The Rise and Fall of Krispy Kreme

[marmar]

The Tragedy of Krispy Kreme

By Carol Kopp
On 12:20 pm EDT, Tuesday October 13, 2009


There's a truism among investors that you should invest in what you know, understand, and like. It's a common sense strategy: You spot something new. It's special. It's useful or innovative. It's cool and affordable. Let me buy some of that!

The response to that can be summed up in just two words: Krispy Kreme (KKD).

Krispy Kreme had been a popular doughnut chain in the South since 1937, but remained unknown to the rest of us until about 1996. That's when the first Krispy Kreme popped up in New York City, on West 23rd Street.

Believe it or not, the town went nuts.

Doughnuts are a major food group in New York, where people eat many of their meals while walking. These fabulous new doughnuts were favorably reviewed by local newspapers. Lines formed when the "Hot Doughnuts" sign was lit. The two young men who owned the franchise were extolled as modern entrepreneurs.

I lived one block away from the store, and thought Krispy Kremes were a much better thing than sliced bread. I was soon as knowledgeable about the product as any potential investor could be. .............(more)

The complete piece is at: http://finance.yahoo.com/news/The-Tragedy-of-Krispy-minyanville-220090191.html?x=0

[Ian David]

1. Krispy Kreme donates heavily to Republicans. n/t

[mainer]

8. great doughnuts trumps politics

for me, anyway.

[vadawg]

10. yup, theres politics and then theres doughnuts mmmmmm doughnuts mmmm

[Ian David]

22. I only eat them if someone else is buying. But it's REALLY hard.

Even harder than giving up Blue Moon White Ale.

[blondeatlast]

43. Gotta agree there. nt

[tonysam]

63. You said it

Food in non-partisan as far as I am concerned.

[Rebubula]

20. I will save my outrage...

...for things that do not taste as good as Krispy Kreme.

[vadawg]

2. mmmmmmmmmmmm doughnuts

[tabbycat31]

3. I don't think i've ever had a KK

[vadawg]

7. mmmmm doughnuts mmmmmmmmmmm

KK are awesome just dont overeat them... mmmmmmmmmmm

[AngryOldDem]

49. You're not missing much. n/t

[PassingFair]

4. It was "South Beach" killed the Krispy Kreme.....

Over expansion just when the "low carb"
craze hit Middle America.

[Captain Hilts]

13. Exactly. A confluence of events. KK could have survived one or the other. nt

[mainer]

5. god, I love KK doughnuts.

I'm lucky there isn't one anywhere within 50 miles of me, or I'd be there every morning.

Whenever I have to travel to the south, the first place I head in the morning is KK, for my coffee and a hot glazed.
It's almost better than sex.

[JVS]

6. I buy local or blue state (Dunkin).

KK is not food, it's candy.

[OnyxCollie]

45. Dunkin' Donuts.

Dunkin' Donuts is owned by the Carlyle Group and Bain Capital (Mitt's private equity management group.)
http://www.thestreet.com/_googlen/stocks/food/10257073.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

[seabeyond]

9. saw something last night, ... krispi kreme hamburger. huge eeeew. anyway, lol. nt

[OnyxCollie]

48. Luther Vandross reportedly came up with that.

And now he's dead.

[seabeyond]

51. lol, And now he's dead... heart attack? i am not laughing at death, dont know this person

but well, made me chuckle.

[OnyxCollie]

56. Luther Vandross was an R&B singer.

IIRC, he got really fat, later had a stroke and was in a coma for a while, and died shortly thereafter.

Is there a direct link between the Luther Burger and his sad fate? You make the call.

[seabeyond]

57. ahhhh. i am into moderation of all things. if the thing looked or sounded good, i could

go for it, here and very far there.

but looks horrible.

is indicative of a behavior though.

[TwilightGardener]

11. Too sweet. You need a gallon of coffee to counteract each donut.

[Jeff In Milwaukee]

23. For those of us who consume a gallon of coffee every morning anyway...

Meh. No Problem.

:shrug:

[Obamanaut]

39. Where is the downside? nt

[seabeyond]

52. i think so too. i like sweet, and this is TOO sweet. they ran our donut co out of town

too sweet donut so we didnt eat. (a treat every 4, 5, 6 months) then krispi kream closed up, lol.

i guess i was not the only one thought all sugar, no donut

[Captain Hilts]

12. NYC went absolutely apeshit for KK. nt

[DrDan]

14. didn't someone come up with a sandwich consisting of a hamburger between two KK's?

or something like that.

