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Projects: Supply Chain



Krispy Kreme's Essential Ingredient



By Edward Cone

  Table of Contents:
  1. Krispy Kreme's Essential Ingredient
  2. ' Updating During Development '
  3. ' Maintaining the Brand '
  4. ' Krispy Kreme Base Case '

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.

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Krispy Kreme's Essential Ingredient - ' Krispy Kreme Base Case '


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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%

     
     
    >>> More Projects: Supply Chain Articles          >>> More By Edward Cone
     


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