Krispy Kreme Base Case

By Edward Cone  |  Posted 2002-11-01 Print this article Print

The doughnut-maker and -franchiser doesn't spend a penny more than it needs to on technology. Its frugality hasn't held back its growth.

Krispy Kreme Base Case
Headquarters: P.O. Box 83, Winston-Salem, NC 27103
Phone: 1-800-4KRISPY
Business: Doughnut shops, some owned and some franchised, selling to retail and wholesale markets
Chief Information Officer: Frank Hood
Financials: $394 million in revenues, net income $26.4 million (fiscal year 2002)
Challenges: Support rapidly growing number of stores without linear increase in information technology costs

Baseline Goals:

  • Limit error rate to 1.05%—or below—for online orders (Current rate: 0.51%)
  • Maintain 10% year-over-year growth in same-store sales
  • Double percentage of revenue derived from coffee sales from 5% to 10%

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    Senior Writer and author of the Know It All blog

    Ed Cone has worked as a contributing editor at Wired, a staff writer at Forbes, a senior writer for Ziff Davis with Baseline and Interactive Week, and as a freelancer based in Paris and then North Carolina for a wide variety of magazines and papers including the International Herald Tribune, Texas Monthly, and Playboy. He writes an opinion column in his hometown paper, the Greensboro News & Record, and publishes the semi-popular EdCone.com weblog. He lives in North Carolina with his wife, Lisa, two kids, and a dog.

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