McDonald’s is adding Krispy Kreme doughnuts to menus
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McDonald’s is adding Krispy Kreme doughnuts to menus in a number of its restaurants, saying the pilot is in place to help bosses understand how new bakery items go down with fans of the Golden Arches.
While McDonald’s already has its own line of pastries under its McCafé range, the fast food giant said it was keen to see how new products might ‘impact’ its offering.
The chain also revealed which of the famous flavours will be available.
“McDonald’s is always looking for ways to give our fans more of what they crave, and we often conduct tests to inform future menu decisions,” it said in a statement.
“This small-scale test will help us understand how offering new bakery items like Krispy Kreme could impact operations in our restaurants.”
Nine locations in Louisville, Kentucky, will be selling the doughnuts as part of a test, both companies announced yesterday (Tuesday 18 October), adding that the scheme will help ‘inform future menu decisions’.
McDonald’s said it will run the test for a limited time, with Krispy Kreme delivering the doughnuts daily to participating restaurants.
Customers will be able to choose from options including glazed, chocolate iced with sprinkles and raspberry filled, with doughnuts available individually or in packs of six.
Krispy Kreme uses what’s known as a hub-and-spoke model, which means its doughnuts are made at its system of stores and bakeries before being sold on to third-party vendors – covering everything from grocery stores, gas stations to food trucks and, now, McDonald’s stores.
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According to QSR, at the end of Q2 this year, there were 6,053 Krispy Kreme points of access in the US and Canada, which marked an 8.9 percent rise compared the 2021.
At the time, Krispy Kreme CEO Michael Tattersfield told analysts during Krispy Kreme’s Q1 earnings call: “We know that fresh matters. As our customers tell us, this is the most important attribute when purchasing a sweet treat.”
In an earlier report, QSR said Tattersfield had explained how the biggest driver was ‘low-capital DFD [delivered fresh daily] doors, or convenience and grocery stores’.
CFO Joshua Charlesworth added: “We're finding some of the older stores need adjustment, need remodelling, and even need the space adjusting to make sure that it works effectively and efficiently. We're seeing a whole range of performance, but overall, 300-to-400-basis-point increase in margins when we've deployed the DFD program.”
QSR said of the DFD system: "The DFD model - strategically placed production hubs and retail shops sending fresh doughnuts to multiple locations every day - evolved from a wholesale business that brought older, discounted doughnuts to retailers nationwide."
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Topics: News, McDonalds, Food and Drink, US News
