Competitor Research On The Doughnut Sector In The UK

Introduction

One of the most popular Snacks in the UK in the past few years is the doughnut. It is regularly eaten in the UK and there are reports that over 63 million doughnuts are eaten in the UK yearly. According to the same report the doughnut was adjudged to be the most popular snack in the UK in the year 2013 which has steadily grown over the years. Several individual reports and analysis have attributed this 5% growth trend in the Doughnut market yearly since 2013 to different factors. The Doughnut market has become dynamic with the top companies utilizing different innovations to survive in the competitive market. Unlike other popular snacks like sausage roll or biscuits, the doughnut market is dominated by a few big hitters in the UK.

In this article, we would be discussing the major players in the doughnut business in the UK as well as reviewing the factors in that could bring competitiveness in the market.

The Top Five popular brands

Doughnut branding in the UK is still in its early stages with a few big hitters in the market, some of these brands are located to a particular region, while others offer services across the UK.

Dum Dum’s Doughnut

Dum Dum Doughnut is one of the top doughnut manufacturers in the UK with its array of luxury doughnut brand. The brand has seen its popularity soar reporting sales of over 50% per cent yearly since its launch in 2014. Utilizing different baking techniques Dum Dum Doughnut has emerged as a key player in the doughnut market. The successful partnership in 2014 with Harold was a major highlight as Dum Dum became the first doughnut brand to be sold UK’s popular store. Dum Dum doughnut comes in different packages which are competitively priced. For example the 9 MIXED BOX - 6 CRO'S/3 DOUGH'S cost £22.25, while the 10inch giant doughnut cost $55.

Doughnut Time

Doughnut Time is one of the major doughnut brands in the UK with the presence of 6 stores mainly in London. Doughnut Time has been able to get a significant market share in the UK and employs over 100 staffs in the UK alone. The doughnut brand offers different types of doughnut featuring traditional doughnut recipe alongside Vegan doughnuts. Its major strategic region is London with all nine of its stores located in the capital. However, orders can be placed from different regions in the London via the website.

Manchester Doughnut Company

Manchester Doughnut Company is one of the newer doughnut brands which operates in Salford Manchester. The company was founded by top chef Ed Beech in 2017 and specializes in handmade small batch doughnuts. Primarily based in Manchester the doughnut company has made head waves in this region and is one the recognized doughnut brand among consumers.

Krispy Kreme

Krispy Kreme is the number one doughnut brand in the world with 1004 stores worldwide. Krispy Kreme has a significant presence in the UK with a total of 46 stores and 350 cabinets in conjunction with major retail brand Tesco.

With their varieties of flavor collection, the brand has been able to take a lion share of the doughnut market since the opening of their first store location in 2003.

Factors that affect competiveness of Doughnut brands in the UK

These are different factors that affect the competiveness in the Doughnut market among the different brands. The UK market is getting more valuable yearly. The market is quite ideal and competitive as baked products especially doughnuts is a normally taken as a snack eaten at any time. Despite this, the recent public clamor on health in the UK could prove a detrimental factor in the growth of doughnut business. There has been increased awareness on obesity which many attributes to the intake of snacks as well as junk food which doughnut is usually classified as falling under. Another major determinant in the market is the advent of new doughnut launches. There have been continuous innovations and development in this market. Doughnuts are being made for different types of groups such as Vegan doughnut recipe for Vegans. The past few years have seen an increase in interests in doughnut due to their ease in producing. Many bakers have been trying out new flavors led to high profile launch events. The different product launches have seen the rate of doughnut franchise increase across with many willing to invest in this sector.

Doughnuts brands are able to thrive due to the social age. Another major factor is that the social age has driven up the demand for doughnut franchises and outlets as the new generation have this mindset of socializing at the pub. Furthermore, the increased number of persons to the urban area has facilitated the need for food service outlets. This has also made doughnut businesses to thrive longer, as doughnut does not take too long to prepare which has seen more doughnut shops in the country. Also since they mostly operate in big towns or cities, these doughnut brands are usually marketed with different discounts which increase chances of making success. Competitive advantage is not just about opening stores everywhere, it is also placing strategic plans to mitigate problems.

One major trend noticed was the concentration of most Doughnut stores and outlets in London which is the capital and most populous city in the UK. London is a strategic point as the nature of the city leads to many taking a snack on daily basis. Doughnut brands that operate exclusively in London like Doughnut Times won’t be able to have the same level of outreach than other brands that have a presence in other regions Krispy Kreme remains one of the few Doughnut brands and has strategized by keeping the spreading out to various cities across the UK. The partnership to sell doughnut via Tesco is an inspired one for Krispy Kreme which provides the Doughnut Company with an extended reach to over 300 stores in the UK.