Doughnut brand Krispy Kreme sees huge potential for growth, with less than a third of UK residents living close to an outlet.
Jamie Dunning, president of Krispy Kreme UK & Ireland told British Baker: “It’s important to put on the record that we are comfortable with the idea that we can grow responsibly,”
Dunning told the title he is comfortable with the current rate of frequency, which sees customers tuck in on average three to four times a year, but sees ample space to open more outlets.
At present, there are around 1,750 points of sale across the UK and Ireland, with the vast majority of these in supermarkets and forecourts, as well as around 130 shops of its own.
This year, Krispy Kreme has opened another 78 places to buy doughnuts, although this is described as a “slower year”.
In the US, Krispy Kreme is trialling selling its doughnuts in selected McDonald’s stores to expand its reach.
Dunning says there are “no specific plans for that in the UK”, but adds that it “raises the question of where and with whom is there a complimentary mission or occasion for us to be present, where it works for both brands, and it works for consumers”.
All outlets in the UK and Ireland – whether operated by Krispy Kreme or a third party – are serviced by a network of 16 production hubs and around 100 distribution sites.
“It’s a model that looks easy on paper but is very hard to replicate when your ultimate commitment is the freshest doughnuts,” Dunning explains. “If you get that wrong, you have quite a waste problem on your hands. If you get it wrong the other side, you run out of doughnuts too quickly.”
Despite the complexities, the brand’s commitment to freshness is unwavering.
“We will never veer away from fresh doughnuts made today and distributed overnight for consumption tomorrow”, he says.
However, the toppings, fillings, format, and dietary requirements of the doughnuts will change, as Krispy Kreme looks to entice new consumers.
“There is no end of to the limit on colour, flavour, brand mashups, and the spectacular,” he says.
Dunning is a believer in consumer choice, with the launch of a lower calorie range in January - but he recognises consumers see doughnuts as an indulgent treat.
“I don’t think the doughnut category is ever going to persuade consumers that it’s good for you. There’s no point and we’re very clear that compromise on any dimension of quality and taste is a non-starter,” he says.
That said, the business is “very respectful and in support of” regulation such as HFSS, which has seen Krispy Kreme cabinets move into some retailers.
It has also made a commitment to ensure over 70% of its portfolio are less than 320 calories each by 2025.
The Original Glazed, which represents a significant proportion of sales, comes in at 195 calories which is a “good start” on this mission.
