Why did Krispy Kreme diminish in popularity?
I think it was a couple of things. For starters, when they first became popular they were building Krispy Kreme doughnut shops everywhere. They grew too big too fast, so the market got saturated (Starbucks has experienced the same thing in big cities — they’re closing a lot of their coffee shops because there are so many of them so close together and they’re not getting the foot traffic they expected). Not too long after that, people found out just how bad Krispy Kreme doughnuts are for you. They’re literally a heart attack waiting to happen. As a result, they became less popular. Put the two together and you have a company that spent (and probably borrowed) a ton of money to expand fast, only to get nailed in the end…
