Krispy Kreme’s shop in the Blanchardstown area has its “hot now” sign turned on, indicating that their popular Original Glazed donuts are coming fresh and warm from their assembly line. This glowing red sign is popular in its native US as a signal to motorists craving something sweet. While such a cultural impact has not yet been established in Ireland, Jamie Dunning, the Managing Director of Krispy Kreme in UK and Ireland, states that there is hope it will be so.
Post a rapid growth phase, the company’s focus in Ireland has now shifted towards building “relevance”. The launch of Krispy Kreme’s Blanchardstown unit in 2018 was met with long, enthusiastic lines that drew global attention. “We’re in a different phase now. We aggressively expanded last year, going from a single store to 15 in just two and a half years, and increasing our partner locations from nine to 105”, mentions Dunning. The future outlook is to adopt a more opportunistic and selective approach to expanding store locations. The company also plans on increasing its appeal to a wider demographic.
Krispy Kreme, with almost 200 employees in Ireland, looks forward to launching an ecommerce service with premium lines for gifting and personalising items by early 2025. Dunning asks, “How well-known are we for office treats, birthdays, and other family events? We need to improve our positioning in people’s minds for these occasions”.
Original Glazed is the best seller in Irish stores, outperforming varieties such as Lotus Biscoff and Nutty Chocolatta, says the country manager, Declan Foley. This can be attributed to the strong attachment to American heritage among Irish customers.
In addition to standard variants, limited editions like a green variety for St. Patrick’s Day are also part of their catalogue. Being ‘Instagrammable’ certainly aids in thriving in the confectionery market. The company also aims to expand the collaboration with women’s fashion chain Pretty Little Thing, which had previously resulted in the creation of the strawberry-iced, sprinkle-dusted Pretty Little Unicorn doughnut. Similar partnerships targeting social media are also in the pipeline for the coming year, hints Dunning.
The appeal of doughnuts on social media platforms like Instagram has undoubtedly hit a higher peak today than five years ago. Showcasing doughnuts’ aesthetic appeal is part and parcel of the modern doughnut business landscape.
Despite experiencing an increase in sales by 45 per cent in the previous year, equating to over €10 million, Krispy Kreme experienced a financial setback of €415,000 before taxes in 2022 due to expansion costs. However, for 2023, a negative balance sheet isn’t expected.
Economic tension caused by cost of raw materials and other resources is present but diminishing. Krispy Kreme is now trying to counterbalance these costs through operational efficiency, opting to not transfer the cost burden onto their consumers.
A noticeable trend has emerged in London, with the introduction of superior-quality doughnut brands like Donutelier and Crosstown. Commenting on this, Dunning expressed confidence in Krispy Kreme’s high-quality dough. While competitors keep them on their guard, he believes the consumer emerges as the ultimate winner due to the variety in choices.
Apparently, no deviation towards sourdough is planned by Krispy Kreme yet. Although, understanding for the demand for gluten-free options exists, the brand would only consider it once the taste and texture can compete with their current options, and finding the technology to do so is proving a challenge.
Dunning admits he wouldn’t advocate for daily consumption of doughnuts, which is why the brand targets the “shared experience”, whether it be in office meetings, parties or relaxed home gatherings. Krispy Kreme focuses less on individual buyers and more on enhancing shared experiences, which aligns with the brand personality and supports their financial structure.