Krispy Kreme: Difference between revisions
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=== Australia === |
=== Australia === |
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| ⚫ | The first Krispy Kreme store in [[Melbourne]], [[Australia]] opened on [[22 June]], [[2006]] at 6.30 am<ref>{{cite news |url=http://www.theaustralian.news.com.au/story/0,20867,19551235-1702,00.html |title=Salad sumo, doughnut giant clash |publisher=[[The Australian]] |date=[[2006-06-22]]}}</ref> in the suburb of [[Narre Warren, Victoria|Narre Warren]] at [[Fountain Gate Shopping Centre]], and features a 24-hour drive-through service. Though most store-locations outside of Australia usually operate with a long schedule including both early mornings and late nights, the twenty-four hour operating model is unique to Sydney and Melbourne. The store is currently hugely popular amongst Melbournians, some of whom queued for several hours during the store's first few weeks running. The drive-through queue during this period was often over 500 metres long and has been controlled by hired security guards and Narre Warren police, who directed traffic and calmed customers. When the store first opened, people had waited for 3 days creating a drive through line over 2 kilometres long. The drive through line did not stop until about three weeks after the opening and the internal store was constantly forced to remove people from the building after closing hours. |
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| ⚫ | Krispy Kreme opened its second Melbourne store in the [[Melbourne city centre|Central Business District]] on [[Collins Street]]. The store opened on [[September 26]], [[2006]]. Unlike the Fountain Gate store, doughnuts are not produced on site, but rather delivered many times during the day from both Fountain Gate and [[Dandenong]]. The Fountain Gate store is the only manufacturing (or factory) location in [[Victoria (Australia)|Victoria]]. A third store opened at the [[Chadstone Shopping Centre]], on the [[November 2|2nd November]] [[2006]]. A fourth store {and second CBD store) opened at [[Melbourne Central Shopping Centre|Melbourne Central]] on [[December 7]], [[2006]]. The fifth store opened on [[December 19]] at [[Knox City Shopping Centre|Knox Ozone]]. It is Victoria's second 'Hot Light' store, similar to [[Fountain Gate Shopping Centre|Fountain Gate]], yet only applies glaze to pre-made Original Glazed doughnuts and has the assorted varieties delivered from [[Dandenong]]. |
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==== New South Wales ==== |
==== New South Wales ==== |
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Krispy Kreme first opened in Australia in 2003 in [[Penrith Valley]], 55km west of Sydney. Before opening they gave away 300,000 free donuts for publicity. |
Krispy Kreme first opened in Australia in 2003 in [[Penrith Valley]], 55km west of Sydney. Before opening they gave away 300,000 free donuts for publicity. |
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During February 2007 Krispy Kreme opened their second store at [[Tumbi Umbi]] on the [[Central Coast, New South Wales|Central Coast]] |
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The Australian franchise agreement also covers New Zealand however currently there are no store locations there. |
The Australian franchise agreement also covers New Zealand however currently there are no store locations there. |
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| ⚫ | |||
| ⚫ | The first Krispy Kreme store in [[Melbourne]], [[Australia]] opened on [[22 June]], [[2006]] at 6.30 am<ref>{{cite news |url=http://www.theaustralian.news.com.au/story/0,20867,19551235-1702,00.html |title=Salad sumo, doughnut giant clash |publisher=[[The Australian]] |date=[[2006-06-22]]}}</ref> in the suburb of [[Narre Warren, Victoria|Narre Warren]] at [[Fountain Gate Shopping Centre]], and features a 24-hour drive-through service. Though most store-locations outside of Australia usually operate with a long schedule including both early mornings and late nights, the twenty-four hour operating model is unique to Sydney and Melbourne. The store is currently hugely popular amongst Melbournians, some of whom queued for several hours during the store's first few weeks running. The drive-through queue during this period was often over 500 metres long and has been controlled by hired security guards and Narre Warren police, who directed traffic and calmed customers. When the store first opened, people had waited for 3 days creating a drive through line over 2 kilometres long. The drive through line did not stop until about three weeks after the opening and the internal store was constantly forced to remove people from the building after closing hours. |
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| ⚫ | Krispy Kreme opened its second Melbourne store in the [[Melbourne city centre|Central Business District]] on [[Collins Street]]. The store opened on [[September 26]], [[2006]]. Unlike the Fountain Gate store, doughnuts are not produced on site, but rather delivered many times during the day from both Fountain Gate and [[Dandenong]]. The Fountain Gate store is the only manufacturing (or factory) location in [[Victoria (Australia)|Victoria]]. A third store opened at the [[Chadstone Shopping Centre]], on the [[November 2|2nd November]] [[2006]]. A fourth store {and second CBD store) opened at [[Melbourne Central Shopping Centre|Melbourne Central]] on [[December 7]], [[2006]]. The fifth store opened on [[December 19]] at [[Knox City Shopping Centre|Knox Ozone]]. It is Victoria's second 'Hot Light' store, similar to [[Fountain Gate Shopping Centre|Fountain Gate]], yet only applies glaze to pre-made Original Glazed doughnuts and has the assorted varieties delivered from [[Dandenong]]. |
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===Hong Kong=== |
===Hong Kong=== |
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Revision as of 04:21, 23 February 2007
| Company type | Doughnut, Café |
|---|---|
| Industry | Food |
| Founded | 1937 |
| Headquarters | Winston-Salem, North Carolina, USA |
| Products | Dougnuts, Softdrinks, Hot Drinks |
| Revenue | 510.21 million USD (2006) |
 88.45 million USD (2006) | |
Number of employees | 4250 |
| Website | http://www.krispykreme.com/ |
Krispy Kreme is a popular chain of doughnut stores. Its parent company is Krispy Kreme Doughnuts, Inc. (NYSE: KKD), based in Winston-Salem, North Carolina, United States.