[gkhouston]

16. Yes. It looked awful. n/t

[DrDan]

26. even worse than I remember - a krispee kreeme bacon cheeseburger

[Phoonzang]

31. I would so eat that....

Then immediately go drink some syrup of ipecac to get rid of it.

[blondeatlast]

46. There are no words--unless yuck is in the dictionary. nt

[closeupready]

15. Krispy Kreme donuts are just donuts. Nothing magical about them, IMO.

The glazed donuts taste like ... glazed donuts.

[marmar]

17. Agreed.....

The Dutch Girl, a doughnut shop here in Detroit, blows them away.

[bigwillq]

18. I agree.

Never was a huge fan. Had a few when they first came out, but nothing special.

[PassingFair]

21. Pretty boxes, like presents....

http://2.bp.blogspot.com/_OZeQ1PcjeuI/Sc-XSFqQFqI/AAAAAAAACC4/oLpqGohhR6E/s400/Krispy+Kreme+box.jpg



...and they gave you free hot donuts while
you waited.

[Blue_Tires]

30. The Pacific Ocean is just a mud puddle. Nothing impressive about it, IMO.

It's a body of water just like any other...:silly:

[Johonny]

32. I agree

They don't hold a candle to what the small independent bakeries use to make when I was a kid.

[closeupready]

38. There's a little independent donut shop near where I live that makes the best

cream-filled donuts - they are very pretty, and it's obvious someone took the time to make each one. Krispy Kreme donuts, OTOH, are little more than mass-produced according to a kind of formula.

I know a lot of people like them, but then a lot of people like Olive Garden.

[Dulcinea]

35. I think they're gross.

I've lived in the South for 20 years, & I think they're disgusting. They literally make me sick to my stomach. Flame away.

[Orsino]

37. Yeah, nothing that imitators couldn't do as well...

...or better.

[GoCubsGo]

59. Yup.

The town where I grew up had a German bakery. Now, THOSE were some glazed donuts I can get excited over. They spoiled me as far as anything else goes. Krispy Kremes...meh. Just another example of overrated factory food.

[BlueIris]

61. That's what I said after I had my one and only KK. nt

[KharmaTrain]

19. They've Come and Gone From My Area...

Reminds me of the Winchell's chain that did a similar act in the early 80's.

There were several KK's in this area but they're gone now...victims of poor locations and their own overexpansion. They were gone before the economic downfall of '07. KK will also be known for one of the biggest internet IPOs that made the "smart" investor (who had inside info) a lot of money.

[Xithras]

54. Same here. We had one close after only a month and a half.

KK came in and bought a lot on one of the busiest corners in a 250,000 person urban area, knocked down an old store on the location, and built a HUGE Krispy Kreme with a drive thru and a dining area that could seat almost 400 people. And the place got full. It opened to rave reviews and sales were through the roof.

45 days later the building was shuttered as KK slashed stores in a desperate attempt to stay in business. While sales were good, the debt on the store was high and they needed to unload it quick. The property ended up going to foreclosure when KK walked away from it.

The building sat empty for about two years, gradually getting repainted by the graffiti artists and vandals, until they finally knocked it down about a year ago and built a CVS on the site. 45 days use, and the building was leveled.

[madrchsod]

24. my local bakery was better than k k`s

plus out here the donuts were not warm from the oven

[bullwinkle428]

25. Meh...the thrill went away after my first dozen or so trips to KK.

Apparently did for lots of others around here as well - KK used to be available at all kinds of little convenience stores in small towns all over Eastern Iowa. Now, they're about as rare as hen's teeth, unless you're willing to drive to the KK store in Davenport.

[sweetloukillbot]

27. Krispy Kremes are magical crack when they are fresh from the oven...

They just melt in your mouth and the next thing you know you've eaten three of them and are going to be sick for the rest of the day...

When they aren't hot though, they're just mediocre donuts.

[blondeatlast]

47. True that. But since they continuously are baking them, it's pretty easy to get a fresh one.

A little savory serenity in a busy, confusing world. Yummy...

[conscious evolution]

50. They are not baked

KK deep fries their donuts.
Hot ones rock.But once they have cooled down they are pretty tasteless.

