Some units are just no longer profitable, while others are shutting down in an effort to keep the company as a whole afloat.
. These closures are more of a pruning of low-performing stores rather than signs of widespread company issues.inability to bring in viable profits
and customer traffic. The closures seem to have the desired effect as the chain generated $1.52 billion in net revenue by the end of the year. The brand is seeing success from trying to hone in on quality over quality and still has faith in the current business model. "We remain very confident in our long-term goal of achieving more than 50,000 points of access globally," Krispy Kreme president and CEO Mike Tattersfield said
. This will include the"hub-and-spoke" business model—where larger locations complete with donut production facilities called"hubs" ship out donuts to smaller shops called"spokes"—to perfect the art of donut freshness and customer satisfaction.Jordan Summers-Marcouillier was born and raised in San Jose, California and now works as a writer in New York, NY.
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