Debby,
Just go to a Dunkin Dougnuts or a local doughnut shop, or to your grocery store, or whatever. Buy a glazed doughnut. Put it in the microwave for six seconds. Voila! Instant Krispy Kreme. Anybody that says the Krispy Krem is anything more than about one degree better has simply bought in to marketing hype and hysteria.
I've been preparing to short KREM, and made a half hour trip to the nearest store to see what all the fuss was about. Sure, it was a fine doughnut, but certainly nothing to swoon over. It was a doughnut!
A friend the other day was talking about wanting to try one and I had to remind her that she doesn't like cake, cookies, or anything sweet! She thought about it and said "I guess you are right!" The silly hype will diminish and KREM will soon fade into the sunset (with a lot of investor and franchisee money in their pockets).
As a potential franchisee, would you rather sell addictive coffee, meals that people can buy throughout the day, or doughnuts that people generally buy for special occassions and meetings?
My personal experience, this general sociological observation, and a little bit of fundamental anaysis regarding the long-term post-hype same store sales potential has led me to conclude that Krem will go down as one of the great collosal bombs of the market.
OK, end of rant. :} |