[cherokeeprogressive]

65. I was gonna say... LOL baked? n/t

[TlalocW]

28. Krispy Kreme donuts are overkill

I can literally feel my teeth rotting when I bite into one. I've only visited my favorite donut place once - when I went to Vancouver on a vacation - Tim Horton's. I still miss their blueberry donuts.

TlalocW

[Echo In Light]

29. I never understood the mass attraction - reminded me of Long John Silvers...

As in, everything tastes sorta the same. That's how I found their doughnuts, and actually grew to dislike the smell of them.

[Johonny]

34. They're the "In and Out" of the doughnut world

[bullwinkle428]

40. Ooooh, that's a slap in the face to In-N-Out!

In-N-Out has redeeming value, as far as fast-food joints go!

[cherokeeprogressive]

66. Best hamburgers going but someone will soon say they hid religion on their packaging

And because of that their food doesn't taste good.

Gimme a Double-Double with grilled onions, fries, and a vanilla shake! (but only once a month LOL)

Who reads fast food packaging anyway?

[Warpy]

33. I went to high school in the south and KKs were an addiction

and I couldn't believe what they called "doughnuts" in Boston when I moved there. KKs are encapsulated spring breezes, lightly surrounded by wisps of dough and a crisp sugar coating that's delightfully messy to eat. Northern "doughnuts" made me realize why they called them "sinkers" back in the 30s, they laid like a brick in your gut for hours.

A place opened here in 2002 (fortunately for my arse, on the other side of town), part of the massive expansion undertaken by bad management. People loved them and lines were long. Then, three years later, they just disappeared. I can't believe the franchise went broke. It had to be some other reason and once again, this town is without anything approaching a real doughnut.

All I can imagine is that the massive debt assumed by bad management led to suppliers being stiffed and supplies not being delivered to franchises.

Sniff.

[mainer]

36. you, my friend, are a poet.

"KKs are encapsulated spring breezes, lightly surrounded by wisps of dough"

Yes, yes, yes.

[Stevenmarc]

41. Never liked them, cotton candy with a slight hint of dough

[azmouse]

42. I've never eaten one.

Don't think I ever will. Donuts make me sick. Too greasy.

[Romulox]

44. I prefer Dunkin by a large margin.

My favorite, the custard filled "boston kreme" is really gross at both Krispy Kreme and Tim Horton's.

[BlueIris]

60. Oh, yeah. Gimme a Dunkin' any day. nt

[JustABozoOnThisBus]

53. Way too fluffy, empty, flavorless (except for sugar)

Give me a heavy cake doughnut, or a danish.

Keep your KK.

mmmmmmm, doughnuts

[LibDemAlways]

55. My krispy kreme story

A few years ago Krispy Kreme had a tie-in with the LA Dodgers. If a home game was a no-hitter, everyone in attendance could pick up a half dozen donuts for free that day at any LA area Krispy Kreme just by showing a ticket stub. A game I attended was, indeed, a no-hitter, and on the way home my brother decided to stop by a store just off the freeway to take them up on the offer. You would have thought we and a few others who had the same idea were trying to rob the place. The employees were incredibly rude and made all the ticket holders wait a long time. Because we were in no hurry, we decided to see just how long they were going to make us wait. Two hours later we finally got the donuts shoved at us by a very miserable employee. Too bad because we had originally intended to buy a box in addition to the freebie, but no way were we going to spend a dime in a place where we were being treated like shit.

[cherokeeprogressive]

67. Maybe they were angry that the Dodgers couldn't muster a hit?

I know I would have been LOL.

J/K

[LibDemAlways]

68. Nah, they were just angry that they had to participate in the

promotion. It was so stupid. Most people got fed up and walked out. Truly horrible attitude.

[MurrayDelph]

58. Not a big fan of glazed donuts

so Krispy Kreme has never been a big deal for me. Their cake donuts are OK, but also nothing special.

On the other hand, as a native Angelino, when I am in the mood for a donut, I go here:

[juno jones]

64. When in Bellingham:

Great doughnuts totally made from scratch (I bet those franchised KK's use mixes). They have a nifty 50's sci-fi theme and host $1.00 saturday matinees of old classic sci-fi at the local indie movie theater.

They even have a Gort and a rocket. They're cool. :)

[Shell Beau]

62. Who wants a Krispy Kreme when you can have a Shipley's donut?

Shipley's is the yummiest!



Plus the box the donuts correctly! :P