Krispy Kreme

(Home of the original glazed doughnut):

The
Investigation
Presented by:Group 1 Criminology-23
 Summary
• Introduction to Krispy Kreme
• Krispy Kreme Downturn
• Krispy Kreme Finances
• S.W.O.T
• What is the problem ?
• Critical Issues

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 Vernon
Carver
Rudolph
Vernon Carver Rudolph was born in Marshall County,
Kentucky.He was the oldest of four children born to
Plumie and Rethie Rudolph.His siblings included
Lewis Rudolph, who would later help found Krispy
Kreme. As he grew older, Vernon Rudolph began to
help in the general store that his uncle owned.
History of Krispy Kreme
 Founded by Vernon Carver Rudolph in
1933
 Krispy Kreme welcomed people on July
13, 1937.
 Operation were moved to Nashville,TN
 Focused on selling to grocery stores
 Rudolph opened his own shop in Winton-
Salem,NC in 1937 with 25 dollars and a
1936 Pontiac

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 Out the door
 Around the corner
 Down the block

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The First Logo
Another emblem used by the
company sports two letters “K”
looking like two crowned manikins
wearing shoes. Both of them are
“holding” doughnuts in their
“hands” (the top left ends of the
“K” glyphs). The symbol can
sometimes be seen above the
primary wordmark logo.

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> The Krispy Kreme logo appears to
have been drawn by hand as it’s
impossible to find a font that looks
exactly the same. However, such
types as Futura Bold and FreeHand
521 look somewhat similar.
> A local architect, Benny Dinkins,
designed Krispy kreme emblem. You
might ask what is the fonts that apply
on Krispy Kreme emblem. It was said
that Krispy Kreme font is a modified
version of FreeHand 521.
> Below is the Krispy Kreme delivery
truck around 1939. As you can see the
logo appeared on the truck is the same
logo that we see today. Krispy Kreme
emblem also refers as “Bowtie logo”
because of the shape that served as
background for the logo.

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Benny Dinkins

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 This cultish doughnut chain has quite
an interesting history
> As far as chains go, Krispy Kreme is just about impossible to
dislike. Forged largely on the back of a single item — the
legendary Original Glazed Doughnut — the chain has managed
to retain its cult-like following even though it has more than
1,000 locations worldwide. But even if it’s physically impossible
for you to pass up a visit when the “hot light” is on, we bet that
there’s a lot you didn’t know about this popular doughnut
chain.

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10
 The Doughnut Recipe’s Origin Remains
Somewhat of a Mystery
> According to one report, Vernon’s uncle Ishmael Armstrong
purchased the recipe for the legendary Original Glazed yeast-raised
doughnut from a French chef in New Orleans. In another (on
the Krispy Kreme site), Vernon Rudolph was the one who purchased
it. In a third, Vernon inherited the recipe from a Paducah doughnut
shop owner named Joe Lebeau. In 1999, descendant Carver
Rudolph went to Paducah to get to the bottom of the mystery, and
discovered that Ishmael had most likely been given the recipe by an
Ohio River barge cook named Joe LeBoeuf, who passed away just 10
months before Carver’s arrival.

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12
The First Location’s Placement Was Inspired
by a Cigarette
> Vernon Rudolph was a devoted Camel cigarette
smoker, so when he was thinking about where to
open his first location, his decision was
influenced by the fact that the highly-successful
Camel was headquartered in Winston-Salem,
North Carolina.

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14
 Hot Doughnuts Were Originally Only
Available before Dawn
> In the beginning, hot doughnuts weren’t sold
throughout the day; like at most bakeries, all the
cooking was done in the early morning, so
customers who wanted a hot doughnut had to
arrive between the hours of midnight and 4 a.m.

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 Original Shops Only Sold to
Convenience Stores
> The first Krispy Kreme in Salem was only a production
kitchen to fry doughnuts for sale at local groceries and
convenience stores. The scent emanating from the building
was so intoxicating, however, that hungry passers-by
would duck their heads in during those late-night hours
and ask to buy doughnuts right then and there. Vernon
took the hint, and cut a hole in the building’s wall to sell
doughnuts from.

