Krispy Kreme expands Kool Kreme test

Krispy Kreme expands Kool Kreme test
Tags: Coffee/Bakery/Donut, Food & Beverage, Operations Management
August 2, 2009 - Christa Hoyland

Krispy Kreme Doughnut Corp. has opened its first Neighborhood Shop and Kremery in Knightdale, N.C. The store is one of the company's retail concept shops, developed by the chain to open in smaller locations that typically rely on a nearby factory store to supply product.

The 1,750-square-foot Knightdale store, located in the Shoppes at Midway Plantation, will feature Krispy Kreme's doughnut varieties, signature coffees and espresso drinks, Krispy Kreme Chillers and iced beverages. The new Knightdale location also will offer Krispy Kreme's new Kool Kreme soft serve menu, a line the company has been testing in limited markets.

Available in Very Vanilla and Deep Chocolate, Kool Kreme soft serve is offered in traditional cones, shakes and sundaes, all paired with a toppings bar. Specialties include the company's signature doughnut sundaes, which come in chocolate cake, strawberry cake and Original Glazed. The Artic Avalanche combines Kool Kreme with a candy mix-in.

"Krispy Kreme is excited to open its first Neighborhood Shop and Kremery here in Knightdale," said Cindy Bay, senior vice president of company store operations for Krispy Kreme. "We look forward to the continued success of our new smaller retail concept store, which will allow us to continue to bring fresh, unique, signature products closer to consumers, and offer the Krispy Kreme value and experience to new audiences."

Hope for the future

Krispy Kreme has struggled in recent years to overcome several financial losses brought on by an overly ambitious growth strategy in the late 1990s. The new retail concept is part of the company's brand strategy to turn around operations. CEO James H. Morgan has said the company expects to "see good economics from these small retail shops because of their smaller size and inherent simplicity."

The neighborhood store concept also is being tested by Krispy Kreme franchisee Dan Brinton in the Arizona market. Brinton has said he is pleased with the new stores' success.

"The return on investment is very good from an operating perspective," Brinton said. "The ease of operations are actually easier than we thought. From a customer perspective, it's pretty seamless."