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Krispy Kreme and Its Competition Is there really any competition for Krispy Kreme? Krispy Kreme has been serving coffee and doughnuts since 1937, and has the distinction of being the only fast food that has had a police helicopter use the drive through. In a scenario perhaps too stereotypical for words, Albuquerque police officers flew a police helicopter to the (relatively new) Krispy Kreme for a doughnut break in October 2001 (Reuters 2001). The incident made the national news. Advertising like this would be hard to buy, much less acquire for free!
The incident exemplified the concept that people would do anything for a Krispy Kreme. What makes the franchise so popular? Krispy Kreme combines doughnuts, coffee, iced drinks, and other fast food items with the entertainment value of a full-scale doughnut bakery, all behind glass and almost choreographed for the customers observation pleasure. On a trip to Krispy Kreme, the adults can get their favorite coffee flavor (they currently advertise nine flavors), and the young ones can watch the birth of their doughnut. Samples are free and liberally given, and almost everyone walks out with a dozen -- or more -- after observing the mixing, rising, frying, glazing, and delivery process. With chocolate custard filled doughnut containing the relatively low amount of 345 calories, and an original glazed containing only 200 calories, most people can afford to indulge occasionally (Krispy Kreme 2006).
What does Krispy Kreme's competition offer? Who IS their competition? While many companies may hope to compete with Krispy Kreme, the doughnut chain appears to be placing itself in a position to compete with Starbucks. Krispy Kreme now offers nine gourmet coffees, as well as a number of frozen coffee or fruit drinks. One might also loosely consider that any fast food organization might be in competition with Krispy Kreme simply because of their emphasis on providing various food items on a 24 hour basis. Starbucks estimates that the average customer comes back for coffee 18 times a month.
Customers can also purchase a variety of scones, muffins, and sweet treats. It is highly unlikely that Krispy Kreme customers return 18 times a month to purchase products, but most Krispy Kreme customers do walk away with a dozen or more doughnuts at a time. Recent additions of frozen drinks and a gourmet coffee line have increased the frequency of customer return-visits for Krispy Kreme. From a business standpoint, Starbucks is shining; it is # 338 on the Fortune 500 list for 2005, but Krispy Kreme is having financial difficulties and has exhibited significant financial losses during the last fiscal quarter (CNN Money 2006). This financial loss represents quite a fall from the Kreme's heyday in 2003 when it was named Americas Hottest Brand by Fortune (Newsweek Enterprise 2003). Krispy Kreme's other competitors include Dunkin Donuts, Winchells, New World Coffee and Restaurant Group, and Coldstone Creamery.
In each case, the competitors offer doughnuts and cold drinks (frozen coffee drinks, fruit drinks etc. ). New World Coffee and Restaurant Group offers a menu suitable for an upscale cafe: fresh sandwiches, salads, and soups (New World 2006). Dunkin Donuts offers a variety of drinks, sandwiches (bagels, croissants, and so on), and gourmet coffees (Calorie Counters 2006). Coldstone Creamery offers drinks, ice cream cakes, ice creams, sherbets and sorbets (Coldstone 2006). Winchells offers doughnuts of various kinds and chilled drinks (Winchells 2006).
In the wider analysis, Krispy Kreme competes with McDonalds (fast foods and sundaes), Wendy's (fast foods and the Frosty), and Jack in the Box (fast foods, shakes, and desserts). These three companies appear in the Fortune 1000, with McDonalds topping the list at 109, Wendy's at 516, and Jack in the Box at 692 (CNN Money. com (a) 2006). Without much more work, Krispy Kreme will not achieve these standards of success, even if people will use helicopters to fly in for a glazed donut.
Bibliography. Calorie Counters (2006). Calorie Counts: Dunkin Donuts. Retrieved 27 Apr 2006 from < web > CNN Money. com (2006). Krispy Kreme's Results Not So Sweet: The doughnut company sees fewer stores and lower sales to franchise-holders.
Apr 17, 2006. CNN Money. com online. Retrieved Apr 27, 2006 from < web > CNN Money.
com (a) (2006). Fortune 500 2006. From the 17 Apr 2006 edition. Retrieved 27 Apr 2006 from web Coldstone (2006). Coldstone Creamery Nutritional Information.
Coldstone Creamery website. Retrieved Apr 27, 2006 from web Krispy Kreme (2006). Nutritional Information. Krispy Kreme website.
Retrieved Apr 27, 2006 from < web > New World (2006). Our Brands from the New World Restaurant Group. Retrieved 27 Apr 2006 from < web > Newsweek Enterprise (2003). Oh, Sweet Revenge.
From Newsweek Enterprise September 23, 2003. Retrieved 27 Apr 2006 from < web > Reuters (2001). Police Use Helicopter for Doughnut Run. Copied from Yahoo News Service. 10 October 2001. Retrieved 27 Apr 2006 from web Winchells (2006). Home of the Warm NFresh Donut.
From Winchells website. Retrieved 27 Apr 2006 from < web >
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Research essay sample on Krispy Kreme And Its Competition
