NSR: Krispy Kreme Maintains Momentum With Its Unique Omnichannel Model
Krispy Kreme, an American multinational doughnut chain, reports stellar results in the first quarter of 2022, with hub sales up by 19.4% through April 3. CEO Mike Tattersfield credited the success to “increasing points of access and getting creative with seasonal and occasion-based LTO (limited-time offer) menu items. In the past few months, the company added 600 new stores and expanded its omnichannel model, with greater brand presence in fresh shops, dark shops, and grocery stores.
“Our results in the first quarter continue to demonstrate the benefits of our omni-channel model and global expansion strategy, which allow us to meet consumer demand with premium, fresh doughnuts in a capital efficient manner,” Tattersfield said. “We’re not a frequent brand, but making it easier [to get Krispy Kreme] keeps us top of mind.”
In addition, Krispy Kreme utilizes its social media channels to advertise its seasonal and specialty items. In place of coupon deals, the team relies heavily on product innovation instead to drive customer access and sales. Given its unique operations model that does not target everyday customers, the company has faced fewer labor shortage issues, which remain a concern for most retailers.
“From a labor perspective we are still able to track plenty of employees to come into our business, bringing in 1,500 Krispy Kremers into the business this year,” Tattersfield mentioned during the earnings call on Wednesday. “We have not seen any material challenges to labor. It’s a shared growth business.”
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