Krispy Kreme eyes Irish expansion as revenues top €10m

krispy kreme franchise

The Irish arm of doughnut maker Krispy Kreme franchise is eyeing further expansion here after its revenues last year topped €10m for the first time. New accounts show that expansion costs last year contributed to Krispy Kreme Ireland Ltd recording a pre-tax loss of €415,000 after it posted a pre-tax profit of €1.16m in the prior year.

The accounts show that in the 12 months to January 1 this year, the firm’s revenues surged by 43% from €6.98m to €10.01m – or an average weekly revenue of €192,634.

The directors state that during the year, the firm continued to grow its retail estate and on January 1 this year operated 10 retail locations. The doughnut maker’s retail locations here include the Swords Pavilions Shopping Centre in north Dublin, Liffey Valley Shopping Centre, The Square Shopping Centre, Dundrum Town Centre and One Central Plaza, Dame Street in Dublin which opened in August 2022.

The business has steadily expanded despite the impact of Covid-19 following the opening of its record breaking doughnut selling store in Blanchardstown in September 2018. On the performance of the business in the year under review, the directors state that “the company began 2022 with a clear growth agenda and has during the year grown despite a challenging economic market environment with significant cost pressures in all input cost lines”.

“The company continues to look forward to a future of continuous investment and growth as it further establishes its footprint in the market,” they added.

Along with having 10 retail locations on January 1, the company continues to grow access points also in its DFD (Delivered Fresh Daily) with several partners.

The directors state that last year, the Irish economy was impacted by high inflation impacting consumer disposable income, input cost and lack of labour and goods in the marketplace impacting operations.

In response, the directors state that they have taken several actions during the year including locking in contracts for input price stability, improving employee pay, working to reduce costs in overheads and taking price increases.

The directors state that they “are satisfied that the company has continue to strengthen its position during 2022 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrate its resilience and its ability to be both profitable and cash generative”.

“In 2023, the company will continue to expand its presence with plans to open shops in quality, high profile locations, expand with its DFD partners, invest further in digitally enhanced channels and further expand reach and sales via digital channels,” they added.

The firm recorded Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of €819,000 compared to €1.77m in the prior year.

The pre-tax profit takes into account non-cash depreciation costs almost doubling to €1.14m. The expansion of the business contributed to the firm’s operating lease costs increasing from €305,000 to €544,000. The opening of new stores contributed to numbers employed more than doubling from 73 to 154 that included 149 were engaged in sales and manufacturing.

The opening of the Blanchardstown store in September 2018 was greeted by a consumer mania not seen in Ireland in recent years.

There was a queue of 300 people when the store opened its doors at 7am on its first day of operation on September 26th when thousands of customers streamed through the doors during the first day to make the opening the biggest store opening for Krispy Kreme across the world at the time.

On January 1 this year, the company said its accumulated profits stood at €2.04m while its cash funds totalled €467,000.


International sales, e-commerce boost Krispy Kreme earnings

CHARLOTTE, NC. — E-commerce and global sales boosted Krispy Kreme, Inc. results during the second quarter ended July 2, continuing a trend the company has seen from its aggressive omnichannel, hub-and-spoke distribution expansion. Krispy Kreme’s global points of access increased 12.8% in the quarter to 12,872, compared with the same quarter a year ago, while international sales per hub increased 3%.

Net revenues in the United States increased 9.3% to $22.8 million and organic revenue grew 12.7%, largely led by e-commerce sales. Internationally, net revenues increased 4.8% from the same quarter a year ago, which the company attributed to increased pricing and points of access growth of 245 locations, or 7%.  E-commerce as a percentage of retail sales grew 260 basis points.

Executives of Charlotte-based Krispy Kreme reaffirmed previous guidance for the full year 2023, which projects net revenues of $1.65 billion to $1.68 billion, or an increase of 8% to 10%. Organic revenue growth is expected to be in a range of 9% to 11%.

