Krispy Kreme Donuts Don't Last Long Enough
The delicious glazed donuts have been named among the most addictive foods, and have powered Krispy Kreme's business for decades.
The problem? The yeast-based donuts spoil in just two days, forcing Krispy Kreme to eat sunk costs, reports Venessa Wong at Bloomberg Businessweek.
Many of Krispy Kreme's donuts 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 donuts there instead, Wong writes. This would reduce delivery costs and ensure the donuts 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.