It is not news that both clients and companies are doing everything possible to overcome the increase in inflation, although there is one company that is not worried at all: Krispy Kreme.
The CEO of the donut chain, Mike Tattersfield, told Yahoo Finance that customer visits are not as frequent, so the higher prices on their products do not drive them away.
Y is that the average user visits a Krispy Kreme only two and a half times a year, according to Tattersfield.
Tattersfield explained that when visitors go to a Krispy Kreme, it’s more like a celebration. Likewise, he emphasized that price is not the main characteristic for which a person goes to one of his branches.
The CEO said that customers rather see the brand as an option to go to celebrate some special occasion a few times a year. That allows the company to get many visits on annual events like Halloween, Valentine’s Day, instead of having daily visits, which in turn gives the company the power to set any price.
Tattersfield said: “We really absolutely maximize the opportunities when Halloween is coming up, when the holiday season is coming up, when Valentine’s Day is coming up… our number one day in the world.”
Recall that the Charlotte-based donut company raised prices in September and November to offset wage and commodity inflation.
And it won’t stop there, as Tattersfield told Yahoo Finance the company plans to implement more price increases this year as inflation continues to peak at more than 40 years.
In the fourth quarter, ending January 2, 2022, the company had an increase in revenues of 13.8% compared to the previous year. Going forward, Krispy Kreme has plans to expand into grocery stores and convenience stores which will receive new orders daily.
Still, Krispy Kreme is a long way from reaching pre-pandemic sales levels. On 10 January 2022, Krispy foot traffic Kreme was reduced by 17.21% compared to with 55, but only 1.55% compared to 2021.
As 2022’s Valentine’s Day approached, Krispy Kreme saw that the gap was reduced to 14.21% in comparison with 2020. However, when compared to 2021, foot traffic was reduced by 9.35% that same week, which suggests that the number of Ómicron infections still affects the brand.
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