Krispy Creme problems

Looks like they think low-carb diets are to blame.


http://www.baltimoresun.com/entertainment/dining/bal-bz.krispy08may08,0,631603.story?coll=bal-artslife-dining

Honestly, I think thats crap although Atkins is a certainly a convenient excuse. I think it is more of a case of expansion too fast. Bottom line, the ones in the supermarkets suck becasue they are old and everyone knows a KK is really only good when fresh.

This company needs to get back to its roots and focus on what they have been doing right for years. We all buy into the expand or die theory for some reason and more cases than not it comes around to bite you on the butt.

Now, I am glad there finally is one up here in Boston, cuz I do like KK. But I would rather have satisfied my craving on a road trip down to maryland or delaware.

I noticed in the newspaper this morning that a new Dunkin Donuts has opened in Charlotte, NC and also that Krispy Kreme has announced it will be closing some of its stores. One in Charlotte in the Myers Park Area-that just opened in January 2002. They are blaming it on slow traffic. They are also closing a store in Atlanta and one other place

quote:

Originally posted by renfrew

Honestly, I think thats crap although Atkins is a certainly a convenient excuse. I think it is more of a case of expansion too fast. Bottom line, the ones in the supermarkets suck becasue they are old and everyone knows a KK is really only good when fresh.

This company needs to get back to its roots and focus on what they have been doing right for years. We all buy into the expand or die theory for some reason and more cases than not it comes around to bite you on the butt.

Now, I am glad there finally is one up here in Boston, cuz I do like KK. But I would rather have satisfied my craving on a road trip down to maryland or delaware.

KK is lacking the Dunkin Donut killer - Fantastic Coffee. Plus, Dunkin Donuts has a much better selection of non-donuted (if thats a word) food like bagels, muffins, sandwiches etc. Most peoples breakfast choices are driven by coffee rather then donuts. Just look at Starbucks for proof. I predict KK will see some real setbacks in the coming years unless it makes some serious adjustments.

quote:

Originally posted by Stephen Rushmore Jr.

KK is lacking the Dunkin Donut killer - Fantastic Coffee. Plus, Dunkin Donuts has a much better selection of non-donuted (if thats a word) food like bagels, muffins, sandwiches etc. Most peoples breakfast choices are driven by coffee rather then donuts. Just look at Starbucks for proof. I predict KK will see some real setbacks in the coming years unless it makes some serious adjustments.

Stephen,do you think we will soon see espresso machines at KK

The KK near home has THE WORST coffee ever!....If you are a fan of KK donuts(many are)you must admit that things have been on the downslide for months. Is it that hard these days to find employee's that actually perform a positive function? That is my complaint with KK, on the other hand, DD always have folks working for them who are pleasant and efficient......oh,for a DD plain cruller(swoon)

I guess there must just be alot of inconsistencies within the various stores in various locations. The KK in Columbia, has excellent coffee (and I should know .... I'm a coffee purist !! I drink it strong, black and unsweetened) !!! The glazed donuts are excellent when they are hot and fresh and the cake donuts are good too !!! But ... maybe its just me !!!


OH yeah ... you mean to tell me that KK donuts are not low-carb ????

Next thing you know you'll be trying to tell me they are not low-calorie either !!!! The nerve !!!!

We all KNOW that all donuts are carb free,fat free,cholesteral free and contain no more then 8 calories apeice! ........and they conteract all the negetive effects of caffeine!!!!

I always found KK coffee to be good and it has definitely improved a lot. And i would hate to see KK go down the DD path. DD needs to change their name since donuts are not what they are about at all anymore.

The strength of KK is that they focus on two things: Donuts and Coffee. Mess with that and start adding bagel sandwiches and crap like that and you get away from what your core business is.

What KK needs to stop doing is expand so much so soon. That accounts for the downgrade in quality at some places and the employee quality as well.

KK's are great right out of the fryer, DD has frosted strawberry donuts and great coffee, but neither can take the place of a Tim Horton's double double and a maple frosted donut. Only problem is the drive....
We've lost all of our Dunkies in the last couple of years, and are rapidly losing Krispy Kremes as well. Looks like I'll be taking a roadtrip now no matter what kind of donut I get. Sigh. Guess society is just getting too healthy for donuts anymore.

