Thursday, August 26, 2004

Not exactly selling like hotcakes

Krispy Kreme stock took a tumble today. I haven't been in there in a while; I feel responsible.

The company's real problem, as ably elucidated by Herb Greenberg of CBS MarketWatch, is that the people in charge may know doughnuts, but their business skills stink on ice. They've made their product so darned pricey that it's cheaper for the larger chain groceries to bake their own doughnuts for sale rather than buying Krispy Kremes. Plus, you can get them almost anywhere now, so there's no longer any mystery or cachet about the one-elusive treats.

The Krispy Kreme brass keeps harping about all the people on low-carb diets, but that's a canard. Had Krispy Kreme stuck to selling their wares in their own stores, rather than making the little sugarlumps ubiquitous in every supermarket, gas station, and ballpark in America (no, I'm not kidding — there are several gas station mini-marts in our area that sell Krispy Kremes they import from the local outlet in Santa Rosa, and you've been able to buy Krispy Kremes at Giants games since Pac Bell...umm...SBC Park opened.

Still, there are few sights in life as thrilling as that bright red "HOT NOW" sign. Maybe I should go pick up a dozen, and help the fellows out.

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