Krispy Kreme UK has said that it believes it will sell £50m worth of its doughnuts by 2013, as part of plans to expand the London-based group nationally. The company is looking to open outlets in Leeds and Bristol, as well as rolling out to Scotland by the end of 2010. Don Henshall, the group’s managing director, told the Financial Times that the chain was performing well and that he believed that a £1.20 “hot original glazed” doughnut was an “affordable luxury”. Henshall said: “You have to be sure of your offering and stick to your knitting. In my favour, these are an affordable luxury for £8 a dozen.” Henshall said that the group, which has 40 outlets in the UK, had delivered operating profit of £118,000 for the year to 31 January 2008, seven months ahead of plan. Sales for the year increased by 27% to £23.6m on the previous year. The company, which opened its first UK site in October 2003 and has become one of Krispy Kreme’s biggest international operations challenged only by Korea, said that it was also planning to expand to Ireland eventually. The group has also entered into an agreement with Tesco to put Krispy Kreme-branded units in 134 of its stores.

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