Those interesting economists at Marginal Revolution pointed me toward this fun Associated Press article by William Foreman, which looks at the latest attempts to popularize doughnuts in China. Although the Chinese have made room in their bellies and hearts for other Western chow, they have never warmed to the idea of downing doughnuts.
Taiwanese entrepreneur Patrick Li is convinced he can succeed where others, including Dunkin’ Donuts, have failed. He is trying to break through in the city of Guangzhou, thinking the answer to the problem is to tailor the treat to preexisting Chinese taste expectations. An excerpt from the piece:
“The doughnuts this entrepreneur is selling, in the city that gave its name to Cantonese cooking, won’t be readily recognizable to Westerners. They’re shaped like pearl bracelets, and toppings include ham and cheese, red spaghetti sauce, salmon, spicy beef and seaweed flakes.
Many of Lin’s doughnut lines follow the Japanese approach of using rice flour for a dense, chewy texture, much like Chinese desserts made of sticky rice.
‘The American-style doughnut doesn’t sell well in China because it’s too much like bread,’ said Lin. ‘It just won’t be accepted. You can’t justify selling it at a price higher than bread. It’s also too sweet.'”