Growth Club
1851 Growth Club
Krispy Kreme To Focus More on Franchising
The brand's franchised stores are outperforming the company-owned ones
Krispy Kreme Doughnuts is reevaluating its business model and will be focusing more on franchising. The brand’s franchised stores are outperforming the company-owned ones.
“Domestically, our franchisees continue to outperform our company shops,” Krispy Kreme CEO Tony Thompson said. “Thus, we believe that by focusing more on franchising, we will be in a greater position to maximize the value of the brand for the long term.”
The doughnut chain has 297 domestic locations, of which 181 are operated by franchisees. All of Krispy Kreme’s 824 international locations are run by franchisees. The fourth quarter for the brand ended on January 31 and company-operated stores reported same-store sales growth of 0.2 percent, while franchisee same-store sales were up 2.5 percent, during that same time period.
The brand is implementing a number of new initiatives to help franchise operators build more profitability and generate higher sales for units. To do this, the brand will lower costs for construction, site location and equipment for new stores. Nation’s Restaurant News reported the brand will also be looking to improve the flow of stores to help make the customer ordering process smoother, thus helping boost revenue. Thompson went on to say the entire company needs to embrace the focus on franchising in order to make it work.
“We will begin a cultural change inside our organization domestically to become more franchise-support focused,” Thompson said. “This is an area we need to be not merely good, but great.”
MORE STORIES LIKE THIS
NEXT ARTICLE
Featured Franchise News
Featured Brand News
