Duck Donuts eyes Philippines as Asia production hub

MANILA, Philippines — US doughnuts chain Duck Donuts is looking to make the Philippines its production hub in Asia as part of its expansion in the region as it looks for a local partner to bring the franchise to the country.

The company, founded in 2006, wants to enter the Philippine market and possibly set up a hub here to service the needs of its planned expansion in Asia, said Duck Donuts global franchise development executive Marcel Portmann.

“(It’s) good for us because (to be here because) that means people are buying doughnuts and they like doughnuts,” he told reporters on the sidelines of the Trade Winds ASEAN 2023 Reception last week hosted by US Ambassador to the Philippines MaryKay Carlson.

Trade Winds is the US Department of Commerce’s flagship overseas trade promotion program.

“It is great to see so many companies and individuals interested in expanding the US-Philippines trade and investment relationship,” Carlson said during the reception.

Portmann said the company wants to look for a Philippine partner that can grow the brand with eight outlets and more openings eventually.

The company is looking for a partner that is familiar with the food industry in the Philippines, as well as real estate experience to be able to get good sites.

The idea is for a 10-year agreement with all of the initial eight stores opened by the time the company has reached half the term or eight stores for the first five years of the partnership.

The Philippine partner may be a group with food experience that wants to complement an existing brand with a desert category.

“It is very important that they have real estate knowledge..like how to get good sites, negotiate leases,” he said.

After the trade mission and if the chain finds a partner in the Philippines, Portmann said Duck Donuts may open its first store in the country as early as the fourth quarter of this year or first quarter of 2024.

As for the regional hub, it would be able to provide the supply chain solution for the company’s expansion in Asia.

“The opportunity we have in the Philippines is if we can create the mix here we can supply to neighboring countries,” Portmann said..

Aside from the Philippines, the company is already expanding in Bangkok this year.

Duck Donuts was founded in 2006 in Duck, North Carolina, by Russ DiGilio and Robin Griffith, and has since expanded to over 100 locations in the United States.