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 The Original Glazed Contains 11 Grams of
Fat and 190 Calories
> The doughnut, which weighs about 1.7 ounces,
also contains five grams of saturated fat, 21
grams of carbohydrates, and 10 grams of sugar.
The recipe has barely changed over the years.

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 It’s Been Assisting With Fundraisers
Since 1955
> Krispy Kreme launched its fundraising arm in
1955, and today the company is still actively
involved in assisting with fundraising, delivering
50 percent to 60 percent profit margins on
average.

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21
The First Retail-Only Store Wasn’t Opened
Until 1989
> All stores sold doughnuts made on-premises
until 1989, when the first retail-only location
was opened on High Point Road in Greensboro,
North Carolina. Selling premade doughnuts
upset a lot of loyal devotees, and continues to
this day.

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The Chain Expanded Too Rapidly in the Early
2000s
> Rapid expansion was the name of the game in the early 2000s after its
April 2000 IPO, but by 2004 it became obvious that the company’s
executives had decided to expand far too rapidly when it suffered its first
loss as a publicly-traded company. While the chain attempted to explain
it away by blaming the low-carb craze, rival Dunkin’ Donuts wasn’t
affected by the trend, and analysts instead blamed the loss on flooding
markets with locations that ended up competing with each other, and
selling doughnuts at gas stations and convenience stores, which also took
away franchise market share.

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The Company Once Tried to Sell Doughnuts
Through Car
Windows and Sunroofs
> In an ill-fated attempt to take the company into
the future, in 2003 Krispy Kreme tested selling
doughnuts directly through car windows and
even sunroofs at a busy intersection in Mountain
View, California, with customers paying
wirelessly. Needless to say, the pilot project
failed

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The
Redlight
Indicator

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There’s a Hot
Light App

> Download the

app and it’ll tell you
exactly when
doughnuts at your
nearest location are
hot and ready.

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The 1,000th Store
Opened Last Year in
Kansas City

> The shop opened on

February 24, 2015,
and the first customer
won a dozen free
doughnuts every week
for a year.

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There’s Only One New
York City Outpost, and
It’s In an Interesting
Location

> Have a hankering for

Krispy Kreme in New
York City? While there
used to be a handful of
Manhattan locations, the
only one left is located
inside the dank and
dingy Penn Station.

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They’re Phasing in Rainforest-Safe Palm Oil
> The quest for palm oil has been blamed for
rainforest depletion, and in 2014 the chain
pledged to use only sustainable and responsibly-
sourced palm oil. By the end of 2016 it pledges
that the vast majority, if not all, of its palm oil
will be from “plantations that adhere to the
principles for protecting forests, peat lands of
any depth, and no exploitation of communities
and workers.”
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30
 There’s a ‘Krispy Kreme Challenge’ Race in
Raleigh Every Year
> While it has no official affiliation with the company, every year
since 2004 in Raleigh there’s been a charity event in which
participants run 2.5 miles to a Krispy Kreme, eat a dozen
doughnuts (totaling about 2,400 calories), and then run the 2.5
miles back to the finish line. The race has raised more than
$750,000 for the North Carolina Children’s Hospital to date,
and draws on average about 65,000 runners annually. Sadly,
during this year’s race, which was held last month, a 58-year old
participant died of a heart attack shortly after the race began.

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33
 Automatic
Donut
Machine
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35
36
 How many Krispy Kreme stores in the
entire Philippines?
There are 45 stores of Krispy Kreme here located in
the Philippines.It includes 5 factories,9 in Cebu,7 in
Manila,2 in Ortigas,1 in San Juan,6 stores in
Quezon city,8 in South,5 in taguig,2 in Cagayan De
Oro.