Some restaurant companies, like Starbucks and McDonald's, seem to thrive on expansion. Others, like Boston Market, die when they expand too fast. As someone who liked Boston Market when it first became popular a decade ago, I wonder what happened there. Must have been poor management, because the food started going downhill once the expansion really got into gear. You never knew if the meal would be good or not.

Starbucks and McDonald's, on the other hand, have thrived by making their products exactly the same everywhere. I don't think KK is doing the right thing selling its donuts in grocery stores, because there's no way they could taste the same and they might turn off potential customers. The company was obviously doing something right to become so big, and they should stick with that. (I must say I've never tried one, but it is tempting)

quote:

Originally posted by danimal15

Some restaurant companies, like Starbucks and McDonald's, seem to thrive on expansion. Others, like Boston Market, die when they expand too fast. As someone who liked Boston Market when it first became popular a decade ago, I wonder what happened there. Must have been poor management, because the food started going downhill once the expansion really got into gear. You never knew if the meal would be good or not.

Starbucks and McDonald's, on the other hand, have thrived by making their products exactly the same everywhere. I don't think KK is doing the right thing selling its donuts in grocery stores, because there's no way they could taste the same and they might turn off potential customers. The company was obviously doing something right to become so big, and they should stick with that. (I must say I've never tried one, but it is tempting)

ALL restaurants thrive on expansion! But it's possible to expand too quickly - you can either saturate the market [the franchisees are too close together], or overstay your market receptiveness [the market hasn't come around yet to your product - or is SO OVER IT already...].

I don't think that KK sales are off because of anything in the taste (or "quality") of their product - it's just that the novelty has worn off. It's one thing for life-long devotees to buy them by the bag, but the newly converted may not necessarily take to this practice with the same zeal. They may have just moved on to the next 'big thing' - whether it's muffins, croissants, or bagels again, or perhaps some new thing entirely (what a about a plain toast craze?...).

(I, for one, think that Starbucks is due for some compression/reduction/shrinkage - unless they find some other products [w/ better profit margins] to sell alongside all their current beverages - OR starts marketing to kids, like McD's. Once franchisees find that much of their local competition is just other Starbucks franchisees, they may just switch to some other product - maybe something complementary to coffee?...or even the anti-coffee, tea?)
Buen provecho,
Richard
Berkeley/SF, CA

KK are awful when they are cold. Sort of like eating cooked bacon out of the fridge.

I remember seeing once a list of top donut places in the US. Nothin' beats a homemade bakery donut.

Ah, yes, the homemade bakery doughnut...from the full-service bakery, complete with fryolator, that I have down in the kitchen.

quote:

Originally posted by Richard Brooks Alba

quote:

Originally posted by danimal15

Some restaurant companies, like Starbucks and McDonald's, seem to thrive on expansion. Others, like Boston Market, die when they expand too fast. As someone who liked Boston Market when it first became popular a decade ago, I wonder what happened there. Must have been poor management, because the food started going downhill once the expansion really got into gear. You never knew if the meal would be good or not.

Starbucks and McDonald's, on the other hand, have thrived by making their products exactly the same everywhere. I don't think KK is doing the right thing selling its donuts in grocery stores, because there's no way they could taste the same and they might turn off potential customers. The company was obviously doing something right to become so big, and they should stick with that. (I must say I've never tried one, but it is tempting)

ALL restaurants thrive on expansion! But it's possible to expand too quickly - you can either saturate the market [the franchisees are too close together], or overstay your market receptiveness [the market hasn't come around yet to your product - or is SO OVER IT already...].

I don't think that KK sales are off because of anything in the taste (or "quality") of their product - it's just that the novelty has worn off. It's one thing for life-long devotees to buy them by the bag, but the newly converted may not necessarily take to this practice with the same zeal. They may have just moved on to the next 'big thing' - whether it's muffins, croissants, or bagels again, or perhaps some new thing entirely (what a about a plain toast craze?...).

