Krispy Kreme UK has outlined its ambitious plans for growth of the dougnut brand – following a £25m management buy-out.
The company said it would nearly double in size in the next four years to 80 stores.
Krispy Kreme entered the UK market in October 2003 in London. It has since opened 45 stores across the UK, in key cities such as Manchester, Leeds, Birmingham and Bristol. The company also operates more than 350 cabinets, with retail partners including Tesco.
Alcuin Capital, whose current investments include Caffè Nero, provided the funding for the MBO of Krispy Kreme UK from Cheshire and Kent, an investment group led by three American entrepreneurs.
As part of the strategy to grow its UK footprint over the next four years, Krispy Kreme will continue to roll out and develop its hub and spoke distribution model.
The regional model combines the destination experience of the company’s Hotlight stores, which showcase fresh doughnut production, with town centre coffee bars and cabinets.
While the company operates more than 350 cabinets, it gave no details as to whether it also plans to expand in this market as well.
Richard Cheshire, joint managing director of Krispy Kreme UK, said: “Krispy Kreme has expanded rapidly in the UK since we launched in 2003, and our current business plan aims to build on this growth. With the support of Alcuin, we plan to achieve this by focusing on our core business of making premium-quality doughnuts and coffee, geographically expanding our retail and wholesale operations and providing outstanding career paths for high-calibre people.”
Rob Hunt, joint managing director of Krispy Kreme UK, added: “When we began looking at the potential for private equity involvement in the business, we were looking for a investor with a like-minded view of the future for Krispy Kreme in the UK.
“Alcuin is an ideal partner, with substantial expertise in supporting rapidly growing businesses with strong management teams. We look forward to working with the team to deliver the Krispy Kreme experience to more people across the UK over the coming years – via further geographic expansion and by developing our customer experience in existing stores.”
Krispy Kreme was advised on the MBO by Latimer Corporation, Shoosmiths and PwC. Macfarlanes provided legal advice to the vendors. Alcuin was advised by Tenon and Jones Day.