Blissfully Biscoff doughnut range, Krispy Kreme  2100x1400

Source: Krispy Kreme

Krispy Kreme revealed a new partnership with Biscoff this year

Sales of Krispy Kreme doughnuts in the UK rose by more than £1m in 2023.

Turnover at the business grew from £118.5m in 2022 to £119.8m last year, an increase of 1%, according to a financial statement for the year to 31 December 2023 filed at Companies House.

Krispy Kreme UK reported that sales grew in the delivery and ecommerce channels, and that it had continued to refine and develop its Delivered Fresh Daily (DFD) business, which enables consumers to order doughnuts via Deliveroo, Just Eat, or UberEats.

The business also increased its number of stores over the year, taking its retail locations from 125 to 129.

Meanwhile, operating profit rose in 2023, from £5.0m to £6.1m, although EBITDA fell from £16.8m to £16m due to increased labour costs.

Krispy Kreme stated it had been impacted by economic challenges including the cost-of-living crisis hitting consumer disposable income, inflation impacting input costs and a lack of labour. Actions it had taken over the year to mitigate this had included locking in supply contracts, increasing employee pay, reducing overheads, and raising prices.

“The directors are satisfied that the company has continued to strengthen its position during 2023 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrate its resilience and ability to remain both highly profitable and cash-generative,” Krispy Kreme said in the statement. It added that plans for 2024 include opening shops in high-profile locations, expanding with its existing and new DFD partners, investing further in digitally enhanced cabinets and expanding reach through digital channels.

Speaking with British Baker in March this year, Jamie Dunning, Krispy Kreme president and managing director for the UK and Ireland, outlined how brand partnerships and convenience retail would also play key roles in the coming months.

But 2024 has proved to be a challenging year so far for some doughnut suppliers.

Planet Doughnut announced the closure of five of its eight stores across the West Midlands and northwest in May, citing difficult trading conditions.

And last month it was revealed that Project D has agreed to a Company Voluntary Arrangement with its creditors over debts totalling more than £286k. The Derby-based brand stated the debts were related to its retail trade and that its core wholesale business was “as strong as ever”.