Krispy Kreme Issues Essay

The tasks will be to:
1. Research and collect industry background data and history.
2. Make a SWOT analysis of the organisation.

2 Background

2.1 History
The story begins with Vernon Carter Rudolph (1915-1973) who works in his father’s donuts shop. The recipe was issued from the last owner Joe LeBeau, a French chef from New Orleans. The dream of Vernon was to run a business on his own (Aaseng 2005). When he was 21, he decided to leave his birth city with some donuts-making equipment and reached Winston-Salem. He found a perfect space to rent on “Main Street”. Unfortunately, he did not have enough money to buy the necessary ingredients, he convinced a local grocer to supply him (Kazanjian, Joyner & Clark 2003).

In the early sixties, Vernon starts to expand the Krispy Kreme brand around Winston-Salem through franchises. After the death of Vernon in 1973, the “Beatrice Foods Company” bought Krispy Kreme few years later. In spite of a bad strategy, the brand was in a bad way. However, the main franchise purchased Krispy Kreme brand for saving and restoring it (Allen, Albala & Nestle 2007). In the 90’s, Krispy Kreme commenced a rapid expansion outside the south-eastern part of the United State, particularly around New York City (1996) and in the state of California (1999). In December 2001, Krispy Kreme extended its area in the North of America and opened several franchises in Canada. Since 2003 in Sydney, Krispy Kreme has launched a high number of store all around the world: United Kingdom, Saudi Arabia, South Korea, Japan, Mexico, Puerto Rico, etc (KrispyKreme 2009b).

2.2 Services
The principal business of Krispy Kreme is to sell and distribute over 20 varieties of “high quality” doughnuts. Some additional products, like a range of coffee or beverages, complement the offer (KrispyKreme 2008a). The stores are differentiated between factory and satellite. The factory has a “doughnut making production line” and dispatches their production by two channels:...