tag:blogger.com,1999:blog-12333976.post8670789337890245029..comments2024-02-18T15:43:14.717-05:00Comments on Moved to LivinLaVidaLowCarb.com/Blog: Losing Dough From Low-Carb Diet, Krispy Kreme Franchise Files For Bankruptcy And Closing StoresJimmy Moorehttp://www.blogger.com/profile/08590225257991702645noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-12333976.post-18835634058923489282007-09-11T11:19:00.000-04:002007-09-11T11:19:00.000-04:00THANKS Pot! I agree the execs at Krispy Kreme hav...THANKS Pot! I agree the execs at Krispy Kreme have made some rather boneheaded business decisions based on a lot of assumptions. But it certainly didn't help that livin' la vida low-carb has become more mainstream, too.Jimmy Moorehttps://www.blogger.com/profile/08590225257991702645noreply@blogger.comtag:blogger.com,1999:blog-12333976.post-10944464186920763272007-09-11T10:40:00.000-04:002007-09-11T10:40:00.000-04:00Jimmy, I'm gonna weigh in with my MBA here and res...Jimmy, I'm gonna weigh in with my MBA here and restate what I've said in other places about the demise of KK. <BR/><BR/>First: There are fundamental flaws in their business model, including generally massive stores (there's a small one in Clayton in St. Louis that seems to do okay) that induce crippling rent on the franchisees. Additionally, in the most densely populated portion of the country, the Boston-Atlanta Metro Access, they are competing with an entrenched competitor, Dunkin Donuts. And let's talk about that competitor and some basic strategy. <BR/><BR/>You pay lease 24/7/365. If you cost account it to hours of operation, your rent goes up, per hour, the fewer hours you operate. What does this have to do with KK vs DD? Well, KK really offers one product, plus coffee and coke. It's generally a morning product. DD offers better coffee, a debatably better donut (more to my taste when I'm in the market), and sandwiches. And Bagels. And things that will sell from 6AM to 4:30PM. KK's main business should run 6A to 12N, maybe a little later, but most people get their donut on in the AM. And what that means is that their bigger stores don't work as busily for as many hours, and have fewer hours to spread the fixed costs (like lease) over. <BR/><BR/>The pace of expansion: The folks in North Carolina at KK headquarters bought their own hype. They didn't look at things properly. You open a big shiny new store in a big shiny market like Los Angeles, and you have lines around the block. All these refugee Southrons driving around LA, talking up their doughnuts and NASCAR. So, lines around the block. For the first six months. Then, people go back to what they were doing. It's not like the doughnut is new to LA (plenty of good, small business doughnut shops there in the healthy diet capital of the universe). It's not even like Starbucks was, something that changed how you look at coffee. It's a warm glazed donut. Things were bound to come back down to earth. And, they did. Only the folks at KK bought their hype and opened another megastore or two in LA, and hundreds across the country before things reverted to a new normal. Put a lot of stress on the corporation (as seen in their 5 year decline from a peak stock price of 49 in the week of August 11th 2003, to their current place at $3.24/share. It's a 5 year decline of nearly 90% (higher if you go from August 11th), vs an S&P 500 growth over the same period of over 60%. <BR/><BR/>I'm not saying Carb Watching isn't part of their demise. But McDonald's (a generally non-growth company, and no friend to LC) has grown over 150% in the same period. Yum! Brands (KFC, Pizza Hut, Taco Bell), has more than doubled it's stock value over the same time and they're not exactly carb friendly, either. Sure, some options, and bunless burgers, but that can't be everything.Pot Kettle Blackhttps://www.blogger.com/profile/01991982631209306178noreply@blogger.comtag:blogger.com,1999:blog-12333976.post-16901314358177988252007-09-10T10:55:00.000-04:002007-09-10T10:55:00.000-04:00I think of Krispy Kreme as "Krippy Kreme" to make ...I think of Krispy Kreme as "Krippy Kreme" to make it less appealing. The Krispy Kreme store near us closed down a couple of years ago. Another doughnut shop opened at the same location and soon shut down. I say good riddance.<BR/><BR/>There are a couple of local dought shops I visit. I get a croisant or kolache and don't eat the bread. One place has big, made-to-order breakfast tacos. Just don't eat the tortilla and it's low carb heaven.<BR/><BR/>jpatti, I'm doing low carb to avoid complications of diabetes as well. I just haven't been at it as long.renegadediabetichttps://www.blogger.com/profile/11710855525093861921noreply@blogger.comtag:blogger.com,1999:blog-12333976.post-28911241106224282462007-09-08T09:59:00.000-04:002007-09-08T09:59:00.000-04:00Dunkin Donuts and Tim Hortons both offer really, r...Dunkin Donuts and Tim Hortons both offer really, really good coffee so they're worth patronizing whether you're low-carbing or not.<BR/><BR/>As for the "fad" of low-carb dieting, it hasn't affected me at all. When it began, I'd been low-carbing for years, when it ended, I kept low-carbing. It's been over a decade I've been eating low-carb.<BR/><BR/>The thing is... I'm diabetic even when it's not popular to low-carb. Weight loss is kewl and all, but avoiding heart attacks, kidney disease, blindness, amputation and death is not about following a fad.Jackie Pattihttps://www.blogger.com/profile/05045742074108609096noreply@blogger.comtag:blogger.com,1999:blog-12333976.post-54223825542484983632007-09-08T08:45:00.000-04:002007-09-08T08:45:00.000-04:00I for one would be sad if Krispy Kreme went under....I for one would be sad if Krispy Kreme went under. I do cheat every now and then, and I love their insane donuts. If you're gonna cheat, you might as well go full throtle.. you know, a bacon cheddar cheese burger served between two Krispy Kreme donuts, yum yum!<BR/><BR/>oh well, there'll always be Dunkin Donuts...Unknownhttps://www.blogger.com/profile/15606061098538457496noreply@blogger.comtag:blogger.com,1999:blog-12333976.post-90309165791964960102007-09-08T00:55:00.000-04:002007-09-08T00:55:00.000-04:00I don't eat donuts anymore, but when I take my mot...I don't eat donuts anymore, but when I take my mother-in-law to pick up donuts for her card party, I just stand in the doorway and breath in the coffee and donut smell. I sure will miss that!DD Jamesonhttps://www.blogger.com/profile/02474031050858948887noreply@blogger.com