Krispy Kreme invades Britain
Doughnut chain to open at Harrods in London in October, its 2nd store outside N. America.
August 5, 2003: 9:32 AM EDT
LONDON (Reuters) -
Fast-growing U.S. chain Krispy Kreme Doughnuts Inc. is moving to Europe in October with the opening of a doughnut "factory" at London's upmarket Harrods department store, the company said Tuesday.
The company, which makes 7.5 million hot glazed doughnuts a day and runs over 300 retail stores in North America, launched a five-year program to build 25 stores in the major towns and cities of Britain and Ireland.
Don Henshall, head of Krispy Kreme's UK operations, hopes the doughnuts, all made in the store, will mirror the explosive growth of coffee bars in Britain, especially as the company has no immediate competition here in the doughnut market.
"In Britain, the doughnut market is a market without a brand," Henshall said in an interview with Reuters.
He said cut-throat competition among coffee chains and tough trading at Britain's pubs and bars could make it slightly easier to find sites in Britain.
The company, based in Winston-Salem, N.C., announced plans to come to Britain last November but warned it might take 18 months to find a site.
The link with Harrods, which will provide separate street access to the doughnut shop for early-morning shopping, has accelerated its opening program.
The London store will be only the company's second store outside North America. The first was in Sydney, Australia.
In addition to Britain and Australia, the group has targeted Japan, South Korea and Spain for overseas expansion.
Krispy Kreme (KKD: Research, Estimates) has retained a 34 percent stake in the UK franchise operation, with the rest held by private investors. It said it does not plan to raise equity for UK expansion.
Market Data 
Markets 
AI
