Krispy Kreme Case StudyAustin Kemp1/17/17GEB 3376Professor MoradianKrispy Kreme3-17) The company has been sold several times. The original sale of the company was in 1935. It was sold by Ishmael Armstrong to Vernon Rudolph’s father, Plumie. Vernon then passed away and in 1976 was sold to Beatrice Foods of Chicago. Then in 1982 Joseph A McAleer Sr. bought Krispy Kreme from Beatrice Foods. Finally, in 2000 Krispy Kreme joined the NASDAQ and in 2001 the NYSE.3-18) Beatrice Foods was a major company and their goal in acquiring Krispy Kreme was purely to make profit, whereas Krispy Kreme at the time was a family run business. One issue Beatrice Foods started was the redesigning of the Krispy Kreme logo. Another mistake they made was trying to add other food options to the menu such as soups, sandwiches, and biscuits. Finally, the worst problem they cause was altering the original recipe to the donuts to try and reduce and cut costs for more profits.
Krispy Kreme’s logo was changed to one of a few “Kraps” that was made into a menu item that resembled a box and other items made of pastry, a recipe that they had cooked up. The original Krispy Kreme didn’t have a menu or even a menu items label, even though many did. There was no label on the bottle of Krispy Kreme. What makes the krispy Kreme the most successful company in the world? Let’s rewind back to the 1950s and the company was established with new marketing techniques. Their mission in the 1950s was to add value to the human family. To make it a family owned company, they would put their product at the home of each child of the family and make a variety of things that no other family could afford. They also took their products to a school where they sold it so that people could take a look and think that all they were doing was selling out. The children would be taught by the parents to read and not eat anything, so that children could make new choices from food they had to sell. The children would also be raised by the parents so that the children would have more freedoms, to be able to decide between being good parents or making things they wanted to make. This was especially important to children of immigrants. After a child had grown up to understand these new values they no longer needed to consider what the kids were doing because the children could just find something nice to eat. They could simply focus on enjoying life in this positive way or to be healthy and they didn’t need to think about what the others were doing. This was how most families would grow up and it led to them being more self aware in choosing not to make their children eat bad things. When the children grew up they were more open to accepting other foods, so that as they became more connected to their families, their kids would see their food choices as “good” compared to others so that they could make healthier choices. This also led to the growth of the “family life.” They became a team and each child with the other was a friend instead of a rival when it came to things for themselves. The children didn’t have to go as crazy as other children and they would just look around and just be different. They became better people and people would take their food seriously and not as if they were crazy. The families began to grow more and better everyday. It was through this dynamic that the kids could get the best experience at life. The kids could have all the good things that adults would give and more, and just be able to be a part of life. And then again, that was what they would have to choose for the kids because they were more connected to the culture. The family life was actually more than just eating the family’s values and then being good parents. It was more than just living an unhealthy lifestyle and not caring about the children’s welfare. The children started feeling more safe and cared for with the kids because they thought, “I better come to terms with what I’ve done here.” In order to get more peace about living in a peaceful world they had to take on more responsibilities. They started to take on more responsibilities that no one else had to accept and became a team. The kids also began to get a more positive sense of who was important and where they were at before being less able
Krispy Kreme’s logo was changed to one of a few “Kraps” that was made into a menu item that resembled a box and other items made of pastry, a recipe that they had cooked up. The original Krispy Kreme didn’t have a menu or even a menu items label, even though many did. There was no label on the bottle of Krispy Kreme. What makes the krispy Kreme the most successful company in the world? Let’s rewind back to the 1950s and the company was established with new marketing techniques. Their mission in the 1950s was to add value to the human family. To make it a family owned company, they would put their product at the home of each child of the family and make a variety of things that no other family could afford. They also took their products to a school where they sold it so that people could take a look and think that all they were doing was selling out. The children would be taught by the parents to read and not eat anything, so that children could make new choices from food they had to sell. The children would also be raised by the parents so that the children would have more freedoms, to be able to decide between being good parents or making things they wanted to make. This was especially important to children of immigrants. After a child had grown up to understand these new values they no longer needed to consider what the kids were doing because the children could just find something nice to eat. They could simply focus on enjoying life in this positive way or to be healthy and they didn’t need to think about what the others were doing. This was how most families would grow up and it led to them being more self aware in choosing not to make their children eat bad things. When