Hot doughnuts… The craze that swept the nation only six years ago might soon be a relic of the past.  There is nothing that matches (while equally unhealthy) the taste of a glazed doughnut right off the “assembly line.” That experience, though, is soon to be a forgotten memory, only shared in fireside chats with your children and grandchildren – reliving the past glory of the glazed doughnut.

I can remember waiting in anticipation as the Krispy Kreme location 3 minutes from my home in Austin, TX was slowly built.  Equally clear was the “Hot Now” sign that stayed lit for nearly a year straight. 

But now, with a stock battered – down 47 points since its historical high five or so years ago – Krispy Kreme is looking to reinvent itself.  With what?  Ice Cream.

It is far too little, far too late for Krispy Kreme.  The company has long since lost their way, and never planned for situations that have arisen that threaten to doom the doughnut maker.  At some point, they killed the “spectacle” that was the hot doughnut.  Once known for their long lines and fresh tastes, Krispy Kreme chose the path that so many others choose – more distribution points including gas stations, grocery stores and convenience shops.

With that decision came the reality that Krispy Kreme believed that their doughnuts were a commodity and not an experience. In my opinion, that was a decision that doomed the company – especially when they had likely invested billions into the real estate market building out their retail locations.

Now with the company struggling and their revenues dropping, they have not chosen to relive their glory years and go back to what made them successful (similar to the route that Starbucks has taken) – the hot doughnut experience.  Instead they have chosen to start selling soft serve ice cream, and diversifying their product offerings even more.  The reality is that Krispy Kreme is so off course that it would take a miracle to bring back the success of the Krispy Kreme of yesterday.