‘To be Instagram-worthy is part of the doughnut game now’: Krispy Kreme looks towards further Irish expansion

Doughnut company’s UK & Ireland boss Jamie Dunning on inflation, upmarket competitors and its e-commerce plans

The “hot now” sign above the door of Krispy Kreme’s Blanchardstown store is lit up, signalling that its Original Glazed ring doughnuts are available hot and straight off the line. In the company’s native US these glowing red signs are famously a beacon for passing motorists in need of a sugar rush.

“We haven’t created that cultural strength here in Ireland yet, but that is the ambition,” says Jamie Dunning, managing director of Krispy Kreme in the UK & Ireland.

After a period of rapid expansion, “relevance” is the watchword for the company’s Irish operation, which began with a bang in 2018 when the queues outside the Blanchardstown unit were so long and frenzied, they garnered international headlines.

“We’re changing phases. Last year was definitely a year of aggressive physical expansion. We’ve gone from one store to 15 stores in two and half years, and from nine cabinet partner locations to 105,” Dunning says.

As far as locations go, expansion will be “opportunistic” and “a lot more selective” in future.

“The mindset in the business is now moving to broadening our appeal and relevance.”

Krispy Kreme, which employs almost 200 people in Ireland, plans to introduce an ecommerce service with premium gifting lines and personalisation options in early 2025.

“How famous are we for birthdays? How famous are we for office shared treats? How famous are we for other family occasions? There is more we can be doing to make us top of mind for those occasions,” says Dunning.

With customers here said to have a “stronger Americana heritage attachment” than their UK counterparts, Original Glazed accounts for a third of all sales in the Irish stores, country manager Declan Foley says, placing it ahead of varieties such as Lotus Biscoff and Nutty Chocolatta.

Limited editions, such as its green-tinged St Patrick’s Day varieties, also form part of the offering in a confectionery market where to be deemed “Instagrammable” always helps.

Dunning says there is “more to come” from a new partnership with women’s fashion chain Pretty Little Thing, which has led to the creation of the strawberry-iced, sprinkle-dipped Pretty Little Unicorn doughnut, with similar campaigns planned with other social media-friendly partners throughout the year.

“There is definitely an Instagram aspect to doughnut consumption today that is more prevalent than it was five years ago, no question, and to be Instagram-worthy is part of the doughnut game now.”

The company saw revenue growth of 45 per cent last year compared with 2022, when its sales topped €10 million and expansion costs led to a pretax loss of €415,000. Although the 2023 accounts are not signed off on yet, it is not anticipating a loss for last year.

Cost pressures – on ingredients and other inputs – have not gone away but they have lessened, with Krispy Kreme now focused on absorbing them through business efficiencies, “rather than continuing to pass cost on to our consumers”.

In London there has been a noticeable proliferation of “super-premium” doughnut brands such as Donutelier and Crosstown. What does Dunning make of this?

“At that top end, you typically have a sourdough doughnut with stuff on top. I’m sitting here still very, very confident about the integrity of [Krispy Kreme’s] great dough. We’re untouched in that sense, but competition keeps us on our toes, and consumers are the winners in terms of choice.”

So, no sourdough?

“We have no reason to deviate. We acknowledge the desire for gluten-free but we would only do that as and when every part of that sensory delivery was as good as any other Krispy Kreme doughnut, and we can’t find the technology that will do that yet.”

He would not be able to defend daily consumption, he says, which is why the brand operates in the “instinctively shared” occasions space.

“We’re not in pursuit of people coming in and buying one doughnut for themselves. We’re in pursuit of making a difference to shared occasions in the office, at parties, together at home. That’s what the brand lends itself to, and that’s what works for the economics.”

Reporting On:irishtimes.com