Krispy Kreme’s New Doughnut Dots: A Sweet Competition with Dunkin

Krispy Kreme enhances the holes game with four new flavors of Dot donuts. The new flavors are powdered, sprinkled, cinnamon, and cookie crumb. This is Krispy Kreme’s way of keeping up with the Joneses, or rather Dunkin, which sells more than 800 million doughnut holes a year.

In addition to the four new Dots, Krispy Kreme will be making, the introduction as it gears up for a major rollout in McDonald’s stores. The partnership with McDonald will more than double Krispy Kreme’s distribution, making it accessible to more people.

The new Doughnut Dots look perfect as Krispy Kreme is looking to strengthen its market share in the doughnut holes category. The new Dots will be available daily for purchase in-store.

Whether they buy a 10-count cup or a 24-count box, the doughnut holes will be up for sale via Krispy Kreme’s website and app in addition to physical locations.

Krispy Kreme’s increased offerings mean more choice for consumers, and the company said a partnership with McDonald’s would have “amplification impacts” to its manufacturing profitability.

Presently, Krispy Kreme shops are overproducing more doughnuts than they sell. The increased demand from McDonald’s will mean it can produce even more efficiently.

The impact on total system profits is expected to rise. Incremental costs associated with an increase in production are expected to be minor, so this means a bigger chunk of the revenue from the increased demand can fall straight to bottom-line profits.

Krispy Kreme CEO Josh Charlesworth talked about how this relationship would be of great benefit. This so because the McDonald’s relationship is an accelerator for their already fresh-daily delivery system. This means Krispy Kreme will be able to deliver fresh doughnuts more efficiently and profitably.

Krispy Kreme is currently running a special promotion. Customers will be able to get a 10-count cup of assorted Doughnut Dots or Original Glazed Doughnut Dots for only $1 with that purchase of any dozen doughnuts. This promotion runs from June 10 through June 16. This limited-time offer is a vehicle for new colors of doughnut dots being introduced to customers during the month of June.

Krispy Kreme’s new flavors of Doughnut Dots represent extended variety for the customers. The collaboration with McDonald’s will increase the production level and profitability of Krispy Kreme. The limited-time promotion will give customers an inexpensive way of finding out the new flavors. As Krispy Kreme grows, it proves to be a continually developing force against competitors like Dunkin’.