Krispy Kreme Sold 1.63 Billion Donuts In 2022 – And That Probably Doesn't Include Freebies
If you've ever strolled by a Krispy Kreme doughnut shop, you might agree that its mere presence makes a purchase practically impossible to resist. When the sweet smells and sights of the warm, glistening doughy treats hit you, you might black out for a few moments — and then come to with an unexpected doughnut in your hand.
Still, Krispy Kreme consumers might be surprised that a staggering 1.63 billion of those tempting treats were sold worldwide in 2022, breaking a record for the North Carolina-based doughnut and coffee chain. Though it may seem that the iconic glazed doughnuts could do all the selling for themselves, this number is still pretty shocking, given the company's many brick-and-mortar store closures throughout the early 2020s.
Like a kid watching a magic show, this paradox may leave consumers and competitors alike wondering: How did they do it? The answer comes down to a series of strategic business decisions.
The brainpower behind the brand's massive success
Krispy Kreme's business strategy just goes to prove that there's a lot more brainpower behind the brand than those unassuming, shiny little doughnuts might lead fans to believe.
In 2022 — the same year as its record-breaking donut sales — Krispy Kreme shut down 14 brick-and-mortar locations. According to CEO Mike Tattersfield, these closures were not, in fact, a sign of a fumbling business, but rather a carefully calculated strategy for profit optimization.
With the decrease in standalone Krispy Kreme stores, sharp-eyed shoppers might notice the sudden omnipresence of Krispy Kreme products at supermarkets and convenience stores, which is apparently by design. While closing unprofitable locations, Krispy Kreme has been baking its products at "hub shops" and delivering them fresh the same day to local retailers. This "hub and spoke" strategy allows Krispy Kreme to commit to its Delivered Fresh Daily, or DFD, guarantee.
Growth for the glazed goodies
Krispy Kreme's "hub and spoke" sales strategy has proven successful by increasing the presence of products in consumers' vicinity without sacrificing their bakehouse-grade quality. Krispy Kreme isn't just applying its fresh-delivery tactics to grocers, either. The company may have plans to partner with McDonald's stores nationwide, depending on the success of its products in Louisville, Kentucky's McDonald's test locations, according to Restaurant Business.
The company has also been keeping its brand fresh by introducing limited-edition baked goods. In the past, these have included the Autumn Orchard Collection Apple Fritter and Santa's Bakeshop Collection Holiday Sugar Cookie Doughnut. These products encourage customers to try time-sensitive treats without detracting from the beauty of the originals.
Krispy Kreme's strategies have yielded a 1.63 billion doughnut-sale total that the company projects will be surpassed in 2023. In the undeniable words of CEO Mike Tattersfield, "That's a lot of doughnuts."