Krispy Kreme has used the same classic glazed doughnut recipe since 1937.
The delicious glazed doughnuts have been named among the most addictive foods, and have powered Krispy Kreme’s business for decades.
The problem? The yeast-based doughnuts spoil in just two days, forcing Krispy Kreme to eat sunk costs, reports Venessa Wong at Bloomberg Businessweek.
Many of Krispy Kreme’s doughnuts are sold in grocery stores, forcing the retailer to race against time to get the products made and delivered.
To deal with this issue, the company is building more retail stores in hopes that shoppers will buy doughnuts there instead, Wong write
s. This would reduce delivery costs and ensure the doughnuts are fresh.
The company said it will build 157 more stores in the next three years. Krispy Kreme currently has 243 locations.
Krispy Kreme is also marketing products with a longer shelf life to grocers, like honey buns.
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