RISE - Menu Monitor

Menu Positioning |
Krispy Kreme is open for breakfast, lunch and dinner, featuring a variety of donuts, coffee, espresso drinks, flavored milk and
frozen beverages. Its signature item is the hot original glazed donut. Other donut flavors include glazed cinnamon, chocolate
iced glazed, chocolate iced kreme filled, dulce de leche, glazed raspberry filled, glazed lemon filled, glazed cruller, maple iced
glazed, sugar, cinnamon bun, cinnamon apple filled, traditional cake, powdered strawberry filled, glazed chocolate cake and
glazed sour cream. Specialty donuts include New York Cheesecake, yeast-raised donut with cheesecake filling, cream cheese
icing with graham cracker crumbles on top; Caramel Kreme Crunch, yeast-raised donut with caramel kreme filling, chocolate
icing and topped with toffee pieces; Key Lime Pie—yeast-raised donut filled with key lime custard and topped with cream
cheese frosting and graham crackers; and the Strawberry Shortcake—yeast-raised donut filled with strawberry kreme and
topped with white icing and shortcake crumbles. Coffee is available in smooth, rich, bold and decaf varieties. Espresso drinks
include Kaffe Kreme, mocha, cappuccino and latte. Frozen drinks include raspberry, latte, double chocolate and original
kreme. Menu prices range from 79¢–$11.49. Checks average $4.
Expansion Plans |
Krispy Kreme’s location in Ashwaubenon, WI, closed on August 7. The store was acquired by Westward Dough in April 2006
after its original owner, Oak Brook, IL-based Glazed Investments, filed for bankruptcy. The only Wisconsin locations still
operating are in Brookfield and West Allis. (Thenorthwestern.com 8/8/07)
Krispy Kreme closed four of its East Bay area locations in California on August 10. Only four freestanding Krispy Kreme
locations remain in the Bay Area. The company said Krispy Kreme products would no longer be available in grocery and
convenience stores in the area. A spokesman said Krispy Kreme “is in the midst of a turnaround and continues to evaluate its
growth and positioning throughout the United States.” (Contracostantimes.com 8/18/07)
Krispy Kreme closed its last Florida location in Boca Raton. The unit opened three years ago with consumers waiting all night
for the shop’s grand opening. The location closed without warning and company officials did not comment on the closing.
(Floridatoday.com 9/4/07)
Promotion Plans |
Krispy Kreme is offering a free dozen of its Original Glazed donuts to customers whose birthday falls on Friday, July 13. The
move is in celebration of its 70th anniversary. The offer is only valid on July 13 at participating locations.
(Battlecreekenquirer.com 7/9/07)
Krispy Kreme is promoting football-shaped donuts in August and September. The chain has a marketing strategy to offer
products for a limited time to coincide with holidays or seasonal events. The chain is also offering “Tailgate Packs” that consist
of a dozen football-shaped donuts and a dozen classic glazed donuts. The donuts will be available through September 29 and
on every weekend until the Super Bowl. (Bizjournals.com 8/28/07)
Krispy Kreme is holding the Ultimate Krispy Kreme Recipe Contest to find a new donut dessert. The limited-service donut
chain is partnering with Taste of the South magazine to create an original recipe using any variety of donuts. Participants can
submit their entries online. The winner receives Lodge cast-iron cookware, a Viking mixer and Krispy Kreme gift cards. Entries
will be accepted through mid-October. (Orlando Sentinel Online 9/5/07)
Menu Development |
Krispy Kreme is offering Snowman Doughnuts for a limited time starting in mid-November. (Company Website)
Krispy Kreme plans to introduce a Krispy Kreme sandwich. The sandwich would feature a burger or a chicken breast on a
sliced doughnut as a bun. By introducing the sandwich line, the company plans to pull itself from its declining sales. (Nation’s
Restaurant News 11/13/06 p4)
Krispy Kreme is looking to reinvigorate itself by adding new menu items and better coffee and beverage offerings as well as
introducing a less costly footprint. Select franchisees have partnered with established coffee brands such as Caribou Coffee or
The Coffee Bean & Tea Leaf to sell coffee in-stores. Krispy Kreme is also testing a downsized store in both international and
domestic units that is about half the size of its original outlets. The company is also working on wholesale technologies such
as frozen food products for grocery stores’ in-store bakeries. In 2005, Krispy Kreme closed several units and saw its corporate
revenues decrease by 23.2%. The company recently agreed to settle a large securities class action lawsuit filed against it for
about $75 million earlier this year. (Nation’s Restaurant News 11/13/06 p4)
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