“I am proud of the results we delivered in the second quarter, which were bolstered by our continued focus on expanding our hub-and-spoke model as we leaned heavily into our omnichannel and DFD (Delivered Fresh Daily) capabilities as well as our international expansion strategy,” said Mike Tatterfield, chief executive officer. “We executed the strongest and largest National Doughnut Day in our history, which we now celebrate in a dozen countries. We are also pleased with our continued global expansion, as we opened three new markets during the quarter in Chile, Jamaica, and Costa Rica, all exceeding our revenue growth targets.”

During the second quarter, Krispy Kreme invested $27.7 million in capital expenditures, or 6.8% of revenue, to support the growth of hot light theaters, cookie shops and DFD Doors.

Net income totaled $223,000 in the second quarter ended July 2, which compared with a loss of $3.85 million in the same period a year ago. Total net revenue increased 9% to $408.9 million and product sales totaled $400 million, up from $367 million a year ago.

“We look forward to capitalizing on a strong start to the year in the back half of 2023 and delivering profitable growth as we focus on our capital efficient hub-and-spoke model and omnichannel strategy,” Mr. Tattersfield said. “We continue to expect to open in three to five additional markets in 2023, and recently opened in Switzerland, which marked our first opening in Continental Europe to be followed by France before year-end. Overall, we remain on our path to grow global points of access and become the most loved sweet treat brand in the world.”The Insomnia Cookies brand, which is owned by Krispy Kreme, saw a revenue of $412,241, compared with last year’s revenue of $404,430. The cookie brand also saw an increase of 23 stores compared to the same quarter a year ago.


Krispy Kreme to open with a bang in Jamaica

The scene is set for what can truly be described as a bonanza of doughnuts when the flagship Krispy Kreme franchise store opens to the public on Saturday (June 3) at 1 Waterloo Road in St Andrew. 

The excitement is all about the Krispy Kreme doughnuts, famous and popular throughout North America, now landing in Jamaica. 

Lisa Lake, group CEO for Restaurant Associates Limited (RAL), franchisees in Jamaica for Krispy Kreme, said, “Krispy Kreme is famous for producing our amazing doughnuts; especially the melt in your mouth Original Glaze. Each donut is made fresh daily and made from scratch.  We will be launching with twelve varieties of donuts and  will also offer Krispy Kreme’s Chillers fruit flavoured beverages as well hot and cold specialty coffee drinks.

“It’s all very exciting. We are bringing our one-of-a-kind famous Hot Light Experience to Kingston, Jamaica. When the ‘Hot Now’ sign is lit up at a Krispy Kreme store, you can experience a hot Original Glazed doughnut straight off the line – so fresh it’s still warm! When the light is on, it’s on!”, Lake explained. 

With the finishing touches being put on for the grand public opening on Saturday, Bradley Perkins, brand manager for Krispy Kreme says the excitement is at fever pitch for the product and for the range of generous prizes and surprises being laid out.

In keeping with the worldwide ‘drop’ of a sought-after product Perkins said that customers are already plotting now to be among the first 100 in line to win prizes of doughnuts on offer.

A tiered outline of winnings is as follows:

1st prize: ‘The Golden Ticket’, one year supply of original glazed doughnuts (one dozen per week for one year commencing June 5, 2023).

2nd – 12th customers in line: ‘Silver Ticket’, six months’ supply of original glazed doughnuts (one dozen per month, commencing June 5, 2023)

13th – 100th customers in line: ‘Bronze Ticket’, three months’ supply of original glazed doughnuts (one dozen per month, commencing June 5)

Perkins said “it will be fun filled day for the entire family from 8:00 am- 7:00 pm. Our host will be popular vibe master Jenny Jenny.  We will have doughnut eating contests, dance offs, a whole lot of excitement.” 

“Our mission at Krispy Kreme franchise is ‘to touch and enhance lives through the joy that is Krispy Kreme’. The opportunities are endless. It connects customers through an experience that is emotional, affordable indulgence as families bond over a box of doughnuts while watching television, a special treat at school, or for a sports team or a group of friends indulging in a box of doughnuts at the beach or at home games night,” he added.

