The US owner of doughnut retail concept Krispy Kreme announced Thursday that it is taking a majority controlling stake in the Canadian franchised operations Krispy K Canada. As part of the deal, Krispy Kreme says that it is planning an expansion.
Krispy K Canada operated 10 Krispy Kreme locations in Canada in the Ontario and Quebec Markets. The Ontario locations are all in the Toronto area and the Quebec locations are in Montreal and Quebec City. A Krispy Kreme also operates separately in suburban Vancouver.
Canadian operating partners for Krispy K, Christopher Lindsay and Kelcey Hamaker, will remain as co-CEOs of the entity after the transaction is completed and will continue to manage the day-to-day operations of the Krispy K Canada shops.
US-based Krispy Kreme says that its investment in the Canadian operations reflects its confidence in the Canadian market. With that, plans are in place to open more Krispy Kreme storefronts in Canada while expanding an omni-channel strategy. The omni-channel strategy allows Krispy Kreme to reach more consumers by creating points of access across multiple channels, including its shops, e-commerce, delivery, and retail. The strategy is supported by what the company describes is a capital-efficient hub-and-spoke manufacturing and distribution model that enables Krispy Kreme to deliver fresh doughnuts daily to points of access through an integrated network of delivery routes.
“Working with Krispy Kreme for so many years, we know that the Company shares our belief in the potential for growth here in Canada,” said Christopher Lindsay and Kelcey Hamaker, co-CEOs of Krispy K Canada. “Our strong recent performance is a testament to that potential, and our ability to deliver a great Krispy Kreme experience across different formats has been a key driver of this success. We are thrilled to continue to work alongside our partners at Krispy Kreme to deliver on our vision of providing more people the most awesome doughnut experience on earth.”
Krispy Kreme noted that the UK and Australia both have over 1,000 retail points of access for the brand, indicating that a very significant expansion is at play for the Canadian market as well.
Globally, Krispy Kreme has been bolstering is operations including increased control through increased ownership — following the Canadian transaction, Krispy Kreme will control 75% of sales across its global network.
Krispy Kreme is headquartered in Charlotte NC and is known particularly for its iconic Original Glazed doughnut. The company operates in 31 countries through its network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing ecommerce and delivery business. The company’s first Canadian location opened in Mississauga in December of 2001.