That's cold: Krispy Kreme adds ice cream to the menu
Posted
Sep 29 2008, 05:04 PM
by
Karen Datko
Rating:
Krispy Kreme's business plan has been one we just can't understand. How could a company that sells hot, irresistibly mouth-watering doughnuts have declining sales? But it does, and now the company is hoping to heat up business by serving ice cream.
Ice cream? We have to wonder, if delectable glazed -- did we mention hot? -- doughnuts aren't enough to get customers in the door, is another high-calorie indulgence you can find in lots of other stores going to help?
Consumers' emphasis on health is one of the factors blamed for Krispy Kreme's decline. Paradoxically, so is increased competition from Dunkin' Donuts -- plus poor management and marketing strategy. The Associated Press reported a Krispy Kreme sales decline of 8% in the first half of the fiscal year.
In addition to soft-serve ice cream with a toppings bar, the company is now focused on building smaller stores, where doughnut-making won't be on display, and developing international sales. More than half of its stores are now located overseas.
The plan has already been met with skepticism. Andy Sernovitz at MarketingProfs Daily Fix says Krispy Kreme doughnuts lost their appeal when they became readily available at convenience stores -- and they were cold. He writes: "This latest move is the exact wrong thing to do. Any last hope of saving the brand lies with reclaiming their position as the one and only super special HOT doughnut. Cold ice cream and cold doughnuts are the last thing you need."
The AP says that "analysts have yet to be impressed -- especially as Krispy Kreme's competitors are trying to attract health-conscious customers with egg-white sandwiches and whole-grain pastries."
(If egg-white sandwiches don't appeal to you, check out the Krispy Kreme bacon cheeseburger on display at Neatorama and elsewhere.)
