Expanding and doughnuts are words often found in sentences together, usually accompanied by a reference to waistlines. On this occasion it’s the commercial property portfolio of one of the world’s largest doughnut companies that’s bulging at the seams.
Premium pastry manufacturer Krispy Kreme UK has announced plans to open fifty more stores over the next five years, more than doubling its current commercial property portfolio of 47. The bullish statement comes after reporting revenue results of £33.4m to the end of January 2011, up 13% on the previous year’s £29.7m. Same-store sales were similarly stout, registering a 1.4% year-on-year increase, bringing the total number of doughnuts bought in the UK to above 50m.
Founded in 1937 in North Carolina, this iconic US company entered the UK market in 2003, initially selling a variety of glazed creations in London’s Harrods.
Expansion in commercial property has been mainly within the M25 and Central London, previously on a franchise basis, which has been discontinued according to their website.
In 2010 a £12m facility with Spanish bank Santander was signed, to assist in growth strategies. Fuelled by this agreement, the past twelve months has seen the premium doughnut manufacturer exhibit a strong hunger for commercial property sites, partly sated by opening six shop fronts and setting up cabinets in fifty Tesco stores, bringing its total Tesco in-store presence to 200.
Overnight ‘factory stores’ manufacture assorted doughnuts, which are then delivered to a variety of commercial property operations, such as shopping centres, transport hubs and other areas with high footfalls.
New areas successfully targeted include Bristol, Cardiff and Liverpool. ‘Krispy Kreme is a brand that consumers are passionate about,’ said Joint Managing Director Rob Hunt. He has grounds to be confident – a launch in Wales attracted overnight campers, keen to be first in line at opening time.
Exciting times for the company and anyone with a sweet tooth!
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