For a place that makes some pretty damn good donuts, Krispy Kreme isn’t quite as good at managing their money. The troubled donut maker will close about half of its 15 Chicago-area stores and its Illinois franchise will enter Chapter 11 bankruptcy. From the Chicago Tribune:
Sweet Traditions [franchise] abruptly shut down its three tollway oasis locations in May, citing high rent and low foot traffic.
Schlegel said the company had been obligated to pay leases at a total of seven oasis location, even though it had shuttered three and had not built stores at the other four.
“We were needing to get out of those leases,” Schlegel said. Bankruptcy allows companies to void unwanted leases.
Schlegel said some corporate practices at Winston-Salem, N.C.-based Krispy Kreme had also hurt her company.
At one time, the company required its franchisees to build large factory stores, where all doughnuts are made on site. The stores cost about $3 million each, Schlegel said, a large capital investment that was difficult to recover.
We’re not experts or anything, but you sort of need to sell more than donuts to make money, especially if your stores cost $3 million to build. Krispy Kreme stores are in trouble all over the country. What gives?
America: Why aren’t you eating at Krispy Kreme? Still doing that Atkins diet?
Krispy Kreme cools further [Chicago Tribune]
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The only Krispy Kreme I know of in my area is 20 minutes away by car using the freeway. Meanwhile, within WALKING DISTANCE there are a Dunkin Donuts, a Tim Hortons, a Tops supermarket that makes fresh donuts, and TWO family owned bakeries.
Add in a 5 to 10 minute car ride and you can double or even triple that number.
God I love living in Western New York.
I live in Europe, and every trip to the states is began with a run to the nearest Krispy Kreme we can find. I love those little beauties!
KRISPY KREME PLEASE OPEN IN CENTRAL EUROPE!!!!
@bluegus32: If there’s a pox on my house, I’ll just paint right over it. Nyuck nyuck nyuck.
@JosephFinn:
Exactly! I’ve never understood the hype about KK. Gimme a peanut-crusted Dunkin Donut anytime. (Well, not now, since I’m on a diet…)
Our KK in West Mifflin (South of Pittsburgh) went under and became a Chik-fil-a, So we got a different tasty food stuff.
As for the DD vs KK debate, here’s what it comes down to for me.
Day Old Kremes < Day-Old Dunkins < Fresh Dunkins < Fresh Kremes
For the longest time, I couldn’t see what the big deal was with KK, until I wandered inside when the red neons were glowing. I was offered a Fresh n’ Hot ‘nut from the line, and then… I gained UNDERSTANDING. Those things don’t even melt in your mouth when hot… they SUBLIMATE.
Sadly, they went under, but not before driving out the nearby Dunkin Donuts. So now we have neither
I’m not sorry to see them go. If I want something that tastes like pure sugar, I’ll eat, um, pure sugar. And wash it down with a swig of HFCS.
Winchell’s = still the best in the West.
After the service I got at the KK when I was in Chicago this weekend, I am not surprised why they are going out of business.
The kid at the counter wanted to pick my dozen donuts for me so he could go back outside and wash/wax cars with his buddies. While we were there a customer sat at the drive through for quite some time while waiting for someone to process his order.
Their glazed donuts are great, but their service is definitely “teh suck”.
The only time I’ll have KK donuts is if they’re free. There isn’t a local store by me. We also have a VERY good mom&pop donut place that’s close and the local Safeway has an excellent bakery staff and the donuts there are great.
I used to be all about the Dunkin Donuts, but a couple of months ago I tried out the brand new one down the road. Hard as rocks! Like they were two days old! Gone to KK ever since. Glad I don’t live in Chicago (though maybe the DDs there are better?)
A single donut at KK will set you back $2.50 down in Australia. Two freaking fifty! That’s ridiculous. KK are okay (I don’t really care for donuts at all), but they are sure as hell not worth the long lines and ridiculous prices to get them here. W-S smelled like donuts all the time and was gross. Besides, the Aussies make cake donuts which are quite yummy, if you’re going to have donuts.
They need to expand thier product line. Krispy Kreme: Start selling “The Luther”
The KK in Green Bay,Wi closed about a month ago with no warning…just…gone. It was in a prime location near Lambeau Field and had NO competition…anywhere. We have no DD,nothing else. After KK you need a grocery store or gas station to get a donut around here. Pretty sad when you are the only game in town and can’t make it. It’s a loss for me because like I said there isn’t any place else for what they offered. I stopped there maybe once every two months and spent an average of $3 per trip. When they first opened I was going 3 times a week but like anything the newness wears off. Plus its not healthy to eat that stuff all the time but for a quick sweet fix it was nice to have. Oh well. Lots of places are having problems. The best bagle shop in town has also closed up w/o warning. It’s tough right now and if your ‘stuff’ aint together it’s even harder.
@Her Grace: TWO-FIFTY?!?
What exotic ingredients are in the Austrailia KKs?? around here the’re about 79 cents for one, 7 bucks for a dozen!
You said “pretty damn good donuts”. I think you meant to say “overpriced oversweet disgusting donuts”.
I’m from Atlanta and Krispy Kreme RULES Dunkin Doughnuts. If you think they’re too sweet – you must not have a sweet tooth – b/c they’re delicious. And well worth the lil dollar or two. And who said they didn’t have coffee? They have juice, milk and coffee. Anyway thats my piece! I’m about to go get a couple now!