Careers at Krispy Kreme

MISSION

Krispy Kreme Doughnuts Inc (“Krispy Kreme”) seeks to be the world’s foremost producer and retailer of doughnuts, producing the most popular and quality products for its customers on a daily basis.

FOUNDING STORY

Krispy Kreme traces its roots back to 1933, when brothers Vernon and Lewis Rudolph began working at their uncle’s general store in Paducah, Kentucky, which sold, among a number of other products, fresh doughnuts. 

The uncle, Ishmael Armstrong, was thought to have been inspired to create a doughnut recipe by an Ohio River barge cook.   

The general store struggled during the Great Depression, leading Vernon and Ishmael to move the business to a larger city, Nashville Tennessee, in the hope of attracting more customers. 

They also decided to focus their attentions on the sale of doughnuts, renaming the business The Krispy Kreme Doughnut Company. 

In 1937, Vernon Rudolph opened his own store in Winston-Salem, North Carolina, through which he sold products to convenience stores.  He also sold fresh doughnuts to individual customers, later establishing a designated Krispy Kreme location in North Carolina. 

Krispy Kreme expanded significantly throughout the 1950s, initially opening locations across the south eastern US, and later  expanding into other regions.

Krispy Kreme has undergone several ownership changes.  In 1976, it was acquired by Beatrice Foods, following which it was purchased by a group of franchisees in 1982. 

In 2016, JAB Beech, a unit of JAB Holding Company, acquired the company for USD 1.35 billion.  Krispy Kreme is now one of the largest doughnut companies in the world, operating more than 1,000 locations.

Business model of Krispy Kreme

Customer Segments

Krispy Kreme serves the general consumer population.  The company produces and sells doughnuts to individual consumers, families, and groups. 

According to an analysis of the company’s customer base, Krispy Kreme’s products and services are particularly popular among the following consumer demographics:

  • Low Income Consumers, comprising households and individual consumers with incomes lower than USD 40,000 per year;
  • Older Consumers, comprising consumers over the age of 45, in particular consumers over the age of 65.

In addition to serving individual customers, Krispy Kreme also provides products and services to businesses and organisations, catering events and providing food for large gatherings.

The company also serves wholesale and retail customers, delivering its products for sale in third-party outlets.

Krispy Kreme is based in the US, which is the company’s principal market.

The company also has locations across Europe, Asia Pacific, and the Middle East, which account for a significant portion of the its annual sales.

Value Propositions

Krispy Kreme provides value to its customers in the following ways:

  • Brand Recognition and Reputation – Krispy Kreme is among the most popular and well-known doughnut companies in the world, with a recognisable brand image and an established reputation as a provider of quality products and services;
  • Broad Selection of Quality Products – Krispy Kreme offers a range of doughnut products using high-quality ingredients, as well as other confectionery items and coffee products, enabling it to serve the needs of a wide range of customers;
  • International Reach – Krispy Kreme has an extensive network of retail outlets across its core markets in North America, as well as across Europe, Asia Pacific, and the Middle East, giving the company access to a large international consumer base;
  • Accessibility – In addition to its extensive store network, Krispy Kreme also operates an online ordering and delivery service which allows customers to browse and purchase products from their own homes; and
  • Rewards – Krispy Kreme operates a mobile app for frequent customers, through which they can access a membership and rewards scheme, including discounts and special offers.

Channels

Krispy Kreme primarily serves its customers directly through its network of retail outlets.

This network spans the Americas, Asia Pacific, Europe, and the Middle East, and includes owned and leased locations, as well as franchised outlets operated by third parties.

The company also operates an online home delivery service through its website, which allows customers to browse and order products form their computer of mobile phone.

Krispy Kreme also operates a mobile app which is available on iOS and Android devices, through which customers can access its rewards and membership scheme. Customers can use this app to access rewards, discounts, and benefits.

Customer Relationships

Krispy Kreme seeks to secure recurring business from consumers by providing high-quality products and excellent customer service.

The company serves its customers primarily via its in-store sales personnel, who are available to respond to customer queries and questions in person.

Krispy Kreme also offers products to customers on a self-service basis through its online delivery portal.

Krispy Kreme additionally operates a rewards scheme, which it uses to offer deals to customers and encourage returning business.

The company is also able to communicate directly with customers through its various social media accounts, including with  Instagram, Facebook, and Twitter.

Key Activities

Krispy Kreme is a retailer and wholesaler of doughnuts and packaged sweets. It specialises in the production and sale of hot glazed doughnuts, and also serves other confectionery and coffee products.

The company operates a large network of owned retail outlets and franchise locations across its home market of the US, as well as across the Americas, Asia Pacific, Europe, and the Middle East. The company also makes its products available for home delivery and events through its website and offers a rewards and benefits membership program through a mobile app.

The company was founded by Vernon Carver Rudolph on July 13 1937 and is headquartered in Winston-Salem, North Carolina.

Key Partners

Krispy Kreme works with a wide range of companies and organisations in the delivery of its core products and services.

These partners can be organised broadly into the following categories:

  • Supplier and Vendor Partners, comprising suppliers of ingredients and equipment used in the company’s production of doughnuts and other products, as well as third-party providers of other services that support the company’s corporate activities;
  • Franchise partners, comprising a range of companies and business figures who operate Krispy Kreme outlets on behalf of the company under franchise agreements;
  • Distribution and Logistics Partners, comprising various distribution companies, courier service providers, and logistics companies that help to ensure that the company’s logistics and home delivery operations are effective and efficient;
  • Strategic and Alliance Partners, comprising a range of other commercial enterprises and businesses with which the company collaborates on brand development, marketing, and other projects; and
  • Community and Social Responsibility Partners, comprising various non-profits and charitable organisations with which the company works on social and community projects across the US and internationally.

Krispy Kreme has a number of partnerships in place. In recent years, the company has announced distribution partnership with TSW Foods LLC, a community partnership with the Salvation Army, a branding and marketing partnership with Shaquille O’Neal, and product partnership with Nichols PLC.

Key Resources

Krispy Kreme’s business model is dependent on its ability to produce and deliver quality products to customers efficiently and effectively.

As such, Krispy Kreme’s most key resources are its ingredients and equipment, its suppliers and supply chain, its retail outlets, its logistics infrastructure, its partnerships, and its personnel. The company notably owns and leases a large network of retail outlets across the Americas, Asia Pacific, Europe, and the Middle East.

The company is also dependent on its IT and communication infrastructure, its website and online ordering platform, and its mobile app.

Cost Structure

Krispy Kreme incurs costs in relation to the purchase of ingredients, materials and equipment, the operation of its retail outlets – including utility and rental costs, the operation of its logistics and distribution infrastructure, the management of its partnerships, the payment of salaries and benefits to its personnel, the maintenance and development of its IT and communications infrastructure and website, and the development of its mobile app.

Revenue Streams

Krispy Kreme generates revenue through the operation of doughnut and coffee retail chain. The company derives its revenue primarily through the sale of doughnuts and other products directly to customers through its network of retail outlets.

It also derives revenue through wholesale sales to retail and distribution companies, as well through the catering of events. Krispy Kreme additionally generates a portion of its revenue through the collection of franchise fees.

Krispy Kreme’s revenue figures are consolidated into the results of its parent company JAB Holding Company.

Prior to its acquisition by JAB Holding Company, the company generated an annual revenue of USD 518.7 million in 2016.