Krispy Kreme Sold A Record-Breaking 1.6 Billion Donuts In 2022
People love donuts — and, when it comes to Krispy Kreme, it seems like donuts love people right back. Earlier this month, the company held its 18th annual Krispy Kreme Challenge, a self-professed "test of physical fitness and gastrointestinal fortitude." It's a fundraiser in support of UNC Children's Hospital, but it's also a five-mile race with a donut-eating competition halfway through. (As in, runners have to put away 12 donuts before getting up and completing the race.) Now, it looks like some of that good karma might be paying off for the donut giant: Krispy Kreme just enjoyed one of the best sales years in company history.
Inflation who? The current economic crisis may be affecting staples like meat, cheese, eggs, and bread. But, judging by recently reported data, it looks like donuts are protected by a glazed armor. Scream all you want recession, because donuts can't hear you. In 2022, Krispy Kreme fans around the world gobbled up a historical 1.63 billion donuts, reports Restaurant Business. That's nearly five donuts for every living American. In 2022, Krispy Kreme saw 9% year-over-year revenue growth. During the holiday season, that growth grew to 15%, ending in a total sales year of $404.6 million. Krispy Kreme also owns Insomnia Cookies, which had a similarly successful fiscal year: revenue growth of 24% with average annual sales hitting roughly $850,000 per store. So, how did Krispy Kreme do it?
Success is sweet for this donut giant
These impressive figures didn't happen by accident. The rotating seasonal menu items like chocolate-filled heart-shaped Valentine's Day donuts may help pull in customers, but the company has been enacting another strategic business plan behind the scenes. Last year, Krispy Kreme closed 14 underperforming stores and plans to close 7 more by July 2023. On the flip side, the company accrued a total of 5,700 of those sales kiosks located in grocery stores, gas stations, and pharmacies (also known as "delivered fresh daily (DFD) doors" across the U.S. Each of these little donut-lined cabinets garners approximately $580 in sales every single week.
Earlier this week, Allegra World Coffee Portal reported that Krispy Kreme plans to enter seven new markets in 2023, including its first store in Paris, France. Krispy Kreme now has 1,940 total stores around the world, after adding about 125 new locations — demonstrative of a 7% total company expansion. The company now has a presence in over 30 different countries, though its sales in the U.S. and Canada remain some of the strongest, as these markets saw a 10% increase.
Looking forward, Krispy Kreme says it plans to focus on automation tech in 2023 to mechanize the production process and cut an estimated $2 million in annual operating costs. With these and other strategies in place, the company anticipates further growth of another 10%. Donut fans — feel free to get excited, and stay excited.