Originally posted by renfrew
they are doing poorly because they got greedy. too much expansion, too fast. They saw outsourcing their product into supermarkets, convenience stores, gas stations, etc as a way to get more money. I and a lot of others saw it as degrading their product.
They stuck to donuts which is nice to see. They did not go the DD route of making donuts a peripheral part of their business. But they forgot to keep the donuts something special. They made their product common, and forced it on the populace.
So many people's first taste of a KK now is not freshly baked, but has been sitting around for hours in a gas station. Not the way to enjoy a KK. If that was my experience, I would not get a second one either.
In short, KK did not protect their brand better. They forgot what made them special and are in the process of ruining themselves.
Before thre was a KK, there was a KK. "Old" KK was around for years and grew slowly if at all. "New" KK was taken over by promoters who saw a good story to tell.
A long retired friend at one time worked for a division of Beatrice, at a time that Beatrice was a growing, hype driven conglomerate. Beatrice also owned KK. Beatrice left KK alone to make donuts. At corporate planning sessions, as my friend tells me, the KK executives would have to "wash off the flour" to attend the meeting. His comment showed that the KK executives were operation minded leaders who did not hide in an office. When it came time to allocate cash for expansion, the KK execs, to their credit, took the slow growth route to create steady, if unspectacular, profits. Most of the cash went to other parts of Beatrice. As time went by Beatrice had it's own problems, and KK became a cash cow to be sucked dry. KK went through years of change and problems, with the only the outstanding donuts staying the same. IMO, because the donuts stayed so good, and had a very loyal following, the hot shot boys saw a story to be told on Wall Street. Now, as has been mentioned, half the KKs sold are stale, overpriced junk, sold hours after cooking, in supermarkets and gas stations. How can the new management, brought in to save the company, restore the KK reputation?