Convenience Stores Plan Major Doughnut Roll-out in Japan

7-Eleven and other c-store chains hope to compete with market leader Mister Donut.

January 05, 2015

TOKYO – Major convenience store chains hope to take a bite out of Japan’s doughnut market in 2015, says a new report in the Japan Times. Currently, the nation’s donut market is 90% controlled by Duskin Co.’s Mister Donut.

According to the news report, Seven-Eleven Japan plans to use the company’s “expertise in production, distribution and sales to differentiate our doughnuts from others.” The unit of Seven & I Holdings Co. plans to sell doughnuts for about ¥100 each and to cut the calorie content through a quick frying process, selling them alongside coffee at store counters. The chain sells 600 million cups of coffee annually in Japan.

The convenience giant hopes to have 17,000 of its outlets selling doughnuts by this summer, achieving  annual sales of ¥60 billion. The doughnut market was worth ¥117.3 billion in 2013, according to market research firm Fuji Keizai Co.

Lawson Inc. and FamilyMart Co. are also trying out doughnut sales in their stores and supermarket operator Seiyu GK, a unit of Walmart Stores Inc., started sales of doughnuts imported from France in December.

Meanwhile, Mister Donut is waiting to see what the new competition brings: According to one source, the doughnut giant believes that with many new entrants in the marketplace could help increase the number of people who eat doughnuts and thus expand the market for everyone.  

Advertisement
Advertisement
Advertisement