KRISPY KREME MATRICES/REPORTS
Current Strategies and Objectives
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Per pages 26 and 27 of its Form 10-K (annual report) filed April 17, 2009, Krispy Kreme Donuts has
listed the following as its current objectives:
Reduce the investment required to produce a given level of sales and reduce operating costs by
operating smaller satellite stores instead of larger, more expensive factory stores .
Achieve greater production efficiencies by centralizing doughnut production to minimize the burden of
fixed costs.
Achieve greater consistency of product quality through a reduction in the number of doughnut-making
locations.
Enable store employees to focus on achieving excellence in customer satisfaction and in-shop
consumer experience.
Stimulate an increase in on-premises sales of doughnuts and complementary products by increasing
the number of retail distribution points to provide customers more convenient access to the company’s
products.
Regarding strategies, the Form 10-K filed April 17, 2009 notes a few:
1. Open up new (or convert traditional factory stores to) "hot shops" that provide a hot doughnut
experience for customers throughout the day, instead of the traditional experience of having the hottest,
freshest doughnuts available only at certain times of the
day---these "hot shops" would be added to
the traditional fresh shops and kiosks as the primary methods for market penetration while reducing
operating costs.
2. Open up new company-owned satellite stores for additional market penetration.
3. The company also plans to extend its testing of soft serve dairy products into additional
locations in fiscal 2010 as part of its product development.
4. Close stores that are not performing to company standards.
Vision
Krispy Kreme Donuts "Vision and Values" can be found on their web site
(http://investor.krispykreme.com/includes/stupop.html).
"We Believe...
Consumers are our lifeblood, the center of the doughnut...