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Krispy Kreme Inc. SWOT and PESTLE Analysis

ID : 521632753| Feb 2023| 21 pages

COMPANY PROFILE -Krispy Kreme Inc.

Business Sector :Restaurant

Operating Geography :United States, North America, Global

About Krispy Kreme Inc. :

Headquartered in Winston-Salem, North Carolina, U.S, Krispy Kreme Inc. is an American multinational doughnut company and coffeehouse chain. In 1937 Vernon Rudolph bought a yeast- raised recipe from a New Orleans chef and began selling to local grocery stores. With its steady growth and expansion Krispy Kreme became a publicly traded company on the NASDAQ. Apart from its signature product, Original Glazed Doughnut, it also deals in other baked goods, frozen beverages, hot beverages, iced beverages and soft drinks. The company has approximately 1,400 retail shops in 33 countries. In 2023, Krispy Kreme has launched New Valentine’s Heart Shaped Doughnuts. As of early 2023, Krispy Kreme employed 21,500 people approximately. The awards and accolades received by Krispy Kreme include Corporate Governance Award, Digital Signage Experience Award, Best Design Award, Leisure and Hospitality Project of the Year Award and Manufacturing Partnership Award.

The mission statement of Krispy Kreme is “To make the most awesome doughnuts on the planet every single day.” Krispy Kreme vision statement is “To be the worldwide leader in sharing delicious tastes and creating joy.” The Unique Selling Point or USP of Krispy Kreme lies in being one of the most popular doughnut and fast food coffee chains. Till date it has offered the highest quality doughnuts and great tasting coffee. The company also takes an initiative in providing innovative and different flavored doughnuts especially during the festive season.

Krispy Kreme Inc. Revenue :


US$ 1,384.4 million - FY ending 2nd January 2022 (y-o-y growth 23.4%)
US$ 1,122.1 million - FY ending 3rd January 2021

Competitive Analysis of Krispy Kreme Inc.

SWOT
PESTLE
The SWOT analysis for Krispy Kreme is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Seasonal innovations help in keeping the brand on top of mind of consumers
2. Most favored brand for Sweet Treats in Turkey, UK, USA, Thailand, and Australia
3. Krispy Kreme is able to attract new customers through Dark Shops
4. Presence in over 30 countries with global growth
5. Strong delivery capability contributes to its growth in customer acquisition and retention rate
1. Lack of accessibility of Krispy Kreme Doughnuts
2. Krispy Kreme had to increase the prices of its doughnuts in order to compensate for increasing input costs of wheat and sugar
3. Lawsuit filed against company in LA has caused a detrimental impact of Krispy Kreme’s reputation
OpportunitiesThreats
1. Opportunity of having more than 50000 points of access globally through Hub and Spoke model
2. Significant growth opportunity across the world
3. Expansion in global footprint
1. Increase in inflation rate may lead to a decline in EPS
2. High retail competition due to low entry barriers
3. High food & labor costs and economic unrest impacting operations
4. Detrimental impact of foreign currency fluctuations
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Detailed SWOT Analysis of Krispy Kreme Inc.

Strength

1. Seasonal innovations help in keeping the brand on top of mind of consumers: Besides core product offerings, Krispy Kreme utilizes seasonal innovations on holidays and special occasions like Independence Day, Valentine’s Day, Children’s Day, St. Patrick’s Day, Christmas, etc. in order to increase consumers’ engagement with the brand and its products. For instance, holiday of 4th July (Independence Day in the U.S.A) was celebrated by offering red, white, and blue doughnuts by Krispy Kreme with patriotic packaging. Seasonal innovations help the brand to earn media impressions. In 2021, Spellbook - a seasonal innovation, earned 1.9 billion media impressions. Not only do they help in driving traffic, but also aids to boost the sale of core products.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Hostess
  • Little Debbie
  • Dunkin’ Donuts
  • Starbucks
  • Tim Hortons
  • Mad Over Donuts

Major Brands :

  • Awesome Doughnut
  • WKS Krispy Kreme
  • KK Canada
  • KKUK
  • KK Mexico
  • Insomnia Cookies
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References used in Krispy Kreme Inc. SWOT & PESTLE Analysis Report

1. Annual Report - https://investors.krispykreme.com/static-files/033c5ace-4527-4a1b-8fa3-82e9103c0fa0
2. Krispy Kreme Focuses on Reducing Debt, Delivering Fresher Doughnuts - https://www.wsj.com/articles/krispy-kreme-focuses-on-reducing-debt-delivering-fresher-doughnuts-11630323000
3. Voting in Georgia: Krispy Kreme can’t only give voters free doughnuts - https://www.ajc.com/news/state--regional-govt--politics/voting-georgia-krispy-kreme-can-only-give-voters-free-doughnuts/eLcqJGGNaY9GMR1QTbEomL/
4. COVID Impact: San Francisco's Only Krispy Kreme Shuts Down Due to Pandemic - https://www.cbsnews.com/sanfrancisco/news/covid-impact-san-franciscos-only-krispy-kreme-shuts-down-due-to-pandemic/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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