Vale Krispy Kreme

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Well, they aint dead yet but….

I remember the first time I brought a box of KKs back from Sydney (before they had a store in Melbourne). The kids had some, we shared them with friends, it was a social event.

I remember the second time as well. We threw half the box out a week later when no-one wanted to eat them.

And I think that is the KK problem. Great marketing. Terrible donuts.

13 Responses to "Vale Krispy Kreme"
  1. I thought that the donuts were great when fresh and hot (I tried them at KK stores in the US). Otherwise, not so much. I prefer British style doughnuts.

  2. I suspect its failure has little to do with changing consumer preferences for organic wholemeal pikelets and more to do with an aggressive and leveraged coroprate model.

  3. Agree with HC – I only ever ate half a KK doughnut after my cousin got a box at Sydney airport. It was sickly sweet. It was even too sweet for my sister (and boy, that’s SWEET). That was the end of my Krispy Kreme experience.

  4. I read somewhere that Dunkin’ Donuts makes all of its money from coffee. KK, on the other hand, has a pricing model that makes purchase of individual donuts prohibitive. That makes it hard to sell lots of coffee, surely?

  5. Also did not like the product – unusual for me as I love donuts but prefer them hot with cinnamon sugar. I wonder if that is a common preference for those of us raised with that style of donutty treat?

  6. BD, of course they were overgeared based on the revenue they were getting – but that’s only because they’d borrowed on expectations of far more revenue.  Their problem really is that it’s a lousy product.

  7. Krispy Kremes makes yeast-leavened doughnuts, which are much lighter than traditional Australian cake-based doughnuts raised with baking powder.  They’re a completely different product, it’s like comparing soda bread to a baguette.
    I’m from the US, so was very happy to have what I considered to be a “real” doughnut rather than the Aussie “hoop of cake”.  But I guess it depends on what you’re used to.
    But really, who eats doughnuts all that often anyway?

  8. Apparently cheeseburgers at McDonalds last about 12 years before they start to deteriorate (who invented preservatives, was that Ronald McDonald?). I’m sure KK are the same (if KFC is kids fattening centre was is KK?). So if you like them just buy a few boxes now and they’ll be good well into the 2020s.

  9. BruceT: Funnily enough, Donut King sells the US-style donuts under the (distinctly unappetising) name Yeast Rings.

  10. Here’s a pretty damning statistics indicating how much the master franchiser of Kripsy Kreme overshot the mark in terms of expansion in Australia:
    USA has 224 stores serving population of 311 million. (1 store per 1.4m people)
     
    Australia had 50 stores serving a population of 21 million. (1 store per 420K people)”
    http://startupblog.wordpress.com/2010/11/03/why-krispy-kreme-failed-in-australia/
    My take on this is that the failure of the firm has less to do with the donut recipe and more to do with the franchising model (repeat same story in Australia for Baskins and Robbins, Starbucks etc).  For a land with reportedly the highest franchising rates in the world, we really do seem to have underskilled participants in what are too often Ponzi schemes.
     

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