PHOENIX — Krispy Kreme is evolving its store concept to better compete in today's market with the opening of three "neighborhood doughnut shops" in Phoenix.
The neighborhood shops have a smaller footprint than the traditional factory store, which typically runs about 4,000 to 5,000 square feet. Two of the new shops are 1,500 square feet, and one, a double drive thru, is only 688 square feet, said Dan Brinton, Arizona franchise partner and area developer.
The stores are smaller because the doughnuts are produced at the Mesa, Ariz., factory store and shipped three to four times a day to the neighborhood outlets. The replishment cycle is the same as in the factory stores so that the product is always fresh, Brinton said.
"We're going to have fresh product there just like you'd have in a traditional Krispy Kreme," he said. "It will be seamless to the customer as far as the product quality."
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| Krispy Kreme Paradise Valley Mall double drive thru, Phoenix |
Brinton, who previously was a Krispy Kreme franchisee from 1998 to 2006, came up with the idea for the neighborhood stores when he returned as a Krispy Kreme franchisee. An important component of his store model is that no retail sales be allowed in the Arizona market. He said the neighborhood store model gives an operator more control.
"I'm not beholden to a third-party selling my product (or) controlling the quality of my product," he said.
He also wanted locations that met customers where they lived and worked.
"We're going to exactly where the customers are, being neighborhood focused, not city focused," Brinton said, noting that customer response was strong. It was typical to hear customers saying, "'I love your product I just never could get to you.'"
Krispy Kreme made its return to Arizona in May after a two-year absence with the opening of the Mesa factory store. The three neighborhood stores opened Oct. 9.
"Some might ask why we're introducing a new concept with the Mesa store being so successful, but it's all about responding to customers needs," Brinton said.
The Krispy Kreme Mesa store features the company's signature doughnut-making machine capable of producing more than 200 dozen doughnuts an hour — all within sight of customers through the glass viewing area. At this rate, it can produce approximately 60,000 doughnuts per day and 400,000 doughnuts per week, making it possible to service the neighborhood doughnut shops.
The new Krispy Kreme locations will offer 15 varieties of doughnuts, including Krispy Kreme's signature Original Glazed doughnut. The stores also will feature Krispy Kreme's Signature Coffee line that features two drip coffees — Smooth and Robust Decaf. Krispy Kreme Chillers and Shamrock Farms mmmmilk are also available.
Depending upon the success of the new store concept, Krispy Kreme corporate plans to rollout similar style neighborhood doughnut shops in markets across the country.
