I've got bets going with my mom on how much a doughnut will cost at Krispy Kreme (those thinking about getting in line to be the first person, erm, sorry, my spies tell me there's already someone camped out there today with a sleeping bag).
Price point sensitivity is definitely an issue here in Malaysia, where disposable incomes are not high and discretionary spending amongst the middle class is definitely going to decline in light of the tightening economic situation. If the doughnuts are priced too high, they're not going to get the J Co and Big Apple crowds and their expansion plans may be slowed down (the franchisor is required by the franchise agreement to open a certain number of stores within 5 years).
In Hong Kong, Krispy Kreme doughnuts sold for HKD10 per doughnut and HKD100 per box of 12 (if memory serves me). That makes it RM5 per doughnut and RM50 per box. Big Apple charges RM22 per box of 12. It's been so long since I last went to Dunkin Doughnuts I have no idea what their product costs.
Now, realistically, the price point sensitivity requires the product to be priced competitively but the brand could command a premium. My original price estimate was RM2.50 until my mother pointed out that half the buns in Breadtalk are anywhere between RM2-2.50. She thinks RM3.50.
Well, in about 12 hours, we'll find out.
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