Krispy Kreme franchise, which announced it would open in Jamaica in December 2022, will also open its first stores in Switzerland, France and Costa Rica later this year. 

Founded in North Carolina in 1937, Krispy Kreme franchise currently operates nearly 2,000 stores globally.  The donut and coffee chain achieved 12% year-on-year revenue growth to reach $419m in the three months ended 2 April 2023. 


How Krispy Kreme thinks it can be ubiquitous

Krispy Kreme franchise has been working on its total brand transformation — from doughnut bakery to the newly dubbed “doughnut logistics company” — for a couple of years now, and the overhaul is nearly complete. As Krispy Kreme continues to work on either closing underperforming stores or turning them into hubs to fulfill orders to grocery and convenience stores, the focus on the “Delivered Fresh Daily” strategy was a driving force of the 12.5% revenue growth for the first quarter ended April 2, as doughnuts are now available to a wider range of customers.

While Krispy Kreme franchise continues to add global points of access to doughnuts through grocery and convenience store doors and more — with 350+ PoA added this quarter — the company keeps closing traditional bakeries, with 29 shops closed or converted to distribution hubs last quarter. Global brand reach is only at 5%, CEO Mike Tattersfield said, so the company has a long runway for growth and doughnut access globally.


Krispy Kreme’s transformation into a “doughnut logistics company” is nearly complete

Krispy Kreme franchise has been working on its total brand transformation — from doughnut bakery to the newly dubbed “doughnut logistics company” — for a couple of years now, and the overhaul is nearly complete. As Krispy Kreme continues to work on either closing underperforming stores or turning them into hubs to fulfill orders to grocery and convenience stores, the focus on the “Delivered Fresh Daily” strategy was a driving force of the 12.5% revenue growth for the first quarter ended April 2, as doughnuts are now available to a wider range of customers.

While Krispy Kreme continues to add global points of access to doughnuts through grocery and convenience store doors and more — with 600 PoA added this quarter — the company keeps closing traditional bakeries, with 29 shops closed or converted to distribution hubs last quarter. Global brand reach is only at 5%, CEO Mike Tattersfield said, so the company has a long runway for growth and doughnut access globally.

Besides adding points of access and continuing to convert its brand from a bakery-first company to an omnichannel brand, Krispy Kreme franchise is also driving its success through consistent holiday promotions and brand partnerships. Last quarter, the company partnered with Biscoff and Hershey for two separate LTO menus, and this quarter is partnering with Chips Ahoy and Oreo cookie brands for limited edition doughnuts.

For each holiday, including Valentine’s Day, St. Patrick’s Day, and Mother’s Day coming up, Krispy Kreme offers a new lineup of themed LTO doughnuts and mini doughnuts, which has driven customer engagement both in-store and through other channels.

“I’m proud of our performance in the first quarter that continued to demonstrate the strength of our omnichannel model, which allows us to meet consumer demand with premium, fresh doughnuts in a capital efficient manner,” Tattersfield said. “Our global Valentine’s Day and St. Patrick’s Day campaigns and specialty offerings such as Biscoff Doughnuts resonated with consumers, showcasing the opportunities for premiumization as well as the gifting and sharing power of our brand.”

The first quarter of 2023 also represented the strongest quarter for e-commerce Krispy Kreme has ever seen, with a 23% boost driven mainly by Insomnia Cookies.

 “We also achieved our best-ever quarter of e-commerce revenue, representing a higher mix of revenue than during the pandemic and we see a long runway for further growth in this channel,” Tattersfield said. “Krispy Kreme franchise continues to be well-positioned to deliver another year of strong growth driven by our capital efficient DFD model and our global expansion plans.”

Moving forward, one of the company’s biggest goals is to become more technology efficient by adding better tech to drive-thru lanes and bakery hubs as demand grows. Krispy Kreme  will also begin to add digital kiosks to the lobbies of stores across the U.S. to make the ordering experience easier for guests.

