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Krispy Kreme Doughnuts, Inc. Message Board

  • bartoofar bartoofar May 16, 2000 10:18 AM Flag

    A bit of info...

    about the doughnut business.....

    It's very
    common for a doughnut shop to be extremely slow in the
    afternoon hours... so don't worry about Van Nuys.... La
    Habra did over $8 million its first year, and Union
    City broke $293K its first week....

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    • kremunder20bucksbyoct15 kremunder20bucksbyoct15 May 16, 2000 11:27 AM Flag

      Yes, it IS common for a donut shop to be slow in
      the afternoon. That is why they do about $10K a week
      in sales. But KK claims to be far different. I
      guarantee you you can't get $8 mill a year out of a donut
      shiop that is slow in the afternoon.

      It is
      impossible to sustain the type of sales pace that KK has
      achieved out of the box in the La Habra's, Van Nuys's,
      etc. Sure, people stand in line when they open, but do
      they on their return visit? Nope. I've seen people
      post here that there are two hour waits to buy donuts
      at their local KK. Come on, I wouldn't wait in line
      2 hours for a blowjob, let alone a freakin' donut.
      Then again, I am not your typical KK customer, since I
      did not marry my sister, have all my teeth, and don't
      weight 400 pounds. But I digress...

      In order to
      sustain the sales levels (and the bloated P/E), KREM must
      differentiate itself from it's donut brethern. That means not
      succumbing to the typical donut shop ills, which is lack of
      serious dayparts outside of early morning. Dunkin' can
      survive on a four hour rush period and a little here and
      there, because they don't build monuments to themselves
      and can scale back labor in the afternoon/evening.
      When I have been in KK in the afternoon and evenings,
      there was so much labor on staff and so few customers
      that there is NO WAY the store was making a profit.
      Sure, they probably eke out a living based on the
      morning traffic, as their financials attest to their
      pathetic operating margin, but raking in the dough to
      justify the stock price? Not a chance.

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