Krispy Kreme Uses Social Media to Spur Sales

The doughnut chain has registered five consecutive years of increases in same-store sales.

March 14, 2014

WINSTON-SALEM, N.C. – What’s the secret to Krispy Kreme’s consistent growth? A loyal customer base that stop by one of the doughnut chain’s 253 U.S. locations at least once a month. While that might not seem like a lot of visits, it works for Krispy Kreme, which registered a bump in same-store sales for the five consecutive year.

Most foodservice chains haven’t been able to boast such continued growth, according to Darren Tristano, executive vice president at Technomic. “It's like sports -- it's difficult to win every game, since growth in sales is usually year over year,” he said.

What’s even more impressive is that Krispy Kreme has some serious competition for the breakfast market, with Dunkin’ Donuts, Starbucks, McDonald’s and other chains slugging it out for a slice of the morning daypart. The donut chain also sells indulgent food with no pretence of being good for you.

The brand has been “built on word-of-mouth,” said Dwayne Chambers, chief marketing officer. Social media has been a natural fit for the company, with much of its marketing focused on community and local outreach via digital means.

With a nod to the gluten-free trend, the company will rollout its version later this year. “It's another opportunity to bring variety to our doughnut menu offerings,” said Chambers. Krispy Kreme’s expansion into coffee has been rather unorthodox. For example, the company started selling two coffee-flavored doughnuts (Caramel Coffee Kreme and Mocha Kreme) as a limited-offer. It will also sell two bottled coffee drinks in Walmart.

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