Krispy Kreme ended the quarter with $419 million in net revenue, and reported a loss of net income for the quarter, down from $6.5 million or $0.02 per share last quarter to $1.6 million or $0.00 per share for the first quarter ended April 2.


Krispy Kreme Delights Costa Rica: A Sweet Sensation Takes Over Escazú

Donut lovers in Costa Rica have reason to rejoice as the highly anticipated opening of Krispy Kreme franchise in Escazú has finally arrived. Situated just before the 7 Bancas Shopping Center on the bustling main road of San Rafael, the store’s debut sparked an outpouring of excitement among Costa Ricans eagerly craving these delectable treats.

Images circulating on social media captured the overwhelming response to the grand opening, as the store’s surroundings witnessed a remarkable scene of crowded roads and snaking lines of cars. Determined donut lovers even resorted to camping outside the premises, armed with tents and umbrellas, in their quest to secure these coveted delights.

The official opening took place on Saturday, May 13, but the enthusiasm was so infectious that customers began arriving on Friday morning, ready to endure whatever it took to savor Krispy Kreme’s long-awaited donuts.

The ensuing weekend unfolded in a whirlwind of chaos, with lines stretching endlessly, traffic grinding to a halt on San Rafael’s roads, and concerned neighbors necessitating police intervention to regulate the overwhelming influx of visitors.

Krispy Kreme took to Instagram to share the momentous occasion, inviting everyone to indulge in their full menu of mouthwatering donuts, accompanied by the question, “Which one is your favorite?”

One devoted customer’s dedication shone through as he waited an astounding 55 hours in line to be the first to taste the heavenly treats. As a well-deserved reward, he will enjoy a complimentary weekly supply of 12 donuts for an entire year.

To further celebrate their arrival, Krispy Kreme delighted the local community by distributing thousands of free donuts in various areas, spreading joy and sweetness throughout Costa Rica.

Since its founding in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme’s unparalleled success has fueled its expansion worldwide. In 2022, the company announced its plans to enter the Costa Rican market, alongside Switzerland, Chile, Jordan, and other promising destinations.

Now, Costa Ricans can revel in the irresistible charm of Krispy Kreme’s Original Glazed Donuts, along with their entire range of delicious offerings. This remarkable arrival marks a moment of pure delight for donut aficionados across the country, savoring the unparalleled joy that these delectable treats bring with each bite.


Krispy Kreme CEO: ‘We transformed the business’

Krispy Kreme donuts in a box

CHARLOTTE, NC. — In the last six years, Krispy Kreme, Inc. has opened 400 donut producing facilities in 31 countries to deliver fresh donuts to 12,000 locations. Michael J. Tattersfield, president and chief executive officer of Krispy Kreme franchise, said the biggest challenge when it comes to working with other business to sell its products is “access.”

“If you only have 400 producing donut shops and trying to get to customers, it’s about getting access to them, so this logistics program, primarily in grocery and convenience shops, when you really take the flow of the 400 producing shops and get to customers where they are,” Mr. Tattersfield told Jon Fortt during an April 14 appearance on CNBC’s “Closing Bell: Overtime.” “That’s been the biggest transformation of the model, and it’s really, when you think about it, we’re a dozens business. We really maximize the gifting and opportunities there, and it really does help when we bring in world class merchant ideas … and just really keep the business very vibrant.”

Mr. Tattersfield went on to explain that Krispy Kreme is comfortable with changing consumer habits since it spent the last six or seven years transforming this model. He also said the company built 10 to 20 theater production shops called hubs, which start production on “Day 1.”

“Really this omnichannel model is what we’ve been shifting the business to,” Mr. Tattersfield said. “And it’s really about getting fresh donuts as a donut company to where customers are.”

Mr. Tattersfield also discussed the expansion of Krispy Kreme’s ongoing partnership with McDonald’s.

