WINSTON-SALEM, N.C. - Krispy Kreme Doughnuts is expanding its menu but not with new flavors of doughnuts. Instead, the chain is adding coffee and healthful options in an effort to bring in more revenue, Bloomberg Businessweek reports.

Since its debut in 1937, Krispy Kreme Doughnuts has built its reputation on the classic glazed doughnut. But CEO James Morgan has plans to put fruit juice, oatmeal and yogurt on the menu alongside the chain??s doughnuts.

The chain fell on hard times with the rise of the Atkins diet and too much expansion too quickly, but has lately begun to climb out the hole. To capitalize on that, Morgan wants to expand into specialty coffee and healthier fare. "We weren't getting a lot of verbal complaints," said Morgan. "But we also were not getting the sales we thought we should."

Since Morgan took the helm in 2008, he??s been working to turn around the sales by redesigning the chain??s retail locations into smaller, neighborhood stores instead of factory stores. Also, the chain jacked up expansion in overseas markets.

But in order to compete against Starbucks and Dunkin?? Donuts, Krispy Kreme needs to increase sales. Morgan thinks coffee will be a big help in that regard, rolling out signature coffee starting in September. The chain will add espressos and lattes to the mix during the next 18 months.