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Krispy Kreme Plano closes due to underperformance
By Kim Nguyen, knguyen@acnpapers.com
The Plano location of Krispy Kreme Doughnuts closed its doors this week, further reducing the company’s presence in the Dallas-Fort Worth area.
With only four remaining locations in the Dallas area, the company is hoping to streamline its operations as doughnut sales slump in a culture that is growing increasingly aware of healthy foods. Krispy Kreme also shuttered its Irving and Frisco stores over the summer.
“Krispy Kreme has been closing underperforming company-owned stores as part of our turnaround strategy and continuing efforts to streamline our corporate operations,” said Brian Little, company spokesman.
“We recently opened new company-owned retail locations in Smyma, Tenn., Winston-Salem, N.C., Knightdale, N.C. and Lexington S.C.,” he said. “We’ve also recently opened a small shop in the Bank of America stadium, home of the NFL Carolina Panthers. We also have plans to open more new shops by the end of the year.”
Little also said the company is opening the DFW market for franchise opportunities.
The Krispy Kreme store on Central Expressway just north of Parker Road has been open, much to the delight of doughnut lovers, since the summer of 2004. Doughnut aficionados in Plano have watched the melt-in-your-mouth doughnuts get plucked off the conveyor belt hot and freshly glazed under the warm neon glow of the “Hot Now” sign.
The publicly traded company has nearly 400 stores in the United States and overseas that have been seeing fewer and fewer customers during the economic recession. According to the Krispy Kreme Doughnuts Web site, the company saw a net loss of $5.9 million in the third quarter of 2009, compared to a net loss of $798,000 in the third quarter of 2008. Overall, the company saw a yearly net loss of $4.1 million compared to a loss of $67.1 million last year.
The company hopes to reduce spending by franchising stores and streamlining operations to produce the doughnuts at one centralized location and ship them to nearby stores.
Little said the company is not currently considering reopening the closed stores or opening any future Krispy Kreme franchises.
“However, we are open to refranchising the market,” he said.
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