Do any of you have some insight into the competition KREM faces in Southern CA, on the East Coast, in the South USA, and SouthWest?
That would be really helpful for someone from SF, CA.
As for the SF market, for those that are interested, I believe that KREM doughnuts would be well-accepted, especially if they mention (but don't focus on) the fact that they're fairly (haha) low cal. and/or low fat. I'm only half joking about fat/cal content.
Probably the largest local seller of doughnuts here is Safeway (and other major grocery chains). Medium to low-quality across the board. The only places with decent doughnuts really aren't worth the drive. "Small and undifferentiated", as re-stated below. In fact, I grade these local shops by their lack of unpleasantness, rather than the presence of some overwhelming goodness.
As KREM's prospectus says, "THE INGREDIENTS FOR MARKET LEADERSHIP. The doughnut industry, an approximately $4.7 billion market in 1998, is large, fragmented and characterized by low-volume outlets with undifferentiated product quality."
I think I'm going to short a small chunk on mon. hopefully will be @ $39 or $40 for a few tiks!