mgpcpastor's blog

The Facebook group that wanted to have a Krispy Kreme store in Mount Gambier look set for further disappointment.
Here’s one of the various news reports about the situation from the Australian newspaper.

THE local arm of US firm Krispy Kreme doughnuts has gone into voluntary administration because of poor sales.
The directors of Krispy Kreme Australia on Friday appointed Mike Smith and Peter Hillig of accountancy firm Smith Hancock as joint voluntary administrators of the company.
“Due to a number of underperforming stores adversely affecting the business, the company was at risk of not meeting its financial obligations if it continued trading under its current model,” the company said in a statement.

This opinion piece from the ABC website doesn’t engage in moral superiority and dough-nut bashing, but does make a case that the company ignored its own market positioning, thus contributing to a weakening of its brand in Australia.

The USA has 224 stores serving a population of 311 million (one store per 1.4 million people).
Australia had 50 stores serving a population of 21 million (1 store per 420,000 people).
The numbers are mind blowing and that is without considering the vastly different food cultures in our two countries. In Australia doughnuts are a treat, not breakfast and there is only so much ‘share’ of stomach a doughnut can aim for.

Don’t try and be all things to all people, remember your mission and stay focussed on that.

And here’s Tim Hawkins explaining the delight of Krispy Kremes (and adult breakfast cereals and the first diet soft-drinks).
Turn up the sound.