Krispy Kreme Opens New Market

Discussion
Jun 25, 2003
George Anderson

By George Anderson


Krispy Kreme opened its first store in Massachusetts, home state of Dunkin’
Donuts, yesterday to the usual fanfare associated with the doughnut store chain,
reports the Boston Globe.


John Glass, a restaurant analyst with CIBC World Markets, believes the Krispy
Kreme versus Dunkin’ Donuts story is much ado about very little. He pointed
out that 90 percent of Krispy Kreme’s sales come from doughnuts while coffee
is the real draw of Dunkin’ Donuts.


The result is customers of Dunkin’ Donuts make more frequent visits and spend
less per trip than Krispy Kreme devotees who stock up on the chain’s signature
doughnuts.


Moderator’s Comment: Are shoppers at Dunkin’ Donuts
and Krispy Kreme the same consumer? What companies do you see as the primary
competition for each doughnut chain?


Krispy Kreme is only a great-tasting moderately priced
coffee cup away from putting a certain hurtin’ on Dunkin’ Donuts.


The biggest obstacle to Krispy Kreme’s success is the
risk of it becoming ubiquitous. The brand’s scarcity made it a prized purchase.
Will that go away when consumers can get it anywhere?

[George
Anderson – Moderator
]

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