Krispy Kreme Doughnuts, Inc.

Topics: Krispy Kreme, Doughnut, Dunkin' Donuts Pages: 37 (10376 words) Published: December 12, 2006
Introduction

The research proposal begins with an overview of Krispy Kreme's functioning industries as well as current trends within them. The document progresses by describing the corporate structure of Krispy Kreme, specifically outlining company values and philosophies. To help develop the research, various store formats are discussed, followed by an in-depth analysis of Krispy Kreme's financial situation. The following pages also place Krispy Kreme in the context of today's market and illustrate the brand image and different products. The document attempts to combine research, analysis and recommendations to determine if a so called cold doughnut will allow Krispy Kreme to expand globally.

Industry Information

Krispy Creme Doughnuts, Inc. competes with several industries, to include:

Ø Baked Goods Industry

Ø Food Industry

Ø Restaurant (Eating Places) Industry

Ø Cakes and Pastries

According to the National Restaurant Association, Americans will spend about $354 billion at the nation's more than 815,000 eating and drinking establishments. "Statistics indicate that restaurants have become an increasingly important part of American lifestyle over the past few decades" (Bread, Cake, and Related Products, 2003, ¶4).

When evaluating the restaurant industry, fast-food type restaurants like Krispy Kreme have led way, and the growth of franchising since the 1970s has also propelled the growth (franchises have almost tripled their share of the market). However, starting in the late 1990s, competition decreased in mature markets because they were becoming saturated with fast-food restaurants. During this time, the restaurant industry began to see an influx of themed-eating places trying to redefine their images. For example, T.G.I. Friday's began mostly as a single's bar, but evolved to a family-oriented dining place.

Another trend in the restaurant industry started in the mid-1990s when restaurants and supermarkets began to prepare foods for carry-out (commonly referred to as "home meal replacements"). Today, restaurants report that over 50 percent of their revenues come from carryout sales (Restaurants, 2003).

Despite the economic downturn in 2001 due to September 11th, the restaurant industry recently began to pick up momentum. In Western Europe, the fast food part of the restaurant industry has seen growth as well (Restaurants, 2003).

One trend in the restaurant industry is the increased use of computer and telecommunications technology to provide greater convenience and speed. These technologies include vibrating paging systems, wearable computers, and alarms (Restaurants, 2003). The bread, cake, and related products industry also researched new technology to find new methods to extend shelf life and preserve product freshness (Bread, Cake, and Related Products, 2003).

Experts in the United States continue to predict that the demand for restaurants and prepared foods will continue to increase because more women are working and people, in general, are pressed for time and seek convenient and economical alternatives to home meal preparation. This trend carries across the borders of the European Union where Nation's Restaurant News reports that American fast foods are changing the way Europeans eat (Restaurants, 2003).

According to Market Share Reporter, 27 of the top 30 international restaurant chains are based in America. This is a clear sign that the American presence overseas is prominent and growing (Bread, Cake, and Related Products, 2003).

According to Ed Wood, a researcher of the history of bread making, 75 percent of the bread consumed in industrialized nations is produced by large commercial bakeries. It is natural that in the bread, cake, and related products industry, restaurants establish themselves close to population centers. Therefore, it is not surprising that a larger percentage of bread is consumed in large cities (Bread, Cake, and Related...

