Restaurants on the Ropes

[springparrot]

http://finance.yahoo.com/news/Restauran ... 11507.html

On the list?

Krispy Kreme.
The famed doughnut chain got too chubby over the last 15 years, and it's been closing unprofitable stores to help reverse several years of steep losses. Revenue has plunged since 2005, but cutbacks helped the company turn a $1.9 million profit in the latest quarter. Lenders have provided a breather by easing some of their requirements over the last two years. The temporary reprieve expires in 2011. By then, the company hopes that streamlining, profitable new overseas stores, and other measures will have strengthened its finances.

Spokesman Brian Little points out that Krispy Kreme has cut its debt by nearly 40 percent and has a $21 million cash cushion. The recession, he adds, isn't as daunting to Krispy Kreme as to other food chains: "We sell an affordable indulgence consumers will purchase when they can't afford to treat themselves or their families to other luxuries."

[ejr]

They also took a product that had a mystique about it, in part because it was only available in certain markets, and then saturated new markets so that they were everywhere. Most of the ones in the Chicago area that I know of have closed, though last I checked, the one near O'Hare was still open.

[land_shark3]

Yes, KK is one of my customers and they have been struggling. They have kept some mystique as the ingredients are kept a secret for individual stores. They ship is a large white bag ready to be mixed per the instructions.

But, speaking of restaurants on the ropes.... they just boarded up the CiP here in Huntersville, NC (just north of Charlotte). Rumor has it rent went up and management decided it better just to close shop.

[ragtopW]

long ago I sat between a couple of "point men"
one for Outback and one for KK
they had a "plan" of where to place each new store..
they had a list of things that had to be met for
just the right place.. I thought at the time.. "If you need a list to tell you where
to plant your store.. you may have lost prespective"

BTW the result?? Both the Outback and the KK landed in pretty
poor placement areas..

[Bicycle Bill]

They also took a product that had a mystique about it, in part because it was only available in certain markets, and then saturated new markets so that they were everywhere. Most of the ones in the Chicago area that I know of have closed, though last I checked, the one near O'Hare was still open.

It doesn't work that way all the time. Coors beer used to have a "mystique" to it too, because you could not get it east of the Mississippi River (that was the gimmick in the plot of "Smokey and the Bandit", remember?).

Now you can find it just about everywhere, and it doesn't seem to be suffering when it comes to sales.

-"BB"-

[RinglingRingling]

They also took a product that had a mystique about it, in part because it was only available in certain markets, and then saturated new markets so that they were everywhere. Most of the ones in the Chicago area that I know of have closed, though last I checked, the one near O'Hare was still open.

It doesn't work that way all the time. Coors beer used to have a "mystique" to it too, because you could not get it east of the Mississippi River (that was the gimmick in the plot of "Smokey and the Bandit", remember?).

Now you can find it just about everywhere, and it doesn't seem to be suffering when it comes to sales.

-"BB"-

depends on where you are. It isn't like they are climbing out of their #3 position of the "Big Three" brewers any time soon. And I don't know anyone who orders Coors or Coors Light after the first time. In OH, Miller and Bud have a pretty firm grasp on the mass-produced, tastes-like-water market.

[RinglingRingling]

as for Krispy Kreme, there were 2 stores here in CMH. One lasted about a year and then went down; the other may or may not have, it is in an area of town I don't see often.

The chain also got into trouble with their creative book-keeping techniques during the expansion period, and with their franchise expenses for equipment. Wonder if Buffett's chain of KK franchises in SoFL is hurting.

[Tarheel Tail-Gator]

Low Carb Diets and the Atkins Diet hit KK at it's peak. Without a diversified menu, (and a slow switch to the Gourmet Coffee trend) it's been a rough road.

We used to drive 15 miles across Charlotte to get Krispy Kreme's when I was growing up and use to sell boxes of a dozen glazed as a fundraiser. Back then, they truly were a treat (and there was no competition from Dunkin Donuts in the south)

[Frank4]

They also took a product that had a mystique about it, in part because it was only available in certain markets, and then saturated new markets so that they were everywhere. Most of the ones in the Chicago area that I know of have closed, though last I checked, the one near O'Hare was still open.

The one near O'hare is still open. I live right down the street from it. I think it's a distribution center for Krispy Kreme though. Everytime I am in there, it's empty

[ph4ever]

BAB and I used to frequent the KK on Greenville Ave in Dallas. Then we both moved from Dallas. Now KK is having problems. Coincidence????

[CaptainP]

The restaurant chain that I work for has been able to persevere. In fact, we are continuing to open NEW locations.

We did, however, see two stores close last week. They were among the hardest hit, but it was due to location. They are in the Vegas area, and Vegas is taking a beating right now. Plans have already been announced to re-open in the area, once things get better.

[ragtopW]

They also took a product that had a mystique about it, in part because it was only available in certain markets, and then saturated new markets so that they were everywhere. Most of the ones in the Chicago area that I know of have closed, though last I checked, the one near O'Hare was still open.

It doesn't work that way all the time. Coors beer used to have a "mystique" to it too, because you could not get it east of the Mississippi River (that was the gimmick in the plot of "Smokey and the Bandit", remember?).

Now you can find it just about everywhere, and it doesn't seem to be suffering when it comes to sales.

-"BB"-

depends on where you are. It isn't like they are climbing out of their #3 position of the "Big Three" brewers any time soon. And I don't know anyone who orders Coors or Coors Light after the first time. In OH, Miller and Bud have a pretty firm grasp on the mass-produced, tastes-like-water market.

at home most of the time it's Coors light or Miller light (what ever is on sale) it's fine to mix with
shots..

or if I am pacing myself..

[ragtopW]

The restaurant chain that I work for has been able to persevere. In fact, we are continuing to open NEW locations.

We did, however, see two stores close last week. They were among the hardest hit, but it was due to location. They are in the Vegas area, and Vegas is taking a beating right now. Plans have already been announced to re-open in the area, once things get better.

and your place helps make my point.. they are in a great location
Downtown and within walking distance to some if not most of Boise's night life..


BTW I am hearing rave reviews from the Bonefish Grill


sounds like I need to get a date and go out to dinner.

[buffettbride]

...and Bonefish has an outstanding gluten-free menu. In fact, the entire Outback contingent does.

[buffettbride]

I've never been to a KK or had a KK donut.

[RinglingRingling]

I've never been to a KK or had a KK donut.

come over to the dark side...

[blackjack]

I've never been to a KK or had a KK donut.

The only time I've had one was when they expanded into our local supermarket and I'm guessing pre-bagged doughnuts on a supermarket shelf are not quite as good as the originals.

[Tropic_Al]

I've never been to a KK or had a KK donut.

The only time I've had one was when they expanded into our local supermarket and I'm guessing pre-bagged doughnuts on a supermarket shelf are not quite as good as the originals.

They are quite yummy if you microwave them for 8 seconds or so. Not as good as fresh, but not bad.

I could go for a little KK right now....

[Dutch Harbor PH]

BAB and I used to frequent the KK on Greenville Ave in Dallas. Then we both moved from Dallas. Now KK is having problems. Coincidence????

So you're the ones responsible for the KK in Issaquah doing as well as it was.....?????

[ph4ever]

BAB and I used to frequent the KK on Greenville Ave in Dallas. Then we both moved from Dallas. Now KK is having problems. Coincidence????

So you're the ones responsible for the KK in Issaquah doing as well as it was.....?????

nope - only been to a KK here in Washington once. It was the one in Puyallyup (or however its spelled)