(I, for one, think that Starbucks is due for some compression/reduction/shrinkage - unless they find some other products [w/ better profit margins] to sell alongside all their current beverages - OR starts marketing to kids, like McD's. Once franchisees find that much of their local competition is just other Starbucks franchisees, they may just switch to some other product - maybe something complementary to coffee?...or even the anti-coffee, tea?)
Buen provecho,
Richard
Berkeley/SF, CA

There is a brand new Captain D's going up not 100 yards from an existing Long John Silver's on Rt 60 in Chesterfield County where I pass by often. I say pass by because I've never eaten at either of these chains. Either they really have a big demand for their product, whatever it is, or they're gonna be in trouble. Can they really have that big a demand?

Frank

We finally stopped into a Krispy Kreme to view the donuts and try their donuts for the first time. What a big disappointment. No donuts were being made. The selection of donuts is way too small. The flavor tasted like you were biting into air. Nothing to it. We paid regular retail there, then on the way home we went to our local grocery store and found they sold them for 14 cents cheaper, and were made the same day. Sorry KK you lost us. We will head to Winchells or Dunkin Donuts or even a local shop from now on. Glad I am not a stock holder after this experience, I would had sold it.

I think Krispy Kremes managment has become stupid. Last year, they bought out a small local chain called Montana Mills Bakery. This bakery featured excellent breads and muffins and was starting to grow. KK paid about 30 million for the company. I read a week ago that due to lower sales caused by the Atkins diet craze, KK was going to close out the Montana Mills stores and write it off. They said some individual stores may be sold. I hope the couple who started Montana Mills buys the local stores and keeps running them, they certainly have enough cash left over from that 30 mil...

the latest gossip i've heard on KK's business woes is talk about missrepresenting the financial picture to investors who are now aparently very upset. Like i say---this is GOSSIP--but i hate it when i see some food industry icon get corporate,get crazed and fade off "into whatever happened to" land. As you tell by the numerous areas of this forum---that is NOT rare! and in the end all the guys with big bucks keep them,investors get a 2% cut in their retirement pacakage and working stiffs end up for another new chain that starts them back at the bottom of the pay scale! Remember when donut shops opened up TO SELL DONUTS!!!!

quote:

Originally posted by Lucky Bishop

Ah, yes, the homemade bakery doughnut...from the full-service bakery, complete with fryolator, that I have down in the kitchen.

Fryolator in the kitchen... Must be nice... My question is where did you find the room to put that 60 quart mixer?

I heard on the news that Krispy Kreme has suffered a big loss ( in the millions ) so far this year. I guess that all of the low carb craze is really affecting them. Also, the price of a dozen doughnuts at Krispy Kreme is getting too high. The last time we bought them several weeks ago, a dozen regular glazed doughnuts were 5.50.

45-46 cents a donut seems pretty cheap to me. How much do you think they should be?


here in boston, you go to a decent bakery and can spend 1.50 for one brownie or cookie. Donuts still represent the bargain basement of bakery products.

The average price I've paid for a dozen at a mom and pop is about $4.99 -- $5.50 seems reasonable, especially considering the fact that I'd rather eat Krispy Kremes than the doughnuts at 90% of the mom and pop places I've tried.

Two Krispy Kreme donut locations opened in the past few years here in CT with a lot of hype. They seemed to do a lot of business initially but now look pretty empty when I drive past them. I tried one of their donuts and it was o.k. but definitely not worth the over $7.00/doz. that they were asking and with the price of gas over $2.00/gal. certainly not worth driving to. Dunkin Donuts are on every corner and have very good donuts and excellent coffee. Soon, however, both will be getting some competition from Wendy's owned Tim Horton's which is a Canadian coffee shop. They have taken over Bess Eaton locations here in CT and nearby RI. We jus love Tim Horton's when travelling in Canada and can't wait for them to arrive here.

I just read that KK is changing it's name in Asia to Durian Donuts.

From a personal view, I totally enjoy Krispy Kreme and I wish them sucess. I wish I could only have one as when they are presented, I cannot stop. They are not on my dietary program. I love them so much.

Paul E. Smith
Knoxville, TN

Krispy Kreme is appealing its denial of a license to operate in Woburn,MA (Rt 93, Montvale Ave. exit)
http://www.woburnonline.com/frontpage/march05/32905-2.html