Dive Brief:
- McDonald’s and Krispy Kreme will expand their partnership nationwide, offering Krispy Kreme doughnuts at participating restaurants by 2026, the companies said in a press release Tuesday.
- Three flavors of doughnuts — Original Glazed, Chocolate Iced with Sprinkles and Chocolate Iced Kreme Filled — will be available individually or in packs of six beginning at breakfast and will be offered throughout the day as supplies last.
- The nationwide rollout follows a test at 160 restaurants in Lexington and Louisville, Kentucky, last year.
Dive Insight:
This expanded partnership will more than double Krispy Kreme’s point of access by the end of 2026, Krispy Kreme CEO Josh Charlesworth said in the press release.
“The partnership accelerates the development of our existing Delivered Fresh Daily channel, creating operating leverage through distribution density and production utilization,” said Charlesworth.
Krispy Kreme has built up its supply chain and support teams, added technology and equipment and improved field training as part of its Delivered Fresh Daily expansion. The chain ended 2023 with 2,300 more points of access than 2022, many of which were grocery and c-stores. The doughnut chain has over 14,000 places for customers to buy its doughnuts, according to the press release.
Krispy Kreme continues to add production hubs throughout the U.S., and is looking in areas like Miami, Twin Cities, Minnesota, Los Angeles and New England for additional locations. It’s already secured sites in Miami, Twin Cities and Los Angeles, all of which are conversions of existing buildings which will help accelerate development to help the chain keep up with demand, Charlesworth said during the earnings call. As of February, the company has the ability to cover about 6,000 McDonald’s restaurants with its existing network, but expects an expansion of its hubs to accommodate the remaining 7,000 units.
For McDonald’s, this partnership will not only enhance its breakfast menu with fresh-baked items, but also add a snack option for the rest of the day. The company cut its McCafe bakery lineup last year after shifting priorities to coffee and chicken. McDonald’s has been looking at ways to attract customers during the afternoon daypart, which its spinoff brand CosMc’s emphasizes with beverages and snack-oriented food items.