Krispy Kreme Plan Filled With Holes
By George Anderson
It was a scene that played out over and over again at different locations throughout the country.
A new Krispy Kreme would open to great fanfare and big crowds. But, what happened after the television cameras were gone and consumers made their initial purchase?
Krispy Kreme says it got waylaid by Dr. Atkins.
The truth, say some Krispy Kreme franchisees, was that consumers didn’t come back after their first taste and their businesses were saddled with an operating plan and expenses
that made it virtually impossible to make a profit.
According to a report on the MarketWatch Web site, “The details of just how bad it really was can be found in recently filed court papers related to the restructuring
of KremeKo, Krispy Kreme’s struggling Canadian operation.”
KremeKo, reports MarketWatch, “never made money” and according to Krispy Kreme’s chief financial officer Michael Phelan, “KremeKo’s management concluded that its revenues could
not support the existing structure.”
Moderator’s Comment: What went wrong at Krispy Kreme? What if anything, can fix it? –
George Anderson – Moderator