Krispy Kreme sells a variety of doughnuts, but it is most famous for its traditional glazed doughnut, often served warm. Stores have a neon sign that, when lit (usually morning and evening), tells customers that hot, fresh doughnuts are coming off the line at that moment. Select varieties of Krispy Kreme doughnuts are carried in many grocery stores, convenience stores, and gas stations. Krispy Kreme doughnuts can also be found in some larger Wal-Mart and Target stores in the United States, Wal-Mart, Loblaws supermarkets, and Petro-Canada gas stations in Canada and Tesco Extra hypermarkets in the United Kingdom.
The company's growth was steady prior to its initial public offering but profits have decreased in recent quarters.[1]
Most free-standing Krispy Kreme stores are constructed with a long window between the customer area and the kitchen allowing patrons to watch the operation of the doughnut making machines. The machines produce rings of dough, yeast raise, bake, deep-fry, flip, and glaze the doughnuts. These stores have the neon "HOT doughnuts now" signs, which indicate when fresh hot doughnuts are available. Some smaller locations, however, bring in their doughnuts from other locations rather than producing them on-site. Krispy Kreme's competitors include Dunkin' Donuts, Starbucks and Tim Hortons.[2]
History
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The founder, Vernon Rudolph, worked for his uncle, Ishmael Armstrong, who purchased a secret recipe for yeast-raised doughnuts and a shop on Broad Street in Paducah, Kentucky from Joseph LeBeouf of Lake Charles, LA (although company mythology tells a story whereby Rudolph won the recipe from a New Orleans baker in a poker game in Paducah). Rudolph began selling the yeast doughnuts in Paducah and delivered them on his bicycle. The operation was moved to Nashville, TN and other family members joined to meet the customer demand. Rudolph sold his interest in the Nashville store and in 1937 opened a doughnut shop in Winston-Salem, NC and began selling to groceries and then directly to individual customers. The first Krispy Kreme store was located in a rented building on South Main Street in Winston-Salem in what is now called historic Old Salem.
By the 1960s, Krispy Kreme was well-known throughout the southeastern United States, and it began to expand into other areas of the country.
In 1976, Krispy Kreme Doughnut Corporation became a wholly owned subsidiary of Beatrice Foods Company of Chicago, Illinois. The headquarters for Krispy Kreme remained in Winston-Salem.
A group of franchisees purchased the corporation back from Beatrice Foods in 1982.
In 2003, a pilot project in Mountain View, California to sell doughnuts through car windows and sunroofs at a busy intersection (with wireless payment) failed.
On June 3, 2005, National Doughnut Day in the US, participating franchises gave away free doughnuts. One free doughnut was given to each customer in recognition of the often-ignored holiday.
Growth
Big Money began another phase of rapid extrication in the 1990s, opening stores outside the United States where most of their stores were located. Then, in December 2001, Krispy Kreme opened its first store outside the U.S. in Mississauga, Ontario, Canada, just outside Toronto. Since 2004, Krispy Kreme has rapidly expanded its international operations.
On April 5, 2000, the corporation went public on the NASDAQ using the ticker symbol KREM. On May 17 2001, Krispy Kreme switched to the New York Stock Exchange, with the ticker symbol KKD, which is its current symbol.
