Krispy Kreme doughnuts are ubiquitous in local supermarkets. But I’ve never seen a stand-alone storefront for the chain. In spite of the lack of physical locations selling these treats and the absence of the instantly recognizable neon “HOT NOW” sign. The brand’s popularity has never been higher. According to Restaurant Business Online, 2022 was Krispy Kreme best sales year ever because of some ingenious behind-the-scenes strategies.
Krispy Kreme Is Famous For Its Daily Fresh Delivery Service
Given that, a lot of Krispy Kreme doughnuts are sold in bulk at supermarkets. You might be wondering how they manage to avoid getting stale throughout the day. Krispy Kreme operates on a “hub-and-spoke” model, with the shops acting as hubs and delivering freshly made doughnuts to other locations (spokes) like supermarkets, drugstores, and convenience stores. DFD stands for “Delivered Fresh Daily,” the company’s name for this practice.
The advantages of this model are straightforward. If, for example, you distribute your wares in high-traffic areas like supermarkets. You can reach a large audience without spending any money attracting them to your physical stores. Everyone, at least in my experience, enjoys doughnuts, and they seem to be a popular snack at any time of day.
Krispy Kreme Promo Code is also expanding into other key markets. In Louisville, Kentucky, it is continuing to sell doughnuts to test customers at McDonald’s. McDonald’s has previously introduced its own Glazed Pull-Apart Donut. But its quality doesn’t approach that of a Krispy Kreme. So there’s a potentially massive partnership there.
However, Krispy Kreme CEO Mike Tattersfeld acknowledged on an earnings call that collaborating with McDonald’s was not without its difficulties. When negotiating a partnership with the country’s largest fast-food chain, you won’t just be able to put up a sign as you would in a supermarket; you’ll need to consider “how our brand also works with another brand.” Krispy Kremes will have to consider this as they keep testing the market.
How Many Krispy Kreme Doughnuts Did They Sell In The Year 2022?
In 2022, Krispy Kreme sold an astounding 1.63 billion doughnuts around the world. I can’t even wrap my head around that many doughnuts. That resulted in a 9 percent increase in revenue, to $404.6 million for the company. During the conversation, Tattersfield remarked, “That’s a lot of doughnuts.”
The stage now set for a promising 2023. But we shouldn’t count on being courted with lavish giveaways and discounts just because business is good. However, Krispy Kremes is taking the completely opposite approach, using limited-time premium items like this Biscoff Doughnut trio to attract customers. Revenue growth anticipated from seasonal doughnuts this year. Such as Hershey’s heart-shaped lineup for Valentine’s Day.
This Year Will Shut Down A Number Of Stores
The bad news is that, while most Krispy Kremes shops won’t close anytime soon, the profitable ones will be expanded upon by eliminating the underperforming ones. As of right now, the company anticipates closing seven locations in the first half of 2023.
Krispy Kreme could be in for a lot of dough thanks to competitors like Dunkin. Which has shifted its focus from donuts to coffee and dropped the “Donuts” part of its name.
