Krispy Kreme undergoes facelift

KremeKo Inc., which had exclusive franchise and licensing arrangements with Krispy Kreme Doughnut Corp., was placed under bankruptcy protection in the spring of 2005. The old-style factory stores have been rethought, said Lindsay "We tweaked that model and adapted it."

http://www.cbc.ca
November 10, 2010

Krispy Kreme undergoes facelift

Krispy Kreme is reinventing itself, and will officially launch a café-style doughnut shop in Toronto on Saturday.

To lure back customers, the North Carolina-based company is diversifying its menu, offering "signature" coffees and espresso drinks as well as bagels, muffins and croissants as part of its newest incarnation announced Thursday as a "neighbourhood café."

"Opening smaller shops that are closer to where our loyal fans live, work and play is very important to our franchise organization," said Chris Lindsay, franchisee, Krispy Kreme Canada.

"We're entering more urban markets," he told CBCNews.

The new Toronto shop, on Harbord Street, joins three existing stores under the old concept: in Mississauga, Ont., where the first Krispy Kreme in Canada opened in March 2001, and in Longueuil, Que., and Quebec City.

Nine years ago, when they opened in Canada, Krispy Kremes were largely located in suburban areas in large, walk-through factory-like stores that encouraged takeout purchases. But after heavy financial losses south of the border beginning in 2005, Krispy Kreme closed numerous stores in Canada.

Factory stores rethought
KremeKo Inc., which had exclusive franchise and licensing arrangements with Krispy Kreme Doughnut Corp., was placed under bankruptcy protection in the spring of 2005.

The old-style factory stores have been rethought, said Lindsay

"We tweaked that model and adapted it."

He said that that the larger suburban stores require a huge amount of capital — something the new café model will not need. It's a model that's increasingly showing up in cities like New York and on the U.S. West Coast.

The company plans to open more café-style stores across Canada in the coming year, said Lindsay. It is currently looking at expanding in Toronto, Montreal and Quebec City. It will also continue to re-evaluate its menu to compete with the likes of Starbucks, Second Cup and Tim Hortons.

http://www.cbc.ca/canada/toronto/story/2010/11/18/krispy-kreme-comeback-canada.html?ref=rss#socialcomments


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