References: Al Toral recommends the following stocks: Pixar and Krispy Kreme; and highlights: Biomet, Dell, First Data, and Pfizer. (2003, July 2). Business Wire. Retrieved September 14, 2003, from www.krispykreme.com
Bread, cake, and related products
Break, cake, and related products. (2002). Retrieved September 18, 2003, from Market Research Monitor database.
Business brief: Krispy Kreme Doughnuts Inc.: First-quarter net rose 89% on expanding revenue. (2001, May 17). Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
Campbell, D. (2003, July 21). Cold doughnuts now? Krispy Kreme retools concept. Business Journal. Retrieved September 2, 2003, from http://triad.bizjournals.com
Case study: Krispy Kreme Donuts come to Boston
Ceron, G. (2003, January 27). Test may be in wake of selloff as volume is expected to grow. Wall Street Journal-Eastern Edition, p. C3. Retrieved September 14, 2003, from Ebsco (Academic Search Premier) database.
Cheryl, C. (2000, December 26). Krispy Kreme: Their product, at least, is pure poetry. Chicks Eye View. Retrieved September 2, 2003, from http://www.chickslayingnetseggs.com
Covert, J
Eisinger, J. (2003, August 21). Ahead of the tape. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
Emling, S. (2003, September 25). Krispy Kreme rolling to Britain. Austin American-Statesman, p. C1.
Free doughnuts is only one of Krispy Kreme 's marketing tactics. (2003, September 2). Tribune Business News. Retrieved September 14, 2003, from Hoover 's online database.
French, K. (2002, March 8). The doughnut that encircled the world. TheStreet.com. Retrieved September 2, 2003, from http://www.thestreet.com
Gashurov, I
Georgiades, A. (2002, July 12). Krispy Kreme sees sweet spot in Toronto area. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
Harris, J. (1999, April 19). Are they really the Kreme of the doughnut crop? Dallas Morning News. Retrieved September 19, 2003, from Factiva online database.
Holland, P. (2003, August 11). The hole story. Fortune, p. 31. Retrieved September 14, 2003, from Ebsco (Academic Search Premier) database.
Hot Krispy Kreme doughnuts available tomorrow in city of Laval. (2003, August 18). Canada Newswire. Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme announces record breaking opening week in Massachusetts
Krispy Kreme doughnuts to open branch in Harrods. (2003, August 22). Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme Doughnuts, Inc
Krispy Kreme Doughnuts, Inc. (2000b, May 1). Krispy Kreme continues expansion through new area developer agreements and new store openings. Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme Doughnuts, Inc
Krispy Kreme Doughnuts, Inc. (2001n, May 18). Krispy Kreme announces 2-for-1 stock split. Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme Doughnuts, Inc
Krispy Kreme Doughnuts, Inc. (2003ag, April 28). Krispy Kreme announces expansion of development plans in Canada. Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme Doughnuts, Inc
Krispy Kreme Doughnuts, Inc. (2003al, June 5). Krispy Kreme awards development rights to Australia and New Zealand. Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme Doughnuts, Inc
Krispy Kreme Doughnuts, Inc. (2003bb) Annual report. Winston-Salem, NC.
Krispy Kreme Doughnuts, Inc. (2003bc). 10K. Retrieved September 18, 2003, from http://www.krispykreme.com/investorrelations.html
Krispy Kreme Doughnuts, Inc
Krispy Kreme Doughnuts, Inc. (n.d). Retrieved September 2, 2003, from http://www.academon.com/lib/paper/7945.html
Krispy Kreme earnings exceed consensus; Net income increases 46.8%
Krispy Kreme launches nationwide business community portal with Corechange 's access framework. (2001, July 16). Retrieved September 2, 2003, from http://www.corechange.com/documents/press_releases
Krispy Kreme net income surges 47 percent
Krispy Kreme opens first store in New Jersey. (2003, July 23). PR Newswire. Retrieved September 14, 2003, from www.krispykreme.com
Krispy Kreme steps up wholesale business in Canada
Krispy Kreme to open western Canadian store. (2003, September 4). Tribune Business News. Retrieved September 15, 2003, from Hoover 's online database.
Krispy Kreme 's low-budget marketing techniques create big buzz. (2003, September 2). Tribune Business News. Retrieved September 14, 2003, from Hoover 's online database.
Leang, S. (2000, October 11). Krispy Kreme looks to translate success into a new language. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
Leung, S. (2003, February 13). Eateries pressed for nutrition data. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
Local donut shop owner worried by Krispy Kreme opening in Beaverton, Ore. (2003, August 27). Tribune Business News. Retrieved September 2, 2003, from TimesDispatch.com
Lofton, L
Loomis, T. (2003, May 5). Companies are hiring chief governance officers. National Law Journal, 25. Retrieved September 14, 2003, from Ebsco (Academic Search Premier) database.
Low, C. (2001, July 5). Krispy Kreme insiders cash in stores. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
MacArthur, K. (2003, June 30). Fast-food rethinks marketing. Advertising Age, p. 2. Retrieved from Ebsco (Academic Search Premier) database.
Martinez, A. (1997, November 10). From duck to doughnuts, New Yorkers eat out, spend more, survey shows. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
McLaughlin, K. (2003, June 17). Another overpriced coffee option—doughnut shops take on Starbucks with fancy brews; Frappuccino vs. Dunkaccino. Wall Street Journal. Retrieved September 19, 2003, from Factiva online database.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Krispy Kreme Doughnuts, Inc.
  • Krispy Kreme Doughnuts Inc Essay
  • Krispy Kreme Doughnuts, Inc. Essay
  • Krispy Kreme Doughnuts, Inc. Essay
  • Krispy Kreme Doughnuts, Inc. Essay
  • Krispy Kreme Doughnuts, Inc. Essay
  • Essay on Krispy Kreme Doughnuts, Inc
  • KRISPY KREME DOUGHNUTS, INC. Essay

Become a StudyMode Member

Sign Up - It's Free