Krispy Kreme now offers seasonal and theme-shaped doughnuts in addition to its original glazed product.

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Krispy Kreme has had an eventful decade. After spending 60 years as an institution in the Southeast, the company has become a national icon with more than 400 locations worldwide. According to Senior Vice President of Marketing Stan Parker, the company is working to make the next 10 years just as eventful. 

Now that the entire country is familiar with Krispy Kreme’s yeast-raised recipe and has heard the call of its famous “Hot Doughnuts Now” sign, Parker says the company is focusing on expanding the brand. 

In addition to adding new twists to the already-famous doughnuts, the company is also working to make the Krispy Kreme experience even more convenient for customers. By adding new menu items such as ice cream and frozen drinks, Parker says the company aims to solidify its position in both of the different markets it serves.

“We compete with a lot of different concepts,” Parker says. “In the morning, we’re competing against the other doughnut and breakfast retailers, but in the evening the usage changes to more dessert or treat, and there we compete with ice cream, frozen yogurt, those types of menu items.”

Among those other concepts, Parker says, Krispy Kreme stands apart because of the communal nature of its products. A box of a dozen doughnuts for a long time has been a sure-fire way to bring people over to your desk. “Sharing’s a big part of the Krispy Kreme experience, whereas with others it’s a for-self occasion,” he says.

Beyond Round
Although Krispy Kreme’s original glazed doughnuts have been the cornerstones of the company’s success throughout its history, Parker says it hasn’t been afraid to launch new ideas and build off the brand’s familiar products. The most basic of these new ideas is a variation on the doughnut’s most basic element – its shape. Late last year, Krispy Kreme introduced a series of seasonal-themed shaped doughnuts. Football- and jack-o-lantern-shaped doughnuts have appeared in Krispy Kreme stores over the last several months, and Parker says new shapes continue to roll out. “Currently, Krispy Kreme offers several different shaped doughnuts depending upon the season, including the snowman during winter and hearts for Valentine’s Day,” he says.    

After the shape, flavor is the next aspect of the doughnut Krispy Kreme is looking to leverage. The company is already known for having a wide variety of doughnuts beyond its original glazed, including key lime pie, New York cheesecake and glazed blueberry. But in testing right now is a simple twist on the original glazed that is already proving to be popular. Parker says the company is testing a special chocolate glazed doughnut, which is available starting in the afternoon during what Krispy Kreme is calling “ChoKKolate Time.”

Another successful addition to the Krispy Kreme menu has been the company’s line of Chillers frozen drinks. Available in creamy and fruity varieties, Chillers were introduced in spring 2007 and helped drive customer traffic over the summer, according to Parker.

Perhaps the biggest change in the works for Krispy Kreme is the addition of ice cream. Currently testing in a small number of stores, Parker says the company’s ice cream efforts tackle the dessert market by combining ice cream with its doughnut menu. “The signature menu item for ice cream is a doughnut sundae where you can have any Krispy Kreme doughnut with [ice cream and toppings],” Parker says.

New Ideas
Parker says that even though the doughnut seems like a simple product, a lot of thought goes into developing new flavors and concepts for Krispy Kreme. The company’s R&D group works extensively both on its own and with the R&D resources of vendors. “We start off doing a little ideation where we generate up to 100 ideas,” he says.

From that initial list of ideas, Krispy Kreme whittles them down through concept testing with consumers to a smaller list of about 30. Parker says the company then chooses the top two or three ideas from that list and begins product market testing. He says consumers’ tastes are “constantly evolving,” and they like to see new menu items to hold their interest in a brand.

“You often see a fusion of many different influences on menus, so I think the consumer more and more seeks variety, and something to just keep things fresh and new,” he says.

Hot and Fresh
For a company that celebrated its 70th anniversary this year, Krispy Kreme is definitely not living in the past. In addition to the changes it is making to its menu, the company is also changing in other ways that meet the shifting demands of its customers. In particular, Parker says the company is keeping an eye on the growing public concern about health and wellness. “That’s one [area] where we are looking at some things to address consumer dietary needs,” he says.

Krispy Kreme is working to eliminate transfats from all of its products. Parker says he sees the trend against transfats to be more permanent than the no-carb craze of a few years ago. “There was a brief period of time where low-carb diets affected the industry, but I think it’s transitioned to a more general health and wellness [awareness],” Parker says.

“The other big consumer driver out there is the notion of convenience,” Parker continues. Although Krispy Kreme’s “Hot Doughnuts Now” light and drive-thru lanes already make stopping at one of its stores more of a convenience, the company is revising its typical store plan to make them smaller.

“Today, a Krispy Kreme store in the U.S. is probably on average about 4,000 square feet, and we need to get them below 2,000 square feet so that we can build more stores and be more convenient,” Parker says. “Unless they were kiosks, these stores would also have the ‘Hot Doughnut’ experience and the full beverage menu.”

The smaller retail concept is how Krispy Kreme has approached its international expansion. The company has opened locations worldwide. Parker says Krispy Kreme has been “very well-received” overseas, and the company is applying the lessons learned from operating the smaller retail store concept to its domestic operations.