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 List of stores of KrispyKreme in the
Philippines
> CEBU - Harbor Square - SM City North
EDSA
- Ayala Cebu Drive-Thru
- Lucky Chinatown - Robinsons Magnolia
- Ayala IT Park - NAIa > SOUTH
- SM Cebu - Ayala Alabang
- MAKATI > ORTIGAS Town Center
- RCBC - Robinson’s - Festival Mall
- Jaka (Ayala Ave.) Galleria
- SM Bicutan
- Glorietta 4 - SM Megamall - Nuvali
- Greenbelt 5 > SAN JUAN - SM Southmall
- Valero - Greenhills Drive - SM Bacoor
> MANILA - Thru - SM Dasmarinas
- Robinson’s Place > QUEZON CITY - Sky Ranch
Manila
- SM MOA - Trinoma
- SM Manila -- Eastwood
- Gateway Mall
- SM San Lazaro SM City Fairview

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 List of stores of KrispyKreme in the
Philippines

> TAGUIG
- Bonifacio > CAGAYAN DE
High Street ORO
- Market! - Centrio
Market! - Limketkai
- DAVAOSM
Ecoland
- Abreeza
- SM Lanang

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Krispy Kreme’s
Downturn
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 Low-carb,Low
sugar doughnuts
 Increase cost in
ingredients
 Lack of
advertising has
caught up with
KK

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 Strength of
Krispy Kreme

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 Signature Hot glazed
doughnuts
 People are familiar with Krispy
Kreme until now
 Hot Light
 January 28,2007, 395 stores
worldwide of which 113 were
owned.282 were owned by
franchises

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Weaknesses of
Krispy Kreme

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 Threats to Krispy Kreme
National Store Locations Increasing cost of
Chains/Specialty were scattered ingredients
eateries It might cause an increase
The starbucks,Tim
horton’s,Dunkin’ Donuts
Stores were price on the products.

etc.
KK stores went up
too far Increasing
too fast
The Krispy Kreme
from each utilities and fuel
cost
Increasing of utilities need
franchises went up too fast
other a lot of budget to ensure
the capabilities to travel
doughnuts freshly.

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Critical issues KK are facing

Price Globalizing
increase Krispykreme

Closing of
Competitions
franchises

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 1.Original
glazed
2.Chocolate iced
Flavors of glazed with
sprinkles
Krispy 3. Cinnamon
sugar
Kreme’s 4.Maple
doughnuts 5.Strawberry
frosted
6.Glazed lemon
filled

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 7.Mini Original
Glazed
8.Glazed culler
Flavors of 9. Cinnamon
twist
Krispy 10.Powdered
strawberry
Kreme’s kreme
11.Chocolate
doughnuts glazed donuts
12.Chocolate
custard

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 13.Chocolate
iced cake
14.Glazed
Flavors of chocolate cake
15. Cinnamon
Krispy bun
16.Powdered
Kreme’s cake
17.Traditional
doughnuts cake
18. Glazed with
kreme filling

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 19.Powdered
lemon filled
20.Glazed
Flavors of blueberry cake
21. Glazed
Krispy raspberry filled
22.Dulce de
Kreme’s leche
doughnuts 23.Apple Fritter
24. Pumpkin
spice cake111

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 -Our best seller is the Original
glazed doughnut. In
Miguel Acaya KrispyKreme we have the so
21 yrs old. called samplings and
deform.The samplings are the
Former worker at doughnuts we are giving to
Krispy Kreme people to test the new flavors
and specialties we are
making.And the deform is the
“day old doughnuts.” After a
day and the doughnuts were
not sold,we’re now discarding it
by pouring water for others not
to taste it. Why??

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 -Because as much as
possible we are afraid that
Miguel Acaya our customer will not be
21 yrs old. satisfied with our
products,so we give them
Former worker at what they deserve;the
Krispy Kreme freshest and the
mouthwatering doughnuts
that could satisfy them and
to make it as their fav0orite
delights in anyday of the
week.We also have the pink
salt the most expensive, the
“kreme brulee”

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When did Krispy Kreme
open in the Philippines?
Krispy Kreme, America's favorite
doughnut, is finally opening in the
Philippines on Nov. 30, 2006 with
its first store at the City Center,
Fort Bonifacio, Taguig City.

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