Krispy Kreme is to target the north east and Scotland as part of the retailer’s ambitious plans to expand following a £25m management buy-out (MBO).
Joint managing director Rob Hunt told British Baker the doughnut brand was in "advanced discussions" with landlords in the two regions in order to fill in the geographical gaps where it does not have a presence. The company, which recently confirmed it had been backed by investment firm Alcuin for the MBO, has revealed it wants to increase the number of stores it operates from 45 to 80 in the next four years.
The firm operates a hub-and-spoke method, with its signature ’Hotlight’ stores acting as the bakery and distribution centres for the stores around it. Krispy Kreme also operates around 350 cabinets in retail outlets, such as garage forecourts and Tesco.
The group most recently opened three sites at Westfield Stratford, Southgate in Bath and at Meadowhall in Sheffield.
News that the group plans on targeting the north east and Scotland will interest bakers and food-to-go retailers in those areas, because of the massive "pull" of the brand. For example, an opening in Cardiff, Wales, earlier this year saw 1,000 people queue to buy on its first day.
Hunt said: "It is fantastic that we have been able to secure this funding and proceed with our expansion plans. We offer a premium quality doughnut at a realistic, affordable price and, despite the current climate, people are still willing to treat themselves. And we bring a brand buzz when we open that landlords appreciate."
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