I. INTRODUCTION Krispy Kreme Doughnuts, Inc. (KKD) is an international retailer of high-quality sweet treats, including its signature hot Original Glazed® doughnut. It began as a small bakery in Winston Salem, NC on July 13, 1937. Since then, the company has built a global reputation for serving the highest-quality doughnuts and great tasting coffee. Krispy Kreme Doughnuts is part of the Quick Service Restaurant (QSR) Industry, which includes almost all companies in the “fast food” industry. Our goal in this report is to use various tools to analyze KKD and recommend strategies for them to gain more competitive advantage in the market. First, we will observe the operational characteristics of KKD. These factors will show …show more content…
* Lack of knowledge of what the customer wants (demographics, psychographics, behavioral segmentation). OPPORTUNITIES Opportunities are elements that the company can exploit to its advantage. Most internationally located stores purchase their ingredients from local merchants rather than the Krispy Kreme Supply Chain. If KKD can find a cost effective way to provide these ingredients, they can capitalize on supply chain efficiencies to make a profit. Some opportunities for Krispy Kreme to leverage for growth would include: * Emerging markets and expansion abroad: International expansion has proven to bring better returns than expanding domestically. Asia and the Middle East both offer KKD a good market because of high levels of consumer sweet goods consumption and the popularity of Western brands in these International markets. * Partnerships with sports teams and convenience stores. * Development of new menu items. * Add breakfast/healthier options to compete more directly with Dunkin Doughnuts, etc. * Innovation. * Product and services expansion. * Local open kiosks and in-store locations in airports, bookstores, and other retail outlets. * Product Diversification. New Markets. * Significant co-branding opportunities with local sports teams and movie theaters. * Increased snack consumption: During the past 20 years, more Americans are going out to eat. In today’s busy world, there is less time to
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.
There are many influences that increase the risk of obesity in our society. Many of these influences are related to society, culture, and personal beliefs. In America, snacking has become a huge mode of calorie intake (Miller, 2015). According to Miller (2015), 56% of Americans snack three or more times a day and even skip main meals to snack. Majority of these snacks are processed food, low in nutritional content and high in fats and sugars (Miller, 2015). This meal skipping is due to a lack of planning and an increase in impulsivity (Bilge Burcak, 2010). An increase in impulsivity has led to an increase in binge eating and an interest in high calories foods (Bilge Burcak, 2010). This social norm has had a huge influence on increasing caloric intake and increasing the obesity epidemic.
“Although many health authorities insist that there is no such thing as junk food, consumers find it a useful term for distinguishing nourishing food from products whose chief appeal is fun, convenience, and addictive taste; ‘bet you can't eat just one’ ”(Junk Food). Americans are spending about $4.6 billion a year on potato chips, and 23.5 billion a year on candy and gum. 46 Percent of adult Americans eat out on a typical day, and one third of them choose fast food. That is because the fast food industry has slowly become one of the symbols of American culture and is spreading to other cultures as well: McDonalds has 26,000 locations in 119 countries, Pizza Hut has more than 10,000 in 86 countries, and Subway has 14,500 in 75 countries. Commercials, signs, and huge advertisements are pushing junk food at us every day; people cannot even go to the grocery store without candy bars being lined up right by the checkout. The junk food industry realizes how appealing it can be. When a person is in a rush, they can easily eat a large meal without having to make a lot of decisions, work, dress up, or get out of their car. The speed and convenience fit Americans’ pressured lifestyles. It does not fit, however, to our health and wellness. A fast food meal, such as a Burger King Double Whopper with cheese, contains 965 calories, more than double the amount of fat, and as much as 750 grams too much sodium
Each of the retail stores is a doughnut factory with the capacity to produce between 4,000 and 10,000 dozen doughnuts daily. Each factory store contains a full doughnut making production line. The factory store is marketed as a unique retail experience, featuring the store’s production process, including a doughnut-making theater. The stores also support multiple sales channels to more fully use production capacity. Stores provide Krispy Kreme doughnuts to be sold in satellite locations, ballparks, and grocery stores, and under private label marketing agreements.
Portion sizes in America have grown tremendously over the past decades, according to Erica Goode in her article “The Gorge-Yourself Environment”; I have researched her assertions and intend to demonstrate that she is right. People now tend to eat larger portion sizes instead of the recommended serving sizes. Numerous health concerns have become more common for people who overeat. With the entertainment industry in full swing, food advertisements have made their way into our homes making food look more enticing than what it truly is. Americans gave become oblivious to the amount of food that is on their plates.
Americans are expecting more from everything whether it be materialistic items or more consumable items. With this demand, we are seeing the average dinner plate has increased in size from a ten-inch dinner plate to a twelve-inch dinner plate. Americans are filling their plates and have been raised with the basic fallacy that they need to clear their plates and finish even when they are feeling full. When in reality what they need to do is eat a balanced meal and not indulge in too many calories. The current trend in America for food is that it be quick and easy when these items are high in calories and low in nutritionally sufficient ingredients. Obesity is not only an individual issue this is also a community issue. The American
Americans are expecting more from everything, whether it be materialistic items or more consumable items. With this demand, we are seeing the average dinner plate has increased in size from a ten-inch dinner plate to a twelve-inch dinner plate. Americans are filling their plates in addition to having been raised with the basic fallacy that they need to clear their plates and finish even when they are feeling full. When in reality what they need to do is, choose to eat a balanced meal and not indulge in too many calories. The current trend in America for food is that it be quick as well as simple when these items are high in calories as well as low in nutritionally sufficient ingredients. Obesity is not only an individual issue this is
Introduction: The Kroger Company is United States’ largest supermarket chain by revenue and second largest general retailer company following Walmart. It was founded by Bernard Kroger in 1883 at Cincinnati, Ohio and currently operates in 35 states and the District of Columbia. About 94% of the company’s total revenue comes from food stores while convenience stores, jewelry stores, pharmacies and manufacturing facilities provide the remaining of total sales.
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
The Krispy Kreme Doughnuts case study solution solves the case on financial statement analysis. The structure of the solution is outlined below and answers the questions included in the outline
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
A shift in consumer demand to want healthier fast-food options has hit the industry hard. Dunkin’ Donuts and Starbucks have combated this shift by offering healthier menu items, something Krispy Kreme has failed to do. Dunkin’ Donuts offers healthy breakfast sandwiches and
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
One thing Krispy Kreme needs to work on is diversifying their product. Competitors, such as Dunkin' Donuts', offer bagels, low-fat products, premium coffees, and newly cinnamon sticks. They offer these products to go with the changing times of the market. They remain to be the top competitor in the market because they are constantly changing their product line to suit their customers.