispy Kreme Doughnuts Incorporated for doughnut ingredients and
equipment, local food suppliers for additional ingredients, and packaging suppliers for packaging materials. Potential partners may
include local businesses, organizations, or influencers for collaborations and joint promotions to increase brand visibility.
Financial Plan
Start-Up Cost
Initial Franchise Fee PHP 498,000.00 to PHP 1,254,000.00

Additional Franchise Fee PHP 484,000.00

Estimated Investment PHP 5M – 7M

Source: Franchisemarket.ph

The initial franchise fee for franchising Krispy Kreme outlets ranges from PHP
498,000 to PHP 1,245,000.

In addition to the initial franchise fee, there are additional franchise fees based on the
type of outlet. For a flagship factory store, the additional fee is PHP 1,210,000. TDC
chooses the fresh shop store which the additional fee amounts to PHP 484,000 (that is also
an additional fee for the Kiosk type of outlet.

The estimated investment required to open a Krispy Kreme franchise is between PHP
5 million and PHP 7 million. This investment includes various costs such as store
construction, equipment and machinery, furniture and fixtures, initial hiring and training
of staff, pre-opening marketing and operating support, and franchise fees.
Financial Plan
Revenue Projection

Initial Franchise Fee PHP 498,000.00 to PHP 1,254,000.00

Additional Franchise Fee PHP 484,000.00

Estimated Investment PHP 5M – 7M

Source: Franchisemarket.ph
Financial Plan
Expense Projection

The expense projections for the Krispy Kreme franchise outlet in Tabaco City, Albay,
Philippines indicate the following monthly operating expenses:

MONTHLY OPERATING EXPENSES

RENT 35,000
UTILITIES 10,000
SALARIES 80,000
MARKETING 5,000
Total Monthly Expenses 130,000

The rent pertains to the monthly rental cost for the business's physical office or store
location. The projected amount for rent is PHP 35,000. Utilities refers to the monthly
payment for utility bills such as electricity, water, and other similar expenses. The
projected amount for this expense is PHP 10,000. The salaries which pertain to the
monthly payment for the staff and management amounts to PHP 80,000. The
marketing or the monthly expenses for the marketing efforts costs PHP 5,000. The
sum of all the projected monthly expenses amounts to PHP 125,000.
Financial Plan
Break-Even Analysis

Initial Franchise Fee PHP 498,000.00 to PHP 1,254,000.00

Additional Franchise Fee PHP 484,000.00

Estimated Investment PHP 5M – 7M

Source: Franchisemarket.ph
 Marketing and Promotions
Marketing Strategy:
"The Doughnut Connection" can implement the following
marketing and advertising strategies to attract customers:

- Social Media Marketing: Utilize social media platforms, such as

Facebook, Instagram, and Twitter, to promote the brand and
engage with customers. This can include posting mouth-watering
doughnut photos, sharing promotions, and running social media
contests to increase brand awareness and customer engagement.
Grand Opening Plan:
To promote the franchise's grand opening, "The Doughnut

Local Partnership:
Connection" can implement the following activities:

- Local Advertising: Advertise the grand opening through flyers,

"The Doughnut Connection" can explore potential partnerships or collaborations posters, and billboards in the local area, highlighting the opening
with social media influencers in Albay to increase brand visibility and attract new date and any special promotions or offers.
customers. Examples of potential partners could include coffee shops, bakeries, or
local event organizers. For instance, "The Doughnut Connection" could partner with
a coffee shop to offer a joint promotion where customers can purchase a coffee and
doughnut combo at a discounted price.
 Support and Training

Franchise Support:

"The Doughnut Connection" can utilize the resources and support

provided by the franchisor, Krispy Kreme Doughnuts
Incorporated, to ensure the successful operation of the franchise.
This can include training, ongoing support, and access to
marketing and advertising materials.
Training Plan:
"The Doughnut Connection" can develop a comprehensive training program for staff, covering
various aspects of the business, including doughnut production, customer service, sales, and
marketing. The training program can include both theoretical and practical components, such as
hands-on training in the kitchen and shadowing experienced staff members. The franchise can also
implement ongoing training and development programs to ensure staff are equipped to deliver quality
service and maintain the high standards set by the franchisor.
 Marketing Plan

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Partnerships
Advertising and
Promotion
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Promotional Campaign

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Campaign
Implementation
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blandit facilisis ac eros.
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YOU
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