Donut King in China

The chain’s owner Retail Food Group Ltd (RFG) is taking Donut King to China after signing a master licensing agreement with Shanghai-based Mak Brands Ltd.

RFG said consumer research showed Donut King’s products would need to change to meet the expectations of Chinese consumers.

“The donut offering will change in terms of flavours and colours,” RFG executive director Nigel Nixon told AAP.

“The Chinese palate is more bland. Our donuts are too sweet for the Chinese palate.”

New flavours such as green tea donutholes or vanilla with green bean paste donut may be featured, he said.

RFG, which was also the franchisor behind popular brands such as Brumbys Bakeries, Michels Patisserie and bb’s café, said being first off the block into China gave any company an advantage.

Mr Nixon said there was a minimum requirement to establish 140 outlets in the first 20 years.

Mak Brands was founded to establish and expanded retail food and restaurant outlets throughout the greater China region.

Mr Nixon said Donut King would be the first brand within Mak Brands portfolio but he was not worried about working with a company without a proven track record.

RFG, which made its initial public offering about two years ago, has 1,050 franchised outlets in Australia and New Zealand.