“Our goal is to get to about 75,000 points of access over a long term,” Mr. Tattersfield told co-anchor Morgan Brennan. “And when we think about the channels that we first went after, whether it’s the grocery channel or the convenience channel, we need to really be an expert at that first so we can deliver fresh on time to their demand and the size and the pack. McDonald’s and the restaurant is an opportunity we saw, but it still has to work with exactly the same model of how we do our delivered fresh daily program. So, can we deliver on time? Can we deliver the fresh product? Can we deliver the pack size they want? And then how does that work in a restaurant throughout the day? And it’s got to still fit exactly what we do whether we’re serving Wal-Mart or Target on the route.”


Krispy Kreme Dethrones Chick-Fil-A as the Most Intimate Fast-Food Brand

MBLM’s Brand Intimacy Study, the largest study of brands based on emotions, recently released its 12th annual ranking, measuring the emotional bonds customers had with their favorite brands over the past year. For three years running, Chick-fil-A has taken the top spot in the fast food category. This year, a new victor emerged, and they brought hot donuts. Krispy Kreme ranked No. 1 in MBLM’s Brand Intimacy 2022 Study, while Chick-fil-A barely cracked the top 10. 

The MBLM study uses in-depth emotional science to rate the degree of intimacy each brand elicits within its customer base, including the level of fulfillment, emotional connection, nostalgia and indulgence. The enhanced 2022 study “combines MBLM’s proven Brand Intimacy model with the power of AI and big data to analyze over 600 brands, assessing how consumers bond with the brands they use and love.”

This year, Krispy Kreme franchise received a score of 40.4 out of 50, ranking it 145th out of all brands and first in the fast food category, followed by Costa Coffee and Starbucks, respectively. The remaining brands in the top 10 for fast food are CinnabonOutback SteakhouseMcDonald’sChili’sChick-fil-ADunkin’, and KFC. Interestingly, out of the top five fast food brands, four of them (Krispy Kreme, Costa, Starbucks and Cinnabon) fall into the sweets/coffee chain sub-category. 

This may be a product of the COVID-19 pandemic’s impact on eating habits, the study suggests, with 47% of respondents in another survey indicating they were eating more sweets now than before the pandemic. “Indulgence, which centers on moments of gratification and pampering, is the fast food industry’s dominant archetype, followed by nostalgia,” the study shows. 

When it comes to consumer experience, Krispy Kreme nails both indulgence and nostalgia. The brand is known for its signature “hot light” — a red neon light that makes mouths water by signaling the arrival of fresh, hot donuts just out of the oven. Similarly, the brand leans into its retro, mid-century look and often reintroduces “throwback” donut flavors. 

Krispy Kreme

This nostalgic approach may be what sealed Krispy Kreme’s victory this year. According to the study, Chick-fil-A’s dominant archetype is identity, whereas Krispy Kreme’s is nostalgia. The study also theorizes that Chick-fil-A’s religious identity may be clashing with an increasingly secular American public. This year, Chick-fil-A had a Brand Intimacy Quotient score of 35.8, coming in eighth in the fast food industry and 221st in the overall study. 

Although consumer sentiment surrounding fast food had been on the upswing last year following the pandemic, it appears that it may be dwindling overall. MBLM found the fast food industry saw its Brand Intimacy Quotient score decrease this year, falling to 33.6, which is below the cross-industry average of 36.8. 

“Given how much people connect with their favorite meals, the fast food industry has a fairly poor showing in this year’s study. This may be reflective of the quick and often impersonal relationship consumers have with these brands,” Mario Natarelli, managing partner at MBLM, said in a release. “Brands also may be finding it difficult to find the right balance between evolving with the latest food trends and preferences and staying true to their identities. We feel that if they can focus on the nurturing nature consumers have with food, and also on creating more personal connections, they will be able to build better emotional bonds.”  

And brand intimacy is no joke. Consistent with previous years, MBLM also found that top intimate brands outperformed Fortune 500 top brands across profit, revenue and stock performance. 


