retail news in context, analysis with attitude

The Chicago Tribune reports that now that the first Krispy Kreme has opened in the Windy City, Dunkin’ Donuts is combating the arrival by handing out free doughnuts. This despite the fact that Dunkin’ Donuts has hundreds more locations in the Chicago area than Krispy Kreme, and Dunkin’ Donuts management are minimizing the impact of Krispy Kreme by saying that they are an “everyday” purchase, and Krispy Kreme is for events.

Dunkin’ Donuts management also puts a big premium on its coffee business, which it feels has far greater appeal that Krispy Kreme’s coffee.

Which is an interesting note, since CNBC reported yesterday that that Krispy Kreme will be adding two more coffee roasters to its existing business, plans to add espresso and specialty iced coffees to its menu, and generally plans to put more emphasis on coffee sales.

Also interesting was the announcement yesterday that Krispy Kreme has signed a lease on a site less than 550 feet from Cafe du Monde in New Orleans, which has been serving up beignets and French-style coffees since 1862.
KC's View:
We’re just happy to watch this explosion of doughnut and coffee shops. However, when we’re in New Orleans, there is absolutely no chance that we’re going to Krispy Kreme, Dunkin’ Donuts or anyplace else other than Café du Monde for coffee and beignets.

That’d be like going to New Orleans and eating at McDonald’s.