We have seen the plight of international retail brands in the current South African market over the years with many brands losing market share and exiting the country. Krispy Kreme is bucking this trend and here’s why:
The globally famous doughnut shop plays in the ‘’sweet treat’’ space and its clear conceptual difference means competitors are few and far between. The success of the brand is a pleasant surprise considering the limited offering of only doughnuts, coffee and frozen beverages. Prudent site selection has led to the establishment of 19 outlets situated in prime retail locations around the country. Krispy Kreme South Africa are keeping pace with their legislated development milestones with the recent establishment in the Cape Town market finalizing the brand’s establishment in major metros.
The plan was to establish 3 factory stores, 27 fresh shops / kiosks & 1 commissary over 5 years. Achieved thus far since the brand’s inception in 2015, we have seen 1 commissary in JHB with double the capacity as planned, 1 commissary in CT, 3 factory stores and 16 fresh shops / kiosks. The addition of freshly made Krispy Kreme doughnuts conveniently available at retail partners, Pick n Pay supermarkets and Engen forecourt convenience stores means the product is accessible to a greater market.
When asked what has made Krispy Kreme so successful in S.A. thus far, managing director, Gerry Thomas said: “Krispy Kreme South Africa has been able to maintain interest and brand strength via product innovation and at the same time maintain high guest experience levels. Via these 2 mechanisms, we have been able to create brand / consumer loyalty and have become a ‘’household’’ name and therefore a ‘’default’’ purchase.”
The brand’s strict adherence to the Krispy Kreme brand identity from both a local and global perspective has sustained the brand’s success. Along with the conceptual differences, including the development of unique products, high barrier to competitor entry due to proprietary ingredients and production machinery / methods, consistent innovation and a huge focus on guest experience.
Ahead of the brand’s 5th year birthday this year, here are some highlights of the brand’s top achievements:
- KKSA earned the right to supply pre-packaged fresh doughnuts into 3rd party retail outlets (Pick N Pay & Engen). Only KK’s established markets such as the USA, UK and Australia have these rights,
- KKSA digital development with particular reference to its application and its capabilities,
- Achieving exponential growth in a tough economic climate,
- Krispy Kreme Global classify KKSA as a ‘’top ten market’’ from an execution, product innovation and store fit out point of view.
Ultimately, the global operation is a favourite in the South African market, and its most valuable asset are its dedicated 480 employees. People development has and will continue to contribute tremendously to the sustenance of the long-term success of the business.
