Krispy Kreme’s Demise

Ever since I’ve noticed that all the stand-alone Krispy Kreme locations were shutting down, I’ve been fascinated with the demise of Krispy Kreme. They sell a great product – cheap, delicious, well-known, everyone loves them. How have they failed so spectacularly?

I found my answers recently in an article by Carol Kopp on Yahoo Finance titled, The Tragedy of Krispy Kreme.

Per the article, it appears that Krispy Kreme fell victim to classic business mistakes: over expansion, too much debt, and rumored management misconduct. Additionally, they weren’t prepared for the increased interest in healthy foods, and many of their franchisees suffered.

However, Kopp also writes that with new management and a rise in both its share price and Standard & Poor’s junk credit rating, Krispy Kreme may be on a bit of an uptick. It will be interesting to see if they can turn it around – if they can utilize their great product and fix their business and marketing missteps.

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