Krispy Kreme – A Mexican Delight?

Krispy Kreme has focused on global expansion over the past several months. It has developed joint ventures to offer Krispy Kreme doughnuts in Australia, England, and Canada. Most recently, a Krispy Kreme outlet opened in Mexico City, Mexico, and the company wants to open at least 20 more stores. The organization now has plans for joint ventures that will enable franchises to open in Japan.

You and a partner own a Krispy Kreme franchise in Texas, and the business has been doing well. When you initially opened, carloads of people lined up around the building for weeks, and when the “HOT” sign is on, business continues to be good. You are now considering pursuing another franchise opportunity with Krispy Kreme. Since your partner travels to Mexico regularly, you are wondering if perhaps a franchise there will be as popular as yours has been here. At the time when you opened this Krispy Kreme, you had the business/marketing knowledge, and your partner provided most of the start-up capital. Since that time, though, your partner has earned a marketing degree as well and you have accumulated money for investment; thus, your roles would be equivalent this time. You have both agreed to think about the investment and to come up with recommendations independently to discuss with one another.

You decide to write down a discussion of the major concerns that you have. First, evaluate Mexico as an opportunity for opening a Krispy Kreme successfully. You should include a discussion on the social, economic, and cultural factors that may help in making a sound business decision. In addition, determine if a joint venture would be the best route for developing franchises in Mexico. Finally, write your recommendation and justify it.