I’ve been to Krispy Kreme locations before, so can totally resonate with the post! I agree– a lot of it’s stores occupy huge spaces, have under-capacity production, and incur high fixed costs. I wonder if they are able to turn it around by maintaining their smaller retail-only stores and have large production centers dedicated to only servicing the wholesalers. Perhaps this will help them maintain their in-store freshness experience and not lose a significant portion of their operating revenues?
This is a great post! I didn’t know about the way they franchised, especially compared to KFC. I totally agree with you– I think it’s the company’s franchising model that has made them so successful. They are very generous in their franchising terms with their partners, so they were able to attract and pick operators that were committed.
This is a very cool post as I’ve been to a Harry’s shop before in NYC but never realized that it’s the ONLY vertically integrated shaving company. Their operations and integration remind me of Starbucks. But I think Harry’s does a better job with the pricing and still provide a unique customer experience.
This is very interesting– I did not know that its operating margins are so low. I wonder if all that product development will result in additional platforms. It’s also fascinating how they use a pull mechanism by creating a usership base first and using that to make money off the institutional customers.