COMPANY ASSESSMENT
Company Background
In 1933, Vernon Rudolph and his uncle purchased a small doughnut shop in Paducah, Kentucky. This doughnut shop was owned by a French chef named Joe LeBeau. Chef LeBeau had a secret doughnut recipe that he included in the sale of the shop. This recipe that Vernon bought is used to make those wonderfully delicious glazed doughnuts that Krispy Kreme is known for world wide. In 1937, Vernon decided to settle down in Winston-Salem, North Carolina, and on July 13, 1937, he opened the very first Krispy Kreme Doughnuts. At first, Vernon baked his doughnuts and sold them to local grocery stores, but soon people began lining up outside of his shop so they could purchase fresh, hot, glazed doughnuts from
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The one-of-a-kind doughnut making machines, that make this supply chain work, are required to be purchased by any KKD store.
Weaknesses
The largest weakness that KKD faces is its competitors, specifically the number of stores compared to competitors. While KKD has almost 750 stores world-wide, its main competitor Dunkin Donuts’ has over 10,000 store locations globally. This means that Dunkin Donuts’ dominates the market, and that it is extremely difficult for KKD to penetrate the market in areas where Dunkin Donuts’ already exists. Another weakness that KKD faces, is the continuing trend of people wanting to live healthier lives. Six out of every ten Americans want to lose weight and become healthier. KKD has very few “healthy” choices on its menu, but they have been instituting oatmeal in certain regional areas that may help to counteract this weakness.
Opportunities
There are many opportunities for KKD, but the best opportunity for them is the returns that they could earn by expanding internationally. Especially in the Asian countries, where it is projected that people will buy 3% more by 2015. If KKD can capitalize on these countries, they may able to see an excellent return on these investments in the next few years.
Another great opportunity for KKD is in the area of local suppliers in international countries. If KKD can determine a way to envelop these suppliers without incurring a large cost, the supply
I am now a District Manager. The owner of the stores I have been working at has seen and rewarded me for all of my hard work and dedication. Now his plans are to open five new stores for me to head over in the next two years. My first step after the stores are built, are to structure, staff and operate these five locations for this Franchisee. This will be a new step for me;
The company has been sold several times. First, in 1935 Ishmael Armstrong sold Krispy Kreme to Vernon Rudolph’s father Plumie Rudolph. Second, in 1976 due to Vernon Rudolph’s death, the company was then sold to Beatrice Foods of Chicago. Third, in 1982 Joseph A McAleer Sr. who led a group of Krispy Kreme franchisee bought back Krispy Kreme from Beatrice Foods. Finally, Krispy Kreme Inc. became a publicly traded company in 2000 by joining the NASDAQ as well as joining NYSE in 2001.
Krispy Kreme is a branded specialty retailer and manufacturer of premium quality doughnuts. Its principal business is to own and franchise Krispy Kreme doughnut stores in the U.S. and internationally. The main product is the Hot Original Glazed, a one-of-a-kind doughnut with an established brand. Each outlet also sells over 20 other varieties of doughnuts and coffee products. Product quality and consistency has provided the Company with a very loyal customer base.3
Kudler will expand in to locations where they will be successful. Kudler will also have an effective and efficient model for future expansion and growth.
Dunkin donuts is the second number of largest coffee and bakery House Company in the United States. In 1950, the company`s store was opened by William Rosenberg in the Quincy, Massachusetts. “A before year 1990, Dunkin donuts first competitor was Mister Donut but Dunkin donut`s owner Allied-Lyons had purchased the Mister Donut then all Mister Donut stores in North America and Allied-Lyons offered the change name and became called the Dunkin donuts”(5). There are 18,000 points of distribution in nearly 60 countries around the world and 11,000 Dunkin donuts restaurants, 7,300 Baskin Robbins restaurants in 36 United States and 3,068 international shops in 32 countries. All these Dunkin Donuts stores are 100 percent franchised business at the end of the 2013 years. Dunkin ' Donuts 's
Doughnut Time (2016) is a Brisbane based company, specialising in a variety of premium desserts that capitalise on the use of social media, unique locations and offerings (refer to table 1). Despite desserts being considered non-essential, high levels of competition and healthy eating trends (refer to table 1), the business has successfully established itself within the fast food and dessert industry, which is set to grow in the next five years (Tonkin, 2016). The company has a distinctive vintage flair, yet modern take on doughnut names and designs, becoming popular on social media (Doughnut Time, 2016). It’s vintage vans and small ‘hole in the wall’ stores make the company sort after, and appear unique from a large number of competitors
Barney Kroger founded Kroger in the year 1883. He took his life savings and opened a grocery store up in downtown
areas, even globally it will lead to more sales and the company will expand and potentially beat
Dunkin’ Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts that was founded in 1950. At start, it was famous for its quick service food doughnut but now it has already been well known for its high quality coffee and quick customer service. It is one of the subsidiary companies with sister brand Baskin-Robbins under the franchiser Dunkin' Brands.
KRISPY KREME, one of the successful companies in the food-service industry, began as a single doughnut shop in the early 20ths. The rapid expansion of its business scale made the corporation suffer its first economic crisis by the early 1980s. A group of franchisees later took charge of the heavily-debt company bringing new management ideas which helped the KRISPY KREME find way back to the game and become the role model in the industry. KK generated revenues through four primary sources: on-premises retail sales, off-premises sales, product mix and
Dunkin’ Donuts was established by Bill Rosenberg in 1950 in Quincy, MA. Dunkin’ Donuts started license franchises in 1955. It is the world’s leading baked goods and coffee chains serving more than 3 million customers per day. Dunkin’ Donut sells 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast sandwiches, and baked goods. At the end of 2010, there were 9,760 franchises all over the
Dunkin’ Donuts was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Over the years the company expanded and now is the largest coffee and baked goods chain in the world. They serve over 5,500 retail outlets; selling more than 4 million doughnuts and 2.7 million cups of coffee daily!
KKD's business model provides the company three sources of revenue: (1) Sales at company-owned stores; (2) Royalties from franchised stores and franchise fees from new stores; and (3) Sales of doughnut mixes, customized doughnut-making equipment, and coffees to franchised stores.
Krispy Kreme Doughnuts was a successful privately owned business since 1937. In 1982 a group of franchises bought back the company from Beatrice Foods for $24 million, and reintroduced the old recipe of doughnuts and their “hot doughnuts now” system. In 1998 Scott Livengood became Krispy Kreme’s new
Krispy Kreme Doughnuts Incorporates principal activity is to produce and market doughnuts and related items. The operations are carried out through three segments, company stores operations, franchise operations and Krispy Kreme Manufacturing and Distribution. The stores are both retail outlets and highly automated producers of over twenty varieties of doughnuts. The company is a branded specialty retailer, and produces more than three million doughnuts a day. In addition to its Krispy Kreme stores, the company sells its doughnuts in supermarkets, convenience stores and other retail outlets throughout the country. The Krispy Kreme Manufacturing and Distribution segment sells doughnut-making equipment, mix, other ingredients and supplies