March 21, 2023

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McDonald’s sells Krispy Kreme donuts in its latest menu experience

McDonald's sells Krispy Kreme donuts in its latest menu experience

Scott Olson | Getty Images

McDonald’s will sell Crispy Cream Cakes are in select restaurants later this month for the first time.

Starting October 26, the fast food giant will be selling the Krispy Kreme donut at nine locations in the Louisville, Kentucky area as part of the test. McDonald’s said the test will help it learn more about how the collaboration with Krispy Kreme affects its operations.

McDonald’s customers will be able to order the original glazed and iced chocolate with sprinkles and raspberry-filled muffins, either individually or in packages of six. Participating McDonald’s locations will sell donuts all day, but sweets will not be available for delivery.

Krispy Kreme will deliver fresh donuts daily to McDonald’s restaurants, according to McDonald’s. The donut chain uses a ‘pivot-and-spoke’ model that allows it to efficiently create and distribute its desserts. Production centers, which are either donut shops or factories, send fresh donuts every day to retail locations such as grocery stores and gas stations.

The test comes as consumers begin to cut back on visits to restaurants, as rising inflation has strained budgets. To bring customers back to restaurants, chains have been testing new menu items and promotions.

In the first half of the year, McDonald’s said lower-income consumers in the United States were spending less at its restaurants. On the other hand, Mike Tattersfield, CEO of Krispy Kreme, said his chain has strong pricing power because customers are willing to splurge on an affordable dessert like freshly baked donuts.

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In the second quarter, Krispy Kreme reported 7.5% revenue growth for its US and Canada division. But it trimmed its full-year forecast for earnings and revenue, citing a stronger dollar and weaker performance from U.S. production centers not offering to other locations.

This isn’t the first time fast food chains have relied on donuts to attract customers. In 2020, KFC launched the “Fried Chicken and Donut” sandwich nationwide after the ingredient tests attracted attention on social media.