Krispy Kreme opens iconic new shop at Manchester Arndale

Krispy Kreme

Manchester Arndale is delighted to announce that multinational doughnut company and coffee chain Krispy Kreme franchise has opened a new 3,700sq ft shop at the centre.

The new shop, which has been let on a 15-year lease, will feature a click and collect service and will be open seven days a week stocking all of the Krispy Kreme favourites, including the best-selling Original Glazed and a special exclusive limited–edition Manchester Bee Doughnut. The new store at Manchester Arndale continues Krispy Kreme’s UK expansion which now consists of over 1,200 stores and outlets.

The arrival of Krispy Kreme comes as Manchester Arndale continues to expand its F&B offering following the opening of Slim Chickens, Kokoro, Tim Hortons and Pizza Luxe over the past few months.  During this time Manchester Arndale has also grown its retail offer with the arrival of Sports Direct, Tommy Hilfiger, and Kick Game, as well as new leisure operators including Urban Playground and Roxy Ballroom, which have enhanced centre’s reputation as a leading retail and leisure destination in the North West.

Colin Flinn, spokesperson for Manchester Arndale, said: “We are delighted that Krispy Kreme has opened its new shop at Manchester Arndale. Experiential retail is becoming increasingly important for centres like Manchester Arndale as retailers introduce new approaches aimed at encouraging shoppers to visit in-store as opposed to shopping online.

Two of our key retailers, Sports Direct and Superdrug, have recently opened larger spaces within the centre to upgrade their offers and create innovative and immersive environments which appeal to those who enjoy the hybrid approach of online and experiential in-store retail. We hope to announce further new lettings and leasing activity across the centre as we seek to maintain Manchester Arndale’s position as a premier retail and leisure destination in the UK.”

Metis Real Estate and Time Retail Partners are Manchester Arndale’s retained letting agents.


Krispy Kreme announce further Irish expansion as locations set to open around the country

Krispy Kreme doughnuts will be available in select stores from next week

Doughnut franchise Krispy Kreme has announced a major expansion throughout the country, with 18 new locations to open up.

It comes as part of the American company’s wider expansion plan here in Ireland that looks to create a number of jobs in the new year.

Krispy Kreme has today announced that it is expanding to the west of Ireland, as well as increasing the number of branches in Dublin, Louth and Kildare.

Part of this expansion includes new partnerships with Applegreen and The Plaza Group. This will see Krispy Kreme products sold in nine Applegreen locations and four Plaza garages.

On top of this, four new locations have been added to the existing partnership with Tesco and another added to the partnership with Circle K.

The new branches will include Tuam Road, Galway Plaza, Doughiska, Kilmacanogue, Castlebellingham North and South, Kinnegad Plaza, Ballybane Shopping Centre Galway, and Portlaoise Plaza.

Galway Shopping Centre, Baldrumman North, Barack Obama Plaza, Blanchardstown, Ballystrane South, Rathcoole, Naas, Enfield West and Ballymount will also welcome Krispy Kreme.

A new manufacturing plant in Naas, Co Kildare, will help with the production and distribution of freshly-made doughnuts.

A statement from the franchise said: “Now for the first time fans in the west of Ireland can experience the joy of a Krispy Kreme doughnut, which has been made possible by the introduction of a dedicated Krispy Kreme manufacturing plant in Naas Co. Kildare, ensuring the doughnuts are made fresh and delivered daily.”

Country Manager for the brand in Ireland, Declan Foley said: “We are really excited to be welcoming Applegreen and The Plaza Group as new partners and we continue to expand our presence in Tesco and Cirlcle K stores.

“The investment required in these cabinets represents a significant capital expenditure for our business and helps deliver a magical brand experience.

“This expansion coupled with our new store openings gives our fans a wider reach as we move beyond the Leinster area.”

Today’s news follows a “big” year for Krispy Kreme, with the opening of a store on Dame Street in Dublin, products being sold in Tesco and Circle K and a new branch opening in The Square, Tallaght, this Friday, December 16.