2004 Consumers' Choice in Chains | Coffee/Snacks: Krispy Kreme Doughnuts

By Staff -- Restaurants & Institutions, 9/1/2004

2004 Consumers’ Choice in Chains
COFFEE/SNACKS > KRISPY KREME DOUGHNUTS

Coming soon to a Krispy Kreme near you: mini doughnuts, doughnut holes and even a chocolate-dipped version of the Original Glazed, all in an effort to “be a leader in innovation and in meeting customer desires,” explains CEO Scott Livengood.

So far, the iconic brand seems to have a knack for delivering what patrons want and how they want it. As it did last year, Krispy Kreme edged out fierce competitors in the coffee/ snacks segment, leaving even the indomitable Starbucks as an also-ran.

2.7 billion
Number of doughnuts made annually at Krispy Kreme North America stores.

Livengood says he’s “excited, proud and humbled” but not altogether surprised that patrons continue to rate the brand so enthusiastically. “Our customers’ passion for Krispy Kreme is organic and authentic. They get excited about it. That’s what translates.”

Of late, the main R&D thrust has focused on an enhanced coffee and beverage program. “We now feel that our coffee has reached parity with our doughnuts,” Livengood says. In July, a line of frozen blended beverages began rolling out, including a signature Kreme flavor, “our Original Glazed doughnut captured in a creamy frozen blend.” Explains Livengood, “One of the secret ingredients in the glaze is in the drink. It’s a vanilla base but much more complex and interesting.” Other frozen drink flavors are raspberry, latte and double chocolate.

Continually improving service also is a big priority and a mystery-shopper program—complete with cameras that can document the transactions—is in place to support the effort. Says Livengood: “Beyond that, we benefit from a product that customers have an emotional connection with. That psychology does a number of things helpful to the guest experience. There’s a halo effect. Our team wants to be part of it, to help create those magical moments.”

Headquarters	Winston-Salem, N.C.
CEO	Scott Livengood
Units	387
Check average	NA
Respondents aware of chain¹	89%
Respondents who visited in previous 12 months¹	33%
Guests who would go back²	86%
Average loyalty (would go back) for chains in this segment	85%
Key region	South, West
Widest attribute lead	Value
(1) Base is all respondents; (2) base is 12-month patrons.

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Chain	Overall Score	Food Quality	Menu Variety	Value	Good Reputation	Service	Atmosphere	Cleanliness	Convenience
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Note: Overall Score is an index; percentages represent respondents who rated the chain "above average" on the given attribute.
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