On January 18 2005, Krispy Kreme announced Stephen Cooper, chairman of financial consulting group Kroll Zolfo Cooper LLC, as interim CEO. Cooper replaces Scott Livengood, who the company said has retired as chairman, president, CEO and a director. The company also named Steven Panagos, a managing director of Kroll Zolfo, as president and COO.[citation needed]
Problems in Canada
On April 15, 2005, KremeKo, the company responsible for bringing Krispy Kreme to Canada, filed for bankruptcy. Seven weeks later, after closing more stores and being charged with violating the Occupational Health and Safety Act, its assets went up for sale. Three stores in Toronto (on Yonge Street in Richmond Hill, on Wilson Avenue east of Dufferin Street and near the Scarborough Town Centre in Scarborough) closed. KremeKo is attempting to re-structure to remain in business in Canada. Besides the Mississauga, Ontario store, Krispy Kreme still has stores in Delta, British Columbia; Montreal, Quebec (2 locations); Laval, Quebec; Quebec City, Quebec and Calgary, Alberta. All seven Canadian stores are now controlled directly from the United States.[citation needed]
Krispy Kreme doughnuts are still available in Walmart, select Petro-Canada, Shell and Loblaws locations in Canada.
In regions without a nearby Krispy Kreme store, prepackaged doughnuts are available from time-to-time at local grocery stores or gas station, usually coming from stores in the US.
Problems in New York
Dynamic Doughnuts out of Buffalo, who operates all New York State locations outside of New York City has, within the past year, closed many of its owned locations. These include: Hicksville, East Meadow, Albany, Amherst, Gates, and Middletown. For now, the locations in Syracuse, Henrietta, and Cheektowaga are still open, as well as the locations in New York City.[citation needed] In Western New York, the chain has significant competition from Tim Horton's, which has very large regional identification.
Problems in Chicago
After devastating accounting problems and too-rapid growth, Krispy Kreme was forced to close 17 of its Chicago locations leaving only one in the city itself. There remains 9 additional locations in the Chicagoland area and outlying suburbs.[citation needed]
Further Problems in Arizona and New Mexico
On August 11, 2006, all 11 Krispy Kreme stores in Arizona and New Mexico closed without warning when the Rigel Corporation, the franchisee responsible for all Krispy Kreme stores in the two states filed for chapter 11 bankruptcy. There was little statement from Rigel's corporate offices regarding the closures and no word was given regarding a possible reopening of the stores. The closing was further controversial due to the fact that store owners did not provide any warning of the closing, with an undisclosed number of employees being notified the day before, and some claiming to have not known until they came to work only to find the location closed. The total number of employees is not known, but a local report indicated 55 employees were without work in Tucson, Arizona alone.[citation needed]
Krispy Kreme has indicated they are working to reopen the stores, but it is not known when or if they will be reopened.[citation needed]
Great Circle Lawsuit
In January 2006, Krispy Kreme terminated the franchise license of Great Circle Family Foods LLC, alleging non-payment of required fees. At the time, they were one of the largest franchisees, operating 28 stores in Southern California. Preceding this action was a financial dispute by Great Circle, culminating in their September lawsuit filed against Krispy Kreme. The lawsuit was settled in July 2006 and led to the reinstatement of Great Circle's license.[citation needed]
International Operations
Besides the stores that Krispy Kreme operate in the United States and Canada there are also franchise owned stores in the United Kingdom, Australia, Kuwait, Mexico, South Korea, Hong Kong, Indonesia, The Philippines and Japan.
United Kingdom
The Stores
In October 2004 Krispy Kreme UK opened up their first store in the world famous Harrods department store. Since then they have gone on to open another 28 stores, the most recent being at 'The Glades' shopping centre in Bromley, Kent. In the UK, Krispy Kreme have opened the majority of their stores inside the M25 (Greater London) or in Central London. Their furthest store from London being located in Birmingham. Other stores outside Greater London include those at Oxford and Milton Keynes. Krispy Kreme also have fresh cabinets (ISBs) located in many Tesco stores. In September 2006 all Tesco Cabinets were added to their store locator.
Krispy Kreme currently separate their stores into three categories.
Factory Stores
Factory stores are stores that produce all fifteen doughnuts varieties including the signature original glazed. These are located at eight locations across the UK however the original franchise deal means that 12 more are set to open over the next three years. These stores are entirely self sufficient.
Harrods of London, Enfield, Shannon Corner, Selfridges Birmingham, Milton Keynes, Slough, Bluewater Shopping Centre and Watford.
Hot Tunnels
Hot Tunnels are a format of Krispy Kreme doughnuts that have the ability to add warm glaze to original glazed doughnuts that are produced elsewhere. These stores have all varieties brought in from factory stores.
Oxford Castle and Bentalls Kingston
Fresh Locations
Fresh Locations rely entirely on factory stores. They have doughnuts brought in fresh everyday. These are usually based in smaller locations with a high footfall. The most common locations for these stores are at railway stations and airports or inside larger Tesco stores.
Brent Cross (Fenwick), Brooklands/ Weybridge(Tesco), Canary Wharf Station, Cannon Street Station, Cheshunt (Tesco), Euston Station, Fenchurch Street Station, Harrods 102 , Holburn (Outside the Station), Lakeside Shopping Centre, London Bridge Station, Paddington Station, Oxford Street (Selfridges), Stansted Airport, The Glades Shopping Centre (Bromley), Victoria Station, Waterloo Station and Watford Harlequin Centre.
There are currently 36 fresh cabinets located inside Tesco stores. Some of the cabinets are at locations where there are stores already. The ISB's are located in:
Amersham, Bishopsgate, Borehamwood, Brooklands, Canary Wharf (Cabot Square), Cheapside, Clapham South, Covent Garden, Dean Street, East Molesey, Eastcheap, Gillingham, Goodge Street, Hammersmith, Hatfield, Hemel Hempstead, Holborn Viaduct, Kensington, Kings Cross, Lakeside, Lunsford Park, Old Broad Street, Osterley, Paddington, Pitsea, Queensway, Regent Street, Richmond, Russel Square, Slough, Southall, Sunbury, Trafalgar Square, Twickenham, Watford and White City.
Krispy Kreme UK's website uses an entirely different layout to many other corporate sites. To visit the website click here.
The Varieties
Krispy Kreme Doughnuts offer 15 varieties of doughnuts in the UK plus the occasional feature doughnut. Krispy Kreme's original glazed doughnut used to cost 90p and the assorted varieties used to cost £1.10 but recently the prices have been pushed up.
The fifteen varieties are:
Original Glazed (95p), Chocolate Iced Glazed (£1.20), Glazed Lemon Filled (£1.20), Glazed Raspberry Filled (£1.20), Glazed Cream Filled (£1.20), Powdered Strawberry Filled (£1.20), Powdered Blueberry Filled (£1.20), Cinnamon Apple Filled (£1.20), Maple Iced Glazed (£1.20), Chocolate Iced Cream Filled (£1.20), Chocolate Iced Custard Filled (£1.20), Glazed Chocolate Cake (£1.20), Glazed Cruller (£1.20), Vanilla Cake (£1.20) and Chocolate Iced with Sprinkles (£1.20).
Past Feature Doughnuts Include
March 2006 - Kreme Dream, May 2006 - Strawberries and Kreme, July - September - 2006 - Mango and Passionfruit, October 2006 - Cappucino Designer Doughnut by Marco Piere White, November 2006 - Toffee Apple Doughnut, December 2006 - Mince Pie Flavour Doughnut, January 2007 - None, February 2007 - Cherry Sweatheart
For the complete illustrated list of Krispy Kreme UK's doughnut varieties click here.
Australia
New South Wales
Krispy Kreme first opened in Australia in 2003 in Penrith Valley, 55km west of Sydney. Before opening they gave away 300,000 free donuts for publicity.
During February 2007 Krispy Kreme opened their second store at Tumbi Umbi on the Central Coast
The Australian franchise agreement also covers New Zealand however currently there are no store locations there.
Victoria
The first Krispy Kreme store in Melbourne, Australia opened on 22 June, 2006 at 6.30 am[3] in the suburb of Narre Warren at Fountain Gate Shopping Centre, and features a 24-hour drive-through service. Though most store-locations outside of Australia usually operate with a long schedule including both early mornings and late nights, the twenty-four hour operating model is unique to Sydney and Melbourne. The store is currently hugely popular amongst Melbournians, some of whom queued for several hours during the store's first few weeks running. The drive-through queue during this period was often over 500 metres long and has been controlled by hired security guards and Narre Warren police, who directed traffic and calmed customers. When the store first opened, people had waited for 3 days creating a drive through line over 2 kilometres long. The drive through line did not stop until about three weeks after the opening and the internal store was constantly forced to remove people from the building after closing hours.
Krispy Kreme opened its second Melbourne store in the Central Business District on Collins Street. The store opened on September 26, 2006. Unlike the Fountain Gate store, doughnuts are not produced on site, but rather delivered many times during the day from both Fountain Gate and Dandenong. The Fountain Gate store is the only manufacturing (or factory) location in Victoria. A third store opened at the Chadstone Shopping Centre, on the 2nd November 2006. A fourth store {and second CBD store) opened at Melbourne Central on December 7, 2006. The fifth store opened on December 19 at Knox Ozone. It is Victoria's second 'Hot Light' store, similar to Fountain Gate, yet only applies glaze to pre-made Original Glazed doughnuts and has the assorted varieties delivered from Dandenong.
Hong Kong
Krispy Kreme HK opened their first store in Causeway Bay in September 2006. Since that date they have also opened another store located in SoHo. Both stores have sold special doughnuts produced to celebrate Halloween. These stores are franchise owned.
The third Krispy Kreme store opened in December in Causeway Bay at Times Square.
Currently all Krispy Kreme stores in HK are on the Island side.
Japan
On Friday December 15 2006, Krispy Kreme opened their first store in Japan in Shinjuku, Tokyo. The original glaze sells for 150 Japanese yen. Plans are in place to build around 50 stores in the Kantō region area in the next 5 years. [1]
The Japanese stores will be franchise owned.
Kuwait
The first Krispy Kreme in the Middle East opened in Kuwait's Marina Mall shopping complex in late November 2006.
Mexico
Krispy Kreme may have found success in their twenty-eight outlets in Mexico. Some Mexican Krispy Kreme locations can be found inside Walmart stores as in the USA.
Philippines
In November 2006 Krispy Kreme opened two stores in the Philippines. These stores are franchise owned like many others. The original franchise agreement is for 20 stores over the next five years. The first store was officially opened on November 30 2006 at The Fort. The second store was opened on December 21 2006 at Bldg. B of SM Megamall in Mandaluyong City. Each donut cost 30 pesos.
Indonesia
Krispy Kreme currently has opened five stores in Indonesia. At least seventeen more stores are scheduled to open over the next five years. The stores are located in Pondok Indah Mall 2, Senayan City, Plaza Senayan, Mall Kelapa Gading, Discovery Shopping Mall Bali and Plaza Indonesia (opening soon).
The official website for Krispy Kreme Indonesia can be found here
South Korea
Over the past few years Krispy Kreme South Korea have opened eighteen stores, fifteen in Seoul/Gyeonggi-do and two in Busan and one in Daejeon. These include hot locations and fresh stores.
Other Countries
Krispy Kreme have also announced in the past few months that stores are set to open in Egypt, China and the United Arab Emirates. Very little is known about the locations of these stores however they are set to open in early 2007. They will all be franchise owned.
Krispy Kreme controversies
Accounting
Krispy Kreme has been criticized for their accounting methods. Livengood, and former CFO and COO Jeremy Wearn, as well as current CFO Michael Phalen, and former CFO Randy Casstevens, are currently embroiled in U.S. Securities and Exchange Commission and class action lawsuits about misreporting profits and failing to issue a profit warning as soon as they knew they would fall short of predictions. In addition, the corporation is accused of manipulating earnings through a practice known as "channel stuffing" — delivering more doughnuts to suppliers than ordered at the end of a reporting period, while still booking the increased revenue, then taking the unsold doughnuts back at the beginning of the next reporting period. The company initially blamed the low-carbohydrate diet craze to explain the loss in earnings. (Mad Money host James Cramer, not a fan of the stock, has poked fun at the "channel stuffing" practice on his shows by asking if anyone has discovered "the warehouse full of Krispy Kreme doughnuts that the company took back".)
In July 2005, Krispy Kreme announced the appointment of a new Chief Accounting Officer, Mr. D. Muir, to be paid a salary of US$300,000 per year. He is to assume the accounting responsibilities of Michael Phalen, currently focused on issues related to the many class action suits and the SEC and DOJ investigations.
Trans fat
Each Krispy Kreme original glazed doughnut has 4 grams of trans fat, which is known to cause coronary heart disease. Some have as much as 7 grams (Apple fritters).[2]
References
- ^ "Krispy Kreme Doughnuts Inc. (KKD) Income statement". Yahoo! Finance. 2006-12-16. Retrieved 2006-12-16.
{{cite web}}: Check date values in:|date=(help) - ^ "Krispy Kreme Doughnuts Inc. (KKD): Competitors". Yahoo! Finance. 2006-12-16. Retrieved 2006-12-16.
{{cite web}}: Check date values in:|date=(help) - ^ "Salad sumo, doughnut giant clash". The Australian. 2006-06-22.
{{cite news}}: Check date values in:|date=(help)
- Winston-Salem Journal, "Krispy Kreme Lawsuit Filed." December 31, 2004.
- Krispy Kreme Corporation Investor FAQ
- Krispy Kreme Press Kit
- Krispy Fills Kreme-Filled Hole in the Market
- Forbes Krispy Kreme Doughnuts Corp. Page
External links