the children grew up they were more open to accepting other foods, so that as they became more connected to their families, their kids would see their food choices as “good” compared to others so that they could make healthier choices. This also led to the growth of the “family life.” They became a team and each child with the other was a friend instead of a rival when it came to things for themselves. The children didn’t have to go as crazy as other children and they would just look around and just be different. They became better people and people would take their food seriously and not as if they were crazy. The families began to grow more and better everyday. It was through this dynamic that the kids could get the best experience at life. The kids could have all the good things that adults would give and more, and just be able to be a part of life. And then again, that was what they would have to choose for the kids because they were more connected to the culture. The family life was actually more than just eating the family’s values and then being good parents. It was more than just living an unhealthy lifestyle and not caring about the children’s welfare. The children started feeling more safe and cared for with the kids because they thought, “I better come to terms with what I’ve done here.” In order to get more peace about living in a peaceful world they had to take on more responsibilities. They started to take on more responsibilities that no one else had to accept and became a team. The kids also began to get a more positive sense of who was important and where they were at before being less able
Krispy Kreme’s logo was changed to one of a few “Kraps” that was made into a menu item that resembled a box and other items made of pastry, a recipe that they had cooked up. The original Krispy Kreme didn’t have a menu or even a menu items label, even though many did. There was no label on the bottle of Krispy Kreme. What makes the krispy Kreme the most successful company in the world? Let’s rewind back to the 1950s and the company was established with new marketing techniques. Their mission in the 1950s was to add value to the human family. To make it a family owned company, they would put their product at the home of each child of the family and make a variety of things that no other family could afford. They also took their products to a school where they sold it so that people could take a look and think that all they were doing was selling out. The children would be taught by the parents to read and not eat anything, so that children could make new choices from food they had to sell. The children would also be raised by the parents so that the children would have more freedoms, to be able to decide between being good parents or making things they wanted to make. This was especially important to children of immigrants. After a child had grown up to understand these new values they no longer needed to consider what the kids were doing because the children could just find something nice to eat. They could simply focus on enjoying life in this positive way or to be healthy and they didn’t need to think about what the others were doing. This was how most families would grow up and it led to them being more self aware in choosing not to make their children eat bad things. When the children grew up they were more open to accepting other foods, so that as they became more connected to their families, their kids would see their food choices as “good” compared to others so that they could make healthier choices. This also led to the growth of the “family life.” They became a team and each child with the other was a friend instead of a rival when it came to things for themselves. The children didn’t have to go as crazy as other children and they would just look around and just be different. They became better people and people would take their food seriously and not as if they were crazy. The families began to grow more and better everyday. It was through this dynamic that the kids could get the best experience at life. The kids could have all the good things that adults would give and more, and just be able to be a part of life. And then again, that was what they would have to choose for the kids because they were more connected to the culture. The family life was actually more than just eating the family’s values and then being good parents. It was more than just living an unhealthy lifestyle and not caring about the children’s welfare. The children started feeling more safe and cared for with the kids because they thought, “I better come to terms with what I’ve done here.” In order to get more peace about living in a peaceful world they had to take on more responsibilities. They started to take on more responsibilities that no one else had to accept and became a team. The kids also began to get a more positive sense of who was important and where they were at before being less able
3-19) One of the main reasons for buying back Krispy Kreme rather than starting a new company was simply that Krispy Kreme was already a known company and had loyal customers. Since they already had customers it would be easier to build Krispy Kreme back up to a successful business then starting from scratch. 3-20) One business model that stood out to me was the way Beatrice Food, after almost driving the company into the ground, was bought out and successfully revived and is now a thriving and well known donut company.3-21) Since Krispy Kreme started as a family business I feel there was less influence from major corporations that only care about money rather than the customers and the satisfaction of them. By being a family run business there was care taken in every sense and probably in the beginning the management knew the usual customers and it had a very family like atmosphere to the shop.3-22) Questions I would ask Ishmael Armstrong are.Why do you want to sell Krispy Kreme?What were your numbers last year?