BusinessWorld Online:

The Philippine franchisee of the Krispy Kreme doughnut chain is looking to replace certain imported inputs with locally sourced ingredients to cut costs, an official said late last week.

The Real American Doughnut Co., Inc. Director Robert F. Trota told reporters the firm is now certifying suppliers for cooking oil and is also considering local beverage manufacturers.

“About 70% to 80% of our raw materials are imported. We’re hoping to bring it down. [Sourcing locally] saves us transportation costs and it helps the Philippine economy,” Mr. Trota said at the sidelines of a franchising conference.

He clarified however that the doughnut mixes — pre-measured packets of doughnut batter ingredients — would continue to be imported from the US.

Mr. Trota went on to say that there were no plans to hike prices as the firm is “pretty much confident that prices of imported raw materials will be stable.”

So far, year-to-date sales are better than the same period last year, he said without elaborating.

“We launched a lot of products and innovations that are driving transactions. We’ll try anything and give it a shot. There’s so many things you can do with a doughnut,” Mr. Trota said.

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