KRISPY KREME DOUGHNUTS
Krispy Kreme Doughnuts, Inc. is a specialty retailer of doughnuts. The company 's business owns and franchises Krispy Kreme doughnut stores, where it makes and sells over 20 varieties of doughnuts, including its signature Hot Original Glazed and nine other varieties. Each of its stores is a doughnut factory with the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. The Company also sells in its stores drip coffee, other beverages, other bakery items and collectible memorabilia such as tee shirts, sweatshirts and hats. As of February 2, 2003, there were 276 Krispy Kreme stores, of which 270 were located in 37 states in the continental U.S., five were located in eastern Canada and one was
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An example would be bagel or muffin chains offering a healthier alternative to donuts. Krispy Kreme must be aware of these alternatives and be prepared to adjust their product line to accommodate or lure potential customers.
Rivalry- There has been and may always be a large amount of rivalry between competing donut producers. The range of producers is vast, from small private bakeries to larger chains such as Dunkin¡¦ Donuts. Donuts are easily produced from relatively inexpensive ingredients. This creates competition and rivalry and Krispy Kreme should be look at expanding its product lines into new markets.
Core Competencies
Krispy Kreme has an excellent Marketing Department. They have kept a good reputation and established good rapport in the domestic market. Having excellent and swift customer service is a good business strategy that led to the development of their doughnut-making machine. The original glazed is the doughnut that most people are familiar with and is the most popular. At Krispy Kreme the glazed doughnuts are served hot off the doughnut-making machine. A main attraction for Krispy Kreme is the ability to create your doughnuts fresh to order. If you happen to be passing by the store and wondering whether or not the doughnuts are being served hot and fresh, just watch the sign on the outside of the store. If the "HOT" light is on, that means that the
Krispy Kreme executives no longer rush to implement new plans before the time is right. They carefully study each geographical location to make sure its market will support a full-scale doughnut operation. Also, management spends time checking out sites for individual stores. Potential franchisee and employees are required to maintain certain standards and are thoroughly screened.
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
There are over 8,500 Dunkin Donuts restaurants across 41 states in America and over 11,300 worldwide (Dunkin Donuts). With so many locations it was easily accessible and convenient for my schedule. The
Now a few facts about donuts. Krispy Kreme’s founder was Vernon Rudolph. The founder of Dunkin’ Donuts was William Rosenberg. The original donut was based off a dutch desert called olykoeks or oil cake.
1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?
As at 2013, there were 10,858 Dunkin' Donuts retail locations, including 7,677 in the United States and 3,181 in 33 different countries. Most of Dunkin' Donuts are operating by franchisees and it is a very successful business model that generates much of its revenues. It is continuing to grow more franchisees in the United States and international market. In July 2013, Dunkin' Donuts
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
Krispy Kreme has experienced dramatic growth over the past 5 years based on their income statement. Every line on the income statement has grown rather impressively. Revenues have grown from $220M to $666M and net income has grown from $6M to $57M. Based on the income statement, Krispy Kreme is doing very well.
As Wall Street Journal stated, Krispy Kreme grew too quickly and diluted its cult status by selling its doughnut in too many outlets. They could not anticipate when the demand decreased due to low-carbohydrate diet trend issues. It can be seen clearly that interest expenses also increased for the year ended Feb 2, 2003 to the year ended Feb 1, 2004 as the debt increased.
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
Socio-Cultural- Due to the numerous cultures present in Dunkin' Donuts' target market, the company as a whole must be in continuous change in order to keep up with its consumers. Dunkin Donuts must keep in mind the age, income, occupation, and most importantly the lifestyles of their customers if they wish to succeed in such a competitive market. As an answer to this problem, the company has implemented several changes aimed at keeping and attracting a new customer base. Many restaurants are looking towards centralized kitchens to maximize space and reduce costs, consequently cutting product costs, thus saving the customer money. The
Threats: Considering the bagel industry is in the growth stage there is an upsurge of competitors. The main competitors though are Bruegger’s, Manhattan Bagel, Einstein Bros. and Starbucks Coffee. With Dunkin’ Donuts’ grave dependence on its supplier, Harold’s Bakery, they are experiencing some
In order to conduct the strategic analysis of the external environment of Dunking Donuts we will use some of the tools from among the nine commonly used strategic analysis
One of the most Successful Franchises is the famous Dunkin Donuts, the biggest donuts organization sellers in the world who are ranked #3 in top 500 franchises in 2018. DD aren’t only known for selling great donuts they also sell breakfast such as one of my favorites a bacon, egg and cheese on a croissant, they also sell ice cream, hash browns and other tasty things that will make you want to come back for more. In 1950, Bill Rosenberg opened the main Dunkin' Donuts shop in Quincy, Massachusetts but before he renamed it to Dunkin Donuts, the original name was “Open Kettle”. The opening of the first shop lead to the organization developing into one of the biggest espresso and prepared products chains on the planet, with more